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YOUR GENERAL MANAGER...
THE BEST SALES TOOL YOU MAY HAVE

As we enter the new decade we are saddened to discover that the thrust of many hotel Sales & Marketing Plans is service and an improved product. Many hotels feel that with improved service and a brighter and shinier product they will be able to distinguish themselves from their competition in the marketplace. Our observations and experience tell us that this thrust is misplaced and incorrect.

The truth of the matter is that hotels must have both better service and a better product just to be in the ball game in the 90's and neither service or product has much to do with the actual sales effort. Make no mistake about it, direct sales must be the thrust of your hotel's sales effort if you are going to be successful.

As we travel throughout the country observing and analyzing those hotel's who consistently generate profits, we have found in 100% of those hotels an extraordinary sales effort. Further, we have found with rare exception, one enormous common denominator that each of those hotels share is a General Manager who not only effectively monitors the sales effort but one who actively participates in it.

Unfortunately there are too many General Managers whom believe that it is the responsibility of the Director of Sales solely to monitor the sales effort. Even more tragic is the General Manager who fails to understand just how effectively they could contribute to the direct sales effort. We have observed in both large and small properties, numerous times, that a General Manager's involvement in the selling process has been the difference between ascertaining a signed definite contract and having to cancel a tentative.

We work with General Manager's everyday and realize that they are real people too. But consider for a moment the mystique that a General Manager projects in the eyes of the decision making meeting planner. Meeting planners genuinely believe that a General Manager is somehow magical and possesses powers beyond that of a mere mortal. How else could they come up with one last guest room on a sold out night on a moments notice?

A sales oriented General Manager does make the difference in a successful sales effort both in terms of monitoring and participating in direct sales.

Our studies have revealed that in hotels where the G.M. actively monitors the sales effort the sales personnel are more alert, more positively motivated and demonstrate higher energy levels. The reasons for this phenomenon are simple.

In this situation goals are usually more clearly defined. Peak periods are maximized and down periods receive more attention often resulting in short term business plans that are addendums to the Annual Marketing Plan. Sales people have goals established and know that they will be held accountable for them. This is not necessarily management by intimidation, but more accurately management through recognition. An effective G.M. heaps praise on sales people when they reach or exceed goals. By the same token, the G.M. should demonstrate concern and offer assistance when goals are not reached.

The point is that a G.M. needs to be in a position to know where their sales team is with regard to quotas and goals and to do this they must actively monitor the effort. This does not mean looking at the daily or the P & L. It means that they are finitely aware of month to date and year to date figures with regard to group room nights consumed and future group bookings and the market segments therein. It means knowing average rates, group booking cycles, shifting markets, demand analysis', competitors top accounts and above all, who is booking what.

A simple conclusion can be drawn in hotels where the G.M. knows what is going on in their sales office: The sales people know they are being monitored and will work harder and smarter to meet expectations.

But now you ask, "how can the G.M. help us with our direct sales effort? They are so busy with the day to day operations!" Our response is "what better use of a G.M.s time that to aim it at clients!"

As we mentioned, there is a mystique that surrounds G.M.s. Clients are always impressed when the G.M. makes an effort to meet with them, calls them on the phone or even more effective, visits them in person. Unfortunately there are G.M.s who believe that this what their DOS's get paid for. While there is a certain ring of truth to this notion, evidence tells us that nothing replaces a G.M.'s presence when soliciting or closing business.

Think to yourselves for a moment how impressed you have been in the past when you saw a G.M. working a trade show booth with their sales staff. Even more impressive is when a G.M. knows a goodly percentage of the clients that are attending the trade show.

It is unrealistic to believe that a G.M. has the time to spend each day on the road meeting with clients, but a well placed outside sales call will do wonders to land a piece of business. While it is unrealistic to make outside calls every day, it in not unrealistic to expect a G.M. to spend an hour a day on the phone to clients or to take time to meet every client that is on property.

Does your G.M. call accounts that are tentative and insure them that as the G.M. they will do everything in their power to provide a successful conference or meeting? Does your G.M. call when a group goes definite to thank them for their business? Does your G.M. call in-house VIP's to welcome them? If not, ask yourselves "is there a better use of the G.M.s time?"

While a G.M. can make the difference between success and failure in a direct sales effort it is critical that it become the sales staffs responsibility to provide them with information. Do not wait for the G.M. to ask what tentatives they can call on or who you are having lunch with. Provide them with that information. While a G.M. must make time to spend in sales, it is imperative that you maximize that time. You must develop systems whereby pertinent information is delivered to the G.M. so that they can immediately go into action and not waste time figuring out who to call on or where to be.

Below is a checklist of several items that we have discovered that effective, sales oriented G.M.s utilize. Do not ask yourselves how you can best take advantage of your G.M. as a sales tool. Instead ask yourselves how you can afford not to.

I. Review the following items on a weekly basis at the sales meetings. Specific items that you are looking for are as follows:

•  Have they met their weekly new definite room nights booked goals?

•  Are their new tentative bookings running around three times their definite bookings? The normal rule of thumb is that you will get one out of three you bid on.

•  How many new proposals have been sent out? They should each be averaging around seven per week. (More in a larger hotel, fewer in a smaller).

•  How many outside calls have been made? They should be averaging between 20-25 outside calls each week when handling local accounts.

•  How many luncheons have they held on property? They should have a minimum of three each week. It is important that luncheons be utilized to introduce the hotel primarily to new accounts.

•  How many tours of the property have they given? They should give at least five each week.

•  How many new contacts were made as a direct result of their flat lists? They should spend a minimum of one hour each day soliciting business off of their flat lists. At an average of 10 contacts each day that represents 50 new contacts each week.

II. You should review every booking order that went out during the week at the sales meeting in an effort to not only monitor production, but to determine how your involvement may assist the sale. Good sales managers will come to you when they require assistance, however, this program assures that you will review every booking.

It is an excellent idea to contact tentative bookings in an effort to extend your most sincere promise that by selecting your hotel the group will be well taken care of. It is also a good idea to contact definite bookings to thank you for selecting the hotel. Very few General Managers consistently perform these functions, yet they may be the very action that distinguishes you from your competition.

III. Read the reader files on a weekly basis. By monitoring their correspondence you will be kept in touch with whom the sales managers are calling upon, what their volume is, the content of their letters and how effective they are at utilizing their letters as selling devices.

Take a red pen and critique the letters. Look for form and style and make sure that the letters are not too "formish" in nature.

IV. Hold a meeting with your Director of Sales every morning. At this informal meeting you can review yesterday's accomplishments and at the same time focus in on today's goals.

Insist that the D.O.S. knows exactly where their sales managers are going on a daily basis. The only way a D.O.S. will know this information is to be keenly aware of their daily schedules and their specific goals. Do not be content with, "they will be making ten outside calls". Insist on knowing who they are with and would it be helpful if you were to join them on the outside call.

V. Review the Monthly Group Sales Report, (or whatever proximity of it you utilize). Every piece of information that a General Manager needs to know about the sales effort should be contained in this report.

Good months where rates can be maximized, bad months where you need to implement a short term business plan, how you compare to last year and to forecast should all be contained on this at a glance tool.

It is critical that the sales personnel be aware of what their objectives may be and this report will assist you in expressing your objectives into specific dates.

VI. Have copies of the competition's reader boards distributed to you so that you can review their progress at sales meetings. Too often, reader boards are ascertained and then not effectively followed up upon. It is urgent that you are aware of who is utilizing your competition. Did they contact the group? What were the results of their contact? Can you assist in any way by becoming involved in the solicitation effort?

VII. Develop a system that will inform you whom your sales personnel are having breakfast, lunch or dinner with so that you can drop by and introduce yourself to the clients. Nothing is more impressive than when a General Manager will take the time to stop by and visit with a client while on property. It genuinely re-enforces the sales manger's effort and will help to distinguish you from your competitors.

VIII. Always take the time to meet every client while in-house with a meeting or catering function. Unfortunately, too few General Manager's ever take the time to meet with clients that are on property. Again, this re-enforces the sales manager's credibility and goes a long way in creating loyalty and repeat business.

IX. Insist that all sales personnel are involved in at least one non-industry related civic organization. It is expected that they will be involved in the normal industry related organizations. However, the best sales managers realize the importance of becoming involved in the community in a philanthropic manner.

By virtue of becoming exposed to the shakers and movers of a community, the sales managers will in turn be perceived as shakers and movers themselves. The result will be an entirely new lead source for business that originates in your own backyard.

X. Review your sales office's travel and trade show schedule. Determine where your presence can make a difference. (Hint: It is too overwhelming and not terribly effective to try to meet every single potential client at a trade show. Instead, concentrate on three or four key buyers and get to know them well. Not only will you walk away with three or four good friends but when you return to next year's show you will be met by familiar faces who will in turn introduce you to three or four new faces each). XI. Polish and refine your sales skills. While it is unlikely that you will ever be called upon to negotiate or close a deal, it is critical that you understand how to make a good presentation and how to "work a room".

Not reprintable without written permission from Steinhart & Associates.