80/20 sales rule is one of the most rewarding principles of life, business, and time management. The Pareto Principle rule suggests that 80 percent of your results come from 20 percent of your activities. The valuable principle is a challenge to goal setting, highlighting the need to reconsider priorities for success.
The 80/ 20 sales rule means that most of your sales, come from twenty percent of your customers, products, sales strategies, and salespeople. This leaves a massive room for improvement in lead generation, customer management, and sales team communication.
You can improve business profitability by leveraging the 80/20 rule to improve problem solving. By leveraging technology such as artificial intelligence-powered tools like Aira, your sales team can, for instance, hold highly productive meetings, increasing problem solving and idea generation.
Through robust customer management platforms, they can zero in on the most viable sales leads. This process minimizes time wasted on customers least likely to make a purchase and cuts down on expenses. Below are the ways that you can surpass the 80/20 sales rule for more profit in sales.
1. Improve problem solving and idea generation
The sales meeting is the nerve center of all sales operations. Unfortunately, like most meetings, they have become a necessary evil. These forums should be a source of motivation and inspiration for the sales team. They have instead become part of the eighty percent of efforts that bring in little or no reward at all.
Did you know that 71% of meetings are meaningless and are only held because “this is the way we do things”? Over 65% of senior managers say that meetings keep them from realizing their goals. 64% of them say that a meeting often stands in the way of deep thinking.
That said, 62% of senior managers realize that meetings hold massive potential for the sales team. To improve sales, hold a productive meeting that leads to collaboration and sales ideas generation. To achieve this goal, follow the tips below.
- Ensure that your meeting is a necessity. Avoid redundancy by making sure that you only hold meetings for challenges that require upwards of ten minutes to solve. If you can answer a question, resolve a problem, or access information in a few minutes, hold a one-to-one chat instead with your salesperson. If your meeting is not helpful to the sale steam, then you are wasting precious time on the meaningless effort.
- Plan and prepare an agenda for your sales meeting. Your sales meeting should focus on sales activities, data, and feedback. As part of your agenda, start the meeting by celebrating your successes. Are there new customers or accounts? Is there progress on your targets or improvement on your bottom line? Celebrate the wins and then get to uncovering obstacles or insights on prospects.
- Study your data and that of your competition and optimize your sales strategies. Focus on quality leads and nurture them to turn them to loyal paying customers for higher customer lifetime value. Use virtual assistants such as Aira to take meeting notes and transcriptions. After the meeting, Aira will share all action items with the sales team to preserve accuracy, encourage collaboration and accountability.
2. Trim your costs
If the vast majority of your sales strategies and salespeople produce a fraction of your top performers’ efforts, then your business is not self-sustaining. Eventually, you will run out of good money to throw at bad. Your top performers produce eighty percent of your results because they have honed vital sales skills.
They know how to ask reflective questions that uncover pain points from customers. Second, winning salespeople are naturally good at it. Data shows that 55% of salespeople could excel in doing something else besides sales. More revealing research shows that another 25% of sales professionals can become top performers while selling a different product or service.
This means that at least half of your sales team comprises unfulfilled individuals who only got the offer because they excelled in an interview. Interviews provide useful subjective data, but you need objective information to get the right hires.
Have specialized sales assessments that pinpoint sales talent. If you have team members least suited to sales, shuffle them to areas in your business, where their talents can shine. If you do not have open alternative roles, encourage them to re-enter the job market with the newfound interests and talent knowledge so they can succeed in their careers.
These tests can also pinpoint areas that talented salespeople need to work on for success. Sieve your bloated sales team and cut down on the redundant eighty percent to minimize HR, sales, and space costs.
In 1895, the principle’s founder, Vilfredo Pareto, noted that society has a two-way division. On one side are the successful “vital few” and at the bottom of the pyramid are the “trivial many”. In time, Pareto noted that the wealth of his country was in the hands of the elite 20% of the population. Leverage the 80/20 sales rule to reap more from your workforce, budgets, and products using the tips above.
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