1. The document summarizes research on sales effectiveness and provides 5 imperatives for improving sales performance in 2012. It finds that sales has the highest attrition and lowest performance measurement of any business function.
2. The 5 imperatives are: close the discipline and process gap, implement new learning and training approaches, align sales and marketing, embrace technology-enabled selling, and measure sales performance.
3. The document provides initial steps companies can take to address each imperative, such as adopting a skills-based sales hiring process, rethinking traditional training programs, aligning sales and marketing messaging, assessing technology capabilities, and exploring new performance metrics.
4. The Research
• Depending on the
industry, 25 to 33%
of sales people are
unsuited for their
job.1
• In 2007, 38.5% of
salespeople missed
their annual
objective. Turnover
among salespeople
last year was 40%.2
1 Among ES Research Group, Inc. Clients
2 Sales Benchmark Index
5. The Research
• Three out of five
companies
surveyed do not
have a sales
performance
measurement
program in place.2
• Only 37% of
companies report
forecast accuracy is
greater than 50%.1
• Only 43% of
companies
responding said
they had a formal
sales training
program. Of those,
only 50% provided
sales skills training.3
1 CSO Insights
2 ES Research Group, Inc.
3 DePaul University Study
6. The Research
• Half of sales organizations feel
that marketing needs to improve
the quality and quantity of the
leads they are providing to reps.
Another one-third feel that they
are only adequate.1
• More than 8 out of 10 deals lost
are due either or both of:2
– Ineffective qualification
– Lack of sales process and
planning
1 CSO Insights
2 ES Research Group, Inc.
7. The Research: Conclusions
• Sales is dead last: attrition,
process, measurement, and
performance.
• The three main reasons:
1.Perception of sales being an “art”
versus the “science” that it
(mostly) is.
2.Many sales leaders exhibit
management/leadership
competency deficits
– Often promotion from best
salesrep
3.Quarter-by-quarter short-term
pressures tactical approach
8. Conclusions: Other Factors
1. Buyers are increasingly
savvy
2. Competition is
increasingly relentless
3. Commoditization is
increasingly prevalent
4. The economy is now a
significant obstacle
10. Five Imperatives for Sales Effectiveness in 2012
1. Close the discipline and process gap
2. Implement new approaches to learning/ training
3. Align sales and marketing
4. Embrace technology-enabled selling
5. Measure sales performance
11. Imperative #1: Close Discipline and Process Gap
1. Opportunity & Account Management
• Planning: Combining zoom-in and zoom-out
• Engineered methods and processes are required
2. Hiring
• Mis-hires can cost > $500k
• Throw ‘em to the wolves…
3. Lead/Demand Generation
• Special competencies/personnel required
• Closed-loop systems must be utilized
4. Sales Channels
• Recruit, hire, develop, measure, manage, and
compensate appropriately
12. Imperative #2: New Approaches to Learning/Training
1. Anytime, anywhere
• Traditional classroom training less
effective
• Heterogeneity, experiential,
generational, cultural
• Time and cost
2. Personalized
• Self-directed, self-paced
• Localized (language and business
practices)
• Job specific (vertical, hunter/farmer,
etc.)
•…
13. Imperative #2: New Approaches to Learning/Training
3. Renewed focus on coaching
• Install and employ formal
coaching processes
4. Technology is playing an
increasingly significant role
• Training companies with
strong technology capabilities
will lead the market in 2012.
5. A strategic approach must be
taken
14. Imperative #3: Sales and Marketing Alignment
1. Messaging based around
differentiation and anti-
commoditization
2. Value articulation for all
constituencies
3. Competitive intelligence and
positioning
– Company / product / solution
/ sales team
4. Demand generation retooling…
15. Imperative #3: Sales and Marketing Alignment
5. Tools
– Cost-justification, ROI,
knowledge management
6. Marketing must lead the charge
for sensing, finding, clarifying
and assessing new opportunities
for organic growth.*
7. Better metrics for ongoing
improvement.
* Source: ISBM 2010 Study
16. Imperative #4: Embrace Technology-Enabled Selling
• Sales 2.0
– Web 2.0 for sales effectiveness
– Knowledge and content management,
• OutStart’s SellingEdge.com
– Just-in-time, anywhere learning and coaching
– Collaboration intra-team and inter-customer
• Discussion forums, wikis, groups, expert profiles
– Business/social networking
• LinkedIn, Plaxo, Spoke
– Tools (process support, optimization, metrics, etc.)
• WhiteSprings, Forcelogix
– Multi-device access
– And so much more…
17. Imperative #5: Measure Sales Performance
• Only 40% of companies have any real
measurement system in place.
• ROI’s are scarce
– Business case = more investment
• Most companies look only at trailing
indicators
– YTD, QTD, MTD
• Real leverage comes into play with a
combination of leading (behavioral) and
lagging (performance) indicators.
• You can’t manage what you don’t measure
18. Imperative #5: Measure Sales Performance
Real or Perceived barriers:
• Cost
• No expertise
• Unreliable systems
• No processes
• No competency model
• Fear
• Long sales cycle
• Too many variables
19. Imperative #5: Sales Performance Management
The specific impact of sales training and other sales
performance improvement programs, tools and initiatives
can be measured.
20. What’s your plan to assure
that your company is
more competitive
in 2012?
21. First Steps for Sales Effectiveness in 2012
1. Close the discipline and process gap
• Adopt or build a profile-based sales hiring process
Skills & Traits Scale Behaviors
Has a basic understanding of how businesses operate.
Low
Unacceptable
Can explain department functions, organizational
dynamics, and is comfortable selling to department
Medium managers.
Unacceptable
Skill:
Business Knowledge
• Understands and can explain customer and industry
value chain issues
• Can read and interpret financial statements
High
• Can talk comfortably with executives of different
departments about how their product will contribute
to that executive achieving their business objectives.
22. First Steps for Sales Effectiveness in 2012
2. Implement new
approaches to training
• Reconsider the traditional
three-day classroom training
program
24. First Steps for Sales Effectiveness in 2012
4. Embrace technology-
enabled selling
• Get up to speed on where
technology-enabled selling
is currently and is going
• Assess your current
capabilities
• Devise a strategy to
leverage current and
emerging technologies
25. First Steps for Sales Effectiveness in 2012
5. Measure sales performance
• Understand how you are measuring performance now
• Explore alternative strategies for measuring performance
going forward.