If you receive errors when attempting to view this white paper, please install the latest version of
Adobe Reader.
"Information can be readily rolled up, tracked and reported on generating continuous,
meaningful and accurate reports on exactly how well a sales organisation is performing.
It allows you to define
sales and lead processes to suit your business and priorities. It puts control at your
fingertips in creating a lean, successful sales organisation.
"
Source : Sage
Getting Sales Back to Selling
Sales Effectiveness is also known as :
Best-in-Class Performance,
Enabling Best in Class Performance,
Delivers Best-in-Class Density,
Operational BI Key to Best-in-Class,
Operational Performance,
Best-in-Class Sales Performance,
Five Key Performance Indicators,
User Authentication Best-in-Class,
Achieving Best-in-Class Performance,
Best in Class Benchmarking,
Define Best in Class,
Enable Best-in-Class Performance,
Sets Best-in-Class Companies,
Five Steps to Best-in-Class Sales,
Set Sights on Best-in-Class,
Best-in-Class Performance in Retail,
Best-in-Class Performance Benchmark,
Best-in-Class Benchmark Achieved,
Announce Best-in-Class Performance,
Best-in-Class Roadmap,
Class Performance Levels,
Midsized Companies Achieving Best in Class,
Scale At Best-in-Class,
Business Intelligence Retail Best-in-Class,
Scalable Best-in-Class Performance,
Best-in-Class Improve Performance,
Strategies for Best-in-Class,
Best Practices in Performance Measurement,
Best-in-Class Organizations,
Module Best-in-Class Size,
Best-in-Class Comparison,
Essential to Best-in-Class Organizations,
Best-in-Class Size and Performance.
Executive Summary
The pressures of longer sales cycles and declining sales productivity are forcing Best-in-Class
companies to streamline and automate how sales information is processed and the
mechanics by which deals get done. In June 2007, Aberdeen surveyed over 200 companies
to identify the strategies, capabilities and enablers that Best-in-Class companies use to
improve sales effectiveness and productivity. The research reveals that leading companies
have focused on both the sales management process, as well as tools designed for the
individual sales representative, to increase the ability of their sales organizations to hit
quotas and ultimately remain competitive.
Best-in-Class Performance
Aberdeen used four key performance criteria to distinguish Best-in-Class companies. The
key performance indicators (KPIs) are:
- 96% reported year/year improvements in Bid-to-Win performance
- 80% reported year/year improvements in Order/Quote Quality performance
- 86% reported year/year improvements in Lead-to-Opportunity conversion rate
performance
The sales process is a
team effort, not a one
person show. The key to
making the sales team
more productive is follow
up, follow up, follow up,
staying tuned in, and
listening, Of course, a
CRM/SFA solution that
supports opportunities,
multiple contacts, and is
available for online
collaboration also helps.
VP Sales and Business Development
Competitive Maturity Assessment
Survey results show that the firms enjoying Best-in-Class performance enable, or are
planning to enable, several key process, performance and organizational capabilities:
- Implement a structured approach to competitive, market and sales intelligence (91%)
- Create a central repository of account, contact, and opportunity information (96%)
- Utilize formal and documented sales processes (95%)
Required Actions
In addition to the specific recommendations in Chapter 3 of this report, companies must take the
following steps to achieve Best-in-Class status:
- Stop using spreadsheets and shadow accounting- too much sales information is scattered
throughout the organization and many complex tasks are managed in an ad hoc manner.
Organizations must streamline processes and invest in centralizing sales information to eliminate
"multiple versions of the truth."
- Integrate sales processes into the back-office - pricing, product configuring and order/quote
generation are cross-functional issues. Organizations should plan on integrating these sales
touch-points to eliminate administrative overheads.
- Invest in formal sales methodologies and information-based processes - with the wide
adoption of sales management processes and planned future adoption of information-based
individual enablers, organizations must now focus on developing information-based sales
processes as a competitive differentiator.
Chapter One:
Benchmarking the Best-in-Class
Aberdeen research reveals that companies are increasingly challenged in their
sales performance by longer sales cycles and low sales productivity. Specifically,
sales teams are missing revenue targets, not hitting quota and facing stalled
opportunities as organizations strive to remain competitive and service
increasingly discerning customers. In response to these business challenges, the
Best-in-Class (BIC) deploy a combination of actions, capabilities and enablers to
their sales representatives to better equip them to effectively manage and
execute the sales process.
A consistent theme that emerges throughout the research is the propensity to
do more with existing resources. For example, the top strategic action taken by
Sales Managers is focusing on lead quality (33%), not solely the number of leads
coming down the pipeline. In fact, increasing the quantity of leads is rated among
the lowest strategic priorities (7%). Instead, Sales Managers are more focused
on increasing sales win rates (31%) and improving sales representatives
knowledge of products, customer needs and competition (26%).
Fast Facts
- Best-in-Class firms are nearly
2.5 times as likely as Average
firms, and 9 times more likely
than Laggards, to report year
over year improvements in
revenue related sales
effectiveness metrics.
- Best-in-Class firms are 2
times as likely as Average and
Laggard firms to report
decreases in time spent on
different phases of sales
operations.
- Best-in-Class firms are an
average 1.5 times more likely
to plan increases in sales
training than other business
segments.
Maturity Framework Key
The Aberdeen Maturity Framework
defines enterprises as falling into one
of the three following levels of practices
and performance:
Best-in-Class (20%) -practices that
are the best currently being employed
and significantly superior to the
industry norm
Industry norm (50%) -practices that
represent the average or norm
Laggards (30%) -practices that are
significantly behind the average of the
industry
Maturity Class Framework
Aberdeen used three key performance criteria to distinguish the year-over-year
improvements Best-in-Class companies make compared to Industry Average
and Laggard organizations: 1) bid-to-win performance, 2) order and quote
quality performance, 3) lead-to-opportunity conversion rate performance.
Taken together, these variables show how Best-in-Class firms leverage
strategies, capabilities and enablers to optimize sales effectiveness.
Our incentive program had
become un-scalable as our sales
force grew and the plans became
more complex. Results calculation
was manual and increased the
possibility for errors. Reps felt like
they struggled to understand how
they were being paid.
We needed our sales force to feel
more confident about the accuracy
of their compensation, and we
needed to increase their
productivity and reduce the time
they spent attempting to reconcile
comp.
Laura Weinrieb,
Senior Director of Finance
Operations, Blackboard
| Definition of Maturity Class |
Mean Class Performance |
| Best-in-Class:
Top 20% of
aggregate
performance
scorers |
96% reported year/year improvements in Bid-to-Win
performance
80% reported year/year improvements in
Order/Quote Quality performance
86% reported year/year improvements in Lead-to-
Opportunity conversion rate performance |
| Industry
Average:
Middle 50% of
aggregate
performance
scorers |
26% reported year/year improvements in Bid-to-Win
performance
21% reported year/year improvements in
Order/Quote Quality performance
19% reported year/year improvements in Lead-to-
Opportunity conversion rate performance |
| Laggard:
Bottom 30% of
aggregate
performance
scorers |
0% reported year/year improvements in Bid-to-Win
performance
0% reported year/year improvements in Order/Quote
Quality performance
2% reported year/year improvements in Lead-to-
Opportunity conversion rate performance |
Best-in-Class PACE Model
Organizations increase the business impact of their sales departments by
improving access to information and implementing sales processes that put that
information to use.
Citing longer sales cycles (67%) and low sales productivity (50%) as top
pressures (Figure 1), Best-in-Class firms are focused on optimizing their sales
representatives individual effectiveness and performance. The Best-in-Class
deploy a number of different strategies to improve sales effectiveness, but
generally focus on a two-pronged approach: 1) increasing sales representatives
use of information by improving knowledge of products and customers (26%),
2) deploying sales processes to help sales representatives leverage that
information, such as increasing the quality of leads (33%) and sales win rates
(30%).
Aligning behavior with expectations is
central to improving sales
effectiveness. These actions will help
shorten the sales cycle, an important
benchmark in optimizing sales
effectiveness.
Senior Vice President,
Global Sales and Marketing
Table 2: Best-in-Class PACE Framework
| Pressures |
Actions |
Capabilities |
Enablers |
Longer sales
cycles
Declining
sales
productivity |
Increase the quality
of leads
Increase sales win
rates
Improve sales
representatives
knowledge of
products, customer
needs and
competitive
offerings |
Central repository of
account, contact, and
opportunity information
Formal and
documented sales
processes
Standard approach to
proposal generation and
proposal management
Central repository of
sales and product
marketing information |
Incentive/
Compensation
Management
Order/ Quote
Generation
Contact Management
Software
Customer Relationship
Management Solutions
Sales force Automation
Product Configuration
Forecast Management |
Although the issues of sales knowledge management and sales process
management are both a focus of BIC organizations from a strategic standpoint,
there has been a higher adoption rate in sales process management enablers
(Figures 2 & 3).
Start with the process. What
is the sales process for our
solution? What stages? What
definitions of each stage?
Make sure you all have the
same understanding so the
process is real world, robust
and thus the basis for all that
follows.
Senior Vice President
and Managing Director,
Business Services
Table 3: Best-in-Class Strategic Actions/Capabilities
|
Sales Information Management |
Sales Process Management |
| Actions |
Improve sales representatives
knowledge of products,
customers and competitive
offerings |
Increase quality of leads
Increase sales win rates |
| Capabilities |
Central repository of account,
contact, and opportunity
information
Central repository of sales and
product marketing information |
Formal and documented
sales processes
Standard approach to
proposal generation and
proposal management |
Figure 2: BIC's Current/Planned Investment in Sales Process Enablers
Aberdeen Insights - Strategy
Despite the current focus on sales management process enablers, the BIC are planning on increasing
investments in sales information enablers within the next year (Figure 3). As such, future adoption of sales
analytics (79%) and competitive/market/sales intelligence solutions (72%) are top investment priorities for the
BIC. The majority of the Best-in-Class are also focused on knowledge sharing at the sales representative level.
For instance, 68% of the BIC have, or are planning on implementing, a forum for sales people to share lessons
and insights and a further 52% have future plans to implement sales knowledge management solutions.
Figure 3: BIC's Current/Planned Investment in Managing Sales Data
Chapter Two:
Benchmarking Requirements for Success
Sales management benefits from formalized sales procedures and automation,
and Best-in-Class use these processes and enablers to help sales representatives
leverage information on products and consumers. Consequently, the resulting
"knowledge-based" sales organizations are more effective in helping their
firms achieve revenue and growth goals.
Case Study: Draeger Medical, Inc.
Draeger Medical Inc., a leading manufacturer of medical equipment, had been
manually computing the commission payments for its 140 commission-based
employees. They would extract data from their ERP system and manipulate
the information in spreadsheets to compute the various commission
payments, a process that was time-consuming and prone to error. They also
found that each salesperson was spending as much as 8 hours per week
maintaining and reconciling their own personal commission records. This
"shadow accounting" detracted from core selling initiatives, as sales staff
worked to ensure that they were being appropriately compensated.
The company decided to implement an incentive compensation management
system to manage the process more quickly and efficiently. Senior Director
of Finance J. Florian Kluge spearheaded the initiative and has seen a dramatic
improvement in accuracy rates, reporting speed, and time savings. "The sales
force loves the system," claims Kluge. "Reports are available 24/7, and we
don't have to wait over a month to see the computations." In addition to
more accurately calculating commission payments, the system allows each
user to view their opportunity potential, a feature that has proven to be a
strong motivator. But perhaps most important to Kluge: "I don't get angry
phone calls anymore telling me my check doesn't match!"
Fast Facts
91% of Best-in-Class firms cite
the importance of augmenting
CRM/SFA systems with
externally sourced
information.
89% of Best-in-Class firms
leverage or plan to leverage
CRM systems integrated with
word processing, spreadsheet
and email applications.
56% of Laggards, compared
to 11% of Average firms, do
not measure the key sales
performance metrics of quota
performance, average
opportunity size, customer
acquisition costs, revenue per
account, proposal quality.
Competitive Assessment
The aggregated performance of surveyed companies determined whether they
ranked as Best-in-Class, Industry Average or Laggard. In addition to having
common performance levels, each class also shared characteristics in five key
categories: 1) process (ability to detect and respond to changing business
needs); 2) organization (corporate focus and collaboration among stakeholders);
3) knowledge (contextualizing transaction data and exposing product data to
customers); 4) technology (selection or appropriate tools and intelligent
deployment of those tools); and 5) performance management (ability of the
organization to measure the benefits of technology deployment and use the
results to improve key processes further).
Table 4: Competitive Framework
| Process |
Laggards
Formal and documented sales processes
35%
Standardized approach to proposal generation and proposal management
25% |
Average
44%
44% |
Best-in-Class
57%
54% |
| Organization Knowledge |
Plan to increase investment budget, technology spending
38%
A central repository of account, contact, and opportunity management
41%
Plan to increase investment and use of business intelligence/ sales analytics
technologies
30% |
42%
50%
42% |
56%
59%
62% |
| Technology |
Enablers included in technology strategy:
42% Incentive/
Compensation
Management
18% Order/Quote
Generation
38% Contact
Management
Software
38% Customer
Relationship
Management (CRM)
18% Sales force
Automation (SFA) |
54% Incentive/
Compensation
Management
32% Order/ Quote
Generation
43% Contact
Management
Software
38% Customer
Relationship
Management (CRM)
20% Sales force
Automation (SFA) |
60% Incentive/
Compensation
Management
52% Order/ Quote
Generation
50% Contact
Management
Software
50% Customer
Relationship
Management (CRM)
50% Sales force
Automation (SFA) |
| Performance |
Measure key performance indicators for sales effectiveness
24%
Measure sales effectiveness and productivity at least quarterly
60% |
44%
79% |
53%
87% |
Organizational Capabilities and Technology Enablers
The relationship between sales information management and sales
process management strategies is illustrated by the competitive
framework, specifically the Knowledge, Process and Technology areas.
- Knowledge: Best-in-Class organizations plan to increase the
investment in and use of information related resources at 1.3 times the
rate of Average organizations and nearly 2 times the rate of Laggards.
Best-in-Class organizations are also focused on both internal and
external information, with 96% currently having, or are planning to have,
a central repository for sales related data and 91% currently using, or
planning to use, structured approaches to competitive market and sales
intelligence.
- Process: Information in sales organizations is useful to the extent it is
leveraged in sales processes. With increased spending on intelligence
and information access for Best-in-Class firms, sales processes that
maximize those investments must be fine-tuned. Information overload
can paralyze organizations that do not deploy formal and structured
processes to manage large amounts of data and put it to good use. Bestin-
Class organizations are, on average, 1.2 times more likely than Average organizations, and 1.4 times more likely than Laggards, to take
more formal approaches to proposal generation-management and sales
processes.
- Technology: Tools leveraged by Best-in-Class knowledge-based sales
organizations optimize the collection, management and use of
information. Best-in-Class firms are 1.3 times more likely than Average
organizations to provide, or plan to provide, competitive-market-sales
intelligence tools for each sales representative and 2.2 times more likely
than Laggards. Best-in-Class firms are also 1.3 times more likely than the
other business segments to incorporate CRM software strategies to
manage information in the sales process.
- Performance Management: Best-in-Class firms focus on sales
performance measurement suggests that they can address the causes of
lagging sales effectiveness while continuing practices that lend to
productivity. Eighty-seven percent (87%) of Best-in-Class organizations
measure sales effectiveness and productivity at least quarterly, one and a
half times the rate of Laggards. Best-in-Class firms also deploy key
performance indicators (KPIs) to maintain a view of their sales
departments sales effectiveness performance, with 53% current
adoption and an additional 42% planned adoption. Sales performance
metrics and key performance indicators are especially important to sales
effectiveness as organizations adapt and refine their sales informationprocess
management programs.
To improve sales productivity,
implement effective, clear
communication between the client
and the various departments
involved with the sales process - or
use the old adage... Keep It Simple
Simon!
Director, Sales and Marketing
Impact of Sales Effectiveness Technologies
Enhancing a sales representatives productivity is a central aspect of sales
effectiveness. Best-in-Class organizations attention to sales effectiveness
measurement and KPIs corresponds with superior year-over-year performance
in revenue per account, average order margins and average opportunity deal
size, all of which are financial metrics that reflect individual sales representatives
productivity (Figure 4). Additionally, the Best-in-Class also achieve superior
performance in operational metrics. For example, 75% of the BIC have
improved proposal quality, and 41% have reduced the time it takes to generate
a proposal (Figure 5).
Figure 4: BIC Achieve Superior Results in Financial Metrics
Figure 5: BIC Achieve Superior Results in Operational Metrics
Aberdeen Insights - Technology
There are four different types of technology enablers that companies are deploying
to address the process and information needs of the sales organization:
- Sales Focused Enablers are the most prominent technologies leveraged
by the Best-in-Class, with an average current/planned adoption of 74%. The
leading solutions, forecast management (81%), sales analytics (79%),
incentive/compensation management (74%), and order/quote generation
(73%), help streamline information formulation and the delivery involved in
sales processes. By standardizing information processes for sales forecasts,
analytics, compensation and orders/quotes, these solutions facilitate
formalized sales procedures, a central aspect of Best-in-Class firms sales
effectiveness strategies.
- Marketing Focused Enablers automate information sharing between
cross-channel and cross-functional systems, with an average
current/planned adoption of 52% among the Best-in-Class. The top
technologies, lead automation management (54%) and lead quality tools
(53%), ensure that sales representatives have access to customer related
information collected by their entire organization. Marketing enablers help
sales departments engage customers as one firm focused on their
consumer interests and needs.
- Information/Process Enablers are solutions that augment and enhance
the usability of sales technology, with an average current/planned adoption
62% among the BIC. For example, customer relationship management
systems integrated with word processing, spreadsheet and email
applications (89%), provides a central repository of account, contact and
opportunity information in an environment that end-users are already
comfortable using. This technology also provides sales representatives with
flexibility in leveraging information and communications within their
organizations. Augmented customer relationship management systems
complement guided selling (71%) and lead analytics (62%) technologies by
serving as repositories for more comprehensive customer information.
Finally, workflow management solutions (59%) help keep use of
technological enablers by sales representatives inside formalized sales
processes, thereby enhancing the impact of those enablers.
- Individual Enablers are invested in by an average of 64%
(current/planned) of Best-in-Class companies, a trend that highlights the
importance to Best-in-Class firms of optimizing performance by each sales
representative in improving sales effectiveness. Contact management
software (79%) helps sales representatives track, manage and prioritize
opportunities, while training and e-learning courseware (67%) ensures that
sales departments deploy best-practices in meeting organizational goals.
Mobile personal information managers (54%) give sales representatives
constant access to information for customer engagements.
Chapter Three:
Required Actions
Whether a company is trying to move its performance in sales effectiveness
from "Laggard" to "Industry Average," or "Industry Average" to "Best-in-Class,"
the following actions will help spur the necessary performance improvements:
Laggard Steps to Success
- Start measuring sales effectiveness KPI's and metrics
On average, the BIC are more than twice as likely as Laggards to
measure sales effectiveness KPIs and metrics (53% vs. 24%) and do so
on a more frequent basis; 82% of BIC measure sales effectiveness at
least on a monthly vs. 54% of Laggards. As such, Laggards must begin to
measure Best-in-Class determining KPIs (such as Bid-to-Win Ratio,
Order/Quote Quality and Opportunity Conversion Rates) before
implementing technological solutions to address sales process and sales
information deficiencies.
- Implement and document standardized and repeatable sales processes
Prior to implementing knowledge-based sales solutions, the organization
must put standardized sales processes in place that ensure the steps
taken to achieve success are repeatable. Nearly all of the BIC (95%)
implement, or are planning on implementing, documented and formal
sales processes (vs. 84% of the Laggards). Without such processes, the
recipe for success cannot be repeated and actions leading to failure will
not be clearly understood or preventable. However, it is not necessary
for Laggards to implement a formal sales methodology (only 36% of the
BIC have currently adopted this enabler).
- Invest in a structured approach to managing accounts, contacts and opportunities
With less than a third (29%) managing accounts, contacts and
opportunities in a structured way, Laggards currently under-invest in
core sales effectiveness technologies such as Customer Relationship
Management (38% vs. 51% BIC), Salesforce Automation (17% vs. 51%
BIC) and contact management solutions (38% vs. 50% BIC). Whether
they take an organizational (CRM), departmental (SFA) or
individual/team approach (contact management software) to account,
contact and opportunity management, Laggards should immediately
invest in these capabilities, or plan to do so, in the next budget period.
Fast Facts
- 93% of Best-in-Class firms
measure time on
administrative tasks spent by
sales representatives,
compared to 70% of Average
and 49% of Laggard firms.
- 55% of Average firms plan to
increase investment in
dedicated sales effectiveness
personnel in the two next
years.
- 46% of Laggards have no plans
to leverage Workflow
Management Solutions, while
41% have no plans to adopt
Business Process Management
Solutions.
Industry Norm Steps to Success
- Invest in and develop a standardized approach to lead management and sales prospecting
With lead quality identified as a primary driver for improving sales
productivity, it is not surprising that top performing organizations are
focused on lead management and sales prospecting tools. On the sales
side, more than nine out of ten (91% vs. 73% of the Average) BIC firms
have implemented, or are planning on implementing, a structured approach to competitive, market and sales intelligence; more than half
of the BIC (vs. 32% of the Average) are planning on increasing
investments in competitive intelligence solutions. Additionally, 95% (vs.
79% of the Average) are making similar investments in standardized
tools for sales prospecting.
On the marketing side, the BIC are also disproportionately investing in
automated lead management (72% vs. 57% of Average), lead distribution
(74% vs. 53% of Average) and lead information augmentation (76% vs.
51% of Average) solutions. Average firms should invest in tools that
both increase the overall quality of leads coming from marketing, as well
enable the individual sales representative get a deeper understanding of
the opportunity at hand.
- Invest in a standardized approach to sales collateral and proposal management
The BIC's second most prevalent strategic action is to improve the sales
representative's knowledge of products, customer needs and competitive
offerings. Average companies are comfortable in the knowledge and
capabilities of their sales organizations; however, there is room for
improvement. For example, only 38% of the Average felt that their sales
team is "extremely effective" at understanding customers and prospects
business challenges and 34% felt that their sales team was "extremely
effective" at mapping products and services to the prospects business
challenge. The BIC are addressing this problem through the adoption of
sales collateral (90% vs. 81% of the Average) and proposal generation
(87% vs. 60% of the Average) solutions. To keep pace with the BIC,
Average companies should immediately accelerate and increase
investments in collateral and proposal management processes.
- Develop and invest in a knowledge-based sales culture
The Best-in-Class have already taken steps to address both the
information needs of individual sales representatives, as well as the
process needs of their managers. For example, while only 31% of the BIC
currently conduct win/loss on every deal, 52% currently plan on
implementing this capability. Furthermore, 83% of the BIC have future
plans to implement sales knowledge management solutions, whereas only
58% of the Average has made this commitment. Lastly, 90% of the BIC
are planning on implementing a forum for sales people to share insights
and lessons learned (contrasted to 74% of the Average). Prior to
investing in sophisticated best-of-breed sales enablement and
technological solutions, Average should first take steps to implement and
support a knowledge-based sales culture.
We created 100+ individual
compensation plans every year
with revisions every quarter. We
then had to support daily calls
from the field from people wanting
to know where they stood at any
given moment in a quarter and
then there was the reconciliation
that took place at the end of each
quarter. Now, [with our incentive
and compensation management
system] we're able to move more
quickly and resolve discrepancies
and disputes in real-time rather
than waiting for quarter close. The
result is that sales can focus on
selling knowing that they are being
paid correctly and consistently.
Jeff Williams, Vice President
of Sales, IronPort Systems
Best-in-Class Steps to Success
- Stop Using Spreadsheets and "Shadow Accounting"
In forecasting and sales commission tracking, it is not uncommon for
there to be several versions of the truth at both the manager and
individual levels. A consistent characteristic of the BIC is the propensity
to adopt solutions that minimize the use of spreadsheets and "ad hoc accounting"
on the individual or sales manager level. For example, 60%
of the BIC currently leverage incentive/compensation management
solutions (and another 30% have future adoption plans). And further,
90% of the BIC have included forecast management solutions in their
technology strategies. The BIC recognize that the adoption of these
solutions will reduce administrative time associated with non-selling
tasks, as well as eliminate intra-departmental conflict that arises from
"shadow" accounting activities. The BIC should continue to aggressively
eliminate spreadsheet-based and other ad hoc reporting from the sales
management process.
- Integrate sales into back-office systems
Nearly nine out of ten (88%) BIC companies have currently
implemented, or are planning on implementing, order/quote generation
solutions, and another 78% have included price optimization solutions in
their future sales management strategies. Considering the integration
required for these efforts, it is not surprising that roughly half of the BIC
are increasing their focus on data integration (49%), and that there is a
corresponding planned increase in technology budget/spending (57%).
To maximize the impact of these sales-focused investments, the BIC will
more than likely need to integrate with back-office systems. The BIC
should immediately conduct an audit of their back-office systems,
integration capabilities and available personnel to evaluate the impact
and viability of these initiatives.
- Invest in and implement a formal sales methodology
As illustrated above, a baseline investment in a formal and documented
sales process is a prerequisite for building an effective sales organization.
However, with these processes in place, the BIC realize that it is
increasingly important to understand and adopt best practices from
outside the organization. Even though only 36% of the BIC have
implemented a formal sales methodology, the remaining 64% plan on
implementing this enabler over the next year (i.e. there is 100% planned
adoption of formal sales methodologies by the BIC). Thirty-nine percent
(39%) of the BIC plan on increasing the use of external sales
methodology providers. While evaluating sales methodologies and
options, organizations should carefully consider the culture of their sales
organization and the sales style that is appropriate in their industry.
Aberdeen Insights - Summary
Today, BIC sales managers are struggling to attract and hire new salespeople,
on-board and train new staff and retain top sales talent (only 23%, 19% and
30% respectively rated themselves extremely effective in these areas). In an
ever-changing business environment, it is important for sales management to
use all of the tools at their disposal to create a learning organization and
knowledge based culture. The research reveals that organizations are
developing knowledge-based cultures through the combination of process and
information enablers. Historically, these two different types of enablers have
been mutually exclusive; however, the research also suggests that there is
currently a convergence of the two underway.
For example, in implementing formal sales methodologies, 92% of the BIC have
included guided selling in their future sales management strategies and 63% of
the BIC plan on increasing the use of "in-product training" - that is, sales
methodologies and mentoring within a CRM or SFA system. These types of
enablers are information-based, yet process driven. As process enablers move
to ubiquity, and information enablers become more prevalent, leading
organizations will undoubtedly develop new and differentiating information
processes.
Appendix A:
Research Methodology
Between June and July 2007, Aberdeen Group examined the sales effectiveness of nearly 200 enterprises in a
diverse set of industries.
Respondents completed an online survey that included questions designed to determine:
- The degree to which sales effectiveness solutions and technologies are deployed and the performance
implications of the technology
- Current and planned use of sales effectiveness technologies
- The benefits, if any, that have been derived from sales effectiveness initiatives.
Aberdeen supplemented this online survey effort with telephone interviews with select survey respondents,
gathering additional information on sales effectiveness strategies, experiences, and results.
The study aimed to identify emerging best practices for sales effectiveness and provide a framework by which
readers could assess their own practices and strategies.
Responding enterprises included the following:
- Job title/function: 35% Senior Management (CEO,COO, President), 14% Vice Presidents, 19%
Directors, 17% Managers, 6% Consultants, 4% Staff, 5% Other.
- Industry: The research sample included respondents from: 57% High Technology, 26%
Telecommunications, 19% Finance Related Industries, 12% Industrial Manufacturing, 11% Engineering,
11% Health Related Industry, 11% Retail, 11% Transportation, 10% Distribution.
- Geography: Respondents came from: 55% North America, 21% Europe, 16% APAC, 5% Middle
East/Africa, 3% Latin America.
- Company size: Based on revenue, organizations were 66% small firms (under $50 million annual
revenue), 24% medium sized businesses ($50 million to $1 billion annual revenue) and 10% large
enterprises (over $1 billion annual revenue).
Solution providers recognized as sponsors of this report were solicited after the fact and had no substantive
influence on the direction of the Benchmark Report. Their sponsorship has made it possible for Aberdeen
Group to make these findings available to readers at no charge.
Table 5: PACE Framework
Aberdeen applies a methodology to benchmark research that evaluates the business pressures, actions, capabilities, and enablers
(PACE) that indicate corporate behavior in specific business processes. These terms are defined as follows:
Pressures - external forces that impact an organization's market position, competitiveness, or business operations (e.g., economic,
political and regulatory, technology, changing customer preferences, competitive)
Actions - the strategic approaches that an organization takes in response to industry pressures (e.g., align the corporate business
model to leverage industry opportunities, such as product/service strategy, target markets, financial strategy, go-to-market, and sales
strategy)
Capabilities - the business process competencies required to execute corporate strategy (e.g., skilled people, brand, market
positioning, viable products/services, ecosystem partners, financing)
Enablers - the key functionality of technology solutions required to support the organization's enabling business practices (e.g.,
development platform, applications, network connectivity, user interface, training and support, partner interfaces, data cleansing, and
management)
Table 6: Maturity Framework
Maturity Framework Key
The Aberdeen Maturity Framework defines enterprises as falling into one of the following three levels of practices and performance:
Best-in-Class (20%) - Sales effectiveness practices that are the best currently being employed and significantly superior to the industry
norm, and result in the top industry performance.
Industry norm (50%) - Sales effectiveness practices that represent the average or norm, and result in average industry performance.
Laggards (30%) - Sales effectiveness practices that are significantly behind the average of the industry, and result in below average
performance
In the following categories:
Process - What is the scope of process standardization? What is the efficiency and effectiveness of this process?
Organization - How is your company currently organized to manage and optimize this particular process?
Knowledge -What visibility do you have into key data and intelligence required to manage this process?
Technology -What level of automation have you used to support this process? How is this automation integrated and aligned?
Performance -What do you measure? How frequently? What's your actual performance?
Table 7: Relationship Between PACE and Competitive Framework
PACE and Competitive Framework How They Interact
Aberdeen research indicates that companies that identify the most impactful pressures and take the most transformational and effective
actions are most likely to achieve superior performance. The level of competitive performance that a company achieves is strongly
determined by the PACE choices that they make and how well they execute.
Appendix B:
Related Aberdeen Research
Related Aberdeen research that forms a companion or reference to this report includes:
Sales Effectiveness: Helping Companies Sell (June 2004)
Sales Productivity Tools: Closing the CRM Gap (December 2005)
Automating Leads to Sales (March 2007)
Mobile Sales Force Effectiveness (March 2007)
Information on these and any other Aberdeen publications can be found at
www.aberdeen.com.
Authors:
Andrew Boyd, Sr. VP & Research Director - CRM
andrew.boyd@aberdeen.com
Noel Le, Research Analyst - CRM
noel.le@aberdeen.com
Founded in 1988, Aberdeen Group is the technology- driven research destination of choice for the global business executive. Aberdeen Group has over 100,000 research
members in over 36 countries around the world that both participate in and direct the most comprehensive technology-driven value chain research in the market. Through its
continued fact-based research, benchmarking, and actionable analysis, Aberdeen Group offers global business and technology executives a unique mix of actionable
research, KPIs, tools, and services.
This document is the result of research performed by Aberdeen Group. Aberdeen Group believes its findings are objective and represent the best analysis available at the
time of publication. Unless otherwise noted, the entire contents of this publication are copyrighted by Aberdeen Group, Inc. and may not be reproduced, stored in a retrieval
system, or transmitted in any form or by any means without prior written consent by Aberdeen Group, Inc.
Table of Contents
- Executive Summary
- Best-in-Class Performance
- Competitive Maturity Assessment
- Required Actions
- Chapter One: Benchmarking the Best-in-Class
- Maturity Class Framework
- Best-in-Class PACE Model
- Chapter Two: Benchmarking Requirements for Success
- Competitive Assessment
- Organizational Capabilities and Technology Enablers
- Impact of Sales Effectiveness Technologies
- Chapter Three: Required Actions
- Laggard Steps to Success
- Industry Norm Steps to Success
- Best-in-Class Steps to Success
- Appendix A: Research Methodology
- Appendix B: Related Aberdeen Research
Figures
- Figure 1: Top Challenges to Increase Sales Effectiveness
- Figure 2: BIC's Current/Planned Investment in Sales Process Enablers
- Figure 3: BIC's Current/Planned Investment in Managing Sales Data
Tables
- Table 1: Companies With Top Performance Earn "Best-in-Class" Status:
- Table 2: Best-in-Class PACE Framework
- Table 3: Best-in-Class Strategic Actions/Capabilities
- Table 4: Competitive Framework
- Table 5: PACE Framework
- Table 6: Maturity Framework
- Table 7: Relationship Between PACE and Competitive Framework