What to Do When Your Sales Team Isn't Performing: A Complete Guide

Diagnosing the Problem

Before jumping to solutions, it's important to diagnose the underlying issues affecting your sales team's performance.

Here are some common areas where you may investigate:

1. Lack of Clear Goals and Expectations

Sales teams need clear, achievable goals to strive towards. Without well-defined targets, it's easy for them to lose direction and motivation.

Action Step: Establish SMART (Specific, Measurable, Achievable, Relevant, Time-bound) goals. Make sure every team member understands their individual targets and how they contribute to the overall company objectives.

2. Inadequate Training and Development

Ongoing training is very important for maintaining a high level of performance. If your team lacks the necessary skills or product knowledge, their performance will suffer.

Action Step: Implement regular training sessions and workshops. Focus on both product knowledge and sales techniques. Use role-playing scenarios to practice different sales situations.

3. Poor Sales Processes

Inefficient or outdated sales processes can hinder performance. A clear and simplified sales process helps salespeople know what steps to take at each stage of the sales cycle.

Action Step: Review and refine your sales processes. Use CRM tools to automate repetitive tasks and provide your team with the tools they need to manage leads effectively.

4. Low Morale and Motivation

A lack of motivation can stem from various factors, including poor leadership, lack of recognition or a toxic work environment.

Action Step: Foster a positive work culture. Recognise and reward top performers. Provide regular feedback and support to help your team feel valued and motivated.

5. Market and Competitive Challenges

External factors, such as increased competition or market changes, can impact sales performance.

Action Step: Conduct regular market research to stay informed about industry trends and competitor activities. Adjust your sales strategies to stay competitive.

Improving Sales Performance

Once you've identified the root causes, it's time to implement strategies to improve performance.

Here are some effective approaches for that:

1. Set Up Regular Performance Reviews

Regular performance reviews help track progress, identify issues early and provide opportunities for feedback and improvement.

Action Step: Schedule monthly, quarterly and annual performance reviews. Use these reviews to discuss achievements, challenges and areas for improvement.

2. Implement a Sales Coaching Program

Sales coaching focuses on developing individual skills and improving overall team performance. Effective coaching can transform average salespeople into top performers.

Action Step: Assign experienced sales leaders or hire external coaches to provide one-on-one coaching sessions. Focus on skill development, strategic thinking and confidence building.

3. Improve Team Collaboration

Encouraging collaboration within the sales team can lead to better idea sharing, problem-solving and overall performance.

Action Step: Organise regular team meetings and brainstorming sessions. Use collaboration tools to facilitate communication and teamwork.

4. Utilise Technology and Data Analytics

Modern sales teams need access to the latest technology and data analytics to perform at their best.

Action Step: Invest in CRM systems, sales automation tools and data analytics platforms. Use these tools to track performance, identify trends and make data-driven decisions.

5. Create a Culture of Continuous Learning

Encourage your sales team to adopt a mindset of continuous learning and improvement.

Action Step: Provide access to online courses, industry seminars and sales conferences. Create a library of learning resources and encourage team members to share their knowledge.

The Role of External Consultants

When internal efforts aren't enough to turn things around, it may be time to bring in an external consultant. External consultants like Simon Norcott from Box in the Sky Consulting bring a fresh perspective, industry expertise and proven methodologies to help diagnose issues and implement effective solutions.

Why Hire an External Consultant?

1. Objective Assessment: External consultants can provide an unbiased assessment of your sales team's performance. They can identify issues that internal teams may overlook due to familiarity or bias.

2. Industry Expertise: Consultants from top firms like McKinsey, Bain and BCG have extensive experience working with companies across various industries. They bring a wealth of knowledge and best practices to the table.

3. Proven Methodologies: Leading consulting firms use proven methodologies to diagnose issues and implement solutions. These methodologies are backed by years of research and successful implementations.

4. Tailored Solutions: External consultants work closely with your team to develop tailored solutions that address your specific challenges and goals.

5. Accelerated Results: With their expertise and experience, consultants can help you achieve results faster than internal efforts alone.

What External Consultants Teach

Consultants from top firms like McKinsey, Bain and BCG focus on several key areas to help medium-sized businesses establish effective sales plans:

1. Diagnostic Analysis

Consultants begin with a comprehensive diagnostic analysis to identify the root causes of performance issues. This involves analysing sales data, conducting interviews and assessing market conditions.

2. Strategic Planning

Based on the diagnostic analysis, consultants develop a plan that outlines clear goals, target markets and actionable steps to improve performance. This plan includes short-term and long-term strategies to achieve sustainable growth.

3. Process Optimisation

Consultants also review and refine sales processes to ensure efficiency and effectiveness. This includes streamlining lead generation, qualification and conversion processes. They also implement CRM systems and sales automation tools to improve productivity.

4. Sales Training and Development

Consultants provide training and development programs to improve the skills of the sales team. This includes workshops on advanced sales techniques, negotiation skills and customer relationship management. They also focus on building a culture of continuous learning and improvement.

5. Performance Management

Consultants establish performance management systems to track progress and measure success. This includes setting key performance indicators (KPIs), conducting regular performance reviews and providing ongoing coaching and support.

6. Market and Competitive Analysis

Consultants conduct market and competitive analysis to identify opportunities and threats. This helps businesses stay informed about industry trends and adjust their strategies accordingly.

7. Change Management

Implementing new strategies and processes often involves significant change. Consultants provide change management support to ensure a smooth transition and minimise disruption. They work closely with the sales team to address any resistance and ensure buy-in.

8. Technology Integration

Consultants help businesses leverage technology to enhance sales performance. This includes implementing CRM systems, data analytics platforms and sales automation tools. They also provide training on how to use these tools effectively.

Success Stories and Statistics

Numerous studies have highlighted the positive impact of hiring external consultants on sales performance. According to a report by McKinsey & Company, companies that work with external consultants see a 15-25% increase in sales productivity. Another study by Bain & Company found that businesses that implement consultant-recommended strategies achieve a 30-40% improvement in sales performance within the first year.

When your sales team isn't performing, it's important that you take swift action to diagnose the issues and implement effective solutions. By setting clear goals, providing regular training, refining sales processes and fostering a positive work culture, you can improve performance and drive growth.

However, internal efforts may not always be enough. Hiring an external consultant can provide the expertise, fresh perspective and proven methodologies needed to turn things around. Investing in your sales team and using the expertise of external consultants can lead to significant improvements in performance and set the stage for long-term success for your business.