Study: Sales organizations need to know when to quit

Successful sales organizations often are those that know when to quit, says a new study by Miller Heiman, the Reno-based sales training organization.

Winning sales organizations are nearly twice as likely to have a process for knowing when to stop investing in a large deal, the study found. Some 29 percent of the sales organizations identified by Miller Heiman as top performers have a process that tells them when to stop chasing business.

The study of best practices in sales management released last week was based on the participation of about 6,000 sales executives.

It focuses on complex business-to-business sales transactions those that involve more than four decision makers and take longer than a quarter to close.

Sam Reese, chief executive officer of Miller Heiman, said most sales managers appear to have a large blind spot about when to walk away from a large deal.

"The dictum of 'No RFP shall go unanswered' is not a good idea," Reese said. "All too often, by the time an RFP lands on your desk, it's already too late and your proposal will only be used for comparison purposes. Proposals take time, energy and money. Don't invest in the ones where the customer doesn't fit the template."

Far better, he said, is development of the relationships that ensure the sales organization will be involved in writing the initial specifications for the work.

In other findings, the Miller Heiman study found a major disconnect between sales representatives, sales managers and top executives when they're asked how much that corporate leadership is involved in the sales process.

Some 78 percent of top executives say that leaders are actively involved in the sales process. But only 49 percent of the managers and 43 percent of the sales representatives agree.

Successful organizations, Reese said, have defined executive involvement with key accounts in clear and concise terms.

Top executives should regularly visit with key accounts, he said, but they shouldn't go on every sales call nor should they go out only when a problem arises.

Without a clear plan, Reese said executives who feel their sales force always has access to him may believe that he is engaged in the sales process. But sales representatives may not see things that way.