Get All Access for $5/mo

How Right Should the Customer Be? When pleasing one side comes at the expense of disappointing the other, sales reps tend to underperform.

Is your company sending conflicting signals to its salespeople about their job priorities? For instance, you may reward sales reps for what they produce (new accounts, repeat business), thus encouraging them to do whatever it takes to please the customer. At the same time, managers may dictate how reps make sales (preferred techniques, expense limits) implyingthat their real job is to please their manager. When pleasing one side comes at the expense of pleasing the other, sales reps tend to underperform-and your best people may defect.

How to resolve conflicts that may handicap your sales force? Anderson and Onyemah recommend adopting a consistent sales management system. To begin, decide on performance criteria: Bottom-line results or the methods used to achieve results? Provide the right amount of management monitoring: Do you have an inexperienced sales staff that needs coaching, or a seasoned staff that works best when left alone? Align compensation with performance criteria: If you want bottom-line results, use a pay-for-performance system. If you expect sales reps to use particular methods for achieving sales, pay them a fixed salary.

Align your sales management practices with your company's priorities, and your sales force will deliver their best for their customers and their managers.

How to design a consistent sales management system? The authors suggest these guidelines:

Identify Your Current System
Does your sales management system put the customer or the manager first? This table shows examples of how each type of system works in the extreme.

Portfolio.com/How Right/Table 1

Identify Inconsistencies
In addition to meddling managers, inconsistencies can take other forms. For example, some managers emphasize the customer as king but don't clarify how sales results affect individual performance evaluations and rewards.

Example
A West African bank supposedly evaluated sales reps' performance strictly on the volume of deposits they obtained each month. Each rep had set targets. But many salespeople who missed their targets kept their jobs. Some even got promoted ahead of superior performers. Sensing that evaluations were based on the branch manager's whims, many high performers left.

Select the Right System
Some situations clearly call for making the customer or manager king:

Portfolio.com/How Right/Table 2

Example
The insurance industry typically uses a "customer is king" system, yet many sales teams are inexperienced because of high turnover. Making the manager king would initially help junior salespeople develop-but reps will start chafing under management's oversight as they gain experience. Solution? Run two sales forces in parallel-funneling reps from a "manager is king" system into a "customer is king" system as they become more seasoned.

Visit Portfolio.com for the latest business news and opinion, executive profiles and careers. Portfolio.com© 2007 Condé Nast Inc. All rights reserved.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Editor's Pick

Business News

Meta Makes $1 Million Dollar Donation to Donald Trump's Inaugural Fund

Meta CEO Mark Zuckerberg also reportedly gave Trump a pair of Ray-Ban Meta smart glasses.

Side Hustle

'Hustling Every Day': These Friends Started a Side Hustle With $2,500 Each — It 'Snowballed' to Over $500,000 and Became a Multimillion-Dollar Brand

Paris Emily Nicholson and Saskia Teje Jenkins had a 2020 brainstorm session that led to a lucrative business.

Leadership

Should I Stay or Should I Go? 8 Key Points to Navigate the Founder's Dilemma

Here are eight key signs that help founders determine whether to persevere or let go.

Marketing

Your Most Powerful Marketing Weapon Is Hiding in the Finance Department — Here's Why

Transform your marketing leadership by turning finance from a barrier into a strategic ally. Learn how aligning with your finance team can drive unprecedented growth and innovation.

Starting a Business

They Bought an Ice Cream Truck Off eBay for $5,000. Now Their Company Has 70 Shops and Sells Treats in Over 12,000 Stores.

For the episode of "The Founder CEO," the co-founder and CEO of Van Leeuwen Ice Cream explains how one ice cream truck grew into a successful nationwide brand.