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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
jimdickie@aol.comjimdickie@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
CRM Strategies Executive Series ©CSO Insights
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
CRM Strategies Executive Series ©CSO Insights
CRM Strategies Executive Series ©CSO Insights
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
CRM Strategies Executive Series ©CSO Insights
Selling Report CardSelling Report Card
Sales Rep Performance vs. Quota
Under Quota50.8%
Meet or Exceed Quota49.1%
CRM Strategies Executive Series ©CSO Insights
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
CRM Strategies Executive Series ©CSO Insights
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
CRM Strategies Executive Series ©CSO Insights
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
CRM Strategies Executive Series ©CSO Insights
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
CRM Strategies Executive Series ©CSO Insights
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%
CRM Strategies Executive Series ©CSO Insights
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
CRM Strategies Executive Series ©CSO Insights
Attract:Attract:
Web/Call Center Web/Call Center Integration Integration
Generate LeadsGenerate Leads
CRM Strategies Executive Series ©CSO Insights
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
CRM Strategies Executive Series ©CSO Insights
Global eXchange Case Study SlidesGlobal eXchange Case Study Slides
CRM Strategies Executive Series ©CSO Insights
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
CRM Strategies Executive Series ©CSO Insights
Close:Close:
Tablet PC Tablet PC
Introduce New ProductsIntroduce New Products
CRM Strategies Executive Series ©CSO Insights
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
CRM Strategies Executive Series ©CSO Insights
McKesson Case Study SlidesMcKesson Case Study Slides
CRM Strategies Executive Series ©CSO Insights
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
CRM Strategies Executive Series ©CSO Insights
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
CRM Strategies Executive Series ©CSO Insights
Sales Excellence Sales Excellence Process ProwessProcess Prowess
Level 1: Ad hoc
Level 2: Replicable
Level 3: Focused
Level 4: Dominant
CRM Strategies Executive Series ©CSO Insights
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
CRM Strategies Executive Series ©CSO Insights
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:
jim.dickie@csoinsights.comjim.dickie@csoinsights.com
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