Your China sales department can fill the role of Frontier Scout who helps your company find its way across unfamiliar terrain to reach your final destination – or it can be the trusty stevedore who handles the heavy lifting once you’ve arrived. Unfortunately for many of us the sales force can also act like reckless renegades that bring chaos and disorder with them every time they ride into town.
If you are the ex-pat manager charged with China sales responsibility, running a successful team here is very different from back home.
Sales team – Leaders or Followers?
That depends. If you are in manufacturing or run an operation that has a finite capacity, then you need a sales team that can take their cues from the head of operations. You don’t want them over-selling if they are just making promises that your company can’t meet.
If you are in a service business where capacity can be ramped up quickly, then your salespeople need to be out in front, filling the pipeline with a steady stream of new business – and reporting to management and marketing on customer demands and preference, pricing, and competitive analysis.
China Sales HR is management intensive
US sales forces tend to be highly independent, self-motivated, often unruly mobs of wanna-be alpha dogs. Management’s role is usually to rein them in when they get too wild, or to whip them up with a bonus or sales contest. In China sales teams tend to be a little more subdued. Sales is not a high-status position here, and many people just don’t really believe in the commission concept. Even those who want to sell often don’t understand the basic skills – or even the concepts – that are second nature in more developed markets. Recruitment is cumbersome, training is expensive and turnover is high in the sales department. You have to manage these guys closely. Here are a few ideas that will help even the odds.
Training
Salesmen in China need more training than in other places. In general, a China-based sales manager will probably be devoting at least 50% of his time to supervising / training. If the head of your department is spending 95% of his time making sales calls and dealing with customers, you are going to have a very hard time growing your department.
Sales training breaks down into 3 phases.
1)Orientation training. Explain how the basic sales function works, and how the salesman integrates with the rest of the company. I know it’s obvious to you. It might not be obvious to your new recruit. This is where you talk about your company mission, values and rules. Your kick-back & bribery talk should take place early – and avoid confusion, ambiguity and wiggle-room.
2)Skills training. Get a competent outside trainer and teach them the sales process. Even if they have sales experience, you still have to do this on a regular basis.
3)Development. This includes coaching, train-the-trainer, and career counseling. If you expect your decent sales people to stick around for more than a few months, you have to let them know where their careers are going.
Measurement Start with good, regular meetings. Good meetings are those that make each salesperson explain what will happen this week, what happened last week, and why last week was different from what they expected. They have to take place every week at the same time. If your sales manager is too busy to have regular sales meetings, then he is too busy to run a proper sales department.
You need to measure the right things. Measuring final sales is great, but it tends to be too late. Look at how many leads are coming in, how many of those are being CONVERTED into qualified prospects, and how many prospects are being CONVERTED into sales. That’s what we mean when we talk about conversion rates. You should also look at where your leads are coming from, and if they are growing in a predictable manner. I love CRM and other automated systems – once you have the processes down. Companies that try to impose order and process on their sales teams by installing expensive software systems almost always fail miserably.
Compensation
Salesmen should be paid for performance, but make sure that you are paying for the behaviors that you want to encourage. If you pay for sales, they will try to sell – but they won’t do paperwork, train new team members or report to marketing on new developments in the marketplace or among competitors. If you compensate the whole team on general sales levels you will see better action from your weak performers but less from you aggressive stars. You need to find a middle ground that satisfies your individual situation.
Quotas tend to increase turnover and drive new people out the door before they’ve had a chance to really learn their jobs. Don’t put sales quotas in place unless you have a strong training program and there is some kind of formal mentoring or coaching plan. Quotas work best when individual commission rates are high, the brand is a proven market winner and there is a long waiting list of new applicants for sales posts. If you don’t have that situation, consider scrapping the quota system for now.