idc best practices in b2b sales methodologies

Copyright 2012 IDC. Reproduction is forbidden unless authorized. All rights reserved.

IDC’s 2012 Best Practices in Sales Methodologies

IDC Sales Advisory Service

[For clients of IDC’s Sales Advisory Service, refer to the following report for more detailed information: Best Practices in B2B Sales Methodologies (IDC #236236, August 2012)]

May 1, 2023

© 2012 IDC

The Buying Environment . . . What’s Different Today?

Lower IT spending growth rate (5.4% IT annual growth through 2015)

Larger buying teams. . . more people to “sell” to (5 people in 2010 to 6.5 in 2012)

Longer buying cycles

Buyers are more knowledgeable, more connected - and busier! (40% of the decision is made before first rep visit!)

. . .And only the most agile and productive organizations will excel!

2

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© 2012 IDC

Low

Low

High

HighEffectiveness

Effi

cien

cy

Low Yield Sales Leadership

Weak Long-Term OutlookCrisis Potential

IDC’s Sales Performance Matrix: What are Leaders Doing Differently?

3

Source: IDC’s Sales Productivity Benchmarks Database (average company revenue > $5B)

Outside of Sales Leadership Quadrant

Sales Leadership Quadrant

Strategically– Advancing towards the Next Gen

Sales Ops model– Better managing resources. . .

asking the tough questions– Improving data management and

analysis

By the #’s– More mature SFA environment. . .

and process– More formal skill-set assessment

process– 81% have an on-boarding

process (vs. 64% of “laggards”)– 30% more spend on outsourced

sales program spend per sales staff

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© 2012 IDC

How do we Impact an Organization of 000’s of sales folks?

% Quota Attainment

# S

ales

Rep

s at

Quo

ta L

evel

Up or Out Include in planning Learn from them

Instill process to help these folks succeed

4

ABC

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So Where do we Need to Focus our Efforts from a Sales Perspective?

SALES OPERATIONSCustomerIntelligence

Purchase & Relationship History

Share of Wallet Role-based Intelligence Company-based

Intelligence Industry/Vertical

Intelligence

Asset Creation, Management & Delivery

Governance Delivery Vehicle Selection

& Management Tribal Knowledge

SalesEnablement*

Sales Cycle Stages & Motions Call Planning Account Planning Opportunity Management

Sales Methodology

Staff Planning & Recruiting Hiring & On-boarding Training & Development Retention, Repositioning &

Replacement Compensation

Talent Management

FLSM & Coaching Strategy & Planning Performance Management Quality & Change Mgmt. Forecasting/Quota Setting Pipeline Management Org Structure/Coverage

Model/Channel Strategy

SalesManagement

Automation

AutomationMeasurement

Measurement Automation

AutomationMeasurement

Measurement

SalesSalesProductivityProductivity

* Contact IDC to learn about the “14 Attributes of a Best-in-Class Sales Enablement Strategy”

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© 2012 IDC 6

What is a “Sales Methodology”

A sales methodology is a consistent set of sales processes that are executed by individuals and sales teams across the organization in order to optimize sales productivity, maximize quota attainment for sales teams, and maximize revenue and profit for the company. Each sales process consists of: A taxonomy of applicable terms Roles and responsibilities of key parties A set of activities A set of metrics enabling tracking of the success of the process and managing

its continuous improvement.

Common Components

Sales management and coaching Opportunity management

Forecasting Sales call planning

Sales Stages Demand generation & mgmt.

Account Planning Territory Planning

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IDC Best Practices Evaluation

Methodology

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© 2012 IDC 8

2012 Survey on B2B Sales Methodologies Objectives:

– Assess the current state of sales methodologies and related processes deployed across large and complex sales organizations; solicit feedback on their effectiveness from users of these methodologies; and identify opportunities for improvement

Participant statistics:– 100 participants (quantitative survey and executive interviews)

– Top industries represented: software, information technology services, financial, manufacturing, and hardware

– Over 2/3 of participants carry a quota

– 56% of companies with over $250M in revenue

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STRATEGIC FINDINGS

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1

2

3

4

5

"Critical to our success"

"Primarily for operational ef f iciency"

"For complex deals/accounts"

"Only for some reps"

"No value"

Rat

ing

The Good News. . . Most agree that sales methodologies are critical to success! . . . “Enabling me to:– Achieve or exceed individual or

team quota– Increase opportunity

conversion rates– Improve forecasting”

The Value of Having and Using a Sales Methodology in the Organization is High

Q: How much do you agree with the following statements about the use of sales methodology in your organization.

The Good News. . . Most agree that sales methodologies are critical to success! . . . “Enabling me to:– Achieve or exceed individual or

team quota– Increase opportunity

conversion rates– Improve forecasting”

The Bad News. . . – At least 1/3rd of sales reps are

still not using a sales methodology on a regular basis*; and

– The average organization uses at least 2 to 3 sales methodologies“Disagree”

“Agree”

Source: IDC's 2012 B2B Sales Methodology Study* IDC’s Sales Investment and Productivity Benchmarks Database

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© 2012 IDC 11

To Sales Management: “What Impacts the Success of Our Sales Methodology?”

Source: IDC's 2012 B2B Sales Methodology Study

Methodology Design[Develop] The sales methodology is not customized to the company’s business model and

culture, its customers and its markets. “Pay attention to the differences in specific business units, and the needs of their

sales teams. . . .sales methodology may not be "one-size-fits-all".” “Our sales methodology is not embedded into our sales force automation system”

Launch Process[Execute] “Our sales team did a poor job of launching the sales methodology” “Walk the talk. Without consistency and discipline, adoption rates will remain low.” “Continue to focus on the managers as key champions of the process. Invest in their

development and coaching of the coaches.”

Maintenance[Sustain] “Our sales team did a poor job of supporting the sales methodology after its launch” “Our sales reps and sales managers simply do not have the discipline to leverage a

sales methodology”

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© 2012 IDC 12

Sales Methodology Key Success Factors

Develop

Execute Sustain

1. Identify who’s Responsible, Accountable, Consulted and Informed

2. Customize the methodology for your company

3. Establish a common language

4. Drive (and maintain) adoption . . . and consistency– Invest in training– Maintain data quality– Integrate methodology into the everyday life of your reps

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Sales Operations: Driving Sales to be More Strategic

ExecutiveSales Mgmt.

Regional Sales Mgmt.

DirectSales.

Prof.Services

IndirectSales.

Field Sales Support

Business Technical

SalesAdmin.

Sales Operations

Sales Programs

Sales Strategy &Planning

SalesForecasting

SalesAnalytics

SalesCompensation

Quote toOrder

Next Gen. Sales Operations [1]

SalesEnablement

Sales Automation

Best-in-Class . . .

Target SO Staff Levels: 8-12%; 1/4 to 1/3 COE team

[1] The Next Generation Sales Operations Team (IDC Document #224122)

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A Sample RACI Diagram for Sales Methodology: What About for Your Organization?

Activity/MilestoneCompany

ExecutivesSales

OperationsSales

ManagersSales Reps Marketing

Training Organization IT

Achieve buy-in for the SM Initiative C R,A C C C

Establish a committee to assess and develop the SM C R,A C C C

Assess & select SM vendor(s) I R A C I

Develop Consistent Taxonomy I R,A C C

Develop Initial and Follow-Up SM Training I R C R, A

Deliver SM Training I R C I R, A

Configure SM into the SFA/CRM I A C I R

Testing SM in SFA/CRM I A I R

Integrate SM into daily practice I A R C

Evaluate SM usage & value to business I A R C C I

Key:R = Responsible: person who performs an activity or does the workA = Accountable: person who is ultimately accountable and has yes/no vetoC = Consulted: person that contributes feedback to the activityI = Informed: person that needs to know of the decision or action


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0%

10%

20%

30%

40%

50%

Developed In-House

Customer Centric Selling

Sales Performance International

(Solution Selling)

Miller Heiman (Strategic Selling)

Richardson (Sales

Performance System)

Huthwaite (SPIN Selling)

TAS (Value Engagement, DealMaker)

ValueSelling Associates

General Physics

InfoMentis

Current Desired

Is the “Grass Greener on the Other Side”?

Q: Please indicate which company’s sales methodology your organization currently supports as well as which one you would ideally prefer? (please check all that apply)

On average, 2.6 sales methodologies are currently being

used across organizations.


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0%

5%

10%

15%

20%

25%

30%

Developed In-House

Customer Centric Selling

Richardson (Sales Performance

System)

Sales Performance International

(Solution Selling)

Miller Heiman (Strategic Selling)

TAS (Value Engagement, DealMaker)

Other

% o

f Res

pond

ents

Especially Since Most Sales Methodologies Get High Marks

Q: Which of the following sales methodologies that you currently use would you best describe as your company’s “primary” methodology?

Average value attributed to the “primary” methodology deployed and supported in organizations:

7/10

7

7.4

7.2

7.7 5.5 8 6.5

Value attributed to the “primary” methodology deployed and supported Source: IDC's 2012 B2B Sales Methodology Study

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© 2012 IDC 17

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

70.0%

Sales Call Planning

Opportunity Management

Sales Management and

Coaching

Account Planning Forecasting Demand Generation &

Mgmt.

Territory Planning

Top Five Sales Process Areas Which Leverage Sales Methodologies. . .

Q: Which of the following components of your “primary” methodology have been deployed across your organization? (please select all that apply)

% o

f Res

pond

ents


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© 2012 IDC 18

0%

10%

20%

30%

40%

50%

60%

70%

80%

Sales Mgmt. & Coaching

Sales Call Planning Opportunity Mgmt. Forecasting Demand Generation & Mgmt.

Account Planning Territory Planning

% o

f Res

pond

ents

Completed Launch Training Involved in Ongoing Training

Room for Improvement: Ongoing Training


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0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

45.0%

50.0%

Increase Decrease No Change Don't Know

50% of Companies will Increase Training in Sales Methodology in 2012

Q: Please indicate if investment or amount of training for sales staff related to sales methodology in 2012 will: (please check one)

Make sales methodology training mandatory (don’t forget your partners)

Ensure formal training exists as part of new hire “on-boarding.”

Follow up the initial sales methodology training periodically as reinforcement

% o

f Res

pond

ents


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49%

68%81%

90%

51%

32%

19%

0%

10%

20%

30%

40%

50%

60%

"No support built into SFA"

"track opportunities according to our SM"

"track AND analyze opportunities according

to our SM"

"Built-in coaching capabilities"

% o

f Res

pond

ents

Reps "at" or "above" quota Reps "below" quota

Sales Methodology Support Built into your SFA Positively Impacts Quota!

Q: Please indicate how your CRM/sales force automation(SFA) system supports your sales methodology?


Integrate your sales methodology with your sales force automation system!

Increased Support of Methodology within SFA

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© 2012 IDC

IDC’s Sales Methodology Maturity Model

21

People– Lack of executive support

Process– No formal SM training;

“learn as you go” Technology

– No support for SM built into SFA system

People– Executive support shown

through daily practice – SM is engrained in the

company’s culture– Critical mass adoption

achieved Process

– Sales is fluent in SM language

– SM training is part of on-board process, and existing rep training

– Periodic SM refresher training

Technology– SFA allows for opportunity

analysis and has built-in coaching capabilities to help opportunities progress through the pipeline according to SM

People– Executive support is not seen

by reps Process

– Formal, initial roll-out of SM with training (no follow-up, and not integrated well with related processes)

Technology– SFA allows opportunities to be

tracked according to SMMat

urity

of S

ales

Met

hodo

logy

Impact on Sales Productivity

LOW

HIGH

HIG

H

Traditional Structure:“A” Reps Thrive

Sales Methodology Experimentation:Select “B” Reps Thrive

Sales Methodology is Part of Organization’s Fabric:Opportunity for All Reps to Thrive

LOW

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Case Study: Autodesk’s CRM Implementation Company overview:

– $2.2B revenue, mostly indirect, 2,000+ sales reps– Siebel for customer master, SFDC for SFA (3 previous CRM efforts failed)

Key Success Factors:– Accountability: Top down priority by EVP sales;

Office of the CRM reports to sales operations– Sales pays for the implementation (“they have

skin in the game”)– No data migration from old to new SFA – i.e.,

all opportunities must be entered from the start– Training: In-person meetings; 30-40 at a time– Data quality is a top priority: 40 person team

cleaning and de-duping data every day


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© 2012 IDC 23

Case Study: $1B+ Hardware Company Sales Methodology: Went “all in” with a specific vendor. . . with

full executive support for a multi-year effort Key Success Factors (so far):

– Language: Common dialogue across the entire company– A Focus on the Buyer: Align the sales process with a customer’s buying

cycle– Improve sales managers’ coaching skills– Ensure that marketing content aligns with and supports the sales

methodology– Improve training: Focus on behavioral change and measurement– Everyone is involved in roll-out of the methodology


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© 2012 IDC

IDC Guidance: Actions to Take in 2012 to Improve Effectiveness of Sales Methodologies

24

Refocus investment and resources in Sales Methodology Develop a sales methodology that is customized to your company’s

business model and culture Do not use a “one size fits all” mentality Do not place Sales Methodologies on the back burner after initial roll-out

Turn the process into a daily practice Partner with the sales training organization on ways to imbed initial and

follow up training into the daily workflow “Use it regularly to act/demonstrate successful role models when dealing

with Sales/Acct Mgmt staff and internal business partners.” “Focus on the managers as key champions of the process.”

Embed sales methodology into SFA system to increase its value

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© 2012 IDC

Just a Sample of IDC’s Latest Sales Advisory Service Research on www.IDC.com

26

Best Practices in Customer Intelligence for Sales (IDC #224520)

IDC’s Third Annual Buyer Experience Study – Guidance for Sales & Marketing (IDC #TB20100422)

The Role of the First Line Sales Manager (IDC #218087)

The Next Generation Sales Operations Team (IDC#224122)

Executive Sponsor Program Strategies (IDC#225024) Best Practices in Account Planning (IDC #223295) KSFs for Launching and Best Leveraging Your CRM

Application (IDC#224737)

Sales Enablement - 90% Process, 10% Technology: A Best Practice Case Study of Sales Enablement at Oracle

2011 Sales Enablement Strategy Session (on-site for clients)

The State of the Art in Sales Enablement (IDC #219182)

Best Practices in Sales Enablement – Mktg. Content and Asset Mgmt.(IDC #219418)

IDC’s Sales Enablement Framework: From Mktg. to Sales (IDC #219900)

IDC’s 2011 Trends, Benchmarks and Essential Guidance for Technology Sales (IDC#225089)

Best Practices in Global Inside Sales Strategies (IDC #216773)

Best Practices in Sales Productivity Metrics (IDC #213031)

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© 2012 IDC

IDC Sales Advisory Service: 2012 Deliverables Schedule

Best Practice Studies– Preparing Sales Managers to

Become Coaches (May 2011)– Social Collaboration for Sales

(March 2012)– Sales Methodologies (Mar

2012)– Sales Pipeline Management

(Summer 2012) Insight Reports

– 2012 Buyer Experience Study (June 2012)

– Next Generation Sales Ops Team Update (Summer 2012)

– Sales Enablement at Oracle & Toshiba

– A Cohesive Sales & Marketing Strategy

– Top Action Items for a New VP of Sales

Sales Leadership Board Meetings– Feb 29-Mar 1 2012, San

Jose, CA– June 5-6 2012, Santa

Clara, CA– October 16-17, 2012,

Boston, MA

Events – Directions 2012 (March 7

San Jose CA & March 13, Boston)

Telebriefings– Results of 2012 Sales

Barometer– Social Collaboration for

Sales Enablement (May 2012)

Hot Topic Peer-to-Peer Calls– CRM Replacement (April

2012)

IDC Sales Automation Framework

User Summit Updates– SAVO– Eloqua– SFDC– Oracle

Pulse Surveys– Sales Enablement

(ongoing)

Annual Sales Productivity Benchmarking Study (Sept 2012)– Telebriefing & slides– Sales Productivity

Planner (Sept 2012)

Worldwide Sales & Marketing Taxonomy (Oct 2012)

Custom Sales Benchmarking Analysis

Sales Barometer Study (March, 2012)– Telebriefing & slides

UnlimitedAnalystInquiry

Extensive Research Library = In Progress: Contact us

to participate

= Recently Publishedor available!

27

BenchmarkingResearch

Sales Operations Best Practices & Insight

Leadership Board Meetings & Events

Sales and Marketing Automation

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© 2012 IDC

Sales Advisory Service: Currently Available Published Research on www.IDC.com

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Sales and Sales Operations Best Practice Series Best Practices in B2B Sales Methodologies (IDC #236236, Aug. 2012) Social Collaboration for Sales: Cutting through the Hype (IDC #233340, Feb. 2012) Leveraging Sales Enablement to Improve Sales Productivity: A Best Practice Case Study

at T-Systems (IDC #232490, Jan. 2012) Sales Enablement - 90% Process, 10% Technology: A Best Practice Case Study of

Sales Enablement at Oracle (IDC #230546, Oct. 2011) Best Practices in Preparing Sales Managers to be Coaches (IDC #227923, April 2011) Best Practices in Sales Performance Measurement: A Focus on Productivity (IDC

#226727, Feb. 2011) Best Practices in Customer Intelligence for Sales (IDC #224520, Sept. 2010) Best Practices in Account Planning (IDC #223295, May 2010) Best Practices in Sales Enablement – Marketing Content and Asset Management (IDC

#219418, Aug 2009) The State of the Art in Sales Enablement: An Intensive Study of Current Practices (IDC

#219182, Aug 2009) Best Practices in Sales Performance Improvement: The Role of the First Line Sales

Manager (IDC #218087, April 2009) Best Practices in Sales Performance Improvement: Global Inside Sales Strategies (IDC

#216773, February 2009)

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© 2012 IDC


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Investment and Productivity Foundation Studies IDC’s 2012 B2B Sales Barometer Highlights (IDC #WC20120322, Mar. 2012) IDC’s Worldwide Sales and Marketing Taxonomy, 2012: Guidelines for Cost Control and

Resource Allocation (IDC #231252, Nov. 2011) IDC’s 2012 Sales Investment and Productivity Planner: Trends, Benchmarks, and

Essential Guidance for Tech Sales Organizations (IDC #230919, Oct. 2011) 2011 Technology Sales Barometer: A Year of Stabilization (IDC #228071, May 2011) Content Management and Sales Enablement Survey Results (IDC #225701, Dec. 2010) IDC’s 2011 Trends, Benchmarks and Essential Guidance for Technology Sales: Sales

Productivity Benchmarks Study (IDC#225089, Sept. 2010) 2010 Tech Sales Barometer: Maintaining the Momentum for Productivity Improvements

(IDC#222485, April 2010) Sales Enablement 3.0: A Transformation of Sales Enabled by a Transformation of

Marketing (IDC #218546, June 2009) 2009 Tech Sales Barometer: Remaining Optimistic in a Down Economy (IDC #216889,

March 2009)

Buyer(Customer) Research The Buyer Speaks: IDC’s 2011 Buyer Experience Survey – Guidance for Sales and

Marketing (IDC #228987 July 2011) (annual study)

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Sales Insights Sales and Marketing Leadership Meeting Highlights, June 5 and 6, 2012: Sales Rep Panel, Sales

Enablement, Pipeline Management, IT Buyer Insight, and SFA Optimization (IDC 235656, July 2012)

Increasing Sales Productivity Through Innovative Technology: A Case Study of SAP’s Deployment of iPads (IDC 233842, April 2012)

IDC Sales Leadership Board Meeting Notes, February 29 and March 1, 2012: B2B Sales Methodologies, 2013 Sales Operations Planning, Sales Operations and IT Alignment, and the RFP Process (IDC 233678, April 2012)

Top Action Items for a New VP Sales (IDC 232588, Jan. 2012) Vendor Profile: Qvidian Sales Enablement Playbooks and Proposal Automation (IDC 231889, Jan.

2012) What’s Killing the Traditional Funnel? (IDC 232490, Jan. 2012) Oct, 2011, Sales & Marketing Leadership Meeting Highlights: Customer Panels, Sales Enablement,

Lead Management and IDC Productivity Benchmarks (IDC #231281, Nov. 2011) The Sales Enablement Vendor Space Heats Up (IDC #229339, July 2011) IDC Sales Leadership Board Meeting Notes, May, 2011: 2012 Sales Operations Planning, Social

Media for Sales and The Buyer Speaks (IDC #228452, May 2011) IDC Sales Leadership Board Meeting Notes: Feb 15 and 16, 2011 (IDC #227269, March 2011) Clouds Filled the Sky, But the Mood Was Sunny and Full of Chatter at Salesforce.com’s Eight

Annual Dreamforce Conference (IDC #226676, Jan. 2011) Update: The Savo User Summit 2010 (IDC #225593, Nov. 2010) IDC CMO and Sales Leadership Board Meeting Notes: Oct. 13 and 14, 2010 (IDC #225486, Nov.

2010)

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© 2012 IDC


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Events (PowerPoint presentations) IDC’s 2012 B2B Sales Barometer Highlights (IDC #WC20120322, Mar. 2012) A Cohesive Sales and Marketing Strategy: Real Key Performance Indicators to Assess your

Investment and Process Alignment (IDC #WC20111208, Dec. 2011) IDC's 2012 Sales Investment and Productivity Planner: Trends, Benchmarks, and Essential Guidance

for Technology Sales Organizations (IDC #230919, Oct. 2011) IDC's Trends, Forecast, and Essential Guidance for BtoB Sales: 2011 Sales Barometer (IDC

#227697, Mar. 2011) Best Practices for Customer Intelligence for Sales – Companion Presentation (IDC #225791, Nov.

2010) IDC’s 2011 Trends, Benchmarks, and Essential Guidance for Technology Sales Organizations (IDC

#225089, Sept 2010) The Next Generation Sales Operations Team – Companion Presentation (IDC #224354, July 2010) IDC Sales Leadership Board Meeting Presentations: May 25 and 26, 2010 (contact

[email protected] for a copy) IDC’s Third Annual Buyer Experience Study – Guidance for Sales & Marketing (IDC #TB20100422,

April 2010) Sales & Marketing Strategies for 2010: Key Success Factors for Growth (IDC #TB20100318, March

2010) IDC 2010 Directions – Track 1: Three Recipes for Sales Success (IDC #DR2010_T1_MG, March

2010) IDC Sales Leadership Board Meeting Presentations: February 14 and 15, 2010 (contact

[email protected] for a copy)

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© 2012 IDC 32

The Executive Advisory Group

Irina ZvagelskyResearch Analyst, Sales [email protected] Phone: 305-351-3060

Rich VancilGroup Vice PresidentExecutive Advisory [email protected]: 508-935-4327

Michael GerardVice PresidentEAG and Sales Advisory [email protected]: 508-988-6758

Joseph FerrantinoResearch Analyst, CMO Advisory [email protected]: 508-988-6973

Gerry MurrayResearch Manager, CMO Advisory [email protected]: 508-988-7974

Henry MorrisExecutive Sponsor/[email protected]: 508-935-4266

Wendy PembertonSales [email protected]: 816-569-1286

Kathleen SchaubResearch Vice PresidentCMO Advisory [email protected]: 925-999-9839

Jason CunliffeConsulting [email protected]: 305-351-3037

Scott McLarnonGVP [email protected]: 508-935-4392

Tina RiainConsulting [email protected]: 508-935-4563

Mary MenendezSr. Inquiry [email protected]: 508-935-45-85

idc best practices in b2b sales methodologies

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