Security Dealer & Integrator

SEP 2018

Find news and information for the executive corporate security director, CSO, facility manager and assets protection manager on issues of policy, products, incidents, risk management, threat assessments and preparedness.

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22 Security Dealer & Integrator / www.SecurityInfoWatch.com September 2018 bout 10 years ago, I was catching up with a friend – a Regional VP of a $2B so- ware company that specialized in healthcare – and the discussion shied to metrics. What struck me was a statistic he shared: For all opportunities that reached the pro- posal stage, his company had a 55-per- cent close ratio; however, when a prospect visited their corporate HQ in Kansas City, their close ratio jumped to 93 percent. His comment was per- fect: "I tell my team to do whatever they have to do to get their prospects to corporate – it is that simple." I understand that these numbers may seem skewed, but the sample size was large enough to make it a valid statistic. ere is no need for a deeper analysis of "why" when 93 percent of prospects that made the visit moved forward with an order. Get those cli- ents to Kansas City! What are your dominant metrics? What Key Performance Indicators (KPIs) do you measure? KPI tracking tends to be a bit dated in the security industry. In writing this piece, I con- sidered the scenarios of salespeople both for integrators and manufactur- ers, as well as sales managers: Integrator sales professional: e integrator salesperson requires a balanced approach more than any pro- fession. is person prospects for new business, develops relationships with contractors and consultants, networks, works with vendors and distributors, drives demand with end-users, designs and proposes solutions, closes sales – the list goes on. ey must do all these different activities every week – if they fall out of balance, they are in trouble. Although that list of activities is diverse, they all lead to one KPI that really matters: quotes on the street. To ensure that their work strikes the necessary balance, measure two KPIs: Open Quotes and Quotes Delivered per Week/Month. Understanding these two KPIs will give management and the salesperson visibility into recent activity and the health of their pipe- line. Balancing these two indicators will ensure success. Sales managers: In my first sales job, one of the newer reps in my dis- trict killed it one quarter, and my boss could not stop talking about his great- ness. Six months later, he was fired. e person got lucky for one quarter, and the company was ready to crown him king of sales. Later in my career, one of our regional sales reps was struggling. is guy was sharp, but he was not hitting his numbers. My boss was ready to pull the trigger and let him go – thank- fully, he didn't and within a couple of months, his funnel popped and it never stopped flowing. Both scenarios represent the same mistake committed by many sales managers: only measuring "what have you done for me lately." To get an accu- rate analysis of a sales team's perfor- mance, you must measure sales results and sales activity. How many times have you had a salesperson break every record in April, but deliver goose eggs in May and June? As the leader, you need to hold them accountable to sales and key activities that lead to sales. Manufacturer sales profes- sional: For a vendor, predicting sales is like predicting the weather for next month – most of the time it comes down to experience and gut-feel. e key is to make sure that your gut is consistent, because it is better to be consistent than accurate. Read the last sentence again – it is counterintuitive but true. To predict sales success, you must identify an early-stage activity metric that indicates success. To determine which metric, mea- sure all activity: End-user demos, lunch-and-learn meetings with con- sultants, sales training with integra- tor partners, etc. Aer doing some math, you will determine a few KPIs that predict success – for example, 10 demos and three lunch-and-learns per month means the sales number is reached two months later. ■ »Chris Peterson is the founder and president of Vector Firm (www. vectorfirm.com), a sales consulting and training company built specifically for the security industry. To request more info about the company, visit www.securityinfowatch.com/12361573. Modern Selling BY CHRIS PETERSON Sales KPIs Key Performance Indicators are often the key to success A How many times have you had a salesperson break every record in April, but deliver goose eggs in May and June? As the leader, you need to hold them accountable to sales and key activities that lead to sales."

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