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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 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

  1. 1. Keith M. Eades<br />Founder and CEO<br />Sales Performance International<br />Best Selling Author of: <br />The New Solution Selling<br />The Solution Centric Organization<br />The Solution Selling Fieldbook<br />How to Measure and Motivate Your Sales Team<br />June 15, 2011<br />
  2. 2. Professional Selling Today<br />Salespeople Have:<br />One of the overall best incomes - #5<br />The highest overall job satisfaction - #1<br />The lowest divorce rate - #1<br />The lowest suicide rate - #1<br />
  3. 3. Introducing SPI<br />Mission: Helping the world’s leading corporations drive measurable and sustainable growth by transforming their revenue engines to market and sell solutions: <br /><ul><li>1,000,000+ Solution Selling Alumni
  4. 4. 500+ global clients
  5. 5. 130 certified staff
  6. 6. 50 countries and 14 languages
  7. 7. 20+ years in business
  8. 8. Operations in each geography
  9. 9. World’s most comprehensive sales library - Solution Selling</li></ul>“Clearly SPI is one of the thought leaders in this (Sales 2.0) arena.” ES Research, 2009<br /><br />3<br />2011 ©Solution Selling, Inc.<br />
  10. 10. The state of selling in 2011: trends from our research<br />What the best performing sales teams are doing<br />Metrics<br />Motivation<br />How you can sell more<br />Objectives<br />
  11. 11. Key Trend: Sales Rep Performance is Slipping<br />2010 Sales Performance Optimization Survey<br />(2010 vs. 2009)<br />2009 <br />2010 <br />© 2010 CSO Insights Sales Performance Optimization Survey<br />
  12. 12. Five Keys to World Class Sales Performance <br />1<br />A Buyer-Aligned Sales Process<br />Sales and Marketing Alignment (messaging, sales tools, and sales conversations)<br />2<br />A Continual “Learning Framework” (skills assessment, training and multi-year reinforcement that aligns with process and sales methodologies)<br />3<br />Management “System” and Disciplines (that foster and sustain process and methodology adoption)<br />4<br />Technology Enablement (that explicitly supports process, methodology, and management practices) <br />5<br />
  13. 13. Starting with the End in Mind<br />Average Deal Size<br />Win Ratio<br /># of Deals <br />$<br />X<br />X<br />=<br />Sales Cycle Length<br />Typical Sales Pipeline Metrics<br />
  14. 14. # of Deals<br />Average Deal Size<br />Pipeline Yield<br />Win Ratio<br />Linking Sales Behaviors to Pipeline Metrics<br />Sales Pipeline Metrics<br />Sales Skills and Behaviors<br /><ul><li>Completing territory planning
  15. 15. Identifying opportunities
  16. 16. Stimulating interest
  17. 17. Gaining executive access
  18. 18. Articulating the problem andsolution in customer terms
  19. 19. Gaining executive access
  20. 20. Gaining access to budgets</li></ul>$<br />=<br /><ul><li>Ability to set competitive strategy
  21. 21. Establishing customer’s vision of the solution
  22. 22. Qualifying better
  23. 23. Gaining executive access
  24. 24. Creating a sense of urgency</li></ul>Sales Cycle Length<br />
  25. 25. ROI on IBM’s Solution Selling® and Sales Process Transformation<br />Results<br />For every $1 invested, $94 of revenue<br />Could go as high as $157 to $1 depending upon pervasive use and adoption <br />Key Metrics of Impact <br />Pipeline growth by increased number of opportunities<br />Increased average selling price<br />Increase win rate<br />Shorter sale cycle<br />Lower cost of sales by disengaging earlier from opportunities <br /><br />9<br />2011 ©Solution Selling, Inc.<br />
  26. 26. + 6%<br />16%<br />15%<br />Yr 01<br />Yr 02<br />Building a High Performance Solutions Sales CultureSolution Selling® Works<br />Using MSSP<br />MSSP Impact<br />Worldwide Avg.<br />Customer<br />satisfaction<br />+44%<br />+19%<br />23%<br />19%<br />16%<br />Very Satisfied<br />16%<br />Yr 01<br />Yr 02<br />Yr 1<br />Yr 2<br />Setting customer expectations satisfaction<br />- 16%<br />19%<br />16%<br />Dissatisfied<br />Yr 01<br />Yr 02<br />Quota Attainment<br />140% of Quota<br />140% of Quota<br />23%<br />15%<br />100% of Quota<br />55%<br />More successful sales reps <br />100% of Quota<br />69%<br /><100 % of Quota<br /><100 % of Quota<br />9%<br />30%<br />Yr 02<br />Yr 1<br />Source : Microsoft WW customer satisfaction survey, internal interviews <br /><br />10<br />2011 ©Solution Selling, Inc.<br />
  27. 27. The Impact of Sales Process<br />Impact of Sales Process on Company Performance<br />2010 Sales Performance Optimization Report by CSO Insights <br /><br />11<br />2011 ©Solution Selling, Inc.<br />
  28. 28. What is a Buyer Aligned Sales Process?<br /><br />2011 ©Solution Selling, Inc.<br />12<br />
  29. 29. Solution Selling® Sales Process – Sales Viewpoint<br />Buying Process<br />Develop business strategy and define / execute initiatives<br />Determine needs / requirements<br />Evaluate alternatives<br />Select solutions and evaluate risk<br />Resolve issues and finalize contracts<br />Implement and evaluate success<br />Sales Process Steps<br />Plan <br />Execute <br />Implement <br />Close<br />Create<br />Qualify<br />Develop<br />Prove<br />Negotiate<br />Plan<br />Implement<br />Sales Process Activities<br /><ul><li>Get necessary documents signed
  30. 30. Identify potential beneficiary
  31. 31. Stimulate interest
  32. 32. Get pain admitted
  33. 33. Confirm dialogue and agree upon next steps
  34. 34. Diagnose admitted pain of Sponsor
  35. 35. Create or reengineer vision for sponsor
  36. 36. Gain agreement to explore further
  37. 37. Negotiate access to power
  38. 38. Confirm dialogue and agree upon next steps
  39. 39. Diagnose admit-ted pain of Power
  40. 40. Create or reengineer vision for power sponsor
  41. 41. Gain agreement to explore further
  42. 42. Determine evaluation criteria
  43. 43. Propose a plan of next steps
  44. 44. Confirm dialogue and agree upon plan of next steps
  45. 45. Begin execution of next steps
  46. 46. Present preliminary solution
  47. 47. Prove capabilities (Oper, Trans, Fin)
  48. 48. Conduct review of proposal
  49. 49. Ask for the business
  50. 50. Issue proposal
  51. 51. Receive verbal approval
  52. 52. Prepare for final negotiations
  53. 53. Reach final agreement
  54. 54. Conduct territory / account and/or opportunity planning (as appropriate)
  55. 55. Identify potential opportunity
  56. 56. Conduct pre-call planning and research
  57. 57. Implement solution
  58. 58. Complete implementation approach
  59. 59. Measure success criteria
  60. 60. Identify potential new opportunities</li></ul>Verifiable Customer Outcomes<br /><ul><li>Documents signed
  61. 61. Lead Letter agreed upon
  62. 62. Sponsor Letter agreed upon
  63. 63. Evaluation Plan modified or agreed upon
  64. 64. Verbal approval received
  65. 65. Ts and Cs agreed upon
  66. 66. Territory / Acct / Opportunity Plan developed
  67. 67. Implementation Plan completed</li></ul>Sales Management System<br />90%<br />10%<br />25%<br />50%<br />75%<br />100%<br /><br />13<br />2011 ©Solution Selling, Inc.<br />
  68. 68. Solution Selling® Sales Process – Marketing Viewpoint<br />Buying Process<br />Develop business strategy and define / execute initiatives<br />Determine needs / requirements<br />Evaluate alternatives<br />Select solutions and evaluate risk<br />Resolve issues and finalize contracts<br />Implement and evaluate success<br />Sales Process Steps<br />Plan <br />Execute <br />Implement <br />Close<br />Create<br />Qualify<br />Develop<br />Prove<br />Negotiate<br />Plan<br />Implement<br />Sales Tools<br />Who should we be targeting?<br />What are their critical business issues?<br />What case studies relate to their industry/role/situation?<br />How do we diagnose customer problems?<br />How do we have relevant dialogue with power buyers?<br />What is our value proposition?<br />What are our defensible differentiators? <br /><ul><li>Value Proposition
  69. 69. Reference Story
  70. 70. Bus. Dev. Letter
  71. 71. Bus. Dev. Prompter
  72. 72. Lead Letter
  73. 73. Opp. Assessment
  74. 74. C. Strategy Selector
  75. 75. 9 Block Model®
  76. 76. Pain Sheet®
  77. 77. S. A. Prompter
  78. 78. Sponsor Letter
  79. 79. 9 Block Model®
  80. 80. Pain Sheet®
  81. 81. S. A. Prompter
  82. 82. Power S. Letter
  83. 83. Evaluation Plan
  84. 84. Evaluation Plan
  85. 85. Transition Letter
  86. 86. Implement. Plan
  87. 87. Value Analysis
  88. 88. Success Criteria
  89. 89. Negotiating Worksheet
  90. 90. Give-Get List
  91. 91. T/A/O Plan
  92. 92. Account Profile
  93. 93. Pain Chain®
  94. 94. Key Players List
  95. 95. Implementation Plan
  96. 96. Success Criteria
  97. 97. Reference Story</li></ul>Marketing answers these questions<br /><br />14<br />2011 ©Solution Selling, Inc.<br />
  98. 98. Sales Process Reveals Metrics for Seller Behavior by Stage<br />Resolve concerns & make decisions<br />Develop strategy; define initiatives<br />Implement & evaluate success<br />CUSTOMER BUYING PROCESS<br />Select solution<br />Evaluate options<br />Determine requirements<br />Plan<br />Engage<br />Develop<br />Propose<br />Close<br />Deploy<br /> SALES PROCESS <br />Access to Power Sponsor<br />Pain admitted by Power Sponsor<br />Power Sponsor has buying vision<br />Power Sponsor agreed to explore<br />Evaluation Plan proposed<br />Respond to RFP<br />Engage CAM<br />Engage Implement. Team<br />Contract negotiation in process<br />Evaluation Plan underway<br />Craft RFP For Client<br />Engage Proposal Writer<br />Proposal issued, decision due<br />Research Current Penetration<br />Assemble Account Plan Team<br />Contact local field offices<br />Pain admitted by Sponsor<br />Sponsor has a buying vision<br />Penetrate Local Departments<br />Access to Power negotiated<br />Signed documents<br />Create terms and conditions<br />Notify all parties of win<br />Develop Success Story For Intranet<br /> SALES PROCESS ACTIVITIES <br />Account Plan Completed<br />Power Sponsor Letter<br />Sponsor Letter Completed<br />RFP Crafted For Client<br />Verbal Approval Received<br />Signed Contract Completed<br />VERIFIABLE OUTCOMES <br />AM<br />SM<br />AM<br />SE<br />AM<br />MK<br />SM<br />AM<br />SO<br />SM<br />AM<br />SO<br />SM<br />AM<br />SM<br />ROLES<br /># Evaluation Plans Proposed<br /># Demos Given<br />$ Billable On Evaluation Plans<br /># Evaluation Plans Accepted<br /># RFP’s Crafted For Clients<br />% RFP No Bids<br />CRM Audit Accuracy Score<br /># ROI For Sales Analyses Complete<br /># Account Plans Completed<br />% Seller Time On Account Planning<br /># Pain Chains Completed<br /># Latent First Time Calls<br /># Email Campaigns<br /># Sponsor Letters<br /># New Opportunities<br />$ Value New Opportunities<br /># Proposals Written<br />$ Value Proposals Written<br />Pre Proposal Conferences Held<br />% Set Up Fee Quoted<br /># Referrals Agreed To<br />Customer Satisfaction Rating<br /># Reference Stories Created<br />% Seller Time On Account Mgt.<br />METRICS<br /> MANAGEMENT SYSTEM <br />0%<br />10%<br />25%<br />50%<br />85%<br />100%<br /><br />15<br />2011 ©Solution Selling, Inc.<br />
  99. 99. Pipeline Management<br />T<br />S<br />D<br />C<br />B<br />A<br />W<br /><br />16<br />2011 ©Solution Selling, Inc.<br />
  100. 100. Why Measure Through Process<br />Incent desired behavior through better sales results!<br />Establish a basis for accountability in the sales organization<br />Build more predictable and productive pipelines<br />Apply consistent pipeline grading habits<br />Anticipate and minimize shortfalls<br />Enable seller success<br />Identify skill problems<br />Apply focused coaching for action<br />Determine accurate status of opportunities<br />Increase manager productivity<br />Manage by exception<br />Simplify internal communications<br /><br />2011 ©Solution Selling, Inc.<br />17<br />
  101. 101. Motivation Through Sales Process<br /><br />2011 ©Solution Selling, Inc.<br />18<br />Sales process provides a roadmap to get from where you are to where you want to be<br />The process provides your sales team with a series of closes / wins throughout the sales process<br />Your sales team will be motivated by having more control over the sales process<br />Performance improvements = more revenue = higher motivation on the sales team <br />Sales process ensures:<br />Higher individual quota attainment<br />Higher team quota attainment<br />Increase in average deal size<br />Improved time to productivity<br />
  102. 102. Continual Learning Framework<br /> A continual “learning framework” (skills assessment, training and multi-year reinforcement) that aligns with process and sales methodologies is essential.<br /><br />2011 ©Solution Selling, Inc.<br />19<br />“96% of sales people believe continuous learning is critical to their success” – ASTD Research: Accelerating Revenue Through Learning<br />
  103. 103. How Not to Learn<br /><br />2011 ©Solution Selling, Inc.<br />20<br />
  104. 104. Why Continual Learning is Imperative<br />Training is a great way to install process and knowledge<br />However, return on training events alone is often short-lived<br />On average, half of the content of a sales training event is lost in 5.1 weeks.<br />On average, 84% of sales training content is lost after 90 days.<br /><br />21<br />2011 ©Solution Selling, Inc.<br />
  105. 105. The ROI Dilemma<br /><br />2011 ©Solution Selling, Inc.<br /> Page 22<br />Events transfer a lot of information, but retention drops off quickly <br />Content <br />Retention<br />Continual<br /> Learning<br />Traditional <br />Training<br />ROI GAP<br />8<br />4<br />Initial<br />Training<br />12<br />16<br />Elapsed Weeks<br />Continual learning begins realistically and builds across time<br />
  106. 106. Sales Process Impact on Sales Performance<br />SPI Customers vs. Other Sales Training<br />Source: Aberdeen Group Study December, 2010<br />
  107. 107. How to Measure and Motivate Your Sales Team<br />Questions?<br />Sales Performance International<br />4720 Piedmont Row Drive | Suite 400Charlotte, North Carolina 28210t: 704.227.6500 | f: 704.364.8114<br />email:<br />Thank You<br />2011 ©Solution Selling, Inc.<br />