Company growth is a principal concern in establishing any business venture. Nevertheless, not all business leaders know how to foster this effectively.
Growth involves much more than just speed and momentum. It is about creating a firm footing upon which to support the business to come. Not everyone is successful in this. Even savvy entrepreneurs can struggle.
Mitra Mahdavian, a partner at McKinsey, recently spoke on the key differences between high-growth companies and their slow-growing peers. She outlined two strategies that are particularly important in driving growth: focussing on people and investing in sales engines.
Through a series of interviews and surveys, McKinsey discovered that almost 50% of fast-growing companies invest significantly in training sales teams, compared with 29% of slow-growing companies. Smart business leaders recognise that their company can only grow as fast as its sales department can sell its products. They recognise that the best way to increase sales is to invest in the people that drive them.
Increasing sales is about more than just hiring more personnel. It involves analysing an existing sales team and making it more effective. Simply throwing money the problem is inefficient; the key to faster, better growth is understanding what internal investments are necessary to help the company grow.
In this digital age, big data is a vital tool in helping companies get ahead of the competition. The most successful sales teams are three times more likely to rely on analytics than their under-performing counterparts.
Simply throwing data at a sales team is not the answer. The key is to develop a new, data-driven sales team from the ground up. Diving in at the deep end is unlikely to be effective, but organisations can reap huge gains by transitioning to data-driven sales via a series of incremental steps:
- Promoting Cohesion: It is important to be specific about overall company goals. Sales teams need to know their role in achieving these objectives. Key performance indicators serve a critical role in letting them know they are on the right track.
- Assessing the Sales Process: This is an important opportunity to correct any sales process flaws; streamlining processes in line with prioritised sales goals, implementing changes slowly and monitoring them closely to minimise disruption.
- Utilise Existing Data: Before gathering new types of data, it is vital to analyse information already gathered. According to Forbes, one Harley Davidson dealership increased sales leads by 3,000% simply by acting on data they already had.
- Consider Data Quality: Not all data is good, or even reliable. Data that is riddled with mistakes or lacks integrity actually sets sales teams back.
- Automation: Automating certain tasks can be of vast benefit. Automating aspects such as data entry and other mundane tasks frees up sales teams to focus on what they should really be doing: selling the product or service.
- Analytics: With all of the previous steps in place, it is much easier to track sales progress and analyse conversion rates. Effective analytics helps companies pinpoint where they are doing well, facilitating replication of successful sales cycles and flagging up any potential issues.
Where implemented and utilised properly, predictive analytics technology can have a transformative effect on sales. Nevertheless, the first step in upscaling sales efforts is investing in sales staff.
As the founder of FDH Bank, Dr Thomson Mpinganjira is one of the most prominent Malawian business leaders of his generation. With a keen eye on sustainable growth in all of his operations, Thomson Mpinganjira devotes much of his time to thought leadership, inspiring aspiring entrepreneurs across Malawi by providing the next generation of homegrown business leaders with practical advice, tips, and motivation.