pdf microsite achieve global ag survey of sales effectiveness

8/6/2019 PDF Microsite Achieve Global AG Survey of Sales Effectiveness

1/44

Contributors:

Mark Marone, Ph.D.

Chris Blauth

A Survey of Sales Effectiveness:Global Research on What Drives Sales Success


2/44

To gain a better understanding o the sales skills andbehaviors required to succeed in todays marketplace,AchieveGlobal conducted a worldwide survey o morethan one thousand sales proessionals. We report thefindings in this paper and draw several important con-clusions around the sales activities that generate results.

This study ocuses on two key areas o sales:

First, sales proessionals were asked to select the mostimportant activities in each sales phase that they eelhave the greatest impact on their success.

Second, the study investigates the level and type osupport sales proessionals receive rom their organi-zation in terms o training, technology, and customersupport.

In this report, we look at these two areas and comparethe responses or diferent groups o sales proessionals,including:

Their sales position in the organization

Their ocus on new or existing business

The size o the company and average size o theirsales deals

Their sales perormance (ranked as high, mediumor low by a number o actors)

Examining the responses by diferent groups yieldsinteresting findings regarding what sales proessionalssay are the most important activities contributing totheir success and the degree to which their organizationprovides critical sales support.

Specifically, new insights around the critical elementsthat afect the customers experience were uncovered.The role o sales coaching and training, and its impor-tant influence on success, was also investigated.

Introduction

1 | A SURVEY OF SALES EFFECTIVENESS


3/44

Key Findings

The selection of important

sales activities differed for

respondents based on their

sales performance, deal size,

and the training and coaching

they received.


4/44

The ollowing bullets summarize the key findingsrom the survey:

The sales phase that respondents said they hadthe most success with was Establishing Rela-

tionships and Uncovering Needs (36%), whilethe number one phase they ound most challengingin the past year was Developing New Business (54%).

There is a remarkable consistency in the selec-tion o the three most critical activities in eachsales phase, with some noted exceptions.

Across each sales phase, there is more varia-tion (less agreement) in Developing Business,Presenting a Solution, and Closing a Sale.

There is less variation (more agreement) with

Preparing to Sell, Establishing Relationships,Following up ater the sale, and PersonalSelling Attributes.

There was tremendous agreement with the topthree selections o activities in the Personal SalesAttribute category. These activities are primarilyrelated to integrity: being direct and honest,treating others with respect, and demonstratinga higher ethical standard.

When analyzing variation in activities bydiferent groups, we see the most diference

in responses by Deal Size (and Company Size),ollowed by a cluster o respondents that saidtheir organization provides Training andCoaching, and then Sales Perormance. Thereis also a high level o variation or certain countries.

Respondents agreed most that their organiza-tion succeeds in Clear Company Objectives,Fair Treatment o Salespeople, and SalespeopleMeeting Operational Requirements.

They agreed least oten that their organizationUsed Metrics and Dashboards Efectively,

Salespeople Followed the Sales Process, andSFA Made Selling Easier. These organizationalsupport activities, however, were more prevalentor high-perorming salespeople.

Sales leaders were more likely than outside salesproessionals to agree that their organizationsupports the sales orce with training, coaching,technology, equitable treatment, etc.

Those ocusing primarily on servicing existingcustomers perormed better over the past yearcompared with those ocused on developingnew business.

Sales managers responded similarly to salespeople,but outside sales proessionals responded mostdiferently rom sales leaders and executives.

The two most influential variables that definedthe groups in the cluster analysis and had thestrongest relationship with organizational supportactivities are Sales Coaching and Sales Training.

Respondents in the substantial and moderate(High/Medium) coaching/training clusters weremore likely to have larger deal sizes, reporteda better sales perormance over the past year,and generally came rom larger companies.

Similar to respondents reporting a larger dealsize, the high and medium coaching/traininggroups were more likely to select those activitiesthat are more strategic in nature. Those rom thelow coaching/training cluster were more likely toselect activities that are tactical in nature.

The coaching/training clusters are highlycorrelated with organizational support. Thatis, those organizations that ofer training andcoaching are more likely to support the salesorce in other ways.


Key Findings


5/44

To better understand the relationship between salesactivities and sales perormance in todays economy, weasked respondents to rate on a scale o 1 to 5, with 1 beingcompletely disagree and 5 being completely agree,their agreement with statements regarding their ownorganizations support o their sales efort. Through our

secondary research and interviews with sales organiza-tions internationally, we identified the importance oan organization in supporting sales eforts through trai-ning, coaching, technology platorms, customer service,efective compensation and reward systems, and otherpolicies and procedures that acilitate successul sales.

We analyze the relationship between the ratings o se-lected sales support activities by sales perormance, salesposition, country, and other variables. Respondents ratedtheir agreement with the ollowing support activities:

Resources and tools to research customers/markets

Formal sales processes

Compliance with ormal sales processes

Sales training

Sales coaching

Company objectives that are clear to salespeople

Fair treatment o salespeople by sales leaders

Implementation o metrics and dashboardsto track perormance

Efective sales-orce automation

Appropriate recognition and reward

Sales compliance with operational/report requirements

Service, expertise, and support provided by non-salesresources in the organization

The ollowing table (Table 1) ranks the mean score(five-point scale) rom highest (activity with highest level

o agreement among respondents) to lowest (activitywith least agreement). Respondents were in most agree-ment that their organizations objectives are clear tosalespeople and in least agreement that their sales-orceautomation system makes their job o selling easier.

A SURVEY OF SALES EFFECTIVENESS | 6

On a scale o 1 (completely disagree) to 5 (completely agree), to what extentdo you agree with the ollowing?

Our company objectives are clear to salespeople. 3.96

Our sales leaders treat salespeople airly and equitably. 3.88

Salespeople in my organization meet operational requirements or reporting, completingnecessary paperwork, attending meetings, etc. 3.80

People in no-sales roles provide the expertise and support needed to secure the sale andprovide service to customers ater the sale. 3.77

My organization provides resources to help salespeople to research and understandcustomers and their markets. 3.75

Salespeople in the company are appropriately recognized and rewarded or selling eforts. 3.69

My organization ofers training that salespeople need to do their job. 3.53

Our salespeople receive valuable coaching rom their sales managers. 3.53

We have a ormal sales process that defines how we sell. 3.47

My organization efectively uses metrics or clashboards to manage sales perormance. 3.40

Our salespeople consistently ollow a ormal sales process. 3.27

Our sales orce automation system makes the job o selling easier. 3.19

TOTAL

Table 1. Level o Agreement With Statements Related to Organizational Support


6/44

We asked sales proessionals to select the three activitiesthat are most critical to their success in each o six salesphases. Throughout this report, we analyze respondentsselection o a series o sales behaviors and activities thatare categorized by diferent phases o the selling pro-cess. Following are the phases within the sales process

and the top three rated activities within each phase:

Preparing to sell

- Have a complete understanding o the products and/or services being sold.

- Actively build and maintain a network o contacts.

- Understand the competition within your marketplace.

Developing business

- Efectively use telephone/in-person/electronic means

to secure appointments with decision makers.- Generate reerrals rom the existing customer base

and contact network.

- Prospect continuously to keep the pipeline ull.

Establishing relationships

- Ask questions to uncover customer needsand motives.

- Build trust during each customer interaction.

- Listen actively by expressing interest and asking

ollow-up questions.

Presenting a solution

- Configure solutions to meet the unique needso the customer.

- Clearly explain the links between solutions, benefits,and customer needs.

- Ofer unique ideas and insights that prospects havenot considered beore.

Closing the sale

- Resolve customer concerns including price objections.

- Stay alert to buying signals and ask or the businessat the right time in the sales cycle.

- Look or innovative ways to meet client needs.

Following up ater the sale

- Establish regular contact with customers to maintainlong-term relationships.

- Ensure that your organization delivers what waspromised to the customer.

- Quickly resolve service issues and requests.

A seventh section includes activities that reflect overallpersonal selling attributes that are critical or success.The top three activities selected most oten in thiscategory are:

- Be direct and honest in all communication.

- Treat prospects, customers, and internal partnerswith respect.

- Maintain high ethical standards.

In the ollowing sections, we examine the relationshipso diferent groups o sales proessionals with the salesactivities they selected as being most important to theirsuccess. We also highlight any diferences in the levelo organizational sales support or each category orespondents.



7/44

Sales Performance

We observed sales perfor-

mance in two ways. The first

involved creating an indicator

of success based on the percent

change in respondents quota,

average deal size and overall

sales revenue.


8/44

The perormance o sales proessionals participating inthe study is a key variable or comparing the relationshipbetween the selection o sales activities and organiza-tional support. More specifically, we would expect thatspecific sales activities tend to be selected as importantsuccess actors by higher perorming salespeople,

while those not perorming as well tend to ocus onother activities.

We observed sales perormance in two ways. The firstinvolved creating an indicator o success based onthree questions relating to the percent change in quota,change in deal size, and change in overall sales revenue.These three questions were combined to create an indexo overall individual sales perormance or the past year.High Perormers represent those who have a combinedscore that alls in the top third o the combined scoresrom the three questions, while Medium Perormers all

in the middle third and Low Perormers in the lowestthird. This provides a comparison o respondents toothers who answered the survey rather than to anindustry or market benchmark.

The second method or observing success was merelyto compare those respondents reporting an increase omore than 10% in sales growth rom the prior year withthose reporting more than a 10% decline in sales revenue.

Overall, there is a moderate relationship between salesperormance and the priority o sales activities or certain

phases o the sales process as measured by the peror-mance indicator and change in sales revenue.

We would also expect that the perormance o sales-people be related to organizational support, sinceorganizational support should improve sales results.Again, as we show on the next page in table 2, there arerelationships between perormance and ratings o severalselling-support activities.

High perormers were more likely to select theollowing as being critical to their success:

- Posses an understanding o products/servicesbeing sold.

- Have an in-depth knowledge o the customersindustry.

- Identiy new opportunities in existing accounts.

- Conduct in-depth research o prospectorganizations.

- Ensure that the organization delivers what ispromised.

- Exhibit sales tenacity.

Lower perormers more oten selected the ollowingas one o their top three success actors:

- Actively build and maintain a network o contacts.

- Aggressively pursue leads.

- Tell stories to illustrate important points.

- Look or innovative ways to meet client needs.

- Provide customers with ongoing advice.



9/44


Sales Phase High Perormers Medium Perormers Low Perormers

Preparing to SellPossess an understanding oproducts/services being sold.

Have an in-depth knowledge o thecustomers industry

Identiy new opportunities in existingaccounts.

Conduct in-depth research o prospectorganizations.

Uncover needs the customer might not beaware o

Configure solutions to meet the needs othe unique customer.

Ofer unique ideas and insights thatprospects have not considered beore.

Stay alert to buying signals and ask or thebusiness at the right time in the sales cycle.

Resolve customer concerns including priceobjections.

Ensure that your organization delivers what

was promised to the customer.

Be direct and honest in all communication.

Be appropriately persistent.

Actively build and maintain a networko contacts.

Understand the competition within yourmarketplace.

Generate reerrals rom the existingcustomer base and contact network.

Prospect continuously to keep thepipeline ull.

Agressively pursue leads

Build trust during each customer interaction.

Cleary explain the links between solutions,benefits, and customer needs.

Tell stories to illustrate important points.

Look or innovative ways to meet client needs.

Efectively use internal resources to closethe business.

Provide customers with ongoing advice and

inormation.


Understand the competition within yourmarketplace.

Efectively use phone/in person/electronicmeans to secure appointments with decisionmakers.

Understand the customer's buying process.

Articulate business case to show financialbenefit to customer.

Stay alert to buying signals and ask or thebusiness at the right time in the sales cycle.

Quickly resolve service issues and requests.


Developing Business

Establishing Relationships

Presenting a Solution

Closing the Sale

Following Ater the Sale

Personal Attributes

Table 2. Key Sales Activities Selected Most Oten by High, Medium, and Low Perormers


10/44

Survey respondents were asked to select their most challenging sales phase and the phase where they have hadthe most success in the prior year. The ollowing table (Table 3) shows the percent o responses by sales perormance.

While a majority o all respondents said that developing new business was their most challenging phase, high perormerswere more likely to also mention presenting a solution and overall personal attributes. Lower perormers had relativelymore challenges with closing a sale in the prior year.

Both groups had success with establishing relationships and uncovering needs, but high perormers were more otensuccessul in developing new business when compared with low perormers.


Selling Phase

Preparing to Sell 7.1% 6.7% 3.9% 7.3%

Developing New Business 50.6% 57.9% 16.0% 8.4%

Establish Relationships 11.7% 7.6% 39.2% 35.9%

Presenting a Solution 7.1% 3.7% 11.4% 15.6%

Closing The Sale 10.1% 17.0% 16.3% 13.4%

Following Up Ater the Sale 7.8% 5.1% 7.1% 10.4%

Personal Attributes 5.2% 1.8% 6.2% 8.5%

HIGHPERFORMERS

LOW

PERFORMERS

HIGH

PERFORMERS

LOW

PERFORMERS

MOST CHALLENGING PHASE MOST SUCCESSFUL PHASE

Table 3. Most Challenging and Most Successul Sales Phases


11/44


We examined the relationship between sales perormance and agreement with the organizational support activities.The ollowing table (Table 4) shows the mean score (on a five-point scale) or sales perormance (high/low) togetherwith change in revenue (increase/decline).

Here we see that sales perormance and change in revenue are highly correlated both with each other and withagreement on seven organizational support activities. Overall, respondents that are more successul work in

organizations that are more likely to provide:

Coaching

Clear company objectives

Fair treatment

Efective use o metrics/dashboards

Meeting operational/reporting requirements

Efective SFA

Sales/service support rom non-sales roles

Three o the seven highly correlated organizational support activities can be considered operational or technological innature. The use o dashboards/metrics, meeting operational requirements, and an efective SFA rely more on systemsand processes rather than behaviors.

On a scale o 1 (completely disagree) to 5 ( completely agree),to what extent do you agree with the ollowing?

Salespeople receive valuable coaching rom their 3.7 3.4 3.6 3.3sales managers.

Our company objectives are clear to salespeople. 4.1 3.8 4 3.7

Our sales leaders treat salespeople airly and equitably. 4 3.7 4 3.6

Efectively use metrics or dashboards to manage 3.5 3.2 3.5 3.2sales perormance.

Salespeople meet operational/reporting requirements. 3.9 3.7 3.9 3.5

Our SFA system makes the job o selling easier. 3.4 3 3.3 3.1

Non-sales roles provide the expertise/support needed. 3.9 3.6 3.9 3.6

High LowIncrease

>10%Decline>10%

SALES PERFORMANCE CHANGE IN REVENUE

Table 4. Relationship Between Sales Perormance and Agreement With Organizational Support Activities


12/44

Latent Class Cluster Analysis:Coaching and Training

The LC approach assigns

respondents into clusters

or groups based on similar

responses to the questions

that have the most influence

in distinguishing each group.


13/44

The Latent Class (LC) analysis is an extension o thetraditional cluster analysis approach. In general, clusteranalysis is the classification o similar objects into groupswhere the number o groups as well as their definitionsare unknown. The LC approach identifies latent variablesthat explain the association among a set o observed

variables. Each latent class, like each cluster, groupstogether similar cases that express similar preerencesin other variables.

In the LC approach, respondents in the same latentclass share a common joint probability distribution amongcertain variables. Although respondents in the same latentclass (cluster) cannot be distinguished rom each otherbased on their observed responses, they are similar toeach other with respect to these underlying variables iden-tified by the LC model. Respondents are classified intothat group having the highest membership probability

o belonging given the set o responses or that case.

This multivariate approach considers a group o variablesto define a cluster, with some variables being more domi-nant and having more influence than others. We oundin our analysis that there are two questions or variables inthe survey that are most influential in defining the clustersthat emerge: ratings or 1) Our salespeople receivevaluable coaching rom their sales managers and 2)My organization ofers training that salespeople needto do their job.

Focusing on the two questions above reveals key dife-rences between the clusters, which can be summarizedas ollows:

Cluster 1: Substantial or High coaching / trainingo salespeople

Cluster 2: Moderate coaching / training osalespeople

Cluster 3: Minimal or Low coaching / trainingo salespeople

We examine the data here or each cluster as they repre-sent unique groups with distinct preerences. The valueo the LC approach is that it identifies those characteris-tics or variables that are responsible or defining distinctgroups that represent diferent preerences on othervariables.



14/44

HighCoaching/

Training

ModerateCoaching/

Training

LowCoaching/

Training

10%

15%

20%

25%

30%

Increase o 10% or More in Perormance to Quota inPast Year by Training/Coaching Cluster

28.4% 26.0%

19.6%

HighCoaching/

Training

LowCoaching/

Training

10%

20%

30%

40%

50%

Training/Coaching Cluster by Company Revenue

60%

0%

70%

80%

90%

100%

ModerateCoaching/

Training

11.9%

48.2%

12.8%

27.1%

18.7%

42.3%

12.7%

26.4%

15.7%

60.1%

8.5%

15.7%

$500m+ $150-$499m $50m-$149m Under $50m

HighCoaching/

Training

ModerateCoaching/

Training

LowCoaching/

Training

5%

10%

15%

20%

25%

Decline by >20% in Sales Revenue byTraining/Coaching Cluster

10.4%

13.0%

22.5%

HighCoaching/

Training

ModerateCoaching/

Training

LowCoaching/

Training

2%

4%

6%

8%

10%

Change in Average Deal Size by Training/Coaching Cluster

4.1%

12%

0%

14%12.0%

4.4%

10.0%

7.8%

6.6%

Declined by > 20% Increased by > 10%

Agreement with my organization ofers trainingthat salespeople need to do their job, and oursalespeople receive valuable coaching rom their salesmanagers identifies clusters that are highly related to

overall organizational support and sales perormance.

Moderate and substantial (medium and high) coachingand training tends be related to higher deal sizes, greaterincreases in personal sales revenue, and generally moreoverall success compared with those receiving minimalcoaching and training.

More than 22% o those reporting low training andcoaching support reported a decline in sales revenueo more than 20% compared with only 10.4% o thosereporting high training and coaching support.

More than a quarter o all high and moderate clustersreported an increase in perormance to quota o morethan 10% compared to less than 20% o those respondentsin the low coaching and training cluster.

Change in average deal size is directly related to theamount o training and coaching received, that is, morerespondents reported an increase in averagedeal sizeor the high cluster compared with the low group.

The clusters are also related to company size. A higherpercentage o respondents rom high and mediumclusters are rom larger companies compared withrespondents rom the low cluster.

The Impact o Training & Coaching



15/44

The ollowing analysis considers the relationship betweenthe identified cluster and sales activities. Variation in theclusters, rom high to low, should correlate with a varia-tion in the selection o the top three activities deemedcritical or sales success. We might expect that thosewith more training and coaching will more oten select

activities that are more strategic, rather than tacticalin nature.

Respondents who get more support in terms o trainingand coaching are more likely to select the ollowing asbeing an important contributing actor to their success:

Goal setting

Forecasting sales results (while they view that as lessimportant than other types o planning activities)

Having an in-depth knowledge o the customers

industry Uncovering client needs

Creating a call strategy beore meeting the customer

Articulating a business case that shows how a solutionwill financially benefit the client

Communicating solutions through engagingpresentations and proposals

Efectively using closing skills to gain commitment

Maintaining high ethical standards

Requesting client eedback

Those respondents reporting less coaching and trainingsupport (rom the low cluster) more oten mentionedthe ollowing as their top three critical success actors:

Building a network o contacts

Identiying all players in an account

Aggressively pursuing leads

Configuring the solution to meet the clients needs

Crating agreements that balance the needs o the

customer and the organization

Acting as the customers advocate and takingresponsibility to meet their needs



16/44

Sales Phase High Training & Coaching Medium Training & Coaching Low Training & Coaching

Preparing to SellHave an in-depth knowledge o thecustomers industry.

Set personal sales goals.

Actively orecast and track sales results.

Prospect continuously to keep thepipeline ull.

Use social media to network and sourceleads.

Ask questions to uncover customer needsand motives.

Create a call strategy beore meeting withthe customer or prospect.

Clearly explain the links between solutions,benefits, and customer needs.

Articulate business case to show thefinancial benefit to customer.

Communicate solutions through engagingpresentations and proposals

Efectively use internal resources to closethe business.

Act as the customer's advocate by takingthe responsibility to meet their needs.

Maintain high ethical standards.

Actively build and maintain a networko contacts.

Use phone/electronic means to secureappointments

Identiy new opportunities or buying centersin existing accounts

Identiy all the key players who participate inor influence the buying process.

Configure solutions to meet the uniqueneeds o the customer.

Stay alert to buying signals and ask or thebusiness at the right time in the sales cycles.

Crat agreements that balance the needs ocustomers with needs o organization.

Request customer eedback.

Treat prospects, customers, and internalpartners with respect.

Generate reerrals rom the existingcustomer base and contact network.

Agressively pursue leads.

Quickly and accurately qualiy prospects.

Look or innovative ways to meetclient needs.

Treat prospects, customers, and internalpartners with respect.

Developing Business



Closing the Sale

Following Ater The Sale

Personal Attributes


Table 5. Key Sales Activities Selected by Respondents With Various Levels o Training and Coaching


17/44

HighCoaching/

Training

ModerateCoaching/

Training

LowCoaching/

Training

0%

10%

20%

30%

40%

Coaching/ Training Cluster by Primary Sales Activity

34.5%

50%

60%

53.2%

18.7%

28.3%

54.9%

16.8%

27.5%

58.1%

14.4%

About Equal

Servicing Existing Customer

Finding New Business

We also looked at the relationship between the coaching/training cluster and the sales proessionals primary ocuso either servicing existing customers, developing newbusiness, or both.

O those receiving low coaching and training, more

than hal (58.2%) spend most o their time servicingexisting customers rather than finding new business.

More than a third o respondents rom the high coaching/training cluster are primarily engaged in findingnew business (compared to 28% o respondents romboth the moderate and low clusters).

We can say that there is a strong correlation between thelevel o coaching and training received by respondentsand the organizational e ciency and support they re-ceive rom their organization. In act, the cluster defined

by training and coaching is a strong predictor o otherorganizational support activities.

The table on the ollowing page (Table 6) shows themean scores on a five-point scale, with 5 representingcompletely agree and 1 representing completelydisagree. The mean or average rating or each activityis consistently higher as we move rom low to moderateto high cluster.

This suggests that organizations that engage in higherlevels o training and coaching will be more likely tosupport the sales organization in other ways.



18/44


On a scale o 1 (completely disagree) to 5 (completely agree),to what extent do you agree with the ollowing?

My organization provides resources to help salespeople to research. 4.7 3.6 2.5

We have a ormal sales process that defines how we sell. 4.5 3.3 2.0

Our salespeople consistently ollow a ormal sales process. 4.2 3.1 1.9

My organization ofers training that salespeople need to do their job. 4.7 3.4 1.9

Our salespeople receive valuable coaching rom their sales managers. 4.7 3.4 1.8

Our company objectives are clear to salespeople. 4.8 4.0 2.6

Our sales leaders treat salespeople airly and equitably. 4.7 3.8 2.7

My organization efectively uses metrics or dashboards to manage 4.4 3.3 1.8sales perormance.

Our sales orce automation system makes the job o selling easier. 4.4 3.0 1.7

Salespeople in the company are appropriately recognized and rewarded 4.7 3.5 2.5or selling eforts.

Salespeople in my organization meet operational requirements or 4.6 3.7 2.8reporting, completing necessary paperwork, attending meetings, etc.

People in non-sales roles provide the expertise and support needed 4.6 3.6 3.0to secure the sale and provide service to customers ater the sale.

High Moderate LowRECEIVE COACHING / TRAINING

Table 6. The Relationship Between Training & Coaching and Organizational Support


19/44

Deal Size and Company Revenue

This section examines the

relationship that company and

deal size have with the impor-

tance of sales activities and

organizational support.


20/44

This section examines the relationship between the ave-rage size o sales deals and preerences or sales activitiesand organizational support. In addition, we look at com-pany revenue as a measure o company size to identiyvariation in responses or preerences o sales activitiesand organizational support.

We examine deal size and company revenue together,since they are so closely related-that is, deal size is di-rectly proportional to company size. While this is clearlynot always the case, more oten than not, larger deals(particularly those over $500,000) are made by sales-people rom larger companies.

As the figure below shows, deal size is also directlyrelated to change in personal sales revenue over thepast year. Respondents with larger deal sizes were morelikely to have an increase in the percent change o salesrevenue. More than two-thirds (68%) o sales proes-sionals with an average deal size greater than $500,000experienced a greater than 10% increase in sales growthor the past year, compared with just 51% o those withaverage deals o less than $10,000.

The size o the sales deal shows a higher level variationwith sales activities compared with the other variablesweve analyzed. The ollowing table (Table 7) summarizesor small/large deals and small/large company size theactivities most oten selected by respondents rom thesegroups. Deal size and company size are strongly related.

Findings show that respondents that reported larger dealsizes selected activities that are more strategic in nature.Small deals (under $10,000) are generally less complexand require a diferent ocus and set o activities thandeals over $100,000 or $500,000.


21/44


Lower Company Higher CompanySales Phase Smaller Deal Size Large Deal Size Revenue Revenue

Preparing to SellPossess an understanding o

products/services being sold.

Set personal goals

Efectively use phone/electronicmeans to secure appointments

Generate reerrals rom theexisting customer/contacts

Prospect continuously to keepthe pipeline ull

Aggressively pursue leads

Use social media

Uncover needs the customermight not be aware o

Configure solutions to meetneeds o customer

Ofer unique ideas and insightthat prospects have notconsidered beore

Highlight value o yourorganization compared tocompetitors

Stay alert to buying signals/ask or the business at theright time

Quickly resolve service issuesand requests

Be direct and honest

Treat prospects/customers/

internal partners with respect

Develop ormal strategies or

territories/accounts

Accurately orecast and tracksales results

Quickly and accurately qualiypropects

Conduct in -depth research oprospects

Understand the customersbuying process

Explain links between solutions/benefits and customer needs

Articulate business case showsfinancial benefit to customer

Communicate solutionsthrough engagingpresentations

Crat agreements that balanceneeds o the customer & yourorganization

Develop creative trade-of andalternatives during negotiations

Efectively use internalresources to close the business

Actively manage all post-saleinteractions

Navigate within ourorganization to secure neededresources

Develop ormal strategies or

territories/accounts

Accurately orecast and tracksales results

Identiy new opportunities inexisting accounts

Quickly and accuratelyqualiy prospects

Conduct in-depth researcho prospects

Explain links between solutions/benefits and customer needs

Articulate business case showsfinancial benefit to customer

Articulate a business case thatshows how a solution will financiallybenefit the customers organization

Crat agreements that balanceneeds o the customer & yourorganization

Efectively use internal resourcesto close the business

Act as customers advocate bytaking the responsibility to meettheir needs

Navigate within our organization tosecure needed resources

Maintain high ethical standard

Understanding o products/

services being sold

Aggressively pursue leads

Use social media

Build trust

Highlight value o your organi-zation compared to competitors

Quickly resolve service issuesand request

Be direct and honest

Developing Business



Closing the Sale


Personal Attributes

Table 7. Key Sales Activities Selected by Respondents According to Deal Size and Revenue


22/44

The size o sales deals showed no relationship with thelevel o support an organization ofers to their sales-people with regard to training, sales automation, servicesupport, coaching, etc. There is, however, diferences ororganizational support or diferent size companies. Theollowing table (Table 8) shows statistical diferences in

ratings o organizational support by company size.

Larger companies are more likely to ofer:

A ormal sales process

Training

Use o metrics/dashboards to manage salesperormance

An efective sales-orce automation

Smaller companies are more likely to agree that:

People in non-sales roles provide expertise and supportneeded to secure the sale and provide service tocustomers ater the sale



3.2 3.5 3.6 3.7

3.3 3.5 3.5 3.8

3.1 3.4 3.7 3.7

3 3.2 3.4 3.4

3.8 3.7 3.7 3.6

Less Than $50m- $150m $500m+

$50m 149m $499m

Company Revenue

We have a ormal sales process that defines how we sell.

My organization ofers training that salespeople need to do their job.

My organization efectively uses metrics or dashboards to managesales perormance.

Our sales-orce automation system makes the job o selling easier.

People in non-sales roles provide the expertise and support neededto secure the sale and provide service to customers ater the sale.

Table 8. The Relationship Between Company Revenue and Organizational Support


23/44

Sales Position

The level of support sales

professionals receive from

their company varies depending

on their position in the sales

organization.


24/44

We asked respondents to identiy their position in thesales organization. About 13% o respondents are insidesales proessionals, while 36.8% are outside sales, 27%sales managers, and the remaining 22.5% are salesdirectors or above, including VPs and executives.

Since many o the respondents are rom smaller com-panies, the profile o the sales manager in this study isvery close to that o the salesperson-that is, many salesmanagers in smaller organizations either have a terri-tory and revenue responsibility themselves or becausethere are ewer management layers, they are closer tothe salesperson. Consequently, there is little to no di-erence in the responses between the salesperson andtheir manager or many variables. We have highlightedthose incidences where there are significant diferencesbetween outside salespeople and their manager.

In addition, we do not report inside salespeople responsesexcept or the rare instances where there are significantdiferences between their responses and outside sales-people. There are, however, oten significant diferencesbetween the salesperson and the sales leader. As such,our analysis primarily ocuses on these findings.

When comparing the selection o the top three importantactivities, the position o the sales proessional matteredlittle. There is a greater diference in the response osales proessionals depending on their position when weexamine their ranking o various types o organizationalsupport.

The ollowing table (Table 9) show the top three selec-tions and any other significant diferences in responseso outside sales proessionals compared with salesexecutives or activities in each sales phase.

Preparing to Sell Sales leaders were more likely toselect in-depth knowledge o customers industry(53%) compared to outside sales proessionals (38%)

Developing Business Sales proessionals ranking o

the top three most critical activities difered rom salesleaders, with sales proessionals placing more emphasison identiying new opportunities in existingaccounts compared with sales leaders.

Establishing Relationships Outside sales proes-sionals rated expressing interest and asking ollow-upquestions and establishing rapport with shared

interests in outside topics more highly than salesleaders, while sales leaders said that understandingthe customers buying process was more important.

Presenting a Solution Outside sales proessionalsgave more importance to configuring solutions to

meeting client needs, while sales leaders said tellingstories to illustrate important points was moreo a priority.

Closing a Sale Sales executives were more likelyto say that developing creative tradeofs andalternatives during negotiations was a criticalsuccess actor compared with outside salespeople.



25/44

The ollowing table (Table 10) shows the significantdiferences in responses between salespeople, managers,and leaders or specific types o organizational suport.The table reports diferences in mean or average scores(on a five-point scale), as well as diferences in thepercentage o responses rating a 4 or 5 (strongly agree/agree) and a 1 or 2 (strongly disagree/disagree).

More managers than salespeople believed that theirorganization has a ormal sales process that defineshow they sell.

Sales leaders are more likely to agree that their sales-people actually ollow that process.

Compared both managers and leaders are more likelyto agree to salespeople, that their sales proessionalsreceive valuable coaching rom their sales managers.

Similarly, leaders are more likely to agree that companyobjectives are clear to salespeople and that salesleaders treat salespeople airly and equitablycompared with salespeople.

Compared with outside salespeople, sales executiveswere more likely to say that salespeople are recognizedand rewarded or their eforts, and that non-salespeopleprovide expertise and support to win sales and provideater-sales service.


Sales Phase Outside Salespeople Sales Leaders

Preparing to SellActively build and maintain a network o contacts.

Understand the competition within your marketplace.

Identiy new opportunities and or buying centers in existing accounts.

Listen actively by expressing interest and asking ollow-up questions.

Establish rapport with shared interests in non-work topics.

Configure solutions to meet the unique needs o the customer.

Stay alert to buying signals and ask or the business at the right timein the sales cycle.

Establish regular contact with customers to maintain long-termrelationships.

Treat prospects, customers, and internal partners with respect.

Have an in-depth knowledge o the customers industry.

Generate reerrals rom the existing customer base contact network.

Prospect continuously to keep the pipeline ull.

Understand the customer's buying process.

Tell stories to illustrate important points.


Develop creative trade-ofs and alternatives during negotiations.

Ensure that your organization delivers what was promised.


Developing Business



Closing the Sale


Personal Attributes

Table 9. Key Sales Activities Selected by Outside Salespeople vs. Sales Leaders


26/44



3.3 3.6 3.4

3.1 3.3 3.3

3.3 3.6 3.7

3.8 3.9 4.1

3.7 3.8 4.1

3.5 3.7 3.9

3.7 3.8 3.9

Salesperson Manager Leader

We have a ormal sales process that defines how we sell.

Our salespeople continuously ollow a ormal sales process.

Our salespeople receive valuable coaching rom theirsales managers.

Our company objectives are clear to salespeople.

Our sales leaders treat sales people airly and equitably.

Salespeople in the company are appropriately recognized andrewarded or selling eforts.

People in non-sales roles provide expertise/support to win saleand provide ater-sales service.

Table 10. The Relationship Between Sales Position and Organizational Support


27/44

Those respondents who said

they are primarily responsible

for servicing new customers

performed better overall com-

pared with those developing

new business.

Primary Sales Focus(New Business vs. Servicing Existing Business)


28/44

More than hal (55%) o all sales proessionals respondingto the survey said that their primary activities ocused onservicing existing customers. Just 28% said that they areprimarily responsible or finding new business, while 17%said they are tasked equally with finding new business andservicing existing customers.

Those respondents who said they are primarily responsi-ble or servicing new customers perormed better overallcompared with those developing new business. Nearlytwo-thirds (65%) o those servicing existing customersreported sales revenue growing by more than 10% in theprevious year compared with 51% o sales proessionalsresponsible or finding new business.

We sought to test whether or not there is a variation inresponses by salespeople ocused on diferent objec-tives, since the strategies and activities should vary or

those developing new business compared with thoseattempting to retain and grow current accounts.

The table (Table 11) on the next page highlights thesignificant diferences in responses o salespeopleocused on servicing existing customers compared withthose finding new business or each sales activity. Sales-people ocused on servicing existing customers (armers)were more likely to say that the ollowing activities werecritical to their success:

Understanding strategy o your own organization

Identiying new opportunities/buying centers inexisting accounts

Using social media to network

Understanding the customers buying process

Creating a call strategy beore meeting the customer

Crating agreements that balance the needs o thecustomer with own organization

Salespeople ocused on finding new business (hunters)placed more emphasis than those servicing existingcustomers on the ollowing:

Prospecting continuously to keep the pipeline ull

Identiying all key players who influence buyingprocess

Articulating a business case that shows how a solutionwill benefit the customers organization

Efectively using closing skills to gain customer

commitment to complete the sale

Acting as the customers advocate by takingresponsibility to meet their needs

Finding NewBusiness

Servicing ExistingCustomers

About Equal

10%

20%

30%

40%

50%

Primary Activity by Sales Revenue

48.6%

60%

Declined by > 20%

Increased by > 20%

0%

70%

51.3%

35.3%

64.7%

50.0% 50.0%



29/44


Sales Phase Finding New Business Servicing Existing Customers

Preparing to SellHave in-depth knowledge o the customers industry.

Prospect continuously to keep the pipeline ull.

Ask questions to uncover customer needs and motives.

Identiy key players in the buying process.

Clearly explain the links between solutions, benefits, and customerneeds.

Articulate business case that shows how solution will financiallybenefit the customer.

Efectively use closing skills to gain customer commitment tocomplete the sale.

Act as the customer's advocate by taking the responsibility to meettheir needs.

Treat prospects, customers, and internal partners with respect.

Understand the competition within your marketplace.

Understand the strategy o selling organization and thesalesperson's role.

Generate reerrals rom the existing customer base andcontact networks.

Identiy new opportunities in existing accounts.

Use social media to network and source leads.

Build trust during each customer interaction.

Ask questions to uncover needs and motives.

Create a call strategy beore meeting with customer

Configure solutions to meet the unique needs o the customer.


Crat agreements that balance the needs o the customer withthe needs o your organization.


Developing Business



Closing the Sale


Personal Attributes

Table 11. Key Sales Activities Selected by Respondents Who Focus On Finding New Businessvs. Servicing Existing Customers


30/44

Conclusion


31/44

Sales success is created by providing diferentiated andexceptional customer experiences throughout the entiresales and post-sales process. This is accomplished firstby understanding the needs o customers and thenbringing the resources necessary to meet and exceedthose needs. Uncovering and meeting customers needs

together with executing at each defining moment arethe hallmarks o a successul sales process.

We looked at 45 activities across six phases o the salesprocess, each o which represents a set o definingmoments that shapes the customers impression o theorganization. We ound that the activities that lead tosuccessul sales outcomes are those that involve bothstrategy and skills that add value at every defining mo-mentthat is, at every opportunity or a buyer to judgeyour organization.

Depending on the perormance o sales and servicebehaviors, buyers will judge their experience as beingpositive, neutral, or negative. Excelling at each sales andservice efort will produce a consistent positive experi-ence across each defining moment. The balance ohow all these defining moments add up are what leadsto customers perceiving the salesperson as productsellers, riendly visitors, or trusted business advisors.The aggregation o these defining moments is a criticalinput to the customers decision-making process andtheir overall experience.

In addition to sales skills, the resources and support anorganization devotes to the sales and service efort aredirectly related to the customer experience and, thus,company perormance. In this research, the activities salesproessionals selected as most important to their ownsuccess difered by the level o coaching and training theyreceived. In act, we ound that organizations providingmore sales support in addition to training and coachingperormed better overall and more oten emphasizedthose sales activities that had the most impact onsales success.

Even with the right sales skills and su cient organiza-tional support, meeting customer needs and providingan exceptional experience at each defining moment isnot possible without strong leaders who set expecta-tions and align all systems to the overall strategy. Indeed,our research has shown all o these actors must work

in tandem-that is, the combination o mastering criticalsales skills together with leadership and organizationalsupport are critical elements to retaining and growingthe customer relationship over the long term.



32/44

Appendix


33/44

Appendix 1: Correlation Coe cients or Sales Activities

The ollowing is a correlation coe cient matrix that shows the strength o the relationship between each pair oactivities. The relationship between two variables is stronger as the coe cient increases. Any number above .5typically represents a strong correlation.

The highlighted cells in the table represent those relationships that are above .5. O the 18 cells with a correlation coe-ficient above .5, 12 pairs (cells) involve either the training or coaching activity. This suggests that high ratings on trainingand coaching have a significantly positive relationship with high ratings on other organizational support activities.

As the correlation coe cient matrix shows, Coaching is highly correlated with clear company objectives (.573) andtraining shows a strong relationship with providing resources and tools to help sales people research/understandcustomers (.542), a ormal sales process (.542), and the compliance with the sales process (.552).

Two other strong relationships identified in the matrix is between recognition and reward and air treatment osales people (.589), and between our SFA is efective and efective use o dashboards and metrics (.624).

16.1My organization provides resources andtools to help salespeople to research andunderstand customers and their markets.

16.2 We have a ormal sales process thatdefines how we sell.

16.3 Our salespeople consistently ollowa ormal sales process.

16.4 My organization ofers training thatsalespeople need to do their job.

16.5 Our salespeople receive valuablecoaching rom their sales managers.

16.6 Our company objectives are clear tosalespeople.

16.7 Our sales leaders treat salespeople airlyand equitably.

16.8 My organization efectively uses metricsor dashboards to manage sales perormance.

16.9 Our sales-orce automation system makesthe job o selling easier.

16.10 Salespeople in the company areappropriately recognized and rewarded orselling eforts.

16.11 Salespeople in my organization meetoperational requirements or reporting,completing necessary paperwork, attendingmeetings, etc.

16.12 People in non-sales roles provide theexpertise and support needed to secure the saleand provide service to customers ater the sale.

CorrelationCoecients(Sales Survey)

16.12Pe

ople

inno

n-sales

roles

provide

the

expe

rtise

and

supp

ortn

eede

dto

secure

thes

ale

and

provide

service

tocusto

mersate

rthe

sale.

16.11

Sales

people

inmyo

rganiza

tionm

eet

operation

alre

quire

ment

orrepo

rting

,com

pleting

necessa

rypap

erwo

rk,attending

meetin

gsetc.

16.10

Sale

speople

inth

ecom

pany

area

ppropriat

ely

reco

gnize

dand

rewa

rded

ors

elling

eforts.

16.9O

ursales

-orce

autom

ation

system

makesth

e

jobo

selling

easier.

16.8

Myo

rganiza

tione

fectively

uses

metric

sor

dashbo

ardstom

anag

esale

spero

rman

ce.

16.7O

ursales

lead

erstre

atsales

people

airly

and

equit

ably.

16.5O

ursales

people

receive

valua

bleco

aching

rom

their

sales

man

agers.

16.4M

yorg

aniza

tiono

ferstraini

ngthat

sales

people

need

todoth

eirjo

b.

16.3

Our

sales

people

consist

ently

ollo

wa

ormal

sales

pro

cess.

16.2W

ehavea

orm

alsales

proc

esstha

tdefines

howwe

sell.

16.1M

yorg

aniza

tionp

rovid

esresour

cesand

tools

tohelp

sales

people

toresearcha

ndunde

rstand

custo

mersand

their

marke

ts.

16.6O

urcompa

nyo

bjective

sare

clearto

sales

people.

.440

1

1

1

1

1

1

1

1

1

1

1

1

.685

.455

.763.418

.542 .564 .552

.494 .521 .520

.573.486.486 .390 .381

.540.507.380.445 .243 .273

.397.454.514.514.384 .532 .469

.624.423.404.511.544.481 .498 .516

.476.398.589.491.483.447.464 .324 .363

.438.410.427.458.495.458.424.442 .389 .355

.468.407.316.476.354.393.348.409 .287 .278


34/44


Preparing to SellTotal


35/44


12

3

38.4%

1

3

2(53.1%)

1

2

3

15.6%

1

2

3

22.1%

1(73.5%)

2(47.2%)

3

1

2

3

1(66.1%)

2(60.0%)

3

1

2(44.4%)

3

34.6%

33.5%

13.4%

1

2

3

38.3%

12.8%

Sales Position Sales Focus Sales Perormance

OutsideSales

SalesDir./Exec.

FindingNew Business

Servicing ExistingCustomers High Medium Low High

Receiving Coaching/Training

Moderate Low

1

2(56.2%)

3

41.3%

24.2%

5.3%


OutsideSales

SalesDir./Exec.

FindingNew Business



Moderate Low

1

3

2

1

3

2

2

3

1(58%)

31.9%

2

1

36.8%

3(48.0%)

2

3

1(50.0%)

30.0%

24.5%

1

2

3

35.3%

25.1%

3

1

2

41.0%

41.6%

15.8%

2

3

1

39.3%

21.4%

2

1

3

3

33.1%

1

3

2

28.1%

13.1%


36/44


Establish Relationship

Total


37/44



Outside

Sales

Sales

Dir./Exec.

Finding

New Business

Servicing Existing

Customers High Medium Low High


Moderate Low


OutsideSales

SalesDir./Exec.

FindingNew Business



Moderate Low

12

3(54.5%)

24.6%

16.1%

1

2

3(45.7%)

34.1%

8.5%

1

2

3

47.5%

20.6%

2

1

3

38.5%

29.3%

1

2

3

1

2

3

1

2

3

1

2

3

38.8%

37.6%

21.7%

1

2

3

34.0%

1

2

3

48.9%

25.7%

13.1%

1(67.8%)

2

3

14.8%

1(59.1%)

2

3

21.3%

2

1

3

1

2

3

1

2

3

15.3%

1

2

3

19.1%

2

1

3

22.0%

2(58.0%)

1

3

41.9%

40.0%

1

2

3

37.4%

31.0%

1(74.0%)

2

3

32.9%

27.0%


38/44


Closin The Sale

Total


39/44


Average Deal Size Companys Annual Revenue


Outside

Sales

Sales

Dir./Exec.

Finding

New Business

Servicing Existing

Customers High Medium Low High


Moderate Low


OutsideSales

SalesDir./Exec.

FindingNew Business



Moderate Low

1

2

3

25.2%

1

2

3

37.5%

1

2

3(53.3%)

31.1%

1

2

3

43.3%

40.3%

1

2

3(45.8%)

1

2

3

1

2(55.5%)

3

1

3

2(56.8%)

31.7%

1

3

2

46.0%

40.2%

1

2

3

39.2%

42.5%

1

2

3

2

1

3

1

2

3

38.5%

1

2

3

30.8%

12

1(67.2%)

3

1

2

3

29.2%

1

2(54.3%)

3

39.1%

1

2

3

26.6%

33.8%

1

2

3

32.1%

25.3%

1

2

3

36.5%

19.6%


40/44


Personal AttributesTotal


41/44



OutsideSales

SalesDir./Exec.

FindingNew Business



Moderate Low

1

2(60.5%)

3

1

2(52.0%)

3

1

2

3

1

2

3

1

2

3

36.2%

1

2

3

31.2%

1

2

3

28.6

1

3

2(55.5%)

1

2

3

1

2

3(40.7%)


42/44


An online survey, launched in August 2010, was com-pleted by a panel o 875 sales proessionals rom theUS (550), Mexico (50) UK (100), Germany (100),Singapore (25), and Australia (50), and an additional

170 respondents selected rom 17 other countries.

O the 170 additional respondents, 43% are rom India,15% rom Portugal, and the remaining 58% rom 15other countries.

Respondents tend to be more tenured sales people romsmaller companies operating in both a business-to-busi-ness and business-to-consumer capacity. They are morelikely to ocus on servicing existing customers, and theyare evenly split between sales people and sales managersor executives.

We surveyed business-to-business sales proessionalsrom a variety o industries that are inside sales people(13%), outside sales people (37%), sales managers (27%)and sales leaders (22%). About 46% o respondents areengaged in business to business only selling while 54%sell both to businesses and consumers.

O the 1,045 respondents, 38.5% have ewer than 10years experience in selling, 32% have 10 to 20 years,and 29% o respondents have 20 or more years osales experience.

To identiy i sales proessionals would respond di-erently, depending on their responsibilities, we askedthem to tell us i they are primarily involved in FindingNew Business (28%), Servicing Existing Customers(54.9%), or involved about equally in both New andExisting Business (16.9%).

Sales proessionals responding to the survey represent awide variety o industries and company size. Reflectingthe general population o business-to-business compa-nies, 57% o respondents are rom companies with less

than $100 million in revenue, 20% reported revenues o$100 million to $500 million, and 17% are rom compa-nies with more than $1 billion in revenue.

For all o these demographic groups o sales proessio-nals, we asked them to select the three sales relatedactivities or each phase o a sales cyclerom prospec-ting to ollowing up ater the salethat contributed most

to successul sales outcomes. We then asked respondentsto rate the level o support activities they received romtheir organization in their day-to-day sales eforts.

Appendix 3: Research Process and Demographics


43/44


44/44

About the Contributors

Mark Marone, Ph.D.Research Consultant, AchieveGlobalMark is an author and proessor with over 15 years oresearch experience with companies across all industries.

Mark earned a Ph.D. rom Indiana University and hasserved as an adjunct proessor o management at theUniversity o South Florida.

Chris BlauthDirector of Product Strategy, AchieveGlobalChris, Director o Product Strategy, spearheadsAchieveGlobals eforts to develop and maintainproducts that will prepare leaders at all levels o anorganization. Chris holds a B.S. in Accounting andFinance rom the University at Bufalo, and an MBA

in Marketing rom Canisius College.

About AchieveGlobalIn the 21st century, the level of human skills willdetermine organization success. AchieveGlobalprovides exceptional development in interpersonalbusiness skills, giving companies the workforcethey need for business results. Located in over 40countries, we offer multi-language, learning-basedsolutionsglobally, regionally,and locally.

We understand the competition you face. Yoursuccess depends on people who have the skills tohandle thechallenges beyond the reach of technology. Wereexperts in developing these skills, and its theseskills that turn your strategies into business successin the 21st century.

These are things technology cant do. Think. Learn.Solve problems. Listen. Motivate. Explain. Peoplewith these skills have a bright future in the 21st cen-tury. AchieveGlobal prepares you for that world.

pdf microsite achieve global ag survey of sales effectiveness

Documents