Sales Management: Defining your Individual Sales Pact Discussions
A Sales Pact Discussion is a valuable sales management tool that creates clarity on predefined expectations, agreed and desired business outcomes. It ensures that each sales team member has a strong foundation, which reduces the chance of negative habits forming over time. It also takes a lot of the guesswork out of a team member’s daily activities and provides structure both for the sales members and the sales managers. Ultimately this simplifies the process and will eliminate the need for repeated discussions.
A Sales Pact Discussion is one of the most vital conversations between sales manager and salesperson. It is not a performance review, goal setting, skills development plan or coaching session. Rather see it as a kind of ‘prenuptial’ agreement.
These discussions should be held with each team member as their individual sales pacts may vary.
Performing a Sales Pact Discussion
- Define your targets and how they will be achieved. The first step in defining your individual Sales Pact Discussion is to ensure that each team member has clear goals and objectives, along with a plan to achieve them. This, as discussed in the previous section, refers to their Minimal Acceptable Standards (MAS). During the discussion, the sales manager should go over each person’s goals and make sure they align with the overall sales strategy of the company. This helps to ensure that everyone is working towards the same end. Sales managers should take the time to provide feedback on each team member’s progress. Positive and constructive feedback can help motivate the team.
- Clarify expectations from both parties. Sales managers should ensure that each team member has a solid understanding of their role and responsibilities. This includes discussing individual KPIs, sales targets, and any other metrics that are relevant to their job. Make sure that each team member is clear on what is expected of them in order to achieve their sales goals. Sales managers should also take the opportunity to discuss any challenges that individuals may be facing, and work to find solutions to help them overcome these obstacles. The sales manager’s role should be clearly communicated as well as how it relates to each sales member.
- Gauge motivations, goals and how flexible they are for each member. Take the time to find out what motivates each team member. Understanding individual motivators can help sales managers tailor their approach to each person and create a more positive and productive work environment. This can also provide insight into the right incentives and rewards to motivate team members to achieve their sales goals.
- The consequences of non-achievement. It should be clear from the outset what the consequences are for each team member if they do not meet the goals and adhere to their MAS. This not only emphasises the importance of the Sales Pact Discussion but also puts the responsibility squarely on the team members, as it eliminates ambiguity around the consequences of their inaction. This instils a higher level of personal responsibility for team members.
- Role clarity, a sales formula and individual coaching and training needs. It’s critical for sales managers to discuss training and development opportunities with each team member during their individual Sales Pact Discussions. This ensures that team members are continually improving their skills and knowledge, which can lead to greater success. Sales managers should provide recommendations for training courses or resources that are relevant to each person’s job, and work with them to create a plan for professional development.