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Measure And Motivate Your Sales Team
 

Measure And Motivate Your Sales Team

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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 ...

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.

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    Measure And Motivate Your Sales Team Measure And Motivate Your Sales Team Presentation Transcript

    • Keith M. Eades
      Founder and CEO
      Sales Performance International
      Best Selling Author of:
      The New Solution Selling
      The Solution Centric Organization
      The Solution Selling Fieldbook
      How to Measure and Motivate Your Sales Team
      June 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
    • Introducing SPI
      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
      “Clearly SPI is one of the thought leaders in this (Sales 2.0) arena.” ES Research, 2009
      www.spisales.com
      3
      2011 ©Solution Selling, Inc.
    • 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 Sales Performance Optimization Survey
      (2010 vs. 2009)
      2009
      2010
      © 2010 CSO Insights Sales Performance Optimization Survey
    • Five Keys to World Class Sales Performance
      1
      A Buyer-Aligned Sales Process
      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
      Management “System” and Disciplines (that foster and sustain process and methodology adoption)
      4
      Technology Enablement (that explicitly supports process, methodology, and management practices)
      5
    • Starting with the End in Mind
      Average Deal Size
      Win Ratio
      # of Deals
      $
      X
      X
      =
      Sales Cycle Length
      Typical Sales Pipeline Metrics
    • # of Deals
      Average Deal Size
      Pipeline Yield
      Win Ratio
      Linking Sales Behaviors to Pipeline Metrics
      Sales Pipeline Metrics
      Sales Skills and Behaviors
      • Completing territory planning
      • Identifying opportunities
      • Stimulating interest
      • Gaining executive access
      • Articulating the problem andsolution in customer terms
      • Gaining executive access
      • Gaining access to budgets
      $
      =
      • Ability to set competitive strategy
      • Establishing customer’s vision of the solution
      • Qualifying better
      • Gaining executive access
      • Creating a sense of urgency
      Sales Cycle Length
    • ROI on IBM’s Solution Selling® and Sales Process Transformation
      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
      www.spisales.com
      9
      2011 ©Solution Selling, Inc.
    • + 6%
      16%
      15%
      Yr 01
      Yr 02
      Building a High Performance Solutions Sales CultureSolution Selling® Works
      Using MSSP
      MSSP Impact
      Worldwide Avg.
      Customer
      satisfaction
      +44%
      +19%
      23%
      19%
      16%
      Very Satisfied
      16%
      Yr 01
      Yr 02
      Yr 1
      Yr 2
      Setting customer expectations satisfaction
      - 16%
      19%
      16%
      Dissatisfied
      Yr 01
      Yr 02
      Quota Attainment
      140% of Quota
      140% of Quota
      23%
      15%
      100% of Quota
      55%
      More successful sales reps
      100% of Quota
      69%
      <100 % of Quota
      <100 % of Quota
      9%
      30%
      Yr 02
      Yr 1
      Source : Microsoft WW customer satisfaction survey, internal interviews
      www.spisales.com
      10
      2011 ©Solution Selling, Inc.
    • The Impact of Sales Process
      Impact of Sales Process on Company Performance
      2010 Sales Performance Optimization Report by CSO Insights
      www.spisales.com
      11
      2011 ©Solution Selling, Inc.
    • What is a Buyer Aligned Sales Process?
      www.spisales.com
      2011 ©Solution Selling, Inc.
      12
    • Solution Selling® Sales Process – Sales Viewpoint
      Buying Process
      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
      Sales Process Steps
      Plan
      Execute
      Implement
      Close
      Create
      Qualify
      Develop
      Prove
      Negotiate
      Plan
      Implement
      Sales Process Activities
      • 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
      Verifiable Customer Outcomes
      • 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
      • Implementation Plan completed
      Sales Management System
      90%
      10%
      25%
      50%
      75%
      100%
      www.spisales.com
      13
      2011 ©Solution Selling, Inc.
    • Solution Selling® Sales Process – Marketing Viewpoint
      Buying Process
      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
      Sales Process Steps
      Plan
      Execute
      Implement
      Close
      Create
      Qualify
      Develop
      Prove
      Negotiate
      Plan
      Implement
      Sales Tools
      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 Proposition
      • Reference Story
      • Bus. Dev. Letter
      • Bus. Dev. Prompter
      • Lead Letter
      • Opp. Assessment
      • C. Strategy Selector
      • 9 Block Model®
      • Pain Sheet®
      • S. A. Prompter
      • Sponsor Letter
      • 9 Block Model®
      • Pain Sheet®
      • S. A. Prompter
      • Power S. Letter
      • Evaluation Plan
      • Evaluation Plan
      • Transition Letter
      • Implement. Plan
      • Value Analysis
      • Success Criteria
      • Negotiating Worksheet
      • Give-Get List
      • T/A/O Plan
      • Account Profile
      • Pain Chain®
      • Key Players List
      • Implementation Plan
      • Success Criteria
      • Reference Story
      Marketing answers these questions
      www.spisales.com
      14
      2011 ©Solution Selling, Inc.
    • Sales Process Reveals Metrics for Seller Behavior by Stage
      Resolve concerns & make decisions
      Develop strategy; define initiatives
      Implement & evaluate success
      CUSTOMER BUYING PROCESS
      Select solution
      Evaluate options
      Determine requirements
      Plan
      Engage
      Develop
      Propose
      Close
      Deploy
      SALES PROCESS
      Access to Power Sponsor
      Pain admitted by Power Sponsor
      Power Sponsor has buying vision
      Power Sponsor agreed to explore
      Evaluation Plan proposed
      Respond to RFP
      Engage CAM
      Engage Implement. Team
      Contract negotiation in process
      Evaluation Plan underway
      Craft RFP For Client
      Engage Proposal Writer
      Proposal issued, decision due
      Research Current Penetration
      Assemble Account Plan Team
      Contact local field offices
      Pain admitted by Sponsor
      Sponsor has a buying vision
      Penetrate Local Departments
      Access to Power negotiated
      Signed documents
      Create terms and conditions
      Notify all parties of win
      Develop Success Story For Intranet
      SALES PROCESS ACTIVITIES
      Account Plan Completed
      Power Sponsor Letter
      Sponsor Letter Completed
      RFP Crafted For Client
      Verbal Approval Received
      Signed Contract Completed
      VERIFIABLE OUTCOMES
      AM
      SM
      AM
      SE
      AM
      MK
      SM
      AM
      SO
      SM
      AM
      SO
      SM
      AM
      SM
      ROLES
      # Evaluation Plans Proposed
      # Demos Given
      $ Billable On Evaluation Plans
      # Evaluation Plans Accepted
      # RFP’s Crafted For Clients
      % RFP No Bids
      CRM 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 Written
      Pre Proposal Conferences Held
      % Set Up Fee Quoted
      # Referrals Agreed To
      Customer Satisfaction Rating
      # Reference Stories Created
      % Seller Time On Account Mgt.
      METRICS
      MANAGEMENT SYSTEM
      0%
      10%
      25%
      50%
      85%
      100%
      www.spisales.com
      15
      2011 ©Solution Selling, Inc.
    • Pipeline Management
      T
      S
      D
      C
      B
      A
      W
      www.spisales.com
      16
      2011 ©Solution Selling, Inc.
    • 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
      www.spisales.com
      2011 ©Solution Selling, Inc.
      17
    • Motivation Through Sales Process
      www.spisales.com
      2011 ©Solution Selling, Inc.
      18
      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
    • How Not to Learn
      www.spisales.com
      2011 ©Solution Selling, Inc.
      20
    • 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
      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.
      www.spisales.com
      21
      2011 ©Solution Selling, Inc.
    • The ROI Dilemma
      www.spisales.com
      2011 ©Solution Selling, Inc.
      Page 22
      Events transfer a lot of information, but retention drops off quickly
      Content
      Retention
      Continual
      Learning
      Traditional
      Training
      ROI GAP
      8
      4
      Initial
      Training
      12
      16
      Elapsed Weeks
      Continual learning begins realistically and builds across time
    • Sales Process Impact on Sales Performance
      SPI Customers vs. Other Sales Training
      Source: Aberdeen Group Study December, 2010
    • How to Measure and Motivate Your Sales Team
      Questions?
      Sales Performance International
      4720 Piedmont Row Drive | Suite 400Charlotte, North Carolina 28210t: 704.227.6500 | f: 704.364.8114
      email: info@spisales.comwww.spisales.comwww.solutionselling.com
      Thank You
      2011 ©Solution Selling, Inc.