What are the sales goals for Geico Sales Reps?

sales scenario

• 2. Sales Scenario: Pharmaceutical Company Overview: One of the key business initiatives of all pharmaceutical firms is to Deploy field-based representatives, sales reps, whose responsibility is to interface with Physicians to educate them on the merits of their drug, leave behind marketing tools (from prescription pads to calendars to wall charts) that serve to remind the doctor and Perhaps influence the patient, and to arrange for samples to be left with the physicians Office. The objective of the sales rep is to influence the doctor to write more prescriptions for the company?s products than their competitors. The pharmaceutical company tracks sales performance ratios of call activity vs. sales, pipeline per rep, average sales value, sales close ratios, as well as other factors. (A) You are a newly employed sales rep working for a pharmaceutical company. ? In the first week you are required to list your activity and achievement goals for the coming year. You have been told that the average sales value per doctor per week is $500. Your annual target is $200,000.You believe on past performance that your average phone call to appointment ratio is 20%; your close ratio is 25%. ? Detail for me the phone calls you need to make each day (there are 21 working days in every month ); the face to face appointments you must make each day. The expected number of deals you will close every week and every month to enable you to reach your target of $200k. (B) Is this a sector where you would employ ?peer to peer? selling (executive to executive). If yes / no?.why? (C) Doctors are either ?always in surgery? or are out on the road visiting patients. How would you make these appointments? Give me three tactics. (D)What other tactics would you employ if you found it impossible to obtain sufficient face to face time in front of these busy professionals (ie: how else would you attempt to sell to them?) 3A) See attached Sales Scenario entitled, ?The Incumbent Strikes Back?. As we have in class, give me the sales problem DIAGNOSIS and the PRESCRIPTION for a successful turn-around in performance by the salesperson. The Incumbent Strikes Back Problem: The deal was consummated and Troy had finally displaced his number one competitor at an important account. Having received a promise that the initial order would be sent the following week, he departed, congratulating himself on his good fortune and ability to land the tough ones. Then 3-4 days later, he received a voice mail message from his new account. From the tone of his contact?s voice, he immediately knew something was wrong . Apologetically, the client told Troy that when the incumbent vendor found out that they had lost the business, they reacted with decisiveness and lowered the price significantly. The result was predictable. The initial order was cancelled and the incumbent retained the business. Having been blindsided, Troy was at a loss for what to do. His company was unwilling to match the new price and he ?lost? the deal. To add insult to injury, his contact was too embarrassed to return his phone calls. 3B) See attached Sales Scenario entitled, ?Referrals Going Nowhere? Upgrade them?. Referrals Going Nowhere? Upgrade Them! Problem: Most salespeople certainly don?t get enough referrals and often the referrals they do receiver go nowhere How many times have you called a referral, failed to get through the gatekeeper, and left a message that never gets returned? Perhaps you?ve even gotten through to the referral only to be met with a cool response? We all know that, thus far, referrals are the best source of new business, so why this happen? Give me the sales problem DIAGNOSIS and the PRESCRIPTION for a successful turn-around in performance by the salesperson. 4A) It is believed that Seven New Competencies are merging with the Traditional Sales Competencies. Give a practical sales-related example of each of these Seven New Competencies. Demonstrate in your example how you could differentiate yourself as a salesperson by the use of each of these competencies (point by point).

• Answer:

  2 (A) the number of calls equals $200,000/($500*0.20*0.25) or 8000 calls per year. 21 days*12 months = 252 days per year. Therefore, about 32 calls must be made per day. Given that 20% result in appointments, there will be 6.4 appointments per day on average. At a closure rate of 25%, and assuming there are five working days each week, this amounts to 8 deals per week and about 34 deals per 21 working day month. 2 (B) this is a peer-to-peer selling environment because the executive (the doctor) is the gatekeeper who ultimately determines what is purchased. Furthermore, the doctor is educated and can understand scientific and pricing information. This presents the salesperson with an opportunity to persuade the doctor to prescribe the medication with a detailed presentation explaining the benefits of his medication. 2 (C) several tactics are available. One is to provide a service to the physicians, such as dropping of free samples at their offices, and taking the opportunity to chat them up and/or schedule an appointment with them in person. Another is to offer to take them out for a meal (physicians have to eat some time). A third is to arrange for physicians to meet you at a gas station and fill up their car while giving them a sales presentation. 2 (D) other possibilities include setting up rewards programs that the physician will want to learn about, thereby providing a selling opportunity as well. Offering seminars in attractive locations free of charge to the physician can gain their attention. Sending them to conferences where your product is discussed is another method. Selling to their patients through advertising in the media and brochures in the doctor's waiting room can also influence physician's prescribing decisions. 3 (A) the problem is that the sales decision is being made entirely based on price. The salesperson needs to identify other areas where he can be competitive to offset his higher price. Better service, reduced delivery times, more flexibility in ordering requirements, or undertaking a joint development project with the customer could all be ways to change the discussion from being purely based on price. Repairing the relationship with his contact is essential. Offering to take the contact out for a meal to show there are no hard feelings could be a good first step. 3 (B) the problem is that the salesperson is unable to establish a good connection with people he is being referred to that generates a sale. There are several ways to improve the likelihood of establishing a connection that can result in a sale. Having the person who is making the referral make the initial contact with the referral to introduce the salesperson is ideal. Learning as much about the relationship between the person who is making the referral and the referral, along with what problems the referral has that the salesperson could solve, can be extremely beneficial in determining the quality of the referral and the approach the salesperson should take to quickly gain the interest of the referral. 4 (A) "New Sales Competencies" Falcon Performance Group, Inc. http://www.falconperformance.com/article-2.html (the material not in quotation marks is my own work). You can obtain further information about the new sales competencies from the link. "Engaging in Self-Appraisal and Continuous Learning." Identifying how your sales skills are helping and hurting you is important to improving your technique. Learning new skills and approaches can be very valuable, particularly if technology plays a role in your sales methodology. Understanding your product completely, and keeping up with changes to it, inspires customer confidence. "Listening Beyond Product Need." Helping customers figure out what they need to solve their problems, including aspects beyond those addressed specifically by your product, gives customers confidence that you understand their business and can be a suitable partner. Being able to propose a complete solution instead of being limited to only areas addressed by your product can also be a strong competitive advantage. "Orchestrating Internal Resources." Making it easy for the customer to get questions answered and work with your company during the sales cycle is critical to preventing customer confusion and frustration. Customers prefer to give business to companies they are comfortable with. A confusing sales process can create doubt that derails the sale regardless of the product's strength. "Aligning Customer/ Supplier Strategic Objectives." Helping customers, even if it does not directly relate to the sale of a product, can build goodwill that makes you the preferred supplier when the time comes to purchase something. Demonstrating skills can also build confidence in your organization's ability to deliver. "Establishing a Vision of a Committed Customer/Supplier Relationship." Getting customers to share information makes it easier for you to understand their problems and tailor your sales presentation to their expectations. Being able to provide detailed information about how your product will benefit them is far more compelling than generalizations resulting from a lack of information. "Understanding the Financial Impact of Decisions." Ultimately, firms make decisions to purchase based on their financial impact. Being able to articulate the financial benefits of purchasing from you, along with understanding how customer-specific requests impact your company's financial position, allow you to demonstrate maximum flexibility without compromising your profitability. Furthermore, requests that turn out to be financially infeasible can be discussed objectively instead of vaguely, which can encourage customers to understand your inability to grant them. "Consultative Problem Solving requires anticipating possible problems and proposing innovative solutions." Taking a broad approach to the problem and formulating a complete solution, even if it draws upon skills and products from other companies, demonstrates a deep understanding of the problem that inspires confidence. Sincerely, Wonko