Presentation Transcript

1. Best Practices For Solution Provider Business DevelopmentModule 3:A Proven System For Measuring & Improving Sales Productivity

   Partner Education Series
2. Introduction: Partner Education Series Module 3:A Proven System For Measuring & Improving Sales Productivity A systematic approach to measuring the value of your sales people, and then getting them to produce more value in a forecastable model (that doesn’t require shouting!) Part 3 of an ongoing channel partner enablement program from DATTO & Morris Management Partners Demand Generation Engine Getting More First Meetings Maximizing Sales Productivity
3. How Do You Measure Sales Performance? Beyond “revenue” or “more revenue,” calculating the total value of your sales efforts requires a combination of leading & trailing indicators … and the ability to measure & improve key elements of process, environment, and activity. Not just “sales” but “sales productivity.” The total value created by a sales team or sales person, measured in terms of: VOLUME … Top line revenue (w/ right mix) VALUE … Margin on revenue produced PREDICTABILITY … Probability of hitting targets RETURN … Value created for each dollar spent SALES PRODUCTIVITY
4. What Do Your Sales People Do? In addition to playing golf and buying drinks … Sell to Customers Prospect for New Customers Prep for Customer Meetings Develop Proposals Create Pitch Materials Travel to Customers Customer Research Market Research Customer Support Education & Training Reporting & Forecasting Internal Meetings Admin Stuff Receivable Support Vendor Relations Any wonder why it’s hard to “improve”?
5. Reality Check: SALES PRODUCTIVITY It’s been said that nothing happens in business until someone sells something. So how are we doing? Length of sales cycle getting longer … more customers are delaying purchases more than 1 time per sales cycle Average win rate declining … customers more likely to engage multiple sales sources for negotiating leverage Average amount of sales time spent selling declining … typical sales rep spends LESS THAN 45% of total time actually selling Percentage of channel companies who say they use SFA tools well at all-time low … despite the # who have them at all-time high Sales Reps most common productivity challenge is FOCUS … too many things to do, not enough time to be great at important things
6. A Model For Sales Productivity Core Philosophy: Focus on activity that causes results … not just results. Control what you can control. Sales Productivity Resources & Skills Process & Metrics Systems & Tools Promotions & Offers Management / Supervision Strategy / Alignment / Coverage
7. Focus Produces Productivity Unless your business is very small, sales activity is more effective when resources are aligned to specific roles: Hunting vs. Farming // Install Base vs. Net New // Quota vs. Support Sales Rep Field Sales Rep Territory Manager NOTE: Your strategy for Coverage / Alignment depends on your level of resources + growth objectives + management resources OUTSIDE Support Support Account Manager Telesales Rep INSIDE Support Support CURRENT CUSTOMERS NEW CUSTOMERS
8. 7 Sales Productivity Strategies
9. 7 Sales Productivity Tactics
10. How Do You Measure Sales Performance? Keeping Track of Productivity is a Calculation of 4 Factors # of Opportunities in the Pipeline Average Sales Price or Deal Value Win Rate Cost Of Sales Can Be Calculated at Macro &/or Micro Levels Company Level Sales Team Level Sales Rep Level Campaign Level What is the Right Level of Sales Productivity? Based on Your Margin Structure Best Practice: Total COS ≤ 25% of Total GM Provides Room for G&A, R&D, Co$ … and Profit Provides a Logical Basis for Quota Setting
11. Sales Productivity Calculation Using a P&L calculation, you can determine how much sales value is enough to run your business COS = 25% of GM COS = Salary, Expense, Mktg, etc.
12. How Do You Improve Sales Performance? Beyond “trying harder” or “yelling louder” there are specific tactics & leading indicators that allow you to directly manage sales performance Total # Of Opportunities In Pipeline Average Selling Price Customer Win Rate SALES PRODUCTIVITY Total Cost Of Sales
13. Increase Sales Productivity Increase # of Opportunities in the Pipeline Lever 1: Increase # of Sales Reps Lever 2: Drive Engagement w/ Existing Customers Lever 3: Generate Net-New Leads / Opportunities Lever 4: Expand Solution / Deliverable Portfolio
14. Increase Sales Productivity Increase Average Sales Price or Deal Value Lever 1: Build Solution Stacks / Packaged Deliverables Lever 2:Improve Value-Selling / Negotiating Skills Lever 3: Engage Decision Makers High & Wide & Early Lever 4: Adjust Pricing / Discounting Policies
15. Increase Sales Productivity Increase Customer Win Rate Lever 1: Develop Competitive Position / Sales Plans Lever 2:Improve Lead Targeting & Qualification Lever 3: Actively Manage The Pipeline Lever 4: Leverage Qualified References & Referrals
16. Increase Sales Productivity Minimize Direct Cost Of Sales** Lever 1: Optimize Sales Coverage Model & Alignment **NOTE: The levers described here do not address your marketing costs, though they would be included in your accounting of “Total Cost of Sales” Lever 2:Actively Drive Steps Of Your Sales Process Lever 3: Improve Sales Rep Efficiency & Sales Time Lever 4: Leverage Variable Comp Plans & Incentives
17. CompTIA DR/BC Workshop Series Next Steps dattobackup.com/compTIA First Class: Next Tuesday, April 29th Contact: partners@dattobackup.com 888.294.6312

18. For More Information …

    Ryan Morris Principal Consultant Morris Management Partners, Inc. rmorris@morrismp.com (C) 303-618-9370