Sales planning isn't just about hitting targets. It's about setting up for sustainable growth and adapting to market changes. Let's break down what strategic sales planning is, why it's essential, and how to do it right, with some examples and key points to watch out for.
What is Strategic Sales Planning?
Strategic sales planning is all about setting goals, figuring out how to reach them, and making sure you have the resources to do it. It involves understanding your market, your customers, and your competitors.
For example, Coca-Cola uses strategic planning to keep up with consumer trends, ensuring their products meet changing preferences, which helps them maintain a strong market presence (Coca-cola).
Why You Need It?
In today's fast-paced business world, being agile is key. Strategic sales planning helps you anticipate changes, grab opportunities, and reduce risks. McKinsey & Company found that companies updating their sales strategies regularly are 1.5 times more likely to achieve above-average growth rates (McKinsey).
Key Elements of Strategic Sales Planning
Market Analysis
Know your market inside out. This means understanding your customers, sizing up your competitors, and spotting trends. Domino's Pizza is a great example. They constantly analyze market trends like the rise of online ordering to stay ahead and enhance customer experiences (Think with Google).
Sales Goals
Set clear, measurable goals. These should fit with your overall business strategy and include both short-term and long-term objectives. Apple sets ambitious sales goals, particularly for its services segment, and plans carefully to achieve them, resulting in a growing services portfolio (SEA Open Research).
Sales Strategies
Develop strategies to hit your sales goals. This includes customer segmentation, messaging, and choosing the right sales channels. Nike, for example, uses data analytics to target customers with personalized products, boosting their conversion rates (Bernard Marr).
Resource Allocation
Make sure you have the right budget, people, and technology in place. For example, PepsiCo allocates resources wisely, investing in analytics and consumer insights to equip their sales teams for success (PwC).
Performance Metrics
Track your progress with key performance indicators (KPIs). Regularly review these metrics and adjust your plan as needed. Microsoft uses KPIs like customer acquisition cost and customer lifetime value (CLV) to refine their sales strategies (Microsoft's customer acquisition KPIs) (Microsoft CLV).
Implementation Plan
Create a detailed action plan with specific activities, timelines, and responsibilities. Burger King successfully rolled out mobile ordering and delivery services by aligning their global teams and setting clear timelines (WARC) (Retail Dive).
Who is in Change?
Strategic sales planning is usually led by the sales team, but it needs input from marketing, finance, operations, and executive leadership. For instance, IKEA ensures all these teams work together to respond quickly to market changes (IKEA) (Microsoft).
How to be Strategic?
Mindset
Think long-term, be adaptable, stay data-driven, and foster teamwork. Adopt a forward-thinking mindset. Look at how General Electric (GE) constantly innovates its sales approaches to stay ahead in the industrial sector. This mindset encourages continuous learning and adaptation (Harvard Business Review).
Skillset
Hone analytical skills to understand market data, communication skills to articulate strategies, and leadership skills to guide your team. Develop critical skills such as market analysis, strategic thinking, and customer relationship management. For example, Mars, Incorporated trains its managers to master these skills, enabling them to execute the company’s strategic plans effectively (Mars Inc).
Toolset
Use tools like CRM systems, analytics platforms, and sales enablement tools. Salesforce Inc, for instance, provides comprehensive tools and solutions for sales planning, customer management, and performance tracking (Salesforce).
Watch Out for These Pitfalls
- 1Lack of Alignment: Ensure your sales goals align with your overall business strategy. Without alignment between sales and other departments, the strategy can fail. For example, at Mondelez International, ensuring that all teams are aligned with the sales strategy is key to their success in the global healthy snacking trends (Mondelez) (Asia Food Journal).
- 2Inadequate Market Research: Invest in thorough market research to understand your market, customers, and competition. For example, Blockbuster's failure to adapt to digital streaming, unlike Netflix, highlights the dangers of poor market research (LinkedIn - Netflix vs. Blockbuster). Failing to understand market dynamics can derail your strategy. When Fonterra, a dairy co-operative, entered the Chinese market, it faced challenges due to insufficient local market knowledge. Learning from this, they adjusted their strategy to better meet local consumer needs (Fonterra).
- 3Poor Execution: Make sure your sales team is trained, motivated, and equipped with the right tools. Nokia's decline in the smartphone market shows what happens with poor execution (INSEAD). Resistance to change can be a major obstacle. Companies like Johnson & Johnson tackle this by fostering a culture of innovation and adaptability among their sales teams (Johnson & Johnson).
Conclusion
Strategic sales planning is vital for long-term success. It helps you navigate market complexities, seize opportunities, and achieve sustainable growth. Real-life examples from various industries show how effective sales planning can drive growth and maintain competitive advantage.
By adopting a strategic mindset, honing the right skills, and leveraging the right tools, you can elevate your sales planning efforts. Remember, it's a continuous journey of learning and adapting.