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© CSO Insights 2004 The Sales Effectiveness Effect 2004 State of the Marketplace Review Jim Dickie Barry Trailer
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© CSO Insights 2004 Sales Excellence Reviews 4,000 small, medium, large firms Initial project goals Evaluation methods Justification approaches Implementation plans Hands-on experiences
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© CSO Insights 2004 Selling In Turbulent Times 2004 sales excellence challenge Surveyed over 1,337 companies worldwide Interviewed 200+ CEOs, CSOs, CMOs, Results: Understanding of the challenges Defining of the causes Surfacing best practices
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© CSO Insights 2004 The Report Card is NOT Good
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© CSO Insights 2004 0.0%10.0%20.0%30.0%40.0%50.0%60.0%70.0% Other Reduce sales admin burden Support team selling Decrease sales costs Improve communications Increase channel effectiveness Reduce sell cycle Increase margins Increase customer loyalty Increase market share Increase sales effectiveness Increase revenues Top Three Business Objectives For Sales
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© CSO Insights 2004 Sales Effectiveness Issues Generating leads New rep ramp-up Up-sell/cross-sell Avoiding discounting Optimizing channels Communications: sales teams/ enterprise No decisions rates Forecast accuracy New product rollouts Sharing best practices Building customer loyalty Sales rep retention
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© CSO Insights 2004 At Your Company, is the Sales Effectiveness Challenge: A) Increasing B) Holding steady C) Decreasing
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© CSO Insights 2004 12345 Complexity of order entry process Amount of sales rep turnover Difficulty accessing information Admin burden placed on sales force Rate of new product introductions Complexity of product offerings Breadth of product offerings Competitive activity in the marketplace Rate of Change in the Marketplace – Challenges
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© CSO Insights 2004 Sales Effectiveness Hall of Fame StorageTek 300% increase in revenues/rep over 4 years McKesson 200%+ increase in new product selling effectiveness Global eXchange Services 350% increase in lead generation effectiveness Pitney Bowes Order error rate reduction from 23% to 1% Xerox Doubled services conversion rate of warranty customers
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© CSO Insights 2004 What impact is CRM having for you? A) Significant improvements in sales effectiveness B) Minor improvements C) No measurable improvement D) Do not know
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© CSO Insights 2004 Sales Effectiveness - The Dark Side Success is not a given Significant improvements – 25.7% Minor improvements – 44.9% No measurable results – 17.8% Don’t know – 11.6%
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© CSO Insights 2004 Impacting the Customer Life Cycle CLOSE RETAIN EXTEND ATTRACT SELECT Reduce the number of “no” decisions General more/ better leads Generate greater incremental business Avoid customer losses, maximize renewals Shorten sell cycle and increase win rates
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© CSO Insights 2004 Sales Effectiveness in Action Case Study – Global eXchange Services E-commerce vendor; 100,000 trading partners and 1 billion transactions annually in 58 countries Very complex sale, hard to attract right leads Before project started: Revenue potential leads generated per 100 Web visitors = <1, per call center rep = 1.5/day
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© CSO Insights 2004 Global eXchange System Walkthrough
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© CSO Insights 2004 Increased call center leads from 1.5/day to 7+ New leads close 30% faster than traditionally gathered leads Up-sell/cross-sell ratio improved by 25% 48% of conversations advanced to the phone Reach a higher-level decision maker Global eXchange Success Statistics
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© CSO Insights 2004 Sales Effectiveness in Action General medical, $2B+ division of McKesson. Represent 300 manufacturers, 30,000 products. Project challenge: Represent every product as well as the product manager! Technical requirements: Link field sales, marketing, distribution, finance, suppliers seamlessly into sales process.
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© CSO Insights 2004 General Medical System Walkthrough
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© CSO Insights 2004 General Medical Results 30% increase in revenues per rep 400% increase in new product hit rates 1.4% improvements in margin Higher rep retention rates
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© CSO Insights 2004 Sales Effectiveness Levers Process People Technology
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© CSO Insights 2004 What is the biggest single challenge negatively impacting CRM success? A) People B) Process C) Technology D) None of the Above
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© CSO Insights 2004 Sales Effectiveness Levers Process People Technology Knowledge
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© CSO Insights 2004 0%10%20%30%40%50% Getting Adequate Funding Getting Executive Support Supporting Remote Users Getting Users Productive Effectively Rolling Out System Identifying Process Problems Customizing CRM Tools Matching Technology to Process Problems Measuring Project ROI Gaining User Acceptance Populating/Maintaining Data Toughest Challenges Encountered During CRM Initiative
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© CSO Insights 2004 AMM Customer Message Management (CMM) Initiative More effectively aligning sales & marketing Focus on the how of sales versus the what Creation, delivery and management of marketing messaging Optimizing performance throughout the entire sales process
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© CSO Insights 2004 CMM Case Studies Cisco American Express EDS FedEx IBM Canada
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© CSO Insights 2004 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% <10%10 - 25%26 - 50%>50% Percentage of Presentations Resulting in a Sale
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© CSO Insights 2004 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% <10%10 - 25%26 - 50%>50% Percentage of Presentations Resulting in a Sale All Responses World-class CMM
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© CSO Insights 2004 Common CMM CRM Components Static & dynamic content support Prospect specific focus In-context sales process Effectiveness analysis support Link in with existing CRM applications www.CMMForum.org
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© CSO Insights 2004 P x C x V x F > R Formula for Successful Change Four factors must be present for change to occur: P - C - V - F - The product of which must be greater than R - Resistance to change
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© CSO Insights 2004 Questions & Answers White Papers at www.csoinsights.comwww.csoinsights.com Sales Effectiveness Insights 2004 Top Ten Trends Optimizing Sales Performance with CMM Sales Knowledge Management Study Results (July)
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