With the current competitive environment in the industry, many dealers have added new products and services to help grow their businesses. However, they are faced with the challenges that come with getting your sales teams to embrace these products and services to generate new revenues and profits. In addition, only tracking revenue and profits alone, could be part of the problem with getting reps engaged.
The old saying “what gets measured, gets managed” could never be more relevant than when trying to grow sales of new products and services. Creating quotas, targets, and budgets for these products and services is an excellent way of managing sales of these items and allows you to see whether there is growth in these areas. We see many dealers with basic quotas for revenue and gross profit, and these single dimension quotas would be great if you are only selling one product, or don’t care where revenue and gross profit come from. But in a dealer’s case, it is imperative that the new products and services get sold and lead to new clients, incremental revenue growth, and an increase in gross profit. Single dimension quotas allow the sales rep to achieve or exceed assigned quotas, without participating in new product sales. This can be a negative for the dealer, as it limits the growth potential for these new products and services in these sales reps’ territories.
A best practice is to have a top-line revenue quota broken down into revenue categories such as production products, wide format, and solution sales. This allows the reps and managers to get the true picture of the product mix when achieving quota. This method will also help sales reps understand how they can achieve quotas by selling the complete portfolio of products, rather than trying to only sell one offering of the company’s solutions.
Initially, you can introduce these quotas as just sales management numbers and later tie them to bonuses and incentives for the sales reps that support the company’s goals of selling more products and services.
SalesScoreKeeper can help you automate the tracking and reporting of an unlimited number of quotas for all types of products or services. Remember, “What gets measured, gets managed.”
Book a demo today so you can see how easy it can be done.