October 13, 2011 - HubSpotcdn1.hubspot.com/hub/23541/file-13476424.pdf · Tony Albachiara Created...
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October 13, 2011
Transcript of October 13, 2011 - HubSpotcdn1.hubspot.com/hub/23541/file-13476424.pdf · Tony Albachiara Created...
October 13, 2011
Logistics for today’s call…. All attendee’s will be on “silent” mode during the
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Selling Methodologies – Have you accommodated recent
changes in your buyer’s behavior? Thursday, November 10th , 2011 1:00 p.m. Central 30 minutes Register at www.salesbenchmarkindex.com
Sales Benchmark Index will….
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John Staples Today’s Guest…..
Principal at SBI
Prior to SBI, held Executive Leadership positions at NeuStar, Telcordia Technologies, Fluor Corp and CCC Network Systems
Industry thought leader with more than 25 years of business experience, including B-to-B field sales, sales management, and sales operations
Overview
Goal
Questions you need to answer
Structure Models
Territory Potential
Selling Capacity – Market Demands
Inside and/or Key Accounts
Time Study
Shift & Lift
Results / benefit
Takeaway actions
Back
Structure goal
Align the level of effort, time and cost to the best opportunities
Sales Structure questions
1. Have you performed a territory potential analysis?
2. Have you matched selling capacity to market demand?
3. Should you be leveraging inside sales or a key account program?
4. When was the last time you performed a sales resource time study?
5. Are your sales roles and responsibilities corrupted?
Back
Structure Options
Top 1%
Develop
Long Tail
Securities & Investing
Institutional
Private Mkts
Banking & Credit
Consumer
Investment
Accounting &
Consulting
Strategic
Boutique
Big 5 Acct Firms
Advertising & Comm
Agencies
PR Firms
Govt
Pharma
Commercial
Tier Geography
Industry/Market
Algo Investment
Banker Venture Source
Newswires FX Factiva
PRCC Watchlist Anti
Corruption
Activity
Hunter Farmer
Product Buying Roles
VP Corp
Comm
Dir
Compliance
VP Global
FX Mkt Data
Dir
VP
Trading
Dir PR
Hybrid
Territory Potential
Potential / Segmentation
Revenue Segment % Revenue Customers Segment % Customers
8,813,592,941 A (>20M) 66% 446 A (>20M) 10%
2,173,612,147 B (5-20M) 16% 466 B (5-20M) 11%
1,016,232,974 C (2-5M) 8% 606 C (2-5M) 14%
1,342,112,767 D (<2M) 10% 2,808 D (<2M) 65%
13,345,550,829 Total 4,326
Segment Accounts by revenue contribution or potential
Opportunity to introduce a Key Account Program and Inside Sales?
Selling Capacity – Market Demand Data Input fields
Calculated fields
Delta
A B C Total Direct (A, B, C) Inside (D) Total
Number of Customers 322 791 1,362 2,475 773 1,809 2,581 106
Total Revenue 4,532 5,833 2,587 12,951 12,486 1,433 13,919 968
Total Reps 19 11 25 55 34 12 46 (9)
Total Hours per Rep 2,000 2,000 2,000 2,000 2,000
% Selling Time 40% 40% 40% 70% 70%
Selling Hours per Rep 800 800 800 1,400 1,400
Total Selling Hours 15,200 8,800 20,000 44,000 47,600 16,800 64,400 20,400
Non-Selling Hours per Rep 1,200 1,200 1,200 600 600
Total Non-Selling Hours 22,800 13,200 30,000 66,000 20,400 7,200 27,600 (38,400)
Customers per Rep 16.9 71.9 54.5 45.0 23.3 155.6 56.1 11
Revenue per Rep 239 530 103 235 367 119 303 67
Hours per Account 47.2 11.1 14.7 17.8 60.1 9.0 -
Hours per Touch 4.0 4.0 4.0 4.0 2.7 0.8 4.0
Touches per Account 11.8 2.8 3.7 4.4 22.5 12.0 -
Total Cost 3,160$ 2,075$ 4,158$ 9,394$ 5,807$ 1,108$ 6,915$ (2,478)$
Cost per Rep 166$ 189$ 166$ 171$ 171$ 92$ 150$ (20)$
Total Margin 337$ 81$ 222$ 641$ 563$ 105$ 668$ 28$
Margin per Rep 18$ 7$ 9$ 11$ 17$ 9$ 13$ 1$
Customer Segmentation Sizing Model
Current Channels Future Channels
Selling Time Analysis
Segment # Custs Rev (M) % Custs % Rev Hrs/Cust Hrs/Touch Touch/Cust Total Hrs % Hours
A (>20M) 140 8,855 7% 68% 144 6 24 20,160 33%
B (5-20M) 233 2,387 11% 18% 48 2 24 11,184 18%
C (2-5M) 763 1,020 36% 8% 24 2 12 18,312 30%
D (<2M) 986 855 46% 7% 12 1 12 11,832 19%
Analyze Selling Hours vs. Customer Value
Key Account / Inside Sales?
Sales Force Time Study
49.4% Non-Selling time
Which selling activities can we make more efficient?
Return on selling time 63% of revenue from 6% of customers
Bottom 70% of customers make up 10% of revenue
15
6% 9%
15%
70%
% Total Customers
63% 18%
8% 10%
% Total Revenue
How much sales force time is spent on the 70% of customers that should be invested in the top 6%?
90%
10%
56%
44%
-3% -9%
-20%
0%
20%
40%
60%
80%
100%
> $24K Customers < $24K Customers
Rep Time Allocation by Customer Group
% Revenue Rep Time Allocation YoY Revenue Inc/Dec
38% of Accounts
• Smaller accounts consume selling time from larger accounts
44% of time spent on accounts only yielding 10% of revenue
Smaller Accounts continue to shrink (-9%) despite time investment
Productivity Opportunity
Role Corruption
13
3
6
5
30
4
4
8
2
7
5
18
11
15
4
8
10
6
4
23
8
0 10 20 30 40 50 60
Prospecting
Obtaining trials/keys for customers
Obtaining miscellaneous documentation for customers
Coordinating responses from product teams for customer questions
Managing billing issues
Managing open support issues
Updating salesforce.com and other sales forecasting system activity
Top Choice
Second Choice
Third Choice
59% of reps report managing support issues
79% of reps cite inefficient time managing billing issues
Structure needs to focus sales on selling activities
Shift & Lift Shift non-selling activities to lower cost resources
or eliminate them
Move up market, lift the direct & key account resources up market to higher potential clients
Add lower cost Insides Sales reps to support lower tier customers
Adjust Key Account resources to increase wallet share within programs
Results / Benefits
Increased annual available selling hours by 17,500
Increased selling time from 42% to 71%
Lowered cost of sales by $4.7M annually
Takeaway actions Do you connect territory penetration and potential to sizing
needs?
Are the number of accounts in sales territories based on selling capacity?
Have you calculated breakeven cost & economic contributions of an incremental sales rep?
Should you deploy Inside sales or a Key Account Program?
Do you have the right sales manager or support ratios?
Are sales roles and responsibilities well defined?
Is the sales structure aligned to the sales strategy?
Do you have the A players necessary?
Sign-up for a free sales resource planning consultation by: E-mailing [email protected]
Send a copy of presentation to you Additional questions can be sent directly to:
Selling Methodologies – Have you accommodated recent changes in your buyer’s behavior?
Thursday, November 10th , 2011 1:00 p.m. Central 30 minutes Register at www.salesbenchmarkindex.com
Thank-You for attending…
Further interest….
Sales Benchmark Index will….
Join us for our next Webinar….
