Business Development

Unlocking Sales Excellence: The Power of Knowledge Structures in High-Performance Sales Organizations

Unlocking Sales Excellence: The Power of Knowledge Structures in High-Performance Sales Organizations

CHANGE / SALES EXCELLENCE / by Inna Hüessmanns

27. December 2024

What is a High-Performance Sales Organization? A high-performance sales organization outperforms its competition and meets and exceeds the requirements and the needs of its customers.

Change Management Programs for High-Performance Sales Organizations should involve regular assessments of sales strategies, sales processes, and sales resources to serve the customers effectively.

Increasing the salesforce effectiveness during a customer interactionis one of the major tasks in B2B sales management.

Effective selling requires the salespeople to have a precise understanding of what constitutes working smarter during their interactions with customers. The practice of adaptive selling enables salespeople to exploit the unique advantage of personal selling in B2B sales environment.

Academic studies on sales performance variance explained by salespeople attributes examined the effect of role, skills, motivation, personal factors, aptitude, and organizational factors on sales performance and introduced the concepts of salespeople’s knowledge structures.

Because sales managers seek to understand how to enhance sales performance, they should know which salesperson characteristics explain the largest proportion of sales variance.

Academic research has found that aptitude (salespeople’s mental abilities, personality) accounted for 2 percent in sales variance, selling skills (e.g., sales presentations) for 7.2 percent, personal characteristics (physical traits, background, and experience) for 3 percent, motivation for less than 4 percent, and role for 9 percent of sales variance.

 

Role | ▌▌▌▌▌▌▌▌▌ 9.0%

Selling Skills | ▌▌▌▌▌▌7.2%

Motivation | ▌▌▌▌4.0%

Personal Characteristics | ▌▌▌3.0%

Aptitude | ▌▌2.0%

 

Knowledge structures refer to salespeople’s knowledge of their customers and the way in which the customer and selling knowledge is organized. Research indicates that in a sales environment, salespeople classify customers into self-developed categories and use a common strategy for each group. Salespeople’s knowledge includes information about the actions encountered in sales situations that salespeople can use to guide their behavior when selling to specific customer categories. If salespeople have more detailed knowledge of customers, it is expected that they will be better able to perform.

Some of the ways sales managers can help salespeople to constructively analyze their successes and failures are:

  1. Ask “why” questions about selling situations that force salespeople to analyze the reasons for effective and ineffective performance.
  1. If sales people provide external reasons probe further until a reason within the salesperson’s control emerge.
  1. Actively suggest that salespeople often fail through using strategies that are inappropriate for particular customer types. Therefore, it is worthwhile for salespeople to think about the strategy they use to approach customers with and to see if they can come up with a strategy that seems more appropriate.

By mastering these knowledge structures, sales professionals can unlock unprecedented levels of performance.

 

Managerial Recommendations:

In this article, I have made some suggestions for improving selling effectiveness through increasing the adaptability of salespeople and their knowledge structures. Successful selling requires detailed knowledge about different types of sales situations and customers. In addition, salespeople need a repertoire of selling strategies and knowledge about which strategy is best suited for each specific sales situation.

Salespersons’ knowledge structures explain a large proportion of their performance, and therefore should be more closely examined by organizations. Sales managers should pay more attention to the development of their salespersons’ knowledge structures. Salespeople should be trained to develop better knowledge structures. These training programs should teach salespeople to develop richer knowledge structures by combining information from everyday selling experiences. Salespeople should practice recognizing different customer categories early in the selling process so they can categorize customers appropriately and utilize different selling strategies throughout the sales interaction.

Want to dive deeper into these strategies and learn how to implement them in your organization? I’m offering a free 30-minute consultation to the first 10 sales leaders who reach out. Let’s discuss how these insights can be tailored to your specific business challenges and drive real results. Connect with me on LinkedIn to stay updated on more sales excellence tips and to book your consultation.

For more information please contact:

Inna Hüessmanns, MBA

International Growth Solutions

E-Mail: ih@i-g-solutions.de

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Thriving in Compexity: A Sales Manager’s Guide

Thriving in Complexity: A Sales Manager's Guide to Navigating Blurred Boundaries

B2B sales. Sales Managers Guide.

Sales Excellence / by Inna Hüessmanns

11. November, 2024

In today's dynamic business environment, sales managers find themselves at the epicenter of unprecedented change. The traditional sales paradigm is being reshaped by a perfect storm of rising customer expectations, technological advancements, and organizational transformations. To establish and maintain strong and long-lasting relationships with clients, sales managers must deal with a greater number and variety of stakeholders within client organizations. Understanding buyers’ influence dynamics and decision-making processes has become significantly more challenging. On the other side, their own organizations have also changed, going through digitalization, restructuring, process improvements, and cost cutting. Traditional boundaries between corporate functions such as sales, marketing, and other corporate functions have also blurred. In this new reality, success demands a fundamental reimagining of the sales manager's role – one that embraces adaptability, leverages cross-functional synergies, and thrives in the face of complexity.

Sales managers need to become social scientists capable of analyzing clients’ buying processes and influence across blurring boundaries in their own and in clients’ organizations in order to sell successfully in today’s business environment.

 

This article explores strategies for sales managers to effectively navigate these blurred lines and maximize their impact in the evolving sales landscape.

Embracing a Holistic Approach

As the lines between sales and marketing and other corporate functions blur, sales managers must adopt a more comprehensive perspective:

  • Develop cross-functional expertise: Expand your knowledge beyond sales aspects to include marketing strategies. Know all stakeholders of your selling center and their contribution to sales success.
  • Collaborate closely with marketing teams: Foster strong relationships with marketing colleagues to ensure alignment in messaging and customer approach.
  • Leverage marketing insights: Utilize market research, competitor analysis and customer insights provided by marketing to enhance your sales strategies and product positioning.
  • Collaborate closely with all stakeholders of your selling center: Regularly communicate customers’ expectations to all stakeholders of your selling center.

Adapting to Changing Customer Expectations

The need for customized solutions places additional burdens on sales managers in terms of information gathering and dissemination, communication and coordination within both buyer and seller organizations. To meet these expectations, sales managers must become adept at processing and managing increasing information loads while balancing multiple responsibilities.

Customer demands are evolving rapidly, requiring sales managers to:

  • Enhance customer knowledge continuously
  • Improve relationship management skills
  • Respond most effectively to customer inquiries
  • Broaden and deepen communication skills

Leverage Technology Effectively

Although the use of technology facilitates more rapid and frequent communication, it increases the demand on sales managers to provide information and services needed by customers in real time. Moreover, organizational adoption of CRM and sales force automation (SFA) systems requires sales managers to incorporate new technology and procedures into their already busy work routines without pausing from their primary selling responsibilities.

Technology plays a crucial role in bridging the gap between sales and marketing:

  • Embrace CRM and sales force automation (SFA) systems: Familiarize yourself with these tools to manage customer relationships and streamline sales processes.
  • Utilize data analytics: Leverage technology to analyze customer data and provide customized recommendations for long-term business solutions.
  • Enhance real-time communication: Use technological advancements to communicate effectively with both customers and internal teams.

Become a “Listening Post”

Sales managers are uniquely positioned to gather valuable market intelligence:

  • Actively monitor and anticipate market developments
  • Provide actionable insights to sales and marketing teams and other business functions
  • Continuously update market knowledge, including products and competitors
  • Leverage your sales forces’ full potential to provide actionable market intelligence
  • Develop and implement “voice of customer programs” within your organizations

By serving as a “listening post,” sales managers can help their organizations adapt more effectively to market turbulence and gain a competitive advantage.

Navigating Complex Buying Processes

Closely related to the issues of increased need for knowledge, communication, and coordination, noted above, is the need to provide individualized solutions for each customer.

As decision-making becomes more diffuse within client organizations, sales managers must:

  • Develop social science and strategic selling skills: Analyze power dynamics and influence across blurring organizational boundaries.
  • Understand strategic alliances: Recognize the complexities of partnerships where companies may be both collaborators and competitors.
  • Adapt to diverse stakeholders: Engage effectively with a greater number and variety of stakeholders within client organizations.

Conclusion

The blurring of boundaries between corporate functions presents both challenges and opportunities for sales managers. By embracing a holistic approach and developing new skills, sales managers can navigate this evolving landscape successfully. Those who adapt effectively will position themselves as invaluable assets in today’s dynamic business environment, bridging the gap between technical expertise and strategic business solutions. Buying and selling centers have existed for many years, and the notion of salespeople identifying key buying influences when selling to industrial accounts is not new. However, given the blurring of boundaries on both the selling and buying sides, more work needs to be done to advance knowledge in this area. Sales managers must continually update their knowledge of customers and competitors, exacerbating the seemingly ever-increasing cognitive load they must carry. In order for sales managers to meet the rapidly changing customer expectations, they must know more – faster. The best sales managers not only adapt quickly and effectively to external events, they also implement new customer strategies, innovate in the sales process, and seek constant performance improvements.

Managerial Recommendations:

Regular assessments of your sales organization and your selling center will help you understand the training needs of your salesforce and identify performance improvement gaps of your selling center.

The deployment of customized assessment tools and checklists will help you to cope with the rapidly changing business environment

For more information please contact:

Inna Hüessmanns, MBA

E-Mail: ih@i-g-solutions.de

 

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