Measure And Motivate Your Sales Team

How to Measure and Motivate Your Sales Team

Keith M. EadesFounder and CEOSales Performance International

Best Selling Author of: The New Solution SellingThe Solution Centric OrganizationThe Solution Selling FieldbookJune 15, 2011

Professional Selling Today

Salespeople Have:

◄ One of the overall best incomes - #5

◄ The highest overall job satisfaction - #1

◄ The lowest divorce rate - #1

◄ The lowest suicide rate - #1

2011 ©Solution Selling, Inc. 3

Mission: Helping the world’s leading corporations drive measurable and sustainable growth by transforming their revenue engines to market and sell solutions:

◄ 1,000,000+ Solution Selling Alumni

◄ 500+ global clients

◄ 130 certified staff

◄ 50 countries and 14 languages

◄ 20+ years in business

◄ Operations in each geography

◄ World’s most comprehensive sales library - Solution Selling

Introducing SPI

“Clearly SPI is one of the thought leaders in this (Sales 2.0) arena.” ES Research, 2009

www.spisales.com

◄The state of selling in 2011: trends from our research

◄What the best performing sales teams are doing Metrics Motivation

◄How you can sell more

Objectives

Key Trend: Sales Rep Performance is Slipping

© 2010 CSO Insights Sales Performance Optimization Survey

2010 Sales Performance Optimization Survey

(2010 vs. 2009)

2010 2009

Five Keys to World Class Sales Performance

A Buyer-Aligned Sales Process1

Sales and Marketing Alignment (messaging, sales tools, and sales conversations)2

A Continual “Learning Framework” (skills assessment, training and multi-year reinforcement that aligns with process and sales methodologies)

3

Technology Enablement (that explicitly supports process, methodology, and management practices)

5

Management “System” and Disciplines (that foster and sustain process and methodology adoption)4

Starting with the End in Mind

Typical Sales Pipeline Metrics

= $X# of Deals

Average Deal Size Win RatioX

Sales Cycle Length

Linking Sales Behaviors to Pipeline Metrics

Win Ratio

# of Deals

Sales Pipeline Metrics

Average Deal Size

◄ Completing territory planning ◄ Identifying opportunities◄ Stimulating interest ◄ Gaining executive access

◄ Articulating the problem andsolution in customer terms

◄ Gaining executive access◄ Gaining access to budgets

Sales Skills and Behaviors

=Pipeline Yield $◄ Ability to set competitive strategy ◄ Establishing customer’s vision of

the solution◄ Qualifying better

Sales Cycle Length

◄ Gaining executive access◄ Creating a sense of urgency


Results◄ For every $1 invested, $94 of revenue

◄ Could go as high as $157 to $1 depending upon pervasive use and adoption

Key Metrics of Impact ◄ Pipeline growth by increased number of opportunities◄ Increased average selling price◄ Increase win rate◄ Shorter sale cycle◄ Lower cost of sales by disengaging earlier from opportunities

ROI on IBM’s Solution Selling® and Sales Process Transformation

www.spisales.com

http://www.ibm.com/us/en/


Building a High Performance Solutions Sales Culture

Solution Selling® Works

Very Satisfied

Dissatisfied

Source : Microsoft WW customer satisfaction survey, internal interviews

More successful sales reps

Setting customer expectations satisfaction

Yr 01 Yr 02

+44%

16%23%

Yr 01 Yr 02

- 16%

19%16%

Using MSSP MSSP ImpactWorldwide Avg.

Yr 01 Yr 02

15% 16%

+ 6%

Yr 1 Yr 2

+19%

16% 19%

Yr 02

140% of Quota

100% of Quota

<100 % of Quota

69%

23%

9%Yr 1

140% of Quota

100% of Quota

<100 % of Quota

15%

30%

55%

Customersatisfaction

Quota Attainment

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The Impact of Sales Process

Significantly Improves

35.1%

Modestly Improves 53.7%

No Impact6.2%

Negative Impact0.8% Do Not Know

4.2%

Sales Methodology Impact on Sales PerformanceImpact of Sales Process on Company Performance

2010 Sales Performance Optimization Report by CSO Insights

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What is a Buyer Aligned Sales Process?

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Solution Selling® Sales Process – Sales Viewpoint

CloseCreate Qualify Develop Prove NegotiatePlan Implement

Develop business strategy and define / execute initiatives

Determine needs / requirements

Evaluate alternatives

Select solutions and evaluate risk Resolve issues and finalize contracts Implement and

evaluate success

Get necessary documents signed

Identify potential beneficiary

Stimulate interest Get pain admitted Confirm dialogue

and agree upon next steps

Diagnose admitted pain of Sponsor

Create or reengineer vision for sponsor

Gain agreement to explore further

Negotiate access to power

Confirm dialogue and agree upon next steps

Diagnose admit-ted pain of Power

Create or reengineer vision for power sponsor

Gain agreement to explore further

Determine evaluation criteria

Propose a plan of next steps

Confirm dialogue and agree upon plan of next steps

Begin execution of next steps

Present preliminary solution

Prove capabilities (Oper, Trans, Fin)

Conduct review of proposal

Ask for the business

Issue proposal Receive verbal

approval

Prepare for final negotiations

Reach final agreement

Conduct territory / account and/or opportunity planning (as appropriate)

Identify potential opportunity

Conduct pre-call planning and research

Implement solution Complete

implementation approach

Measure success criteria

Identify potential new opportunities

Documents signed

Lead Letter agreed upon

Sponsor Letter agreed upon

Evaluation Plan modified or agreed upon

Verbal approval received

Ts and Cs agreed upon

Territory / Acct / Opportunity Plan developed

Plan Execute Implement Sales Process Steps

Sales Process Activities

Verifiable Customer Outcomes

Implementation Plan completed

Buying Process

90%10% 25% 50% 75% 100%

Sales Management System

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Solution Selling® Sales Process – Marketing Viewpoint

Who should we be targeting?What are their critical business issues?What case studies relate to their industry/role/situation?How do we diagnose customer problems?How do we have relevant dialogue with power buyers?What is our value proposition?What are our defensible differentiators?

Value PropositionReference StoryBus. Dev. LetterBus. Dev. PrompterLead LetterOpp. AssessmentC. Strategy Selector

9 Block Model®Pain Sheet®S. A. PrompterSponsor Letter

9 Block Model®Pain Sheet®S. A. PrompterPower S. LetterEvaluation Plan

Evaluation PlanTransition LetterImplement. PlanValue AnalysisSuccess Criteria

Negotiating Worksheet

Give-Get List

T/A/O PlanAccount ProfilePain Chain®Key Players List

Implementation PlanSuccess CriteriaReference Story

Sales Tools

Marketing answers these questions

CloseCreate Qualify Develop Prove NegotiatePlan Implement

Develop business strategy and define / execute initiatives

Determine needs / requirements

Evaluate alternatives

Select solutions and evaluate risk Resolve issues and finalize contracts Implement and

evaluate success

Plan Execute Implement Sales Process Steps

Buying Process

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SALES PROCESS Plan Engage Develop Propose Close Deploy

CUSTOMER BUYING PROCESS

Access to Power SponsorPain admitted by Power SponsorPower Sponsor has buying visionPower Sponsor agreed to exploreEvaluation Plan proposed

Respond to RFPEngage CAMEngage Implement. TeamContract negotiation in process

Evaluation Plan underwayCraft RFP For ClientEngage Proposal WriterProposal issued, decision due

Research Current PenetrationAssemble Account Plan TeamContact local field offices

Pain admitted by SponsorSponsor has a buying visionPenetrate Local DepartmentsAccess to Power negotiated

Signed documentsCreate terms and conditionsNotify all parties of winDevelop Success Story For Intranet

SALES PROCESS ACTIVITIES

MANAGEMENT SYSTEM

Implement & evaluate success

Resolve concerns & make

decisions

Select solution

Evaluate options

Develop strategy;

define initiatives

Determine requirements

METRICS

# Evaluation Plans Proposed# Demos Given$ Billable On Evaluation Plans

# Evaluation Plans Accepted# RFP’s Crafted For Clients% RFP No BidsCRM Audit Accuracy Score# ROI For Sales Analyses Complete

# Account Plans Completed% Seller Time On Account Planning# Pain Chains Completed

# Latent First Time Calls# Email Campaigns# Sponsor Letters# New Opportunities$ Value New Opportunities

# Proposals Written$ Value Proposals WrittenPre Proposal Conferences Held% Set Up Fee Quoted# Referrals Agreed To

Customer Satisfaction Rating# Reference Stories Created% Seller Time On Account Mgt.

0% 10% 25% 50% 85% 100%

Sales Process Reveals Metrics for Seller Behavior by Stage

Account Plan

Completed

Power Sponsor

Letter

Sponsor Letter

Completed

RFP Crafted For

Client

Verbal Approval Received

Signed Contract

Completed

VERIFIABLE OUTCOMES

AMSM

AMSE

AMMKSM

AMSOSM

AMSOSM

AMSMROLES

www.spisales.com 152011 ©Solution Selling, Inc.


Win Odds

CodeSales Process

Step Sales Execution Activities and Verifiable Outcomes

PLAN Identify potential opportunity

0% T Territory / Account / Opportunity Plan

CREATE

Identify potential beneficiary Stimulate interest Get pain admitted Confirm dialogue and agree upon next steps

10% S Lead Letter

QUALIFY

Diagnose admitted pain of Sponsor Create or reengineer vision for potential Sponsor Gain agreement to explore further Negotiate access to Power Confirm dialogue & agree upon next steps

25% D Sponsor Letter

DEVELOP

Diagnose admitted pain of Power Sponsor Create or reengineer vision for potential Power Sponsor Gain agreement to explore further Determine evaluation criteria Propose a plan of next steps Confirm dialogue & agree upon plan of next steps

50% C Evaluation Plan

PROVE

Begin execution of next steps Present preliminary solution Prove capabilities (O/T/F) Conduct review of proposal Ask for the business Issue proposal (decision due) Receive verbal approval

75% B Verbal approval

NEGOTIATE Prepare for final negotiations Reach final agreement

90% A Terms and Conditions agreed upon

CLOSE Get necessary documents signed

100% W Signed documents

Pipeline Management

A

D

C

B

S

W

T

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Why Measure Through Process

◄ Incent desired behavior through better sales results!

◄ Establish a basis for accountability in the sales organization

◄ Build more predictable and productive pipelines Apply consistent pipeline grading habits Anticipate and minimize shortfalls Enable seller success

◄ Identify skill problems Apply focused coaching for action Determine accurate status of opportunities

◄ Increase manager productivity Manage by exception Simplify internal communications

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Motivation Through Sales Process

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◄ Sales process provides a roadmap to get from where you are to where you want to be

◄ The process provides your sales team with a series of closes / wins throughout the sales process

◄ Your sales team will be motivated by having more control over the sales process

◄ Performance improvements = more revenue = higher motivation on the sales team

◄ Sales process ensures: Higher individual quota attainment Higher team quota attainment Increase in average deal size Improved time to productivity

Continual Learning Framework

A continual “learning framework” (skills assessment, training and multi-year reinforcement) that aligns with process and

sales methodologies is essential.

www.spisales.com 2011 ©Solution Selling, Inc. 19

“96% of sales people believe continuous learning is critical to their success”

– ASTD Research: Accelerating Revenue Through Learning


How Not to Learn

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Why Continual Learning is Imperative

Training is a great way to install process and knowledge

However, return on training events alone is often short-lived

Less than one month

One month

Two months

Three to six months

Seven months to a year

More than a year

0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% 45.0% 50.0%

% of Retention

On average, half of the content of a sales training event is lost in 5.1 weeks.

On average, 84% of sales training content is lost

after 90 days.

www.spisales.com

2011 ©Solution Selling, Inc.

The ROI Dilemma

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InitialTraining

4 8

Elapsed Weeks

12 16

Content Retention

Traditional Training

Continual Learning

ROI GAP

Events transfer a lot of information, but retention drops off quickly

Continual learning begins realistically and builds across time

Sales Process Impact on Sales Performance

Reps A

chie

ving

Quota

Incr

ease

in A

vera

ge D

eal S

ize

Faste

r Tim

e to

Pro

ducti

vity

0%

10%

20%

30%

40%

50%

60%

41%

22%

15%

49%

38%

23%

All OthersSPI Customers

SPI Customers vs. Other Sales Training

Source: Aberdeen Group Study December, 2010

2011 ©Solution Selling, Inc.

HOW TO MEASURE AND MOTIVATE YOUR SALES TEAM

Thank You

Sales Performance International4720 Piedmont Row Drive | Suite 400Charlotte, North Carolina 28210t: 704.227.6500 | f: 704.364.8114

email: [email protected]

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Measure And Motivate Your Sales Team

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