Most sales reps spend less than half of their time actually selling. Here’s
how companies can reshape sales operations to allow them to focus on
their real job.
Here’s a
situation that may sound familiar. “Inside”
sales
reps at a global manufacturer spent 75
percent of their time
away from the phones—pushing
through stalled deals,
scurrying for data to answer
questions from customers, and
cobbling together one-off
proposals for even the simplest
requests. Highly paid field reps
spent 45 percent of their time on
internal sales support and
tracking the progress of deals.
Developing a standard proposal
required meetings with as
many as seven people, and field
reps had to spend up to three
weeks of constant effort to get a
special price approved. This
model of inefficiency culminated
when the company fumbled a new-product launch because it
failed to meet the deadline for
proposals to secure initial orders.
That was the wake-up call the
company needed. For two years, it
worked to streamline
its global sales operation by creating “sales factories”
comprising specialized sales support staff with clear responsibilities and deal
coordinators to shepherd sales through the system on behalf of reps.
Internal
processes were standardized and simplified, and a comprehensive
performance-
management system was implemented. While not all companies can
successfully achieve these
difficult and time-consuming transformations, the
rewards are worthwhile for those that rise to
the challenge. When the program
was rolled out country by country, in some cases the impact was
felt in just
four months: reps gained an average of 15 percent more time for selling,
conversions of proposals to sales rose by 5 percent, and the cycle time for
internal sales processes shrank by 20 percent.
We find these results to be
typical at large companies, yet few tackle the problem: sales operations remain
a great unmanaged cost center in many organizations and a woefully
underleveraged
source of growth and differentiation.
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