Improving Sales Productivity

The elements that impact Sales Productivity include the following:

• Market Position & Reference-ability
• Web Site effectiveness
• Retention of Peak Performers
• Customer Loyalty
• Sales & Marketing alignment
• Sales Rep Turnover
• Sales Compensation Plan alignment with Corporate Goals
• Sales Pipeline Quality & Quantity
• Implementation of Sales Enablement technology
• Target Markets Focus
• New Sales Rep Ramp Time
• Value Proposition Clarity & Credibility
• Differentiation from competitors
• Sales Process Leadership & consistent use of formal Sales Processes
• Smart Hiring
• Analysis & continuous improvement according to metrics
• Coaching & Training
• Sales Rep Fit to company culture
• Sales Rep Skill
• Sales to Pre-Sales Support ratio
• Sales Rep Administrative overhead burden
• Consistent Sales Process

The point here is to emphasize that Sales Productivity is not impacted solely by training and managing sales reps. When Marketing marches to its own drummer and Sales has to do pipeline development, Sales Productivity suffers. If your company is highly reference-able in its markets, it is easier for reps to get appointments with decision-makers. This has implications for product design and support capabilities. If your Value Propositions are very clear, highly credible and quantified, sell cycles will be shorter. If your company differentiation from competitors is clear, your sales reps will be less subject to price pressure. If you have implemented a consistent model for sales processes, you will be more effective in directing resources to the highest potential opportunities. If your web site has been designed such that low probability prospects qualify themselves out, you don’t spend valuable sales and marketing time on them. The regular use of BI and the right metrics can give you leading indicators of potential improvement or degradation. If you have enabled new reps to ramp up quickly through best-in-class infrastructure, training and mentoring; your sales costs will decline. If your Sales Compensation Plan is not aligned well with Corporate Goals, reps will spend time on prospects that are not in your market sweet spot and the cost of selling will increase. If your customer loyalty is very high, that becomes known in the user community.

Selling Methodologies should be implemented so that there is a common vernacular and understanding of the sales process by the various entities that engage with prospects. We are often asked: “What is the best methodology for our company?” Any methodology, when consistently applied, can yield significant Sales Productivity benefits. The challenge is the consistent application. VPs of Sales are often unable or unwilling to be passionate missionaries for a new approach. This is primarily due to the focus on short term bookings. When the top executives are not committed to the new approach, sales reps quickly sense that and do not pay attention to it.

In the Execution Phase, you are seeking revenue growth and market domination. Sales should be very transaction-oriented with repeatable models. You want cross-selling and up-selling, as well as acquiring new customers. Sales reps are more productive when they are focused. Sales teams are often organized into Hunters for new account sales and Farmers for existing account expansion. Another common approach is to use Inside Sales for smaller accounts plus renewals and some expansion sales. Field/Major Account Sales are focused on larger strategic accounts.

Growth Process Group offers a Sales Assessment service to identify the strengths and weaknesses in your Sales Productivity. All major areas affecting sales are examined, including: value propositions, sales process, target market focus, sales organization structure, positioning, sales resource quality, marketing program effectiveness, new product introduction process, sales rep characteristics, team chemistry, customer support, infrastructure, etc.

Contact Chuck DeVita for information on the Sales Assessment.

Sales Enablement and CRM: While companies have typically implemented some kind of Customer Relationship Management (CRM) solution, there is a growing awareness that while CRM provides information to management, it does little to help the sales person sell better and faster. Sales Enablement is a new concept that is focused on improving the productivity of individual sales people. Several SaaS (Software as a Service) companies are working on approaches. These are mostly point product/service offerings (sometimes described as “Sales 2.0) at this time, without sufficient emphasis on sales process and workflow.

For a discussion on improving your Sales Productivity, contact Chuck DeVita.

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