sales effectiveness Archives

Do you measure the effectiveness of your sales team on a regular basis? Do you know that sales effectiveness can be measured and improved? To a lot of salespeople, sales effectiveness might come across as a vague term often tossed in the sales meetings. As a sales leader, the best you can do is to help the team understand the meaning of sales effectiveness and how it is related to the other elements of sales cycle such as sales productivity and sales efficiency.

Yes, educate the team not only about your product’s features but also about how to be effective in selling. It doesn’t matter if you have a nascent team or a cadre of experienced sales reps. It is important for your bottom line’s health that you reiterate and revise your sales processes and goals with the team.

Tips to Improve Sales Effectiveness

To focus on conversion is just one aspect (a major one though) of sales. The following tips can improve team’s sales effectiveness with the ability to improve the conversion plus bottom line:

1) Set the metrics to measure sales effectiveness

Carefully select those primary metrics that you will use month over month to measure your team’s effectiveness. These could be following:

Sales reps quotas. Are the quotas aligned to company’s sales target?
Conversion rate
Number of appointments won to demo the product
Length of the sales cycle from identifying to converting
Percentage of time spent in identifying prospects versus time spent in pitching to the prospects
Percentage of time spent in tailoring the marketing content
Number of times prospects don’t respond to your reps

Here are some of the metrics that shouldn’t be counted when setting up goals:

Number of calls made in a day
Number of emails sent in a day

These two metrics are misleading goals. Your rep might have completed the quota of making calls and sending emails without getting any appointment! Does that mean they are effective salespeople?

2) Ensure the availability of right tailored content at the right time

Basically this means aligning your marketing team to sales so that they can fulfill the need of sales team. Your organization depends on the performance of sales department. Make other departments work around it so that sales can focus on pitching and closing the deals. You don’t want the sales reps to waste their time in editing the sales and marketing collateral. Of course, in B2B selling the marketing content, campaigns etc need to be personalized. Let the sales rep give their input to the marketing and let marketing do the editing bit. In Account Based Selling Model it wouldn’t be wrong if you keep one copywriter and a designer at an accessible range, for a group of sales reps, to just tailor the content.

3) Provide training to strike effective conversation with stakeholders

Time you invest in listening to what your sales reps say to the decision makers in various accounts. The conversation needs to be monitored so that you could give constructive feedback to the reps. Say, your rep has sent mails to the prospects or tried to get in touch with them over the phone but all in vain.

If your team is confident that the identified prospects have a need then there is something else that needs to be fixed from your side to get stakeholders’ attention. This could be sales collaterals, which we have discussed in the previous point. Or it could be soft skill training plus the content of the conversation, which needs to be practiced over and over again.

As part of the sales training you can bring all the reps handling various accounts under one roof and let them share their stories on how they lost or won a particular deal.

4) Feed data into the sales process

This takes us back to the first point where you set the metrics to measure the effectiveness. Now the insight from here needs to be fed back to improve and optimize the sales process. Once you tweak the process and see some result you can go back and revise the metrics again- add some more metrics to the list such as sales meetings per month, number of training sessions etc. With the insight from every metric it becomes easier to strengthen the sales process.

5) Invest in right CRM to improve sales effectiveness

Gone are the days when sales reps used to maintain diaries and excel sheets. The market is flooded with plethora of CRM and other tools. Invest in the right kind of tool to assist your sales reps in moving fast towards conversion.

A sales team is the critical component of your organization and for the business to progress it is vital that the team is effective in selling. So, make sure that you give value and importance that sales team deserves and concentrate more on improving sales effectiveness rather than on conversion rate.

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What is Sales Productivity

Sales productivity gives you an idea of how your sales resources are getting utilized and if there is a possibility of increasing the revenue by shrinking the resources. For example, if in a month your net sales was worth $20,000 and your team comprised of 5 sales reps. So, each individual’s contribution on an average was $4,000 to the net sales but who was more productive. Based on this, you can justify if you need to increase or decrease the number of reps to be cost effective.

However, with the same number of resources you can try to increase the productivity by putting few things in order. This could be achieved through the following:

Align sales and marketing teams

Invest in training of sales reps

Automate redundant tasks

Keep refreshing the content

Invest in right CRM tools

Use data to get sales insights

What is Sales Effectiveness

Are you doing the right things to achieve your sales goal and targeted revenue? These right things, right tasks and right sales process fall under the sphere of sales effectiveness. If you adopted the account based selling model, it is important to sell effectively and smartly. Say, your sales reps are assigned with the task of sending N number of emails and making X number of calls and they are successfully able to meet this target. Does that mean they are effective? Unfortunately no. What matters is how many prospects during those touch points gave them appointment for demo. This is effectiveness and here are the checklists to help you improve your team’s effectiveness:

Availability of right tailored content at the right time

Consistently improving the sales process by setting different goals

Feeding data insights into the process

Providing training to strike effective conversation with stakeholders

What is Sales Efficiency

How much time and money were spent in achieving the set goals encopmasses sales efficiency. For example, how long does it take for your sales rep to get the appointment for the first demo and how many demos does it take to make a conversion. Efficiency is to make optimal utilization of resources. Hence, it directly leads to being effective.

Relationship between sales productivity, effectiveness and efficiency

Even though these three are completely different and shouldn’t be used interchangeably, all three are the important elements of sales cycle.

So if your sales team can attain more (by being effective) but with less effort (by being efficient) then it’s a sure shot formula for increasing productivity and getting better ROI.