demystifying the sales effectiveness challenge

Demystifying the Demystifying the Sales Effectiveness Challenge Sales Effectiveness Challenge

Jim DickieJim Dickie

Contributing Editor, CRM MagazineContributing Editor, CRM Magazine

Insight Technology Group/CSO InsightsInsight Technology Group/CSO Insights

[email protected]@aol.com

CRM Strategies Executive Series ©CSO Insights

Executive Management’s FocusExecutive Management’s Focus

CXO’s Do NOT CXO’s Do NOT

Care About Care About ProcessProcess

What They Care About Is What They Care About Is Process ImprovementProcess Improvement


If this is what sales If this is what sales looks like for you today,looks like for you today,

then you do not need then you do not need Process ImprovementProcess Improvement


2004 Sales Effectiveness Survey2004 Sales Effectiveness Survey

1337 Small, Medium, Large Firms1337 Small, Medium, Large Firms Initial Project GoalsInitial Project Goals Evaluation MethodsEvaluation Methods Justification ApproachesJustification Approaches Implementation PlansImplementation Plans Hands-on ExperiencesHands-on Experiences


Selling Report CardSelling Report Card

Sales Rep Performance vs. Quota

Under Quota50.8%

Meet or Exceed Quota49.1%


Sales Effectiveness StudySales Effectiveness Study

Companies with > 50 Sales PeopleCompanies with > 50 Sales People

0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0%

Decrease Discounting

Reduce Sales Admin Burden

Improve Team Selling

Support Team Selling

Decrease Sales Costs

Increase Margins

Improve Communications

Increase Customer Loyalty

Increase Market Share

Increase Sales Effectiveness

Increase Revenues

Top Three Business Objectives For Sales


Sales Effectiveness IssuesSales Effectiveness Issues Generating LeadsGenerating Leads

New Rep Ramp-upNew Rep Ramp-up

Up-sell/Cross-sellUp-sell/Cross-sell

Avoiding DiscountingAvoiding Discounting

Communications: Sales Communications: Sales Teams/ EnterpriseTeams/ Enterprise

No Decisions RatesNo Decisions Rates

Forecast AccuracyForecast Accuracy

New Product RolloutsNew Product Rollouts

Sharing Best PracticesSharing Best Practices

Building Customer Building Customer LoyaltyLoyalty


Sales Effectiveness StudySales Effectiveness Study

1 2 3 4 5

Complexity of Order Entry Process

Amount of Sales Rep Turnover

Difficulty Accessing Information

Admin Burden Placed on Sales Force

Rate of New Product Introductions

Complexity of Product Offerings

Breadth of Product Offerings

Competitive Activity in the Marketplace

Rate of Change in the Marketplace - Challenges


Sales Effectiveness Sales Effectiveness Hall of Fame 1992 -2004Hall of Fame 1992 -2004

StorageTekStorageTek 300% increase in Revenues Over 4 Years/No Additional Reps300% increase in Revenues Over 4 Years/No Additional Reps

Global Exchange ServicesGlobal Exchange Services Jumped from 1.5 leads/day to 7 per call center repJumped from 1.5 leads/day to 7 per call center rep

CiscoCisco 75%+ of customer orders over the web75%+ of customer orders over the web

McKessonMcKesson 400% increase in new product introduction hit rates400% increase in new product introduction hit rates

Government Computer SalesGovernment Computer Sales 50% reduction in new sales rep ramp up time50% reduction in new sales rep ramp up time


Sales Effectiveness - The Dark SideSales Effectiveness - The Dark Side

Success is Not a GivenSuccess is Not a Given

Significant Improvements – 25.6%Significant Improvements – 25.6%

Minor Improvements – 44.9%Minor Improvements – 44.9%

No Measurable Results – 17.8%No Measurable Results – 17.8%

Don’t Know – 11.6%Don’t Know – 11.6%


Customer Life Cycle ManagementCustomer Life Cycle Management

CLOSERETAIN

EXTEND

ATTRACT

SELECT

Reduce the number of

“No” decisions

General more/better

leads

Generate greater

incremental business

Avoid customer

losses, maximize renewals

Shorten sell cycle and

increase win rates


Attract:Attract:

Web/Call Center Web/Call Center Integration Integration

Generate LeadsGenerate Leads


Sales Effectiveness in Action - Sales Effectiveness in Action - AttractAttract

Case Study – Global eXchange ServicesCase Study – Global eXchange Services

E-commerce Vendor; 100,000 trading partners E-commerce Vendor; 100,000 trading partners and 1 billion transactions annually in 58 countriesand 1 billion transactions annually in 58 countries

Very Complex Sale, Hard to Attract Right LeadsVery Complex Sale, Hard to Attract Right Leads

Before Project Started: Before Project Started: Revenue Potential leads generated per 100 web Revenue Potential leads generated per 100 web

visitors = <1, per call center rep = 1.5/dayvisitors = <1, per call center rep = 1.5/day


Global eXchange Case Study SlidesGlobal eXchange Case Study Slides


Increased call center leads from 1.5 per day to 7+Increased call center leads from 1.5 per day to 7+

New leads close 30% faster than traditionally New leads close 30% faster than traditionally gathered leadsgathered leads

Up-sell/Cross-sell ratio improved by 25%Up-sell/Cross-sell ratio improved by 25%

48% of conversations advanced to the phone48% of conversations advanced to the phone

Reach a higher-level decision makerReach a higher-level decision maker

Global eXchange Success StatisticsGlobal eXchange Success Statistics


Close:Close:

Tablet PC Tablet PC

Introduce New ProductsIntroduce New Products


CRM to the Max - General MedicalCRM to the Max - General Medical

$1.7B division of McKesson$1.7B division of McKesson Represent 300 manufacturers, 30,000 productsRepresent 300 manufacturers, 30,000 products CSO - Dwight Titus, Vice ChairmanCSO - Dwight Titus, Vice Chairman Project challenge: represent every product as Project challenge: represent every product as

well as the product manager!well as the product manager! Technical requirements: link field sales, Technical requirements: link field sales,

marketing, distribution, finance, suppliers marketing, distribution, finance, suppliers seamlessly into sales processseamlessly into sales process


McKesson Case Study SlidesMcKesson Case Study Slides


General Medical ResultsGeneral Medical Results

30% Increase in Revenues per Rep30% Increase in Revenues per Rep 400% Increase in New Product Hit Rates400% Increase in New Product Hit Rates 1.4% Improvements in Margin1.4% Improvements in Margin Higher Rep Retention RatesHigher Rep Retention Rates


Sales Knowledge Management StudySales Knowledge Management Study

1 2 3 4 5

Sample Phone Scripts

Sample Customer Letters

Needs Analysis Templates

Sales Process Information

Presentation Templates

Proposal Templates

Sales Best Practices

Strategic Account Plans

User References/Case Studies

Objection Handling Insights

Competitive Analysis Insights

SKM Usage Assessment - Sales Support Tools

Value

Ease of Access

Completeness/Accuracy

1 2 3 4 5

Sample Phone Scripts

Sample Customer Letters

Needs Analysis Templates

Sales Process Information

Presentation Templates

Proposal Templates

Sales Best Practices

Strategic Account Plans

User References/Case Studies

Objection Handling Insights

Competitive Analysis Insights

SKM Usage Assessment - Sales Support Tools

Value

Ease of Access

Completeness/Accuracy


Sales Excellence Sales Excellence Process ProwessProcess Prowess

Level 1: Ad hoc

Level 2: Replicable

Level 3: Focused

Level 4: Dominant


P x C x V x F > RP x C x V x F > R

Formula for Successful ChangeFormula for Successful Change

Four factors must be present for change to occur:Four factors must be present for change to occur: P -P - C - C - V - V - F - F -

The product of which must be greater than The product of which must be greater than R - Resistance to changeR - Resistance to change


2005 Sales Effectiveness Study2005 Sales Effectiveness Study

Tracking 100+ Sales Performance MetricsTracking 100+ Sales Performance Metrics Online, Easy to Respond FormatOnline, Easy to Respond Format FreeFree 200 Page Summary Report Sent to All 200 Page Summary Report Sent to All

Participants in January 2005Participants in January 2005 For More Information E-Mail:For More Information E-Mail:

[email protected]@csoinsights.com

demystifying the sales effectiveness challenge

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