Home » The New Radio Model

An Eye-Opening Calculation

By: Jim Hopes 10 November 2009 Print Version Print Version

One thing that would surely keep you awake at night would be an accurate calculation of the percentage of time your salespeople spend in front of legitimate prospects each week. You may think the number is north of 50%, but if you could really track it with a high degree of accuracy, you would likely be shocked (think more like 20%—if you’re lucky).

Why is this? Are salespeople inherently unmotivated to make face-to-face calls with legitimate prospects? Some of you might think so based on the new-business call quotas I have heard of in the field. We have found that talented salespeople, properly trained, do NOT avoid face-to-face calls with prospects. Rather, they are prevented from making a sufficient number of new business calls by the structure in which they operate.

Who in your organization writes ad copy for clients? Who helps salespeople prepare marketing materials for prospects? Who in your sales operation is responsible for helping salespeople work through the details of order entry, continuity tracking, and spot-time communication? Is there someone in your department who is highly competent in helping salespeople develop compelling ideas and proposals that offer powerful solutions to clients’ needs?

If your response to these questions is “Absolutely, we have support people in each of these areas that free sellers up to do what they really like to do—sell”, then I say congratulations. You are a rarity and your business is probably doing very well this year. But, chances are the resources to support your salespeople and free them up to get in front of new prospects, uncover needs, and propose solutions have gradually been eliminated in this expense-cutting environment. So, you have discovered the culprit—in the mirror.

You are no doubt thinking I don’t understand how tough things are and why you had to cut resources over the year. But, alas, I do understand. I also see and understand the impact of those cuts. The work those support people had been doing is still getting done, but now it’s getting done be your salespeople, and every hour they spend on support functions is an hour less spent selling. What you’ve actually done is cut your sales strength, not your support services.

There is a solution that does not involve calling all those laid-off people back. Perhaps you should be thinking about taking your total cost of sales compensation and re-allocating it. Think about this. If you had a sales staff of ten people, each making two face-to-face new business calls each week, your practical inventory of new business calls would be 20. If instead you had even six people making six legitimate face-to-face new business calls a week, your practical inventory of new business calls would increase to 36—an increase of 45%. (Keep in mind; I am talking about real new business activity, not hawking one-time packages.) The other four people could be support staff and marketing specialists who would make your people look good and are more effective.

With radio revenue knocked back t
o mid 1990s levels and newspaper expenditures thrown back to the 1960s, it’s ludicrous to think we are in the same business we were in during the 20th century. It’s a new world that requires new thinking.

You probably still need 10 people in the sales department, but not all of them need be salespeople. What most stations are doing today makes salespeople overpaid administrative assistants, lackluster copywriters, and a source of forgettable ideas. On paper, it looks like you’re saving money. On the street, it makes you weak, with fewer than ever new-business calls. Based on our own experience with stations that have done this, we know for a fact that there are new ways for radio stations to structure their sales departments, and to get more done without adding headcount.

Jim Hopes is the CEO of The Center for Sales Strategy, Inc, and a Member of The Radio Workout Team.


Tags: ,

No Comment

Leave your response!

Add your comment below, or trackback from your own site. You can also subscribe to these comments via RSS.

Be nice. Keep it clean. Stay on topic. No spam.

You can use these tags:
<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>

This is a Gravatar-enabled weblog. To get your own globally-recognized-avatar, please register at Gravatar.