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Posted by Trish Bertuzzi on Wed, Aug 25, 2010 @ 10:53 AM
I'm very excited to announce the release of the 2010 Lead Generation Metrics & Compensation Report focusing on the “pipeline development" Inside Sales function.
- On average, it takes 3.2 months to get a rep fully ramped and their tenure in the role is 2.1 years.
That means you get roughly 7 quarters of productivity from a rep. It is time we all think about our on boarding process and the investment it requires
- 63% of LeadGen Reps make quota which is down 13% from 2009.
- LeadGen teams are contributing between 41% to 52% of their company’s overall pipeline.
That is nothing to be sneezed at!
Lots more great info in the report! Our thanks to all who participated and, as always,
feel free to call/email/comment with any questions you may have.
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Posted by Trish Bertuzzi on Wed, Aug 18, 2010 @ 07:20 AM
Last week, Chad Levitt (of the New Sales Economy blog) reacted to this data point from our 2010 Inside Sales research report:
| In a given group, percentage of Reps making quota: |
50%
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Chad commented:
The most mind boggling statistic in the sales industry has to be that 50% of sales reps are not making quota. With all the Sales 2.0 tools available and ease of finding info on the web the sales industry is still struggling to hit its goals. I want to know why.
Here was my response to Chad.
- We are lazy and our hiring decisions are based on gut as opposed to repeatable success
- We don’t invest in an effective on boarding process….we let reps sink or swim
- Reps don’t know who to call or what to say when they connect
- When they do connect they show up and throw up and it is all about them instead of the buyer
- Marketing develops content to fill the top of the funnel but neglects the content that would help sales move the process forward
- Reps think inbound marketing means “they will call me if they want something”
- We have no idea how to ask for referrals or mine our own customer base
- Sales management does not know the difference between urgent and important
- Quotas are top down and based on something the board hands down after they passed the peace pipe
There were some excellent comments on Chad's post. Here are 2 that stuck out for me:
"I'd go on to add that not only are the hiring decision lazy, but the firing ones seem to be, too. I've seen countless numbers of inside folks stick around WAY longer than they should have, simply because replacing them was going to take too long. Or because they fit the culture."
- Chris Snell
"Selling the how (technology, methodology, product) rather than the outcomes"
- Robert Koehler
Both make excellent points. Why do you think 50% of sales reps are missing quota? Please share your thoughts.
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Posted by Matt Bertuzzi on Wed, Jul 14, 2010 @ 07:52 AM
I recently read an excellent post by Eloqua’s Steve Woods: Trust, Reputation, and Inside Sales. He argues that:
There is a significant shift underway in how we establish and build trust...
…. it is causing significant shifts in the way that people buy. While the general evolution of buyers is causing some challenges for field sales teams, the evolution of trust is opening up new opportunities for inside sales teams.
Steve presents that “historically" Inside Sales teams would close business with an average deal size under $20k. But that now "some organizations are seeing effective use of inside sales up to $100,000.”
I thought I would share a few findings from our 2010 Inside Sales Metrics & Compensation Report that back Steve up quantitatively.
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What is the average order size for Inside Sales?
Since 2007, the average order size has increased nearly 240%. Further, the percentage of respondents reporting their average order size of over $100k has more than tripled.
As one might expect, the average order size for Reps selling into the SMB is significantly lower (approximately 1/5th the size) than those for Reps selling into the Enterprise.
But what I found particularly interesting was the sharp increase in order size for Enterprise and Both SMB & Enterprise focused Inside Sales groups.
I think I’ll give the final words to Steve (note: emphasis mine)
.. the efficiencies of the inside sales model give it a significant advantage in smaller transactions. This efficiency win, combined with the new ability to build trust through means other than eye contact, are moving inside sales in many organizations from small transactions to much larger transactions. This trend is likely to continue as the communication tools and trust-building approaches continue to tip the balance in favour of the inside sales model.
What so you think? Does anything in the data particularly stand out to you?
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Posted by Trish Bertuzzi on Thu, Jul 08, 2010 @ 09:32 AM
[The following is an excerpt from the 2010 Inside Sales Metrics & Compensation Report survey of 115+ technology companies located in North America.]
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What is the annual quota per Rep?
| Average Annual Quota |
$853k
|
Data at left denotes Rep Quota tiers
Data at right denotes percentage of respondents
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What percentage of the group achieves quota?
In a given group,
% of Reps Making Quota |
50%
|
It is interesting to note that while target compensation has remained relatively flat since 2007 (a 1% decrease), quota has increased significantly (nearly a 33% increase).
What’s up with that?
Our buddy, Chad Levitt, shares his reactions with Sales Productivity Decline: Why did 50% of Sales Reps Miss their Number? Here's an excerpt:
That is a bloody mess for any sales organization and it begs some questions to be asked.
Here are a few that come to mind:
1.) Why are quotas going up while quota attainment is going down?
2.) Why is quota attainment going down?
3.) Why are quotas going up?
4.) Is there a disconnect between sales management and front line sales reps?
5.) Is the proper training being provided to sales reps?
6.) Is this a cyclical trend in the data or a secular shift in the way customers buy?
7.) How much of this trend is related to the 2009 recession?
8.) Do you have a repeatable and measurable sales process?
9.) Can you pilot changes in the sales process to increase rep quota attainment?
More then a few mind benders in that list, but they need to be put on the table and discussed if any organization is going to see an improvement in rep quota attainment. Many organizations will ignore the data, turn into an ostrich, and steak their heads in the sand. Don’t be an ostrich — it is not the solution.
So, how do we turn this trend around? When was the last time we really took a long hard look at our process and skills… and I mean long and hard look.
Great sales leaders are analytical. They know that selling is a much science as art. They know that those who win are those who have created a formula that is unique to their buyer and their market.
So, I ask you again, how do we turn this trend around? Any information you can share on what you analyze, or how much you invest per head in training your people or how you piloted a new sales process….whatever you have we would love to hear it.
After all, we are the best and the brightest in the selling community aren’t we?
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Posted by Trish Bertuzzi on Wed, Jun 16, 2010 @ 08:42 AM
I'm very excited to announce the release of the 2010 Inside Sales Metrics & Compensation Report focusing on the “quota carrying" Inside Sales function.
At the AA-ISP Leadership Summit in May I presented some of the findings (see below):
Let me share three data points I found interesting:
- Since 2007, the average size of Inside Sales groups has almost tripled.
Research by SKKU and MIT predicts growth of 800,000 jobs in Inside Sales while growth in traditional, field based, sales positions stagnates.
- Average time to ramp a new rep is 4.5 months and average tenure is 2.9 years.
Net, net… organizations really have to think about the lifetime value of their Reps. What can you do to ensure you make the most out of each hire? What can you do to elongate the stay of “A” players?
- In the past 3 years, quotas have risen nearly 33% yet the percentage of Reps making quota has fallen by 25%.
Further: 42% of respondents reported less than 50% of their Reps at quota. Only 4% had greater than 80% of their Reps at quota. Ouch!
Lots more great info in the report! Note: We'll also be publishing similar reports for Lead Generation groups and SaaS/Inside Sales groups - so stay tuned.
Our thanks to all who participated and, as always, feel free to call/email/comment with any questions you may have.
Posted by Gail Milton on Tue, May 25, 2010 @ 07:36 AM
Earlier this month I attended the AA-ISP Leadership Summit in Minneapolis. I came away with pages of notes, picked up some great new ideas and learned about a lot of interesting technology. It was also great to get confirmation on best practices from the thought leaders that I respect and follow and, lucky for me, they were there! On a personal note, the highlight for The Bridge Group was Trish receiving the Special Recognition Lifetime Contribution Award! That really meant a lot to her. In fact, I think I might have noticed a tear or two when she came back to the table. So, I wanted to share a bit about what I found most interesting from the Summit:
Tools, Tools, Tools Josiane Feigon and Nancy Nardin ran a very concise session on technologies that support the Inside Sales effort. You can download their ebook on Smart Selling Tools to learn more about where various tools fit in the buying cycle.
Summer Reading I added some books to my summer reading list. Has anyone out there read these? What did you think? What else should I add to my list?
Email Best Practice I’ve shortened my emails to keep pace with smart phones, but Mike Damphousse of Green Leads says to make them even shorter! I’ll give it a try. Here is his suggestion: - Only write 3 sentences
- Make the last sentence a question.
Sales and Marketing Alignment Mark Roberge, Hubspot's VP of Sales used a great expression to describe the consequences of not having Sales & Marketing in alignment. He called it “Sales Numbness”. Common Sales complaints are: “The marketing leads are terrible” and “The qualified leads I get from my inside teams are terrible”. Mark cautions that 10 poor quality leads will ruin the reputation of the entire lot and cause “Sales numbness”. He suggests you create a contract between Sales & Marketing to gain agreement and eliminate the problem.
Best Practices Hiring Here's a great question to ask yourself when making hiring decisions: “Would you want this person to leave voice mail or have a conversation with your CEO?” It is a simple yes or no question but very powerful! In Anneke Seley’s breakout session she was joined by Richard Steinhart of Informatica. Here is a piece of his hiring process: Preparation: Send the candidate a link to a webinar you have published and send them a PowerPoint presentation on your product. Ask the candidate to cut your PPT down to 4 or 5 slides. At Informatica, they use this early in the hiring process (I would adjust this slightly and use it after they made the 1st cut). Then either as a phone screen or as part of the face to face meeting have them present to you and qualify you as if you were a prospect. Interesting, eh?
Summary There were so many breakout sessions and discussions going on, it was impossible to take it all in. I will tell you this though, if you are an Inside Sales executive or practitioner this is a MUST attend conference for next year. Stay tuned to the AA-ISP for upcoming details.
Posted by Trish Bertuzzi on Tue, May 18, 2010 @ 08:01 AM
There is so much great information being published that I feel compelled to share what I find interesting. Here are a few really intriguing pieces that made me stop and say hmmm. ------- ------- I hope you found these useful and interesting! Please post comments and share your thoughts. Your contributions always make us stop and say hmmm….
Posted by Trish Bertuzzi on Wed, May 05, 2010 @ 07:03 AM
 I am throwing down a gauntlet and asking you dear readers to take it up. Every day I have conversations with vendors, consultants, analysts and clients about Sales & Marketing alignment. You can’t swing a cat without finding some blog or another talking about the very same thing. But, when does the rubber meets the road? Yes, we can get all cerebral and plan, strategize, define and measure but if you really want your Sales & Marketing organizations to understand each other’s challenges – they need to walk a mile in each other’s shoes. So, here is my “put your money where your mouth is” challenge: If you are a Marketing Executive, are you willing to take 100 random leads that you generated and jump on the phone to qualify them? Track the process you used, the time it took and the results you derived and then report back to Sales. All the meetings and brainstorming sessions in the world will not give you the same level of visibility into the quality of your leads that this exercise will. Oh, and if you are fortunate enough to have a staff, they have to grab 100 as well. If you are a Sales Executive, you have to design a marketing campaign and execute it. You have to target the audience, write the message/offer and pick the medium for communication. You also have to track the process you used, the time it took and the results you derived and then report back to Marketing. Oh, and everyone who ever used the words “I need more leads or these leads stink”, they have to design campaigns as well. So, who will volunteer for this? If you volunteer it would be our pleasure to post the results and what you learned about each other through the process. C’mon, a mile isn't so far is it? (Image credit: Watt_Dabney)
Posted by Cindy Littlefield on Wed, Mar 10, 2010 @ 07:11 AM
I recently read an article by Kelly Robertson called The Dangers of Sales Casual. Now I've heard of dress casual, but not sales casual - so I was intrigued.
Kelly shares his reactions to some recent cold calls he received:
The callers used a casual tone. While this isn't necessarily a bad thing, it reduces the overall professionalism of the call. When I asked one caller how he was (in response to the same question he had just asked me) he replied, "Well, ya know, I'm selling (product name), it's a challenge out there." The immediate thought that raced through my mind was "Gee, that's a surprise with an approach like yours." He also used slang during our conversation which is okay if you're talking to friends or coworkers, but not a new prospect. You have exactly one opportunity to make a powerful first impression and using slang greatly reduces your ability to achieve this.
Is your team using sales casual? How can you be sure? The only way to find out is to listen to them. Schedule a call coaching session at least once a week. You may be surprised at what you can learn about your Rep's selling style from regular coaching. Not only will you learn about their personal style but you can also determine if the messaging they are using is resonating with your potential buyers. Are they on the "we" train or are they talking to your buyers about the challenges "they" face?
Here is another great point from Kelly:
The callers seemed to ‘wing it' and were unfocused. In their attempts to sound friendly and casual the sales people seemed to lack focus. It took all my patience not to demand, "What are you selling?" Recognize that business people are extremely busy. Get to the point. Know what you want to accomplish and concentrate on achieving that objective"
Are your Reps wasting your prospect's time or are they creating a conversation that will spark interest and develop into a next step? Maybe it's not totally their fault - you have the responsibility of making them better sales people. Regular coaching will help you determine if your Reps needs additional tools and resources.
A call flow document, for example, is a great tool that can address everything from opening statements and qualifying questions to objection handling all in one nice neat package. Your team probably doesn't need a strict or canned script, but they may need a roadmap on how to move the prospect through the process using questions and conversation.
I agree with Kelly and I'm worried that a casual sales approach (combined with a casual sales process) neither leaves a good impression nor moves the sales process forward.
So here are my two cents:
- You have to coach your team to be professional.
- When they are lucky enough to get the right person on the phone, don't let them waste the opportunity.
- Make sure they know exactly what to say.
- Make sure they know exactly what their objective is.
- Teach them how to execute!
Casual Friday has become passé and we can only hope the same thing will happen to casual selling. Do you agree?
(Photo credit: slworking)
Posted by Matt Bertuzzi on Wed, Mar 03, 2010 @ 12:57 PM
I'm very excited to announce the launch of our 2010 Inside Sales Metrics & Comp Surveys for Technology Companies. We will be using this data to produce our 2010 research reports.
I would like to extend an invitation to participate (in the 6 minute web based survey) to Sales and Marketing Executives. We will reward your participation with a pre-release and no-charge copy of the report. Here are a few requirements for participation:
- Currently have an Inside Sales Implementation(s)
- Selling B2B technology (Hardware, Software, SaaS, etc.)
- Company located in North America
- Survey participants are VP/Director-level or above
If you are interested, please send us an email at insidesalesreport@bridgegroupinc.com. Please also identify your implementation model(s) using the following guidelines:
- Lead Generation- Reps tasked with pipeline generation, appointment setting, pre-qualifying inquiries, etc.
(Reps carry no revenue quota)
- Inside Sales- Reps tasked with revenue generation, closing business, etc.
(For on-premise software/hardware solutions)
- SaaS / Inside Sales- Reps tasked with revenue generation, closing business, etc.
(For SaaS, Software-as-a-Service, models)
Here are some of the topics we will be investigating:
- Compensation at the Rep & Management level
- Reporting structure
- Activity metrics
- Quota & contribution
- Productivity & much more!
I am looking forward to having readers of this blog participate so thanks in advance!
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