There is a myth in the business world that applies the theory when it comes to sales more is better. Let me be the first to say that more is not necessarily better, more is simply more.
Here are three examples of more that simply does not mean more:
More sales people does not equate to more sales!
More customers does not mean better profits!
More leads does not translate into more clients!
More only leads to more when there is a defined strategic process associated with the plan for more. Here is how more becomes more when applied to the three examples:
1. More salespeople to boost sales: Simply hiring more sales professionals does not equate to an increase in revenues. The process for hiring, training, managing and developing sales professionals is the first part of the success model. Successful salespeople do not simply arrive with the skills to be successful, they merely come with the experience to be successful. The success of a sales recruit is directly dependent on an organization’s commitment and ability to hire effectively, train properly, manage skillfully, and develop consistently. Minus those components, all you will get from hiring more salespeople is more sales people.
The second piece of this equation is connected to the market. This is covered in better detail in the next two steps; however, you cannot achieve more sales without the knowledge of what is consistently effective in your current sales model. Until you know what works and how to define, educate, and articulate that success model to your new hires, you will not have more sales, only more people.
2. More customers to improve revenues and profitability: Not every new account sale is a good deal for the organization. There are significant acquisition costs associated with a new client. An improved bottom line is directly related to improvements in profitable revenues. Simply getting more customers may increase revenues but may not improve profitability.
The best approach is to understand what type of customer is most profitable to the organization and focus your growth efforts toward those businesses. The “any client is a good client model” is a recipe for potential failure. The best strategy is to focus your growth efforts around establishing strong market presence in profitable growth areas and develop a strong sales team there.
3. More qualified leads that convert to profitable clients: Organizations that have checked the box, “tell me more” are not qualified leads, they are interested leads. Interested is not necessarily something that is easily converted or profitable (see #2). The answer to the question, “how do I turn my leads into clients?” is best answered in “create and discover more ‘qualified‘ leads.”
Interest is not qualified, qualified is qualified. A qualified lead can be loosely defined as a “contact that has articulated or defined a problem, challenge, or opportunity in their business that they desire to discuss and share with your organization for the purposes of uncovering what you may do to solve their problem.” While I am not much of a believer in a marketing process that can provide qualified leads, I am receptive to the concept provided this standard of care is applied and followed. Interest is not the only qualifier; in fact, it is barely a qualifier.
Interest, awareness, desire, and discovery are the four qualifiers: they are interested in what you have, they are aware of your capabilities, they have a desire to deal with an issue, and they are looking to discover a solution to it. Until you can understand and articulate these four components of a prospect’s situation, you have a lot of leads, but zero qualified leads. Qualified leads convert more readily and easily than interested leads.
More does not only lead to more. More only increases or improves when it is part of a focused and strategic process. Next time you go for more, remember to manage your process, your strategy, and your commitment before simply adding on.