Sales & Marketing
Direct Sales: Getting the Biggest Bang for your Buck
By Brenda Fields, Founder, Fields & Company
When we know that the supply/demand dynamics will always change, then why be complacent with a sales person or sales team that is not proactively generating business for the future? A consistent, strategic, and proactive approach will offset any negative trends in a downturn and will protect an owner's investment.
What better time, than when business is strong, to step back, and set up a plan that lays the foundation for generating and maintaining business? This article will address the importance of creating a great sales force during the good times and some tips on how to do it. ** **
Establish a Strategic Plan
Staying true to the property's position is important as it is the foundation from which all plans stem. The position determines what services and amenities are offered; the type of business the property caters to; and the rates given. With the positioning in place, determine the most realistic mix of business on any given day for a year as the patterns and demand for business change daily based on season, day of the week, holidays, and local factors. That level of detail will provide the basis of the sales plan as it will provide the guidelines for which market segments the sales department solicits, at what rate, when the business is to be consumed, and the volume of business, broken down on a daily basis.
Create and Maintain a Database of Accounts
We know that a function of marketing is to establish an identity or market presence in order to generate business. Typically those efforts impact business "indirectly", such as thru GDS bookings, rack rated transient business, or weekend business. The sales team's function is to impact business "directly". Therefore, to ensure that the sales department is functioning to accomplish this effort, it is important to create and maintain a database of existing and potential accounts. This is done once the strategic plan is established which incorporates the volume of business per segment to be consumed on an annual basis. For example, if the annual plan calls for corporate group business at 25,000 nights, at an average rate of $250.00, then the sales department is responsible for soliciting that volume on an annual basis. That is done through an on-going process of each sales person managing his/her accounts. The management is based on a systematic account trace system which allows a sales person to adjust the potential volume of an account. If an account drops its volume potential, then new accounts are identified and opened in order to maintain the desired goal of business.
Qualify, Qualify, Qualify
We know that location, location, location is a key ingredient to a property's success. But that is just the starting point. Obviously, the right product needs to be created for the targeted markets and pricing should be set correctly. But to ensure that the sales team is successful in booking business and establishing a good database of business, the best approach is to qualify, qualify, qualify. A person who sells shoes would not be successful if he/she did not first fully understand what the customer wanted i.e. size, color, style. But how many times does a hotel sales person try to make a sale without a good understanding of who the customer is and what the customer wants in a property? A sales person is more successful in closing business if he/she takes control of a call and understands the customer's needs and "buy decision". The successful sales person is one who asks questions. Identifying all the needs of the customer will place the sales person in a greater position to book business in the most cost efficient manner and will produce an account base of real potential business, quantified on roomnight/meeting potential.
An effective sales person will fully address a customer's needs. Even if your property has the greatest fitness center in the world, it is important to allow the customer to express those needs. Asking questions will help the sales person understand what is important to the potential customers and will help them understand the level of importance. The information collected will once again place the sales person in a position of strength in closing the business. Taking the time to fully uncover needs and to understand the level of their importance will allow the sales person to keep the customer focused on those stated needs. If the property cannot fulfill the customer's primary needs, then the sales person can just gracefully move on.
Accountability
Accountability is an important element to keep the sales person working efficiently and productively. Plan ahead by creating and implementing a well thought-out marketing plan. That is the basis for establishing sales goals. Sales accountability is important to ensure results. It is equally important to establish and maintain systems and procedures to monitor productivity of each sales person on on-going and consistent basis.
Therefore, to maximize the sales person's performance, it is important to establish specific and meaningful goals, broken down on a monthly and weekly basis; and to establish a culture where the actual performance vs. goals is critical for job performance. But it is also important to ensure that steps are continuously in place to generate business. Set goals which include activities to produce booked and consumed business (such as weekly sales call target, new accounts opened, and client entertainment goals) as well as booking and consumed rooms goals. On-going and consistent monitoring and evaluation will foster performance and will quickly help identify non-performers.
Maintain Excellent Work and Customer Interaction Habits
One of the strongest attributes of a top sales person is that of inspiring confidence. Who wouldn't want to conduct business with a sales person who is eager to help, conscientious in attending to your needs, and does what he says he will do? Reliability and good communication develops trust. It is that trust that will inspire clients to book with a sales person over and over, even if the air conditioning breaks down or construction is going on across the street. Trust that the sales person has done his or her best and will honestly address every situation can inspire loyalty and help overcome any potential hard feelings if problems arise that the sales person has no control over. Additionally, the great sales person will return calls/emails, send out correspondence promptly and will always follow up. Those great habits will translate to revenues for the owners/managers in the good times as well as the bad.
So, with a few processes in place, the owner/manager is in a better position to ensure that he is getting the "biggest bang for his buck" with a focused, proactive, and accountable sales force and is protecting the property from any downturn in the market place.
Brenda Fields is a strategist and sales and marketing expert honed from a successful track record in the hospitality industry. Brenda is a member of the prestigious ISHC, recently served on the Americas Board of Directors for HSMAI, and is Immediate Past President of the Hospitality Sales & Marketing Association International. Brenda was honored as one of "The Top 25 Most Extraordinary Minds in Sales and Marketing" by HSMAI as well as the "Leadership Development" award. She is an industry leader and spokesperson; a member of the Editorial Board of HotelExecutive.com; contributes regularly to international publications Hotel News Now; Hotels Online, Hotel Resource Weekly Network News, eHoteliers, and many others. For more information visit www.fieldsandcompany.net Ms. Fields can be contacted at 518-789-0117 or brenda@fieldsandcompany.net Extended Bio...
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