measure and motivate your sales team
DESCRIPTION
How many of us would say we have an effective sales force? How many of us have the sales we want or think we should earn based on our quality of services and products? And how many of us loathe managing our sales forces and / or are tired of hearing ‘it’s the economy.’ Founder and CEO of Sales Performance International, Inc. (SPI), Keith Eades, will present ideas and ways to help leaders measure your sales team and encourage them to love what they do and keep selling.TRANSCRIPT
How to Measure and Motivate Your Sales Team
Keith M. EadesFounder and CEOSales Performance International
Best Selling Author of: The New Solution SellingThe Solution Centric OrganizationThe Solution Selling FieldbookJune 15, 2011
Professional Selling Today
Salespeople Have:
◄ One of the overall best incomes - #5
◄ The highest overall job satisfaction - #1
◄ The lowest divorce rate - #1
◄ The lowest suicide rate - #1
2011 ©Solution Selling, Inc. 3
Mission: Helping the world’s leading corporations drive measurable and sustainable growth by transforming their revenue engines to market and sell solutions:
◄ 1,000,000+ Solution Selling Alumni
◄ 500+ global clients
◄ 130 certified staff
◄ 50 countries and 14 languages
◄ 20+ years in business
◄ Operations in each geography
◄ World’s most comprehensive sales library - Solution Selling
Introducing SPI
“Clearly SPI is one of the thought leaders in this (Sales 2.0) arena.” ES Research, 2009
www.spisales.com
◄The state of selling in 2011: trends from our research
◄What the best performing sales teams are doing Metrics Motivation
◄How you can sell more
Objectives
Key Trend: Sales Rep Performance is Slipping
© 2010 CSO Insights Sales Performance Optimization Survey
2010 Sales Performance Optimization Survey
(2010 vs. 2009)
2010 2009
Five Keys to World Class Sales Performance
A Buyer-Aligned Sales Process1
Sales and Marketing Alignment (messaging, sales tools, and sales conversations)2
A Continual “Learning Framework” (skills assessment, training and multi-year reinforcement that aligns with process and sales methodologies)
3
Technology Enablement (that explicitly supports process, methodology, and management practices)
5
Management “System” and Disciplines (that foster and sustain process and methodology adoption)4
Starting with the End in Mind
Typical Sales Pipeline Metrics
= $X# of Deals
Average Deal Size Win RatioX
Sales Cycle Length
Linking Sales Behaviors to Pipeline Metrics
Win Ratio
# of Deals
Sales Pipeline Metrics
Average Deal Size
◄ Completing territory planning ◄ Identifying opportunities◄ Stimulating interest ◄ Gaining executive access
◄ Articulating the problem andsolution in customer terms
◄ Gaining executive access◄ Gaining access to budgets
Sales Skills and Behaviors
=Pipeline Yield $◄ Ability to set competitive strategy ◄ Establishing customer’s vision of
the solution◄ Qualifying better
Sales Cycle Length
◄ Gaining executive access◄ Creating a sense of urgency
2011 ©Solution Selling, Inc. 9
Results◄ For every $1 invested, $94 of revenue
◄ Could go as high as $157 to $1 depending upon pervasive use and adoption
Key Metrics of Impact ◄ Pipeline growth by increased number of opportunities◄ Increased average selling price◄ Increase win rate◄ Shorter sale cycle◄ Lower cost of sales by disengaging earlier from opportunities
ROI on IBM’s Solution Selling® and Sales Process Transformation
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2011 ©Solution Selling, Inc. 10
Building a High Performance Solutions Sales Culture
Solution Selling® Works
Very Satisfied
Dissatisfied
Source : Microsoft WW customer satisfaction survey, internal interviews
More successful sales reps
Setting customer expectations satisfaction
Yr 01 Yr 02
+44%
16%23%
Yr 01 Yr 02
- 16%
19%16%
Using MSSP MSSP ImpactWorldwide Avg.
Yr 01 Yr 02
15% 16%
+ 6%
Yr 1 Yr 2
+19%
16% 19%
Yr 02
140% of Quota
100% of Quota
<100 % of Quota
69%
23%
9%Yr 1
140% of Quota
100% of Quota
<100 % of Quota
15%
30%
55%
Customersatisfaction
Quota Attainment
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2011 ©Solution Selling, Inc. 11
The Impact of Sales Process
Significantly Improves
35.1%
Modestly Improves 53.7%
No Impact6.2%
Negative Impact0.8% Do Not Know
4.2%
Sales Methodology Impact on Sales PerformanceImpact of Sales Process on Company Performance
2010 Sales Performance Optimization Report by CSO Insights
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2011 ©Solution Selling, Inc. 12
What is a Buyer Aligned Sales Process?
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2011 ©Solution Selling, Inc. 13
Solution Selling® Sales Process – Sales Viewpoint
CloseCreate Qualify Develop Prove NegotiatePlan Implement
Develop business strategy and define / execute initiatives
Determine needs / requirements
Evaluate alternatives
Select solutions and evaluate risk Resolve issues and finalize contracts Implement and
evaluate success
Get necessary documents signed
Identify potential beneficiary
Stimulate interest Get pain admitted Confirm dialogue
and agree upon next steps
Diagnose admitted pain of Sponsor
Create or reengineer vision for sponsor
Gain agreement to explore further
Negotiate access to power
Confirm dialogue and agree upon next steps
Diagnose admit-ted pain of Power
Create or reengineer vision for power sponsor
Gain agreement to explore further
Determine evaluation criteria
Propose a plan of next steps
Confirm dialogue and agree upon plan of next steps
Begin execution of next steps
Present preliminary solution
Prove capabilities (Oper, Trans, Fin)
Conduct review of proposal
Ask for the business
Issue proposal Receive verbal
approval
Prepare for final negotiations
Reach final agreement
Conduct territory / account and/or opportunity planning (as appropriate)
Identify potential opportunity
Conduct pre-call planning and research
Implement solution Complete
implementation approach
Measure success criteria
Identify potential new opportunities
Documents signed
Lead Letter agreed upon
Sponsor Letter agreed upon
Evaluation Plan modified or agreed upon
Verbal approval received
Ts and Cs agreed upon
Territory / Acct / Opportunity Plan developed
Plan Execute Implement Sales Process Steps
Sales Process Activities
Verifiable Customer Outcomes
Implementation Plan completed
Buying Process
90%10% 25% 50% 75% 100%
Sales Management System
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2011 ©Solution Selling, Inc. 14
Solution Selling® Sales Process – Marketing Viewpoint
Who should we be targeting?What are their critical business issues?What case studies relate to their industry/role/situation?How do we diagnose customer problems?How do we have relevant dialogue with power buyers?What is our value proposition?What are our defensible differentiators?
Value PropositionReference StoryBus. Dev. LetterBus. Dev. PrompterLead LetterOpp. AssessmentC. Strategy Selector
9 Block Model®Pain Sheet®S. A. PrompterSponsor Letter
9 Block Model®Pain Sheet®S. A. PrompterPower S. LetterEvaluation Plan
Evaluation PlanTransition LetterImplement. PlanValue AnalysisSuccess Criteria
Negotiating Worksheet
Give-Get List
T/A/O PlanAccount ProfilePain Chain®Key Players List
Implementation PlanSuccess CriteriaReference Story
Sales Tools
Marketing answers these questions
CloseCreate Qualify Develop Prove NegotiatePlan Implement
Develop business strategy and define / execute initiatives
Determine needs / requirements
Evaluate alternatives
Select solutions and evaluate risk Resolve issues and finalize contracts Implement and
evaluate success
Plan Execute Implement Sales Process Steps
Buying Process
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SALES PROCESS Plan Engage Develop Propose Close Deploy
CUSTOMER BUYING PROCESS
Access to Power SponsorPain admitted by Power SponsorPower Sponsor has buying visionPower Sponsor agreed to exploreEvaluation Plan proposed
Respond to RFPEngage CAMEngage Implement. TeamContract negotiation in process
Evaluation Plan underwayCraft RFP For ClientEngage Proposal WriterProposal issued, decision due
Research Current PenetrationAssemble Account Plan TeamContact local field offices
Pain admitted by SponsorSponsor has a buying visionPenetrate Local DepartmentsAccess to Power negotiated
Signed documentsCreate terms and conditionsNotify all parties of winDevelop Success Story For Intranet
SALES PROCESS ACTIVITIES
MANAGEMENT SYSTEM
Implement & evaluate success
Resolve concerns & make
decisions
Select solution
Evaluate options
Develop strategy;
define initiatives
Determine requirements
METRICS
# Evaluation Plans Proposed# Demos Given$ Billable On Evaluation Plans
# Evaluation Plans Accepted# RFP’s Crafted For Clients% RFP No BidsCRM Audit Accuracy Score# ROI For Sales Analyses Complete
# Account Plans Completed% Seller Time On Account Planning# Pain Chains Completed
# Latent First Time Calls# Email Campaigns# Sponsor Letters# New Opportunities$ Value New Opportunities
# Proposals Written$ Value Proposals WrittenPre Proposal Conferences Held% Set Up Fee Quoted# Referrals Agreed To
Customer Satisfaction Rating# Reference Stories Created% Seller Time On Account Mgt.
0% 10% 25% 50% 85% 100%
Sales Process Reveals Metrics for Seller Behavior by Stage
Account Plan
Completed
Power Sponsor
Letter
Sponsor Letter
Completed
RFP Crafted For
Client
Verbal Approval Received
Signed Contract
Completed
VERIFIABLE OUTCOMES
AMSM
AMSE
AMMKSM
AMSOSM
AMSOSM
AMSMROLES
www.spisales.com 152011 ©Solution Selling, Inc.
2011 ©Solution Selling, Inc. 16
Win Odds
CodeSales Process
Step Sales Execution Activities and Verifiable Outcomes
PLAN Identify potential opportunity
0% T Territory / Account / Opportunity Plan
CREATE
Identify potential beneficiary Stimulate interest Get pain admitted Confirm dialogue and agree upon next steps
10% S Lead Letter
QUALIFY
Diagnose admitted pain of Sponsor Create or reengineer vision for potential Sponsor Gain agreement to explore further Negotiate access to Power Confirm dialogue & agree upon next steps
25% D Sponsor Letter
DEVELOP
Diagnose admitted pain of Power Sponsor Create or reengineer vision for potential Power Sponsor Gain agreement to explore further Determine evaluation criteria Propose a plan of next steps Confirm dialogue & agree upon plan of next steps
50% C Evaluation Plan
PROVE
Begin execution of next steps Present preliminary solution Prove capabilities (O/T/F) Conduct review of proposal Ask for the business Issue proposal (decision due) Receive verbal approval
75% B Verbal approval
NEGOTIATE Prepare for final negotiations Reach final agreement
90% A Terms and Conditions agreed upon
CLOSE Get necessary documents signed
100% W Signed documents
Pipeline Management
A
D
C
B
S
W
T
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2011 ©Solution Selling, Inc. 17
Why Measure Through Process
◄ Incent desired behavior through better sales results!
◄ Establish a basis for accountability in the sales organization
◄ Build more predictable and productive pipelines Apply consistent pipeline grading habits Anticipate and minimize shortfalls Enable seller success
◄ Identify skill problems Apply focused coaching for action Determine accurate status of opportunities
◄ Increase manager productivity Manage by exception Simplify internal communications
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2011 ©Solution Selling, Inc. 18
Motivation Through Sales Process
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◄ Sales process provides a roadmap to get from where you are to where you want to be
◄ The process provides your sales team with a series of closes / wins throughout the sales process
◄ Your sales team will be motivated by having more control over the sales process
◄ Performance improvements = more revenue = higher motivation on the sales team
◄ Sales process ensures: Higher individual quota attainment Higher team quota attainment Increase in average deal size Improved time to productivity
Continual Learning Framework
A continual “learning framework” (skills assessment, training and multi-year reinforcement) that aligns with process and
sales methodologies is essential.
www.spisales.com 2011 ©Solution Selling, Inc. 19
“96% of sales people believe continuous learning is critical to their success”
– ASTD Research: Accelerating Revenue Through Learning
2011 ©Solution Selling, Inc. 20
How Not to Learn
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2011 ©Solution Selling, Inc. 21
Why Continual Learning is Imperative
Training is a great way to install process and knowledge
However, return on training events alone is often short-lived
Less than one month
One month
Two months
Three to six months
Seven months to a year
More than a year
0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% 45.0% 50.0%
% of Retention
On average, half of the content of a sales training event is lost in 5.1 weeks.
On average, 84% of sales training content is lost
after 90 days.
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2011 ©Solution Selling, Inc.
The ROI Dilemma
www.spisales.com Page 22
InitialTraining
4 8
Elapsed Weeks
12 16
Content Retention
Traditional Training
Continual Learning
ROI GAP
Events transfer a lot of information, but retention drops off quickly
Continual learning begins realistically and builds across time
Sales Process Impact on Sales Performance
Reps A
chie
ving
Quota
Incr
ease
in A
vera
ge D
eal S
ize
Faste
r Tim
e to
Pro
ducti
vity
0%
10%
20%
30%
40%
50%
60%
41%
22%
15%
49%
38%
23%
All OthersSPI Customers
SPI Customers vs. Other Sales Training
Source: Aberdeen Group Study December, 2010
2011 ©Solution Selling, Inc.
HOW TO MEASURE AND MOTIVATE YOUR SALES TEAM
Thank You
Sales Performance International4720 Piedmont Row Drive | Suite 400Charlotte, North Carolina 28210t: 704.227.6500 | f: 704.364.8114
email: [email protected]
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