An innovative approach for selling improvement
- Sales are clearly an important factor in each economy
- Retail and food sales in the United States in 2016 reached $4,500,000,000,000
- The sales division of an organization is the financial base for company’s life
- Market is becoming more competitive
- Margin’s reduction force to find new approach
- Relationship between customer and seller is a CSF
- Behavior analysis is a scientific discipline of 70’
- Few studies have tried to experimentally evaluate methods of improving sales
- Training sales and managing sales people are often based on traditional techniques
OBSTACLES OF SCIENTIFIC APPROACH TO GAIN SALES
- Unknown antecedents that may influence critical behavior
- Lack of client information
- Client history with respect to purchasing products
- Participant history with respect to selling
There are also variables that are not under control of the seller:
- Competitive products emerging
- Seasonal variations
- Technological improvements
- Other environmental changes that can influence demand for a product
TRADITIONAL MANAGING SALES FORCE
- paying salary hourly/weekly
- commission, bonus, profit sharing, benefits, and use of technology (i.e. cell phone, computer etc.)
- company vehicle, or other tangible items (work/personal/ combination of)
OUR EXPECTATIONS IS THAT MORE I PAY FOR A RESULT,
MORE I WILL OBTAIN IN SELLING IMPROVEMENT.
BUT IT’S NEVER SO EASY
Commissions are the most common approach, because encourage people to engage in more selling behaviors (such as closing deals).
Several studies (Crawley, Adler, O’ Brien, Duffy (1982) demonstrate that commissions paid 3 months later, have relative and indirect effect on reinforcement of critical behaviors.
In other words, short term paying commissions works better as reinforcement of desired behaviors, but it should be an indirect actor of them.
COMMISSIONS, INCENTIVE AND BONUSES: OTHER FACTORS
These tools are quite the same, Incentives and Bonuses typically require a self monitor approach.
Once the required performance level is achieved, incentive or bonus is gave after 3-6 months, giving a very little
effect on improving behavioral approach.
These instruments normally improve behavior of people who already have excellent selling repertoire, but do nothing for those who lack an effective selling repertoire.
Benefits, profit sharings, training course, use of tech, company’s tools for personal use, etc have very very
little relevance as they have, in seller’s mind, no correlation between behavior and result.
When I pay commissions, Incentives and bonuses to my seller, I’m paying for a result and NOT FOR THE BEHAVIOUR THAT BROUGHT THE RESULT.