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Blog

Sales Velocity...It Matters!

Monty Fowler

If there is one tool that has contributed the most to my selling career it is the Sales Velocity Equation from the TAS Group, and my friend and former colleague, Donal Daly. He describes his Sales Velocity Equation as, "The formula for sales success." I wholeheartedly agree.

Put simply, the Sales Velocity Equation focuses on the four levers of your business that influence the amount of revenue generated in a specific period of time (month, quarter, year):

GrowRevenue_SalesVelocityEquationWithNumbers.png
  • Number of deals (#)
  • Average deal value ($)
  • Win rate (%)
  • Sales cycle length (L)

As you can see, making small changes to one or more of the levers of your business can have dramatic results in revenue. In the past, sales leaders believed that simply increasing the number of leads or deals in the pipeline was the best way to juice revenue. But I've found that focusing on increasing the other size of your average deal, increasing the close rate, and shortening the sales cycle are better and sometimes easier to influence, and have a much greater impact on revenue generation.

Don't believe me? Well, watch this neat little slideshow from my friends at The TAS Group and maybe you'll be convinced enough to give it a try. And if you're ready to put it into practice, give us a call at (630) 217-5948 and we can help.

Can This Relationship Be Saved?

Monty Fowler

It’s just not working anymore. Something has to change.

Let me tell you a story about what’s gone wrong with a really important relationship and how you may be able to save it.

It starts like this: Not long ago, sales complained that marketing wasn’t helping. “What do they do all day? Who cares about all that brand stuff?” they said. “What we need is more leads.” So, in an effort to be seen as more relevant and make a measureable impact on growth, marketing invested lots of time and money in getting really good at delivering a high volume of leads. They deployed marketing automation, established lead scoring, created personas and content, and nurtured the heck out of lots and lots of leads before sending them, properly qualified, over to sales.

Fast-forward to discussions we’re having with clients today: “Sales doesn’t want our leads,” say the marketers. “They tell us they already know about the leads we send, and we’re not helping close the deals they already have in the accounts they care about.” For many companies, what sales really wants now is not lead volume. Many sales organizations are moving to target account models, and they want support building relationships and finding and closing the right deals in their defined universe.

Unfortunately for marketing, these needs are not well served by the high-volume demand engine they’ve been building and measuring. Fortunately for marketing, the technology and processes used to create the demand engine can be modified and updated to work in an account-based model. Yes, this relationship can be saved, but it will take some effort.

First, marketing has to re-imagine its contribution to sales and to the business overall. It may be that the high-volume demand engine is still appropriate for certain parts of the sales organization. Understand the structure of the sales organization and how different types of reps work with their accounts, and determine the best role for marketers to play in that context. Marketing investment doesn’t have to be one-size-fits-all. Since, in many cases, marketing will not be delivering a high volume of leads, success must be measured differently, with emphasis on influencing demand as well as sourcing it.

Second, planning has to change. When planning support for a defined universe of accounts, marketing must begin by understanding the opportunity within those accounts and the goals sales has set for growth and relationships. With these insights, marketing can contribute to the sales account team, recommending actions to support those goals. Sales, in turn, must be open to marketing providing different types of support (e.g. account profiling, customer lifecycle nurturing, dynamic content serving, pipeline acceleration) that fit an account-based model. Marketing’s existing technology and process investments can be leveraged for these new options. In fact, without the demand engine foundation marketing has worked to build, the move to an account-based approach would be a lot harder.

As with every type of relationship, ongoing communication is key. If the sales and marketing relationship is to be saved, both sides have to get over any past issues and be ready to try something new. It worked for building alignment around high-volume demand creation, and it will work again as sales and marketing look to build even better alignment in the account-based model.

10 Steps to Creating a "Sales Culture"

Monty Fowler

sales-team.jpg

Excellence is never an accident. Transforming a marginally performing sales team into a well-oiled sales machine doesn't happen by luck either.

Yet many companies try to grow sales by simply putting more pressure on the sales team, reminding them of their increasing quotas and adding up how much they're behind. Oftentimes well-intentioned leadership teams think increasing pay will be the magic anecdote, only to find that paying salespeople more money doesn't make them any better at generating sales. Many times, it creates more complacency to do just enough to not get fired.

Companies invest a lot of time and money into better products or more marketing, which doesn't hurt, but only further masks your true underlying sales problem. And it's astounding how many companies know they need to increase sales, yet they spend 70 to 90 percent of their training time teaching their sales force more product knowledge and almost no time teaching them how to actually sell.

You might have amazing customer service. You could be the leading provider of cutting edge technology. You may have an amazing Web presence. It's possible that you have the world's most compelling value proposition. But if your revenue-generating sales team isn't reaching its potential it's because you don't know how to build a true sales culture.

At Vicendia Partners we've delivered sales consulting and training in scores of companies. Here are 10 key elements we’ve learned that will get your company on its way to creating a high-performance sales culture:

1. Follow your salespeople. Before we even take on a project, the first thing we do is spend time doing nothing but listening and watching. We spend significant time because when it comes to why they aren't producing, salespeople can never tell you the real deal; they can only show you.

2. Monitor daily activity. A doctor wouldn't look at you and just tell you what was wrong; he'd send you in for an MRI, to get blood work done or hook you up to a machine to get readings. You have to do the same thing for your sales team. We use a proprietary assessment tool to track the six to eight daily revenue producing activities of every salesperson. Whatever system you use is fine, but the data is essential for monitoring because numbers never lie.

3. Create talk tracks. Most salespeople are far less technically proficient at selling than they think. They are scared to call on new business because they aren't good at it and they don't know what to say. While they will complain about being forced to say word-for-word scripts, you must have them available and they must work. If you don't, stop everything you are doing, call Vicendia Partners at 630.217.5948 and let us design one for each of your major products and vertical markets. A sales team without talk tracks is like a business without a business plan—scattered and inconsistent.

4. Drive activity more than results. Sales is and always will be a numbers game. Whoever sees the most qualified amount of prospects in the shortest time has the best chance of winning. Salespeople have little control over who buys and who doesn't, so spend more time pushing them to increase activity and results will increase as a byproduct.

5. Cut the bad apples. Our experience suggests that the average sales manager knows in 30 to 60 days whether or not a person is going to make it, yet it typically takes six to nine months to let that person go. Bad attitudes, low work ethic, and people who undermine leadership are a virus to your sales team. The longer you let them stay around, the more it is costing your organization and the more they are infecting those around them.

6. Learn to celebrate. Start recognizing top leaders in a big public way. One of the fastest ways we get results for clients is helping them create an incentive plan for driving activity. While big bonuses and contest prizes usually have to stay tied to production, you can come up with fun affordable incentives that create an immediate spike in activity. Top producing salespeople are a different breed and it's amazing how far they'll go to get a $50 gas card or get their name called in a team meeting.

7. Create a creed. Selling is emotional. Selling takes energy. And many salespeople need to be sold on the greater good of what they're doing. They need to understand that they are contributing to a bigger picture. You can even have them come up with their own creed by just capturing their responses in a group setting to the questions "What do we believe in and why are we here?" Salespeople need vision and it’s the job of leadership to help that vision come alive.

8. Elevate esteem. Salespeople are amazing. They are often (and should be) among the highest income earners in your organization. They battle fear and rejection every single day. If you want them to produce you need to promote how honorable and noble it is to be a sales professional throughout your organization. In your talk and demeanor, elevate the importance of the sales function to the other departments in your company. Anyone who has a problem with that should be invited to make sales calls for a few weeks.

9. Master a sales training process. It's your company’s job to give your salespeople the tools and training they need to succeed in their position. Sales cultures have well-defined systems to help their salespeople grow, learn and achieve. This is especially important for new hires but you also need to have some way to deliver on-going advanced sales training ideas for your entire sales team. If you don’t think this is important, then determine how much it costs you on average to hire someone and multiply that by the number of salespeople who didn’t make it last year; you’ll quickly see it’s worth the investment. Seriously...do the math. Then call us.

10. Create more frequent accountability. Most good salespeople need and welcome regular accountability and partnership. Spending regular one-on-one time with your people not only gives you a chance to mentor and train with them; it shows that what they do is important and that you care about their success. Part of the reason why sales coaching has become so popular in recent years is because companies are stretched thin by tight budgets and managers are not able to spend enough individual time with their people so they seek outside reinforcement.

Creating a sales culture takes discipline, commitment, and focus but that should be no surprise—because excellence is never an accident.

WIll You Make Your Numbers in 2014?

Monty Fowler

According to the CSO Insights 2014 Key Trends Analysis, further penetration into existing accounts and improved customer loyalty both landed squarely in the top ten objectives for sales organizations this year. The same study reported that 94 percent of firms raised revenue targets for 2014, despite the fact that sales rep quota attainment was down five percent from 2012 to 2013.

Clearly, sales organizations will be feeling the pressure to hit their revenue numbers this year, perhaps more than ever before. If you are like most B2B companies, you expect much of that revenue to come from your existing customer base. But that’s easier said than done. Despite most sales teams’ best efforts, sustainable organic growth is a challenging proposition.

Take a peek at this organic growth infographic to gain fresh insights on driving revenue to make your numbers. If any of these facts give you pause, we should talk. Give us a call at (630) 217-5948.