Sales Process Adoption & Usage Research - SMA Webinar Recap

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Sales processes have a huge impact on sales and profit performance; 30% of firms reported greater profits than those that do not consistently guide selling activity. However, enforcing the sales process is still a concern.

There are large performance gaps in sales processes around customer win-back sales and new customer sales. There’s also a large gap between companies’ expectations and the sales force’s understanding of the sales process. Closing these gaps and understanding the causes will help sales organizations operate more efficiently and effectively.

Make sure that everyone is on board with the sales process. Research showed some of the chief barriers were lack of sales force, lack of management oversight, and lack of training. Understanding those key items will make it much easier to successfully implement your sales process.

For a deeper dive into this research, and learn more from the entire webinar, review the recording:
http://info.qvidian.com/SMAWebinar0813.html?SFDCCID=70150000000nxMD

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  • Sales process is widely acknowledged as an important feature of a productive sales system, yet the use of sales process discipline varies widely across firms. This research examines how sales forces are using defined sales processes, and identifies factors contributing to sales process adoption and effectiveness.This research report summarizes findings from 74 participating business-to-business sales organizations. The research was conducted in the first quarter of 2013 through the use of a survey questionnaire.
  • There is a high level of agreement among respondents that their sales organizations use a structure sales process. Specific practices related to sales process management are less widely adopted.Firms that guide selling activity with sales process(es) report sales results 16% greater than those that do not. Sales process usage has a greater impact on profit performance: profit results are 30% greater for firms using sales process than those now.High performing companies’ salespeople use sales process more consistently, compared to lower performing firms, where sales process adherence is more discretionary for their sales people.Sales process is deemed most important for winning new customers, selling strategic offerings, and planning sales calls. Respondents’ rate their own sales process usage least effective in winning back defecting customers, retaining at-risk customers, and managing territories.Sales process issues with the largest performance gaps (relative to importance) are customer win-back sales, and new customer sales. Respondents’ most impactful investment priorities for improving sales process effectiveness are new customer sales, strategic offerings sales, and customer win-back sales.Assessment represents an area of widespread need.Chief barriers to effective sales process implementation are lack of sales force accountability, lack of management oversight, and lack of training.
  • There is a high level of agreement among respondents that their sales organizations use a structure sales process. Specific practices related to sales process management are less widely adopted.Firms that guide selling activity with sales process(es) report sales results 16% greater than those that do not. Sales process usage has a greater impact on profit performance: profit results are 30% greater for firms using sales process than those now.High performing companies’ salespeople use sales process more consistently, compared to lower performing firms, where sales process adherence is more discretionary for their sales people.Sales process is deemed most important for winning new customers, selling strategic offerings, and planning sales calls. Respondents’ rate their own sales process usage least effective in winning back defecting customers, retaining at-risk customers, and managing territories.Sales process issues with the largest performance gaps (relative to importance) are customer win-back sales, and new customer sales. Respondents’ most impactful investment priorities for improving sales process effectiveness are new customer sales, strategic offerings sales, and customer win-back sales.Assessment represents an area of widespread need.Chief barriers to effective sales process implementation are lack of sales force accountability, lack of management oversight, and lack of training.
  • There is a high level of agreement among respondents that their sales organizations use a structure sales process. Specific practices related to sales process management are less widely adopted.Firms that guide selling activity with sales process(es) report sales results 16% greater than those that do not. Sales process usage has a greater impact on profit performance: profit results are 30% greater for firms using sales process than those now.High performing companies’ salespeople use sales process more consistently, compared to lower performing firms, where sales process adherence is more discretionary for their sales people.Sales process is deemed most important for winning new customers, selling strategic offerings, and planning sales calls. Respondents’ rate their own sales process usage least effective in winning back defecting customers, retaining at-risk customers, and managing territories.Sales process issues with the largest performance gaps (relative to importance) are customer win-back sales, and new customer sales. Respondents’ most impactful investment priorities for improving sales process effectiveness are new customer sales, strategic offerings sales, and customer win-back sales.Assessment represents an area of widespread need.Chief barriers to effective sales process implementation are lack of sales force accountability, lack of management oversight, and lack of training.
  • There is a high level of agreement among respondents that their sales organizations use a structure sales process. Specific practices related to sales process management are less widely adopted.Firms that guide selling activity with sales process(es) report sales results 16% greater than those that do not. Sales process usage has a greater impact on profit performance: profit results are 30% greater for firms using sales process than those now.High performing companies’ salespeople use sales process more consistently, compared to lower performing firms, where sales process adherence is more discretionary for their sales people.Sales process is deemed most important for winning new customers, selling strategic offerings, and planning sales calls. Respondents’ rate their own sales process usage least effective in winning back defecting customers, retaining at-risk customers, and managing territories.Sales process issues with the largest performance gaps (relative to importance) are customer win-back sales, and new customer sales. Respondents’ most impactful investment priorities for improving sales process effectiveness are new customer sales, strategic offerings sales, and customer win-back sales.Assessment represents an area of widespread need.Chief barriers to effective sales process implementation are lack of sales force accountability, lack of management oversight, and lack of training.
  • There is a high level of agreement among respondents that their sales organizations use a structure sales process. Specific practices related to sales process management are less widely adopted.Firms that guide selling activity with sales process(es) report sales results 16% greater than those that do not. Sales process usage has a greater impact on profit performance: profit results are 30% greater for firms using sales process than those now.High performing companies’ salespeople use sales process more consistently, compared to lower performing firms, where sales process adherence is more discretionary for their sales people.Sales process is deemed most important for winning new customers, selling strategic offerings, and planning sales calls. Respondents’ rate their own sales process usage least effective in winning back defecting customers, retaining at-risk customers, and managing territories.Sales process issues with the largest performance gaps (relative to importance) are customer win-back sales, and new customer sales. Respondents’ most impactful investment priorities for improving sales process effectiveness are new customer sales, strategic offerings sales, and customer win-back sales.Assessment represents an area of widespread need.Chief barriers to effective sales process implementation are lack of sales force accountability, lack of management oversight, and lack of training.
  • There is a high level of agreement among respondents that their sales organizations use a structure sales process. Specific practices related to sales process management are less widely adopted.
  • Firms that attempt to utilize sales process(es) in guiding salesperson activity are more likely to achieve sales and profit goals. Sales process usage appears to have the greatest impact on profit goal achievement.
  • Firms that guide selling activity with sales process(es) report sales results 16% greater than those that do not. Sales process usage has a greater impact on profit performance: profit results are 30% greater for firms using sales process than those not.
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  • Sales Process Adoption & Usage Research - SMA Webinar Recap

    1. 1. Sales Management Association Webcast 13 August 2013 Presented by Research Update: Sales Process Adoption and Usage
    2. 2. About The Sales Management Association A global, cross-industry professional association for sales operations and sales management. Focused in providing research, case studies, training, peer networking, and professional development to our membership. Fostering a community of thought-leaders, service providers, academics, and practitioners. Learn More: www.salesmanagement.org
    3. 3. Today’s Panelists
    4. 4. Sales Management Association Webcast 13 August 2013 Presented by Research Update: Sales Process Adoption and Usage
    5. 5. About The Research The Topic • Sales process is widely acknowledged as important • But there’s lots of variation in practice This Research • How are sales forces using defined sales processes? • What factors drive adoption? Effectiveness? • Is sales process a good investment for sales organizations? Research Sample • 74 business-to-business sales organizations • First quarter of 2013
    6. 6. Summary Findings Most agree: “We use sales process” • But consensus weakens with probing • Hallmarks of process management aren’t as readily apparent Process use correlates with sales organization performance • Sales process discipline contributes most to profitable selling
    7. 7. Summary Findings Salespeople have more discretion whether or not to use a process at lower-performing firms. Defined process is most important for • Winning new customers • Strategic offerings • Planning sales calls
    8. 8. Summary Findings Defined processes are least effective in • Winning back lost customers • Retaining current customers • Managing territories Respondents’ biggest process “gaps:” • Customer win-back • New customer sales
    9. 9. Summary Findings Where improvement will have most impact: • New customer sales • Strategic offerings • Customer win-back A big issue: process assessment
    10. 10. Summary Findings Success barriers • Sales force accountability • Management oversight and engagement • Training
    11. 11. Research Participant Profile Participant Firm Size, Annual Revenue ($US) Participant Job Role
    12. 12. Participant Firms’ Revenue Performance Which response best describes your firms' overall achievement of revenue expectation in the past 12 months?
    13. 13. Participant Firms’ Revenue and Profit Performance Which response best describes your firms' overall achievement of profit expectation in the past 12 months?
    14. 14. Sales Process Practices “Our organization …”
    15. 15. What explains the “sales process gap” between companies’ expectations, and salespeople understanding? Our Panel Weighs In
    16. 16. Correlating Sales Process and Performance Firms that attempt to utilize sales process(es) in guiding salesperson activity are more likely to achieve sales and profit goals. Sales process usage appears to have the greatest impact on profit goal achievement.
    17. 17. Correlating Sales Process and Performance Firms that guide selling activity with sales process(es) report sales results 16% greater than those that do not. Sales process usage has a greater impact on profit performance: profit results are 30% greater for firms using sales process than those not.
    18. 18. Our Expert Panel Why does sales process usage so dramatically impact profitability?
    19. 19. Correlating Sales Process and Performance High performing sales organizations are more likely to guide salesperson activity with formal sales process(es). “Our organization attempts to guide salesperson interactions with a structured sales process or processes.” Percentage of Firms Utilizing Guided Sales Process(es)
    20. 20. Correlating Sales Process and Performance High performing sales organizations are more likely to guide salesperson activity with formal sales process(es). “Our organization attempts to guide salesperson interactions with a structured sales process or processes.” Percentage of Firms Utilizing Guided Sales Process(es)
    21. 21. Correlating Sales Process and Performance High performing sales organizations are more likely to ensure salespeople understand the sales process(es) they implement. “Our salespeople understand the sales process(es) they are expected to follow.” Percentage of Firms Whose Salespeople Understand Sales Process
    22. 22. Correlating Sales Process and Performance High performing sales organizations are more likely to ensure salespeople understand the sales process(es) they implement. “Our salespeople understand the sales process(es) they are expected to follow.” Percentage of Firms Whose Salespeople Understand Sales Process
    23. 23. Correlating Sales Process and Performance High performing sales organizations are more likely to provide salespeople with adequate training in sales process(es). “Our sales organization has provided sufficient training on all aspects of the sales process(es) that salespeople are expected to follow.” Percentage of Firms Whose Salespeople Are Trained in Sales Process
    24. 24. Correlating Sales Process and Performance High performing sales organizations are more likely to provide salespeople with adequate training in sales process(es). “Our sales organization has provided sufficient training on all aspects of the sales process(es) that salespeople are expected to follow.” Percentage of Firms Whose Salespeople Are Trained in Sales Process
    25. 25. Today’s Panelists How should training be used to drive sales process effectiveness?
    26. 26. Correlating Sales Process and Performance High performing sales organizations are more likely to routinely assess the effectiveness of sales process(es). “We routinely assess the effectiveness of standard sales processes in an effort to enhance their effectiveness.” Percentage of Firms That Assess Sales Process Effectiveness
    27. 27. Correlating Sales Process and Performance High performing sales organizations are more likely to routinely assess the effectiveness of sales process(es). “We routinely assess the effectiveness of standard sales processes in an effort to enhance their effectiveness.” Percentage of Firms That Assess Sales Process Effectiveness
    28. 28. Our Experts Weigh In How can companies assess sales process effectiveness?
    29. 29. Top Performers’ Sales Process Usage Do your best salespeople utilize the sales process(es) they are expected to follow? ALL COMPANIES
    30. 30. Top Performers’ Sales Process Usage Do your best salespeople utilize the sales process(es) they are expected to follow? High-performing vs. low-performing companies
    31. 31. Top Performers’ Sales Process Usage Do your best salespeople utilize the sales process(es) they are expected to follow? High-performing vs. low-performing companies
    32. 32. Our Experts Weigh In How should we think about “compliance” with sales process?
    33. 33. Barriers to Implementing Sales Process
    34. 34. Our Experts Weigh In What methods are effective for improving sales force accountability?
    35. 35. When is Sales Process Important? How important is it for your organization to have a structured, well-defined sales process in place for each of the following selling activities? Seven-point rating scale (1 – not at all important, 7 – very important)
    36. 36. Participant Firms’ Sales Process Effectiveness How effective are your current sales processes in the following areas? Seven-point rating scale (-3 – not at all effective, +3 – very effective)
    37. 37. Gaps in Sales Process Application
    38. 38. Importance and Effectiveness Matrix Companies over $100M revenue New customer acquisition Strategic offerings Customer win-back Territory management Retaining at-risk customers Expanding customer relationships with new or additional business Account management Selling new products or offerings Sales call planning
    39. 39. Questions and Discussion Enter your questions in the “Questions” box on the right hand side of the webinar application window. Did we run out of time before we got to your question? Presenters can follow-up with you via email. Feel free to submit more questions if you’d like an offline response.

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