Your department is in a sales slump. The company’s overall revenue is down. The big boss wants to know why.
As the sales manager, it is your responsibility to investigate the problem and implement changes. You must also resolve the issue to ensure your sales force does not fall short of its objectives. Many factors can contribute to a sales slump, making it difficult to determine the cause.
Nevertheless, if your marketing efforts and results are struggling, you need to find out why.
Here are a few of the numerous explanations for a sales slump. If you’re lucky, one of these may jump out as the obvious culprit. However, you might need to go down the list eliminating possible problems until you find what is causing the decline.
1. Changes in Senior Management Positions
Have you recently been given a promotion to sales manager? Is that when your company’s sales began to decline? If that’s the case, you might conclude that you’re the source of the problem, however, don’t take it personally.
Any significant change in senior management can impact sales outcomes and may even happen months after the change. Therefore, be upfront about your new expectations and the adjustments you’re making. This will help create a smooth transition.
2. Inadequate Sales Compensation Plan
Suppose your previous compensation plan was no longer functional. Could it be that your new compensation plan is a little too complex? It’s important to ensure your compensation plan is effective in motivating your salespeople.
At the same time, you’ll need to be certain it is helping your firm achieve its overall business objectives. An efficient pay plan is straightforward. Creating a plan that motivates employees may assist you in getting out of a sales slump.
3. Lack of Coordination Between Marketing and Sales
A lack of information-sharing, communication, and collaboration between your sales and marketing teams can negatively impact sales. Have there been any recent changes to the marketing team or marketing strategy?
Your salespeople rely on your marketers to provide them with qualified leads. Therefore, if you’re in a sales slump, consider that this could be the problem.
4. Old-school Sales Tactics
Some old-school selling strategies continue to be effective today. However, others do not belong in the present business environment. If you find yourself in a sales slump, look carefully at your techniques.
Are you still requiring your salespeople to cold-call leads? Are they still going door to door for sales? These outdated tactics could be significant factors contributing to a sales slump at your organization.
In today’s market, these types of selling strategies simply do not work. Following the concepts of inbound marketing and selling are much more effective approaches.
5. No Follow-up
Your sales representatives must follow up with qualified leads. If you discover they consistently neglect to follow up, it should be no surprise they are closing fewer sales. In addition, they may end up ignoring leads altogether.
Therefore, assist with follow-up reminders for those salespeople who are struggling. There are numerous sales enablement products available on the market that can help with this.
6. Inadequate Hiring
It can be difficult to find top-tier sales personnel. You require sales representatives who are intelligent, hardworking, passionate, and coachable. In addition, you need sales representatives who can qualify prospects, bargain, create relationships, and close deals.
However, if you have new sales personnel, your sales slump might be the result of their underperformance. In that case, you may need to implement better training practices. The other answer could be finding the right people to fill these positions.
7. Inadequate Sales Instruction
How intensive and successful is your training program? Many sales managers just throw new workers to the wolves, setting them up for failure from the start. Investing sufficient effort, time, and resources into training is crucial.
One of the most likely causes of a sales slump, both in volume and profitability, is a lack of training.
8. Ignoring Competitors
Suppose your competition has an imaginative new marketing campaign or a fantastic new product on the market. Your sales may be suffering as a result of their efforts. Therefore, to react quickly and effectively, you must keep your opponent on your radar at all times.
Ignoring the competition will only keep you in a weak position. Getting out of a sales slump means keeping your eyes and ears open to stay ahead of the competition. However, you can’t stay ahead if you don’t know where they are!
9. Lack of Motivation
Your salespeople may be in a rut themselves. Therefore, it is your responsibility to motivate them. Salespeople who lack motivation will bring about a decrease in productivity, resulting in a decline in overall sales volume.
In other words, check for attitude issues in your sales force. This could be the cause of a sales slump. To boost motivation, you may consider holding sales contests that are both entertaining and inventive.
Image Credit: Tima Miroshnichenko; Pexels; Thank you!