© CSO Insights 2004
The Sales Effectiveness Effect
2004 State of the Marketplace Review
Jim Dickie Barry Trailer
© CSO Insights 2004
Sales Excellence Reviews 4,000 small, medium, large firms Initial project goals Evaluation methods Justification approaches Implementation plans Hands-on experiences
© CSO Insights 2004
Selling In Turbulent Times
2004 sales excellence challenge
• Surveyed over 1,337 companies worldwide
• Interviewed 200+ CEOs, CSOs, CMOs,
• Results:
Understanding of the challenges
Defining of the causes
Surfacing best practices
© CSO Insights 2004
Sales Rep Performance vs. Quota
Under Quota50.8%
Meet or
Exceed Quota49.1%
The Report Card is NOT Good
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0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0%
Other
Reduce sales admin burden
Support team selling
Decrease sales costs
Improve communications
Increase channel effectiveness
Reduce sell cycle
Increase margins
Increase customer loyalty
Increase market share
Increase sales effectiveness
Increase revenues
Top Three Business Objectives For Sales
© CSO Insights 2004
Sales Effectiveness Issues
Generating leads
New rep ramp-up
Up-sell/cross-sell
Avoiding discounting
Optimizing channels
Communications:
sales teams/
enterprise
No decisions rates
Forecast accuracy
New product rollouts
Sharing best practices
Building customer
loyalty
Sales rep retention
© CSO Insights 2004
At Your Company, is the Sales Effectiveness Challenge:
A) Increasing
B) Holding steady
C) Decreasing
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1 2 3 4 5
Complexity of order entry process
Amount of sales rep turnover
Difficulty accessing information
Admin burden placed on sales force
Rate of new product introductions
Complexity of product offerings
Breadth of product offerings
Competitive activity in the marketplace
Rate of Change in the Marketplace –Challenges
© CSO Insights 2004
Sales Effectiveness Hall of Fame StorageTek• 300% increase in revenues/rep over 4 years
McKesson • 200%+ increase in new product selling effectiveness
Global eXchange Services• 350% increase in lead generation effectiveness
Pitney Bowes • Order error rate reduction from 23% to 1%
Xerox• Doubled services conversion rate of warranty
customers
© CSO Insights 2004
What impact is CRM having for you?
A) Significant improvements in sales
effectiveness
B) Minor improvements
C) No measurable improvement
D) Do not know
© CSO Insights 2004
Sales Effectiveness - The Dark Side
Success is not a given
• Significant improvements – 25.7%
• Minor improvements – 44.9%
• No measurable results – 17.8%
• Don’t know – 11.6%
© CSO Insights 2004
Impacting the Customer Life Cycle
CLOSERETAIN
EXTEND
ATTRACT
SELECT
Reduce the
number of “no”
decisions
General more/ better leads
Generate greater
incremental business
Avoid customer
losses, maximize renewals
Shorten sell cycle and
increase win rates
© CSO Insights 2004
Sales Effectiveness in Action
Case Study – Global eXchange Services
E-commerce vendor; 100,000 trading partners
and 1 billion transactions annually in 58
countries
Very complex sale, hard to attract right leads
Before project started:
• Revenue potential leads generated per 100 Web visitors =
<1, per call center rep = 1.5/day
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Global eXchange System Walkthrough
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Increased call center leads from 1.5/day to 7+
New leads close 30% faster than traditionally
gathered leads
Up-sell/cross-sell ratio improved by 25%
48% of conversations advanced to the phone
Reach a higher-level decision maker
Global eXchange Success Statistics
© CSO Insights 2004
Sales Effectiveness in Action General medical, $2B+ division of McKesson.
Represent 300 manufacturers, 30,000 products.
Project challenge: Represent every product as
well as the product manager!
Technical requirements: Link field sales,
marketing, distribution, finance, suppliers
seamlessly into sales process.
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General Medical System Walkthrough
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General Medical Results
30% increase in revenues per rep
400% increase in new product hit rates
1.4% improvements in margin
Higher rep retention rates
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Sales Effectiveness Levers
Process
People
Technology
© CSO Insights 2004
What is the biggest single challenge negatively impacting CRM success?
A) People
B) Process
C) Technology
D) None of the Above
© CSO Insights 2004
Sales Effectiveness Levers
Process
People
Technology
Knowledge
© CSO Insights 2004
0% 10% 20% 30% 40% 50%
Getting Adequate Funding
Getting Executive Support
Supporting Remote Users
Getting Users Productive
Effectively Rolling Out System
Identifying Process Problems
Customizing CRM Tools
Matching Technology to Process Problems
Measuring Project ROI
Gaining User Acceptance
Populating/Maintaining Data
Toughest Challenges Encountered During CRM Initiative
© CSO Insights 2004
AMM Customer Message Management (CMM) Initiative
More effectively aligning sales & marketing
Focus on the how of sales versus the what
Creation, delivery and management of
marketing messaging
Optimizing performance throughout the
entire sales process
© CSO Insights 2004
CMM Case Studies
Cisco
American Express
EDS
FedEx
IBM Canada
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0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
<10% 10 - 25% 26 - 50% >50%
Percentage of Presentations Resulting in a Sale
© CSO Insights 2004
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
<10% 10 - 25% 26 - 50% >50%
Percentage of Presentations Resulting in a Sale
All Responses
World-class CMM
© CSO Insights 2004
Common CMM CRM Components
Static & dynamic content support
Prospect specific focus
In-context sales process
Effectiveness analysis support
Link in with existing CRM applications
www.CMMForum.org
© CSO Insights 2004
P x C x V x F > RP x C x V x F > R
Formula for Successful Change
Four factors must be present for change to occur:
• P -
• C -
• V -
• F -
The product of which must be greater than R - Resistance to change
© CSO Insights 2004
Questions & Answers
White Papers at www.csoinsights.com
• Sales Effectiveness Insights 2004 Top Ten
Trends
• Optimizing Sales Performance with CMM
• Sales Knowledge Management Study Results
(July)