Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved. IDC’s 2013 Trends, Benchmarks, and Essential Guidance for Technology Sales Organizations IDC Exclusive Webcast: Annual Sales Productivity Benchmarks Study September 27, 2012
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IDC’s 2013 Trends, Benchmarks, and Essential Guidance for Technology Sales Organizations
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Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved.
IDC’s 2013 Trends, Benchmarks, and Essential Guidance for Technology Sales Organizations
IDC Exclusive Webcast: Annual Sales Productivity Benchmarks Study
Sales Advisory Service: Technology Sales Productivity Study Webcast
Michael GerardVP, Sales Advisory
Practice
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Look for these boxes which indicate additional resources for Sales Advisory Service clients
Thursday, September 27: 2013 Sales Strategies
A View into the Current Buying Environment 2013 Guidance for Sales and Sales Operations Executives Productivity Benchmarks and Trends Additional Resources
Source of Data, Insight and Guidance for Today’s Webcast
Sales Productivity Benchmarks
Database (2012 update)
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Best Practice Studies Next Gen. Sales Ops. Sales Methodology Account Planning Sales Measurement Sales Coaching Sales Enablement Custom Intelligence for Sales
How are Sales Folks Doing with Buyers in this New Environment?
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Over ½ of buyers who switched vendors during the past year did so as a result of their newer vendor being more diligent and reliable to their needs.
Our best vendors help us solve problems. . . . “Interact more with our internal teams at a functional level to understand where our pain points are, and provide solutions to improve our revenue & profitability."
Buyers are inundated: “Much of my commute home is “delete, delete, delete,…”
There is opportunity to differentiate and move ahead of your competition
A sales methodology is a consistent set of sales processes that are executed by individuals and sales teams across the organization in order to optimize sales productivity, maximize quota attainment for sales teams, and maximize revenue and profit for the company. Each sales process consists of: A taxonomy of applicable terms Roles and responsibilities of key parties A set of activities A set of metrics enabling tracking of the success of the process and managing
its continuous improvement.
Common Components
Sales management and coaching Opportunity/pipeline management
The activities executed by sales and sales operations personnel to, as rapidly as possible, progress opportunities along the pipeline toward closure. SPM begins once sales accepts a Marketing Qualified Lead
(MQL) by classifying it as a Sales Qualified Lead (SQL) or when sales creates a lead and considers it sales qualified.
The Sales portion of the overall customer creation process
Typically broken down into a series of stages that may/may not be allocated to different sales roles (e.g., telesales, inside sales, outside sales, etc.)
Intimately tied to the forecasting process
Automated by the biggest single area of sales technology investment: CRM and related solutions
Buyer Insight: Most Valued Resources When Making IT Decisions
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Q: As part of your pre-purchase IT product or solution-related activities, please indicate the relative importance of the following on your decision-making process by using a pool of 100 points.
n = 204* Vendor Content: e.g., Collateral, white papers, case studies, webcasts, product information, other information available on their web site**Refer to IDC’s Sales and CMO Advisory Research
0 10 20 30 40
Other
Interaction with vendors' corporate executives (e.g., CEO, COO)
Interaction with sales representatives
Consumption of vendor content*
Interaction with vendors' technical teams (e.g., engineers, CTO)
AttributeKey Performance Indicator (KPI, Current FY)1,2 All IT Vendors Trend/Guidance
Sales Investment
Sales Budget Ratio (sales spend/revenue) 8.6% Know what you spend, as well as how you spend it
Sales Investment Change (most recently closed to current fiscal year)
4.1% Keep pace with revenue growth at a min; increase support infrastructure
Sales Staff Efficiency
Sales Staff Spend KPI(staff spend as a % of total sales spend)
79% Do leverage external resources
Sales Reps’ Time Allocation(% of sales reps’ time spent on: Customer Interaction / Prep. Time / Lead Mgmt./Admin. Time)
47%:20%:
10%:19%
Increase the “quality” of customer interactions(55%:20%:15%:10%)
Sales Support Staff KPI (support staff as a % of total sales staff)
44% Increased vs. ‘11; Increased support yields greater productivity and customer satisfaction
T&E (travel and entertainment) per Sales Staff $17,500 Better Leverage Collaboration Technology and Evaluate Coverage Models
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1 IDC's Sales Productivity Benchmarks Database (weighted average KPIs based upon current FY at survey completion)2 IDC’s Worldwide Sales and Marketing Taxonomy, 2012: A Blueprint for Cost Control
AttributeKey Performance Indicator (KPI, Current FY)1 Insight/Guidance
Sales Productivity Levers
Talent Management 30% of companies lack a formal, new rep on-boarding process (53% is role specific vs. generic training, and should be higher)
15% sales staff turn-over (7% increase over ‘11)
Sales Management/ Methodology Adoption rate of a common sales methodology = 74% (18% increase y/y)
18% of a first line sales managers’ time is spent coaching sales reps (needs to be higher)
Customer Intelligence CI Maturity Score: 4.1/10 (Decreased in ‘12)
Ability to obtain and leverage:
– Share of wallet information: 3.9/10
– Role-based intelligence : 3.8/10
Sales Enablement Quality of marketing and sales assets: 5.6/10
Most sales reps rely on digital files as well as calling or emailing an individual as part of sales enablement
Sales Operations Maturity2
Sales Operations Staff Level
(sales operations staff as a % of total sales staff)
Average = 10.2%
Target: 8-12%, with 1/4 to 1/3 represented by a COE team2
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1 IDC's Sales Productivity Benchmarks Database (weighted average KPIs based upon current FY at survey completion)2 Refer to “The Next Generation Sales Operations Team” (IDC Doc.#224122)
The Most Relevant Customer Intelligence is Not Getting to the Sales Organization
Best Practices in Customer Intelligence for Sales (IDC #224520) & Ask for your free IDC Sales Executive Portfolio review
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Q: Please score the following CI components within the context of the sales organization: (1 = major gaps exist today; 10 = very minor gaps exist today which are being addressed through continuous improvement processes)
IDC’s EAG Is a Top Provider of Sales and Marketing Advice to Technology Leaders
IDC Executive Advisory Group provides sales and marketing executives with critical insights and research-based information to plan investments, prepare operations, mobilize resources, and measure results. We help our clients: Set competitive sales and marketing
budgets Organize sales and marketing staff for
optimal performance Implement “high ROI” sales and marketing
practices Identify key programs and campaigns that
tie to organization and corporate goalsWe are the industry standard for marketing and sales investment benchmarking
Sales Advisory Service: Currently Available Published Research on www.IDC.com
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Sales and Sales Operations Best Practice Series Best Practices in B2B Sales Methodologies (IDC #236236, Aug. 2012) Social Collaboration for Sales: Cutting through the Hype (IDC #233340, Feb. 2012) Leveraging Sales Enablement to Improve Sales Productivity: A Best Practice Case Study
at T-Systems (IDC #232490, Jan. 2012) Sales Enablement - 90% Process, 10% Technology: A Best Practice Case Study of Sales
Enablement at Oracle (IDC #230546, Oct. 2011) Best Practices in Preparing Sales Managers to be Coaches (IDC #227923, April 2011) Best Practices in Sales Performance Measurement: A Focus on Productivity (IDC
#226727, Feb. 2011) Best Practices in Customer Intelligence for Sales (IDC #224520, Sept. 2010) Best Practices in Account Planning (IDC #223295, May 2010) Best Practices in Sales Enablement – Marketing Content and Asset Management (IDC
#219418, Aug 2009) The State of the Art in Sales Enablement: An Intensive Study of Current Practices (IDC
#219182, Aug 2009) Best Practices in Sales Performance Improvement: The Role of the First Line Sales
Manager (IDC #218087, April 2009) Best Practices in Sales Performance Improvement: Global Inside Sales Strategies (IDC
Sales Advisory Service: Currently Available Published Research on www.IDC.com
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Investment and Productivity Foundation Studies IDC’s 2012 B2B Sales Barometer Highlights (IDC #WC20120322, Mar. 2012) IDC’s Worldwide Sales and Marketing Taxonomy, 2012: Guidelines for Cost Control and
Resource Allocation (IDC #231252, Nov. 2011) IDC’s 2012 Sales Investment and Productivity Planner: Trends, Benchmarks, and
Essential Guidance for Tech Sales Organizations (IDC #230919, Oct. 2011) 2011 Technology Sales Barometer: A Year of Stabilization (IDC #228071, May 2011) Content Management and Sales Enablement Survey Results (IDC #225701, Dec. 2010) IDC’s 2011 Trends, Benchmarks and Essential Guidance for Technology Sales: Sales
Productivity Benchmarks Study (IDC#225089, Sept. 2010) 2010 Tech Sales Barometer: Maintaining the Momentum for Productivity Improvements
(IDC#222485, April 2010) Sales Enablement 3.0: A Transformation of Sales Enabled by a Transformation of
Marketing (IDC #218546, June 2009) 2009 Tech Sales Barometer: Remaining Optimistic in a Down Economy (IDC #216889,
March 2009)Buyer(Customer) Research
The Buyer Speaks: IDC’s 2011 Buyer Experience Survey – Guidance for Sales and Marketing (IDC #228987 July 2011) (annual study)
Sales Advisory Service: Currently Available Published Research on www.IDC.com
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Sales Insights Customer Enablement for Sales Reps: Helping Your Champion to Succeed (IDC #236471, Aug. 2012) IDC’s Sales Operations Quiz (IDC #236148, July 2012) Sales and Marketing Leadership Meeting Highlights, June 5 and 6, 2012: Sales Rep Panel, Sales
Enablement, Pipeline Management, IT Buyer Insight, and SFA Optimization (IDC 235656, July 2012) Increasing Sales Productivity Through Innovative Technology: A Case Study of SAP’s Deployment of
iPads (IDC 233842, April 2012) IDC Sales Leadership Board Meeting Notes, February 29 and March 1, 2012: B2B Sales
Methodologies, 2013 Sales Operations Planning, Sales Operations and IT Alignment, and the RFP Process (IDC 233678, April 2012)
Top Action Items for a New VP Sales (IDC 232588, Jan. 2012) Vendor Profile: Qvidian Sales Enablement Playbooks and Proposal Automation (IDC 231889, Jan.
Lead Management and IDC Productivity Benchmarks (IDC #231281, Nov. 2011) The Sales Enablement Vendor Space Heats Up (IDC #229339, July 2011) IDC Sales Leadership Board Meeting Notes, May, 2011: 2012 Sales Operations Planning, Social
Media for Sales and The Buyer Speaks (IDC #228452, May 2011) IDC Sales Leadership Board Meeting Notes: Feb 15 and 16, 2011 (IDC #227269, March 2011) Clouds Filled the Sky, But the Mood Was Sunny and Full of Chatter at Salesforce.com’s Eight Annual
Dreamforce Conference (IDC #226676, Jan. 2011) Update: The Savo User Summit 2010 (IDC #225593, Nov. 2010)
Sales Advisory Service: Currently Available Published Research on www.IDC.com
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Events (PowerPoint presentations) Best Practices in B2B Sales Methodologies Companion Presentation (IDC #236367, Aug. 2012) IDC Sales Leadership Board Meeting Presentations: June 5-6, 2012 (contact [email protected] for a
copy) IDC’s 2012 B2B Sales Barometer Highlights (IDC #WC20120322, Mar. 2012) A Cohesive Sales and Marketing Strategy: Real Key Performance Indicators to Assess your
Investment and Process Alignment (IDC #WC20111208, Dec. 2011) IDC's 2012 Sales Investment and Productivity Planner: Trends, Benchmarks, and Essential Guidance
for Technology Sales Organizations (IDC #230919, Oct. 2011) IDC's Trends, Forecast, and Essential Guidance for BtoB Sales: 2011 Sales Barometer (IDC
#227697, Mar. 2011) Best Practices for Customer Intelligence for Sales – Companion Presentation (IDC #225791, Nov.
2010) IDC’s 2011 Trends, Benchmarks, and Essential Guidance for Technology Sales Organizations (IDC
#225089, Sept 2010) The Next Generation Sales Operations Team – Companion Presentation (IDC #224354, July 2010) IDC Sales Leadership Board Meeting Presentations: May 25 and 26, 2010 (contact
[email protected] for a copy) IDC’s Third Annual Buyer Experience Study – Guidance for Sales & Marketing (IDC #TB20100422,
April 2010) Sales & Marketing Strategies for 2010: Key Success Factors for Growth (IDC #TB20100318, March
2010) IDC 2010 Directions – Track 1: Three Recipes for Sales Success (IDC #DR2010_T1_MG, March
Q: How will your company or group's sales force (both direct and indirect sales) be distributed along the following quota ranges by the end of your current fiscal year?
Q: Approximately how accurate are your sales forecasts at each stage prior to the end of a typical selling or reporting period? (select one measurement per stage):
30 Days Prior
60 Days Prior
90 Days Prior
0% 10% 20% 30% 40% 50% 60% 70%
% of Respondents90%+ accuracy 80-89% accuracy 70-79% accuracy Less than 70% accuracy
Targets Targets include the total number of individuals included in an outreach marketing (e.g., email, events)
Responses Prospect names and related information collected through various marketing activities (e.g., email, events)
Contacts Responses that have been determined to be “real” individuals (information may also be appended to these contacts)
Marketing Qualified Leads (MQLs)
Contacts that have met specific criteria indicating that they are ready to move on to the next stage in the customer creation process (e.g., BANT — Budget, Authority, Need and Timing). Ideally these leads will have a score attributed to them by marketing based upon past interaction and activity.
Sales Qualified Leads (SQLs)
Sales has accepted the MQLs, including agreeing to actively pursue these leads within the sales process (i.e., probability for closure = 20% to 49%)
Opportunities SQLs have been determined to have the potential for the deal closure within a certain period of time (i.e., probability for closure = > 50%)
Won Deals Opportunities that have signed a contract
IDC segments leads in terms of ‘Value’ accounts and ‘Volume’ accounts
Value Accounts Value Accounts are large named accounts with 1000 or more employees
Volume Accounts Volume Accounts are SMB accounts with fewer than 1000 employees
1Months a lead spends at this pipeline stage2 Value Accounts (over 1000 employees)Source: IDC’s 2012 Sales Productivity Benchmarks Database and IDC’s 2012 Tech Marketing Benchmarks Database