From the Ask Tom mailbag –
We need to hire someone in a sales role. You said in your workshop that we need to identify the level of work. What’s the level of work in a sales role?
The consultant’s answer is always, it depends.
But, it depends on something very specific. The level of work will depend of the length of your sales cycle.
Level I – Time-span (1 day – 3 months)
Short sales cycles can be effectively maintained by trained order takers. Level I sales roles can be found in catalogue call centers, counter sales and sales oriented customer service centers.
Level II – Time-span (3 – 12 months)
Sales work at Level II is found in longer sales cycle projects, where building relationships is important. This sales work consists of prospecting for new customers, qualifying prospective customers, gathering customer needs according to a checklist, matching products to customer needs, making presentations, negotiating and closing the sale. On the customer side, the counterpart to Level II sales work would be the purchasing agent.
Level III – Time-span (1 – 2 years)
Decisions in business to business purchases often require additional input. While the buying criteria for most purchasing agents is price, the Level III buyer, sometimes a specifying engineer, is more concerned about function. Interacting with a Level III buyer may require the capability of a Level III sales person, a product engineer. Sales work at this level is more concerned with needs analysis, product match and application. Sales functions like prospecting may be delegated to sales team members at Level II.
Level IV – Time-span (2-5 years)
Occasionally the buying decision involves product functionality that integrates with other systems that exist in the customer organization. The Level II purchasing agent is concerned about price. The Level III specifying engineer is concerned about function. The Level IV buyer is concerned about how the product or service will integrate with other systems in the company. Sales cycles greater than two years may require Level IV capability to understand the complexities of how the product or service integrates into customer systems. A primary accountability for this level of work in the selling company will be feedback loops into research and product or service development. Examples of Level IV sales roles exist in pharmaceuticals, automobile components, electronic components, large scale construction projects, international logistics, financial instruments and insurance products. -Tom