Sales Benchmark Index presents information in this NetSuite White Paper that helps sales management succeed in implementing a data-driven decision making process for sales success. Five steps for developing a sales benchmark are defined, with a list of key metrics you can use.
How to Outsell the Competition:
The Benchmarking Edge for
Successful Sales Execution
By Greg Alexander and Aaron Bartels
Sales Benchmark Index
Sales Benchmark Index (SBI) conducts the most in-depth ongoing study of sales management benchmarking and best practice usage in the world. This white paper, brought to you by NetSuite, is designed to help sales managers succeed by implementing data driven decision-making. Here the five steps for developing a sales benchmark are identified.
Find out more: contact NetSuite at 1-877 NETSUITE or visit www.netsuite.com
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How to Outsell the Competition: The Benchmark Edge for Successful Sales Execution By Greg Alexander and Aaron Bartels Sales Benchmark Index Introduction to Data Driven Decision Making Sales benchmarking represents a source of sustained competitive advantage for corporations today. The second largest cost item on a company's financial statement is SG&A expense which typically represents 30%-40% of revenue. This is second only to cost of goods sold and in some cases three times research and development. Yet, most corporations today can not calculate the return they are generating for each sales dollar spent and do not understand how their return compares objectively to their external competitors. Bringing the discipline of benchmarking to the sales and marketing functions can solve this problem. The benefit of mastering this technique can be can be found in manufacturing companies using Six Sigma statistics to benchmark product quality, in finance functions using financial ratios such as return on equity to benchmark capital efficiencies, or in customer service organizations which gather statistics to benchmark customer loyalty. Benchmarking the sales function will bring data driven decision making to the mission critical process of acquiring and retaining customers thus allowing for the deployment of a continuous improvement program in sales. How to Benchmark Sales Benchmarking is a process where companies compare their performance over time against their competition. You'll find there are areas where you are better than most. You'll also see areas where significant improvement may be desirable. The point of benchmarking is to focus your efforts where you can get the best return. The five steps to performing an operational sales benchmark are identifying your metrics, collecting your data, comparing and contrasting that data with best practices, planning the focused actions to address gaps, and creating a strategy for sustainable improvement.
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Find out more: contact NetSuite at 1-877 NETSUITE or visit www.netsuite.com
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Title
Step 1 - Metric Identification The first step in executing a sales benchmark is identifying the metrics to measure. The Formula for Sales SuccessT assists in selecting metrics as it helps determine the key drivers of an organization's sales performance.
Each non-constant variable in the equation (Activities, Conversion, Transaction and Talent) is defined in the company's business terms. For example, how is an Activity defined? Is it a lead? Is it an e-mail, a phone call, a virtual sales call? Or is it a face-to-face sales call, a proposal or something else entirely? Is it all of the above? The goal is to identify the key activities currently being performed by the sales team that have the most significant impact on whether a deal is won tomorrow, next week, next month or next year. In addition to productivity metrics, there is another non-constant variable - cost - that underscores the Formula for Sales SuccessT equation. Benchmarking your sales costs results in a decrease in Selling Expense just as benchmarking productivity results in an increase in Revenue. By simultaneously doing both, a firm can significantly boost earnings and its Return on Sales (defined as profit return for each dollar of new sa... [download for more]
