The Right Records
In developing and keeping sales records, how much is enough? Which records? What should you track? For how long? How can you efficiently use them to make more sales? These are all good questions asked by professional salespeople. Some develop a focused system of effective recordkeeping, while others simply do what they are told.
The level of recordkeeping needed also depends on what you are selling. Records for selling wholesale consumer products are less complex than for selling big business or industrial systems. However, all sales record systems have some things in common. To be effective, you must keep records of the products or services you offer, the prospects and customers to whom you sell them, and the profits you make from selling.
How am I going to keep all of these records and still have time to sell?
Don't worry about the how just yet. First, consider the what. Later in this chapter, you'll learn about manual and automated tools that professional salespeople use to minimize the drudgery of recordkeeping yet get the benefits of accurate records.
Whatever you sell, you need to know data about it. For example, in selling real estate, you need:
Legal and street address
Type and size of the land and structures
Information about zoning and neighborhoods
Price and terms
Owners' names and contact information
Contact information for listing agent (if not you)
Special features, inclusions, exclusions, amenities
There's much more. In most cases, this is offered in the listing report submitted by the listing office to the local multiple listing service (MLS). Even so, you will want to make additional notes and keep your own product records. What properties have you shown? To whom? What were their reactions? What is your opinion of the property?
Other products and services have their own data that the seller needs to represent. A salesperson for a carpet cleaning service, for example, must know how to calculate prices for various services, how to identify carpet material, what additional or upgrade services are offered, and so on. Product or service data sheets, sometimes called sales sheets, often include most of these facts. However, productive salespeople will want additional information to help prospects buy. Salespeople need adequate product records.
In retail selling, customers walk in and all the seller may require to know about them is that they have a need and some money. However, as the value of a sale increases, professional salespeople must begin compiling records about prospects and customers. Again, in real estate sales, pro sellers will develop and update detailed records on prospective buyers and sellers. For example:
Names of all decision makers in the family or company
Living requirements and preferences
Current housing and, if owned, equity
Approximate income or ability to purchase including down payment available
Time frame in which they need to sell, buy, or both
Date and results of all contacts with prospects, including list of properties shown and feedback
Wholesale salespeople will develop and keep records of prospects, customers, referrals, and other potential buyers. Industrial salespeople also will develop records on the companies to which they sell, their industry, primary products, and financial status. Each sales job has different specifics, but all have prospects to be tracked.
Historically, many salespeople used business cards as their contact database. Business card wallets were a collection point for the numerous business cards that salespeople received daily. Unfortunately, the cards are too small for making many notes, so electronic customer databases became preferable. In the past these had to be updated manually. Today, lightweight and portable business card scanners are available that can scan, read, and export data into most contact-management software programs. They plug in to a port on your computer. Most business card scanners are priced between $100 and $200.
The bottom line to salespeople is often how much they sold and, if appropriate, what commission was earned. Some of this is automatically calculated by employers and reported to the sales staff. Even so, professional salespeople should keep their own records to ensure that errors don't cost them income. In addition, knowing which of your customers are the most profitable can help you prioritize your efforts.
What profit records should you keep? The most common include:
Customer, buyer(s) or decision maker(s)
Details of specific orders including date, components, prices, and delivery instructions
Details of returns or damaged goods
Special-order, delivery, or follow-up instructions
Applicable commissions and when it will be paid
Keeping track of sales and commissions will not only help you measure your selling, but also will help you prioritize what and how you sell in the future.
Let's consider what happens when you
Customer orders don't get processed quickly or at all.
Customers receive the wrong or insufficient merchandise.
You lose valuable customer contact information.
You call buyers by the wrong name.
You forget to call back a customer when promised.
You don't receive commissions or bonuses on products or services you've sold.
You miss opportunities for referral business.
Your employer doesn't recognize and reward your efforts.
Many otherwise good salespeople have moved to lower paying jobs simply because they kept sloppy sales records. Professional salespeople, whether required by the employer or not, strive to set up and maintain a recordkeeping system that ensures their success.
