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September 16, 2009 01:47 PM

Categories: Sales and Distribution

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AlDob

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Joined: 09/15/2009

I was not sure which forum is more appropriate Â?SalesÂ? or Â?ServicesÂ?, so I decided to go with this one.

A bit of a background: WeÂ?re a small company selling web-based product to small and medium size businesses. Right now we have 2 sales managers who work exclusively with incoming leads (phone or web-site). In a sense, these guys are Â?huntersÂ? so they spend most of their time trying to convert the new prospects.

As a result, weÂ?re not paying nearly enough attention to the existing customers. Therefore, our renewal rate is lower than it should be and weÂ?re missing the opportunity to spread the product across the customerÂ?s organization.

So itÂ?s definitely a time to hire another person to take care of these issues. The big question Â? should we hire a sales person or client services manager?
The primary responsibilities of the new hire would include making sure that the product adopted and is used successfully and being the primary contact for the customer (like an account manager).

However, in my opinion it would also make sense for this account rep to seek new opportunities (other departments in the same company or referrals Â? e.g. vendors or clients)

Do you think it would be possible for a single person to combine both skills Â? sales and customer support and be effective in both areas?

Thanks!

- Alex

Discussion:    Add a Comment | Comments 1-6 of 6 | Latest Comment

September 25, 2009 3:42 PM

Is it possible? Most definitely, but I would ask a few questions so I can better qualify a response:

What is your sales cycle like?

Is the sales process simple or complex?

What is the price range for your solution?

September 29, 2009 1:10 PM

1. Average sales cycle is 30 days

2. Our sales process is relatively simple

3. The average sale is $1,500 - $2,000

September 30, 2009 9:51 AM

Unless your sales personnel are swamped with new opportunities, I would suggest customer follow-up/account management be part of their responsibilities. I personally have managed over 400 existing accounts, while maintaining responsibility for generating new incremental business, so I know it can be done.

I found this very useful for expanding my contact base within an account and building references that I could subsequently use for generating new incremental business in other accounts. I will oversimplifiy a bit, but effectively using a CRM system to develop and implement an account management process is not that difficult, but it does take a little time.

Are your sales people compensated differently for new incremental business as opposed to expanding/adding on to existing accounts?

October 1, 2009 1:50 PM

Well, they receive roughly 300 leads per month.

Right now the compensation is the same for new and existing accounts.

October 1, 2009 3:04 PM

That IS a significant workload and I see your rationale for hiring a new person.

The original question "Do you think it would be possible for a single person to combine both skills Â? sales and customer support and be effective in both areas?", IMHO the answer is yes. It may require a little more product training than the existing sales staff and they may still need to hand off some issues to a "technical support" person, but a definite yes.

One of the keys is the transition from the sales rep to the account manager. Make this as seamless as possible to the client, keep up good rapport and you should be able to build your renewal rate and expand on the beach heads to further penetrate your customer accounts.

I hope my input is of value. Best wishes for continued success.

October 21, 2009 9:44 AM

Why can't you hire a 3rd sales rep and train them all to close new business and suport exisiting clients. Have them all work in Territories. You will have the best renewal rate if your clients are being serviced consistently by the same reps all year.

Colleen

Discussion:    Add a Comment | Back to Top | Comments 1-6 of 6 | Latest Comment

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