This document provides an executive summary of the CSO Index 08 report which surveyed over 1,500 sales managers and salespeople. Key findings include: 1) Increased turnover and profitability along with efficient management of sales are the top challenges for sales managers. 2) Sales managers need to focus on quality over quantity and target the right customers. 3) Sales organizations are stable but less willing to change, posing a challenge. 4) Initiatives to boost turnover, profitability, and add-on sales to existing customers have not had the desired effect. 5) Many companies report having a defined sales process but usage and results are mixed.

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3. List of Contents
About CSO Index 08 .................................................................................................... 6
Thanks to................................................................................................................... 6
The CSO Index project.............................................................................................. 6
Executive Summary..................................................................................................... 9
Sales demography and loyalty................................................................................. 11
Managerial conditions ............................................................................................. 11
What are your most important managerial goals for the next 12 months?......... 11
What are your most important managerial goals for the next 12 months? (cont.)
............................................................................................................................ 12
Over the next 12 months, where should you focus your efforts in order to achieve
your managerial goals?....................................................................................... 13
Over the next 12 months, where should you focus your efforts in order to achieve
your sales goals? ................................................................................................ 14
What percentage of your sales force failed to achieve their targets over the last
financial year? ..................................................................................................... 15
What percentage of your sales targets have you managed to achieve over the
last financial year? .............................................................................................. 16
What is the average running-in period for a new salesperson in your
organisation?....................................................................................................... 17
As a sales manager, how do you spend your time? ........................................... 18
Turnover .................................................................................................................. 19
How does your company generate its turnover? ................................................ 19
What percentage of last year’s turnover can be attributed to new customers?.. 20
The sales force........................................................................................................ 21
Employment period for the entire sales force ..................................................... 21
How do you see your sales force developing over the next 12 months? ........... 22
By what percentage is your total sales force likely to expand? .......................... 23
By what percentage is your total sales force likely to increase? (cont.) ............. 24
By what percentage is your total sales force likely to decrease? ....................... 25
How high has your staff turnover been over the last 12 months? ...................... 27
Sales performance..................................................................................................... 28
Potential Customers ................................................................................................ 28
How do you find potential customers?................................................................ 28
Where do potential customers come from? ........................................................ 29
Opening meetings............................................................................................... 30
Forecasting.............................................................................................................. 32
Does your company operate with forecasting/pipeline analysis? ....................... 32
What percentage of the total number of sales forecasted are closed with no
changes to original amount?............................................................................... 33
What percentage of the total number of sales forecasted are closed by the set
deadline?............................................................................................................. 34
What percentage of the total number of sales forecasted are actually won?..... 35
What percentage of the total sales forecasted are lost to the competition?....... 36
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4. What percentage of the total sales forecasted are lost because the customer
couldn’t reach a decision? .................................................................................. 37
Marketing and cooperation...................................................................................... 38
To what degree do your marketing activities support your sales/sales
organisation?....................................................................................................... 38
To what degree do your marketing and sales organisations cooperate?........... 39
Marketing Department responsibilities................................................................ 40
Sales force competencies ....................................................................................... 41
Ability of your salespeople to…........................................................................... 41
How good are your salespeople at forecasting sales? ....................................... 43
How accurately are you able to predict monthly/quarterly sales/orders? ........... 44
Why are your salespeople poor at introducing new products/services to existing
customers?.......................................................................................................... 45
Organisational Challenges ...................................................................................... 46
Primary challenges for the sales force................................................................ 46
Primary challenges for the sales managers........................................................ 48
Sales processes and methods ................................................................................. 49
Changes .................................................................................................................. 49
What changes have occurred in your customers’ market(s)? ............................ 49
How have the competitive parameters changed in your own market? ............... 49
How have your products/services changed? ...................................................... 50
Education................................................................................................................. 51
How much money do you invest in education your salespeople (per person, per
year)? .................................................................................................................. 51
How is your current level of sales training expected to change over the next 12
months? .............................................................................................................. 52
How is your current level of sales management training expected to change over
the 12 months? ................................................................................................... 52
When did you last attend sales or sales management training? ........................ 53
Sales processes ...................................................................................................... 54
On average, how long is the sales cycle in your company (from identification of
potential customers to the first sale)? ................................................................. 54
On average, how many meetings must your salespeople attend in order to close
a sale with a potential customer?........................................................................ 55
On average, how many meetings must your salespeople attend in order to close
a sale with an existing customer? ....................................................................... 56
Does your company use a dedicated, structured sales process/ methods? ...... 58
What effect has this had on company turnover? ................................................ 59
What percentage of your total sales force regularly uses your sales
process/methods?............................................................................................... 60
Why are your sales process/methods not being widely used?........................... 61
What impact has an investment in the introduction of a sales process/methods
actually had on your business results?............................................................... 62
Which outcomes have you been able to measure as a result of the sales
process/methods?............................................................................................... 63
CRM............................................................................................................................. 64
When was your CRM system originally implemented?....................................... 64
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5. Who managed the implementation of your company’s CRM system? ............... 65
What was the greatest challenge of your CRM project? .................................... 66
Why are so few people using the system? ......................................................... 67
What percentage of CRM users are utilising the system actively?..................... 68
What measurable effects can be attributed to using the CRM-system?............. 69
How has your CRM investment affected your business results? ....................... 70
Conclusion ................................................................................................................. 71
Loyalty ........................................................................................................................ 72
Does your company perform regular surveys to gauge levels of customer
satisfaction, loyalty etc.? ..................................................................................... 72
To what degree are the results of customer surveys built into your salary
packages?........................................................................................................... 73
To what degree do you use incentives/reward systems based on the results of
customer surveys to encourage sales people to improve satisfaction/loyalty? .. 74
How much access do your IT systems (e.g. CRM system) provide to the results
of customer surveys?.......................................................................................... 75
Conclusion ................................................................................................................. 76
What will it be like to sell your company’s products/services over the next 12
months? .............................................................................................................. 76
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6. About CSO Index 08
No part of this report may be reproduced, published or distributed in any form,
including any filing in databases with a search system, without the prior written
approval of the producer (Loyalty Group A/S). Exceptions may be made for short
quotations from articles, reports, summaries and the like. For more information please
contact Loyalty Group A/S, Borgergade 2, 1300 København K, Tel.: +45 70 25 26 27,
e-mail: Mikkel Korntved, mk@loyaltygroup.dk / Lars Jepsen, lj@loyaltygroup.dk.
The reader must understand that the data forming the basis of this report was as
accurate as possible prior to processing. The Producer accepts no responsibility for
ongoing updates of the information in this report. The Producer assumes that the
reader will use the information contained in this publication to keep abreast of areas
covered by the report. The Producer accepts no responsibility for the way in which the
reader/purchaser of this report may choose to use the information.
The views and opinions expressed in this report are those of the Producers and their
partners only. No opinions expressed by people or organisations participating in the
CSO Index 08 survey have been included in this report.
Thanks to
First and foremost we would like to thank the more than 1,500 people (sales
managers and sales people), who participated in this in-depth survey. Without their
views and opinions the performance of this task would have been impossible. We
would also like to say a huge thank you to our partners, Business Danmark
(www.businessdanmark.dk), Mercuri International (www.mercuri.net) and Microsoft
Dynamics (www.microsoftdynamics.com), who very generously granted us access to
their comprehensive membership and customer databases for the purposes of this
survey. Business Danmark also contributed actively by giving the CSO Index 08 a
mention, both on their website and in their monthly publication “InBusiness”. We would
also like to thank Mercuri International and Microsoft Dynamics for their assistance in
putting the data into perspective.
The CSO Index project
This report represents a milestone in the structured charting and analysis of the sales
climate in Denmark. We intend to conduct similar surveys on an annual basis so the
next one can be expected in 2009. This particular document should be viewed as the
primary report for the CSO Index 08. On request, the Producer can generate ad-hoc
analyses and reports containing more detailed information and even branch-specific
data.
The CSO Index 08 contains the key data and conclusions from the 2008 survey. The
survey reveals and analyses the challenges influencing sales performance today, and
more importantly, what companies expect of the market, their organisations, and their
use of various sales processes in 2008. The input for this survey came from sales
managers in several different sectors – from small companies with under five
employees to large organisations with a staff of more than 500. The questionnaire is
based on more than 200 variables covering general performance in a sales
organisation.
Data was collected via a web-based questionnaire. The respondents were invited from
Business Danmark’s membership database and from the customer databases of
Mercuri International and Microsoft Dynamics. The subjects were screened according
to their position and responsibility for other personnel. The respondents were also
hand-picked from a network of Danish business people.
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7. The respondents were invited via e-mail and at the beginning of the questionnaire had
the option to answer anonymously. The questionnaire itself took an average of 24
minutes to complete.
For the purpose of putting the results of the CSO Index 08 survey into perspective,
and to enable us to draw the primary conclusions, the respondents were divided into
the following groups:
Primary result: Total number of Scandinavian responses
Geography: Denmark, Sweden and Norway
History: Danish results from the CSO Index 07
This survey is based on the responses made by sales managers. A similar survey was
also conducted among salespeople, so managers’ responses to certain questions
have been compared with those of their staff.
The purpose of the questionnaire was to gain insight into the different forms of
measurement governing sales performance:
• General sales demography and loyalty: This section deals with issues such
as satisfaction and current employment, managerial goals and initiatives in
2008, budget attainments, length of service in the sales force, expectations
regarding its development in 2008, plus sales efforts made in the marketplace
etc.
• Sales cycle: This section focuses on performance, order sizes, sales cycle
(i.e. from the initial contact to the final contract), verifying who qualifies as a
potential customer, percentage of closed orders, the use of forecasting and
pipeline management as a managerial tool, and the relationship between
sales and marketing etc..
• Sales performance: This section focuses on the professional skills of the
sales force in areas such as activity management, the identification of
potential customers, forecasting, differentiation, and the introduction of new
products to existing customers. Also included are internally-oriented questions
concerning the relationship between the sales manager and the top
management etc.
• Market conditions: This section deals with the sales manager’s insight not
only into their own market conditions but also those of their customers.
• Sales methodology: This section focuses on the company’s use of sales
training and its effect, and covers the use of a structured sales process (and if
so, which one), how satisfactory the method was considered to be, and also
how effective.
• CRM (Customer Relationship Management) IT systems: This section
covers the use of CRM-systems, examines various considerations linked to
their implementation; the efficiency of current solutions, levels of satisfaction,
and the anticipated effect of a CRM-system.
To put this data into perspective and to increase its relevance for your own sales
organisation, we recommend performing this survey in your own company either prior
to or after reading this report. Loyalty Group can help you do this at a separate charge
(see below for our contact details). This survey will reveal whether your company’s
performance rates better, equates to, or is worse in a number of key areas, than the
other sales organisations in the countries included in the CSO Index 08.
In conclusion, we hope that this report will help you set the right course for your sales
organisation. It should certainly form a solid foundation for increasing your sales
efficiency. Even though this information can be used in a multitude of ways, we
recommend using it as a basis for brainstorming; as inspiration for setting new goals
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8. and for identifying and prioritising any operational challenges your organisation may
face.
For more information or for help in putting the main survey or report into perspective,
or for access to more detailed analyses of the data collected, please contact:
Lars Jepsen, Research Manager Mikkel Korntved, Seniorrådgiver
Loyalty Group A/S Loyalty Group A/S
Tlf.nr.: +45 70 25 26 27 Tlf.nr.: +45 70 25 26 27
E-mail lj@loyaltygroup.dk E-mail: mk@loyaltygroup.dk
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9. Executive Summary
The recently-published CSO Index report makes exciting reading indeed. This year’s
point of origin is the sales manager and the challenges involved in generating results
for 2008/2009.
Increased turnover and profitability, together with efficient management of sales are
the most important challenges facing any sales manager in the present marketplace.
Achieving these goals demands higher competency levels, an ability to make add-on
sales to existing customers, and more efficient customer segmentation.
Today’s sales managers need to focus on quality rather than quantity, ensuring that all
sales activities are not just volume based but quality-based – i.e. targeted at the right
customers. It is a difficult dilemma for these professionals, who feel that more time
should be spent on coaching and other development activities, but find progress
hindered by their everyday responsibilities. Thus, too little time is spent on generating
results through others, and the salespeople are left to their own devices.
An age-old problem that won’t go away
When striving to increase your turnover through enhancing your efficiency, it is
important to establish whether customers are seeking new sales channels. Generally,
it appears either to be “business as usual” or - more disturbingly - that companies are
not entirely sure what technology and new types of media can offer.
Online/web-sales are thriving, but where sales managers in the CSO Index 08 report
that only about 5% of their turnover comes from these channels, other surveys show
that the number is far greater.
Sales managers want to focus on selling to existing customers, but since this
message has not yet percolated through all the layers of the organisation, their
salespeople continue to make newbiz their first priority. This illustrates how important
it is to communicate their priorities and options more clearly.
The sales force is stable, despite the fact that the market has been overheated and
that jobs have been easier to find than ever. Conversely, this stability has made sales
organisations less willing to change – which is a major challenge. A number of
initiatives have been taken with the aim of increasing turnover and profitability, and
making add-on sales to existing customers easier to achieve – but these have not had
the desired effect.
Quite a few companies report having defined their sales process. But despite the fact
that the effect on results has been very positive, many choose not to use the process
actively on a daily basis.
Many companies avoid CRM systems if they demand considerable deviation from the
beaten track - and the price is a loss of efficiency. Conversely, companies that actively
use CRN systems do become more efficient.
Customer loyalty analyses are compiled but not used actively, despite the fact that this
is one of the sales managers’ primary focus areas. Furthermore, the results of such
surveys often aren’t even shared with the salespeople.
Are sales organisations effective enough?
Key figures can be found in the analysis and the individual sales organisation can
compare these with their own average figures. It is thought-provoking however, that so
many companies continue to ignore developments in their key figures, thereby robbing
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10. themselves of the opportunity to compare themselves with their competitors and to
measure the effect of any improvements made.
Pipelines and forecasts are also about increasing efficiency through monitoring,
evaluating and taking action. Many companies choose not to follow up on whether
certain activities ever came to fruition, a decision that is in direct conflict with the
opinions expressed by sales managers elsewhere in the survey on the subject of
increasing efficiency.
Half of the offers made are lost to the competition or to a “no decision”, which means
that half of the time used on making offers is wasted. When a sales manager elects to
focus on training, a natural place to start would be to evaluate whether offers are
worth sending at all – and if they are, to ensure that they are accurately prepared from
the outset.
There is more than enough to get to grips with, but it is worth remembering that an
average figure indicates that some companies are much better, while others are
considerably worse. In many areas it is the sales managers who perform particularly
well – fortunately they contribute to raising the bar on what can be achieved.
The CSO Index can help individual sales managers and their staff to evaluate whether
their actions help to raise the bar, or whether they actually lower the bar, making it
easier for other companies to win.
Enjoy the read!
The Editor
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11. Sales demography and loyalty
Managerial conditions
What are your most important managerial goals for the next
12 months?
Increase turnover 59.2%
Increase sales
53.1%
efficiency
Increase profitability 50.5%
Increase market share 39.8%
Increase customer
37.1%
loyalty
Reduce costs 13.5%
Reduce cost of sale 8.3%
0% 10% 20% 30% 40% 50% 60% 70%
What are your most important managerial goals for the next 12 months?
The answers to these questions provide a clear picture of what occupies sales
managers in Scandinavia in 2008, and what lies behind the actions taken and
priorities chosen.
Unsurprisingly this makes increasing turnover the most important goal for 2008. The
differences between the three countries are minimal.
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12. What are your most important managerial goals for the next
12 months?
60.3%
Increase turnover 56.8%
60.4%
Increase sales 56.7%
47.9%
efficiency
54.6%
Increase 40.8%
54.8%
profitability
55.8%
Increase market 38.0% Denmark
share
43.8% Norw ay
37.5%
Sw eden
Increase customer 43.1%
39.0%
loyalty
29.2%
9.6%
Reduce costs 18.5%
12.5%
Reduce cost of 9.1%
8.2%
sale
7.5%
0% 10% 20% 30% 40% 50% 60% 70%
What are your most important managerial goals for the next 12 months?
(cont.)
Reviewing the other areas, it is worth noting that Denmark prioritised customer loyalty
more highly than the other two countries.
Sales organisations appear to be focusing more on “Value for money”, whereas goals
such as increasing profitability and efficiency feature lower on their list of priorities.
The same priorities apply for their salespeople.
Compared to the results for Denmark in 2007, the focus on sales efficiency has
increased - from 39% to 56.7% to be precise. This could be because the desired
growth cannot be achieved by increasing resources but through using existing
resources more effectively.
The following section focuses on the actions taken by sales organisations in pursuit of
their objectives.
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13. What are your most important managerial tasks for the next 12
months? (Top 5)
Increase the level of competency w ithin the
52.9%
organisation
Increase the average sales per existing customer 49.7%
Better, more targeted segmentation of customers
and potential customers
38.4%
Strengthen the use of existing sales
35.1%
method/sales process
Introduce new products to the market 33.7%
0% 10% 20% 30% 40% 50% 60%
Over the next 12 months, where should you focus your efforts in order to
achieve your managerial goals?
It is a well known fact that results cannot be achieved without making an extra effort.
As the saying goes, “Where there’s no pain, there’s no gain.” The sales managers
offered their views of what was required in order to generate the desired results and
achieve their managerial goals.
For the five most important managerial tasks listed above, some interesting findings
emerged: The most common approach was to raise the level of competency in the
organisation. 52.9% stated this as being the most important area of contribution. In
second place was an increase in average sales per existing customer, and in third
place, better and more targeted segmentation of customers and potential customers.
This suggests a serious intention to do things better rather than just doing “more of the
same”.
Compared to the Danish results for 2007 this shows a significant improvement; in
2007 the figure for increasing competency levels was 42% compared to the current
52.9% for Scandinavia (54.7% for Denmark).
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14. What are your most important sales tasks over the next 12
months? (Top 5)
Work on a new market/markets 47.5%
Make more use of existing sales methods/sales
38.8%
process
Increase my sales hit-rate 31.0%
Make more use of existing CRM-system 21.9%
Shorten the sales cycle 18.8%
0% 10% 20% 30% 40% 50%
Over the next 12 months, where should you focus your efforts in order to
achieve your sales goals?
The main priority for salespeople is to explore new markets in order to generate
growth. This clearly indicates that they need to be steered in the right direction, since
selling to new markets is not considered a high priority by sales managers.
When discussing strategy with their salespeople, managers should focus on the
following combination to achieve the best results:
- Quantity – are we doing enough of what we should be doing?
- Direction – are we focusing on the right products and
customers?
- Quality – are we dealing with the right customers in a quality-
oriented manner?
During one-to-one discussions the REC approach can be useful, where R stands for
setting goals at a result level, E involves setting them at an effort level, and C involves
competency levels and capacity.
The following were considered less important for the achievement of managerial
goals:
- Implementation of a new CRM system
- Introduction of new sales methods/process
- Shortening the sales cycle
CRM, the sales process and sales cycle are dealt with in more detail elsewhere in this
report.
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