Less Score-Keeping Produces More Sales, Study Shows

LESS SCORE-KEEPING PRODUCES MORE SALES, STUDY SHOWS

More coaching and less score-keeping by sales managers produces a more effective sales organization.

That's according to the results of a two-year study of sales effectiveness, "Improving the Effectiveness of Field Sales Organizations," by two marketing professors at Texas Christian University in Fort Worth. The study was co-authored by David Cravens, professor of marketing and Artur Baldauf, visiting professor of marketing. It has been accepted for publication by Industrial Marketing Management.

"In the most effective sales organizations, we found the role of the sales manager was far more one of coach, rather than the traditional commander and score-keeper. Additionally, salespeople in effective sales organizations sell more, earn higher margins and exceed sales targets," says Cravens.

The researchers surveyed 159 sales managers at 79 Austrian companies about the importance of factors believed to be linked to sales effectiveness. The results point to several possible avenues for improving the effectiveness of field sales organizations. Although the firms in the study were Austrian, Cravens notes that the results are generally consistent with other studies he has completed in the United States and Europe.

Managers should encourage salespeople to increase their sales results by rewarding them for their achievements, says Cravens. The researchers note that sales managers should also actively participate in training salespeople on the job, regularly spend time coaching salespeople, discuss performance evaluations with salespeople, and help sales people develop their potential.

The researchers also found a strong link between sales territory design and unit effectiveness. This highlights the importance of management's role in providing salespeople the opportunity for high performance. Poorly designed territories are hurdles that even highly competent salespeople cannot overcome.

"There is a growing base of global evidence that behavior-based sales management control strategies are being adopted by many companies. If these strategies are properly applied, they result in high levels of sales unit effectiveness," says Cravens. ###

Editors: If you would like to speak with Cravens, he's at 817-257-7555 (office). Please contact Steve Infanti of Dick Jones Communications at 814-867-1963 if you would like a copy of the study. We help Texas Christian University with its media affairs work.