I'm very excited to announce the release of the 2010 Lead Generation Metrics & Compensation Report focusing on the “pipeline development" Inside Sales function.

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.

 

----------------------------------------

Get the Full Report: 2010 Lead Generation Metrics & Compensation
	Research Report: Focusing on the Lead Generation (pipeline generation) function.  Lead Generation Metrics & Compensation: KPIs & trends Based on 2010 survey of 115+ B2B companies.

I recently read an excellent post by Eloqua’s Steve Woods: Trust, Reputation, and Inside Sales. He argues that:

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.

----------------------------------------------------

What is the average order size for Inside Sales?

 

Average Order Size

$54k

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)

What so you think? Does anything in the data particularly stand out to you?
 

----------------------------------------------------

[The following is an excerpt from the 2010 Inside Sales Metrics & Compensation Report survey of 115+ technology companies located in North America.]
----------------------------------------------------

What is the annual quota per Rep?

 

Average Annual Quota

$853k

 

----------------------------------------------------

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:

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?

----------------------------------------------------

 
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:

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.

 

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:

If you are interested, please send us an email at insidesalesreport@bridgegroupinc.com. Please also identify your implementation model(s) using the following guidelines:

Here are some of the topics we will be investigating:

I am looking forward to having readers of this blog participate so thanks in advance!

Over the coming weeks, we will be highlighting key findings from the 2009 Lead Generation Metrics & Compensation Report. The report is based on surveys of 125 North American technology companies.

Our first topic focuses on a common question, "What is the optimal ratio of Lead Generation Reps to Field Reps?"

Based on the report, the average ratio is 1 Lead Generation Rep to 3.5 Field Reps. (see chart below)

In our experience, the optimal ratio is 1:3.

Extremely large territories or strategies that require penetration of large accounts may warrant ratios of less than that, but for most organizations a 1:3 ratio works best.

Downside of ratios greater than 1:3:

• Reps will work with those Field partners they "like" the most and ignore the rest
• Reps will work those territories that receive the most inbound leads
• The requirement to communicate with >3 field partners impacts the Reps productivity

Many organizations make basic mistakes when building a partnered plan.  Here are some tips on what not to do:

• Do not try to dicate that the Reps generate an equal number of leads from each territory.
• Do not try to split the Reps time equally among the territories.

Reps should be focused on creating opportunities that fit your Ideal Customer Profile.  Some territories are more ripe with these prospect profiles than others. 

Let the Reps use their own judgement as to how to achieve their goals within the overall territory that you have provided.  Don't try to force fit arbitrary goals.

To learn more, you can download the FREE 2009 Lead Generation & Metrics Report.

Please share you experience. What's your ratio & what drove that decision?

I am very excited to announce the launch of our Inside Sales Metrics & Compensation in Technology Companies survey. We will be using this data to produce The Bridge Groups' 2009 Inside Sales Metrics & Compensation report - due to be released early Q1 2009.

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 FREE copy of the report when published. 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 Manager/Director-level or above

If you are interested, please email insidesalesreport@bridgegroupinc.com  with your company name.  Please also identify your Inside Sales implementation model or models using the following guidelines:

• Business Development- reps tasked with pipeline generation, appointment setting, pre-qualifying inquiries, etc.
• Inside Sales- reps tasked with revenue generation, closing business, etc.
• Team Selling- reps partnered with a field sales counterpart

Here are some of the topics we will be investigating:

• Compensation at the Rep & Management level
• Reporting structure
• Hiring & attrition
• Quota & contribution
• Productivity & much more!

I know you will find the information to be of great value.  I am looking forward to having readers of this blog participate so thanks in advance!

What follows is the first in a series of quarterly interviews we will be conducting with Inside Sales executives.

To qualify, you must be at the Director or Vice President level and manage 6+ reps. If you are interested in being interviewed for future postings, please send an email to Trish Bertuzzi at tbertuzzi@bridgegroupinc.com.

----------------------------------------------------

Featured Executive:
Silvana Sears
Director of Inside Sales
FAST Search and Transfer, a Microsoft subsidiary

Silvana, how long have you been with FAST?
2.5 years

How long have you been in Inside Sales and what was your background?
I have been in the technology space for over 20 years. All of my experience was gained through real world inside sales implementations at various companies.
- eCredit.com
- Salary.com
- Monster
- TeleSales, Inc.
- Corporate Software

How many people do you manage and what is their charter? I manage 13 Inside Sales Reps. They are responsible for qualifying leads for the field. They uncover and nurture opportunities and when the time is right, and the prospect is well educated, they set up a meeting for their field partner.
To be clear, these are not introductory meetings. We educate and qualify the prospect before we set up a meeting. Before the field is involved the prospect has seen a demo and truly understands our value proposition.

 

How much of your team’s effort is spent following up on marketing inquiries and how much cold calling?
Like so many other companies, our strategy evolves. We used to spend most of our time on inquiry follow-up but now I would have to say we spend 90% of our time on very targeted outbound cold calling.

Our target contact varies but typically we focus on the Chief Compliance Officer, the Chief Technology Officer or the Vice President of Interactive.

Do you have any metrics you can share with us?
Absolutely.
We make 55 calls a day
Connect with 8 – 10 contacts
Have a quarterly team goal of 350 meetings

Of these …
68% make it to pipeline
44% close

What technologies are in place to support your team’s efforts?
CRM: We have used salesforce.com but now we are moving to Microsoft CRM.
Marketing: We use Eloqua as our email marketing platform and most importantly for lead scoring.
Contacts: To research and find contacts we use Jigsaw, Hoovers and OneSource.

What metrics do you capture and how do you use them to measure performance or make business decisions?
- Typical things like dials and connects.
- A certain percentage of their meetings have to enter the pipeline.
- Also, a certain percentage of their activity must come from target accounts.
Closed loop reporting is a challenge. Inside sales uses saleforce.com and the field uses Siebel. Using two systems is not easy as you can imagine.

What percentage of your team makes goal?
80%

How do you motivate your reps?
We have contests where we give away Red Sox tickets or ipods. We also have team retreats. Many of our reps are self motivated. We offer a great compensation plan! Six of my reps are going to Presidents Club this year!

We also offer a great career path. Two of my reps have moved in to field sales positions. Combine all of the above and it adds up to a challenging and motivating sales environment.

What does the hiring landscape look like for you? How are you finding the candidate pool?
The applicant pool is pretty good. I get lots of candidates through referrals, both internal and external. I think our compensation plan combined with our career path has a lot to do with it.

What do you look for in a candidate during the hiring process?
- Someone who is articulate but also possesses excellent writing skills
- Their mind has to be technically wired
- Consultative approach to selling
- 5+ years experience
Even though we don’t close deals, I like to hire someone who has closed before. I think this skill helps them do a better job on the front end of the sales process because they know what has to happen on the back end. I think it contributes to our high conversion and close rate.

If you had one piece of advice to give an inside rep on how to improve their performance what would it be?
Really understand the message and have a great elevator pitch. Make sure you know all about the competition and how to sell against them – many times Inside Sales doesn’t think this is their job but the front end of the sales process is just as important as the backend when it comes to positioning your value and setting the vision of the prospect.

What is your biggest challenge when working with the field, marketing or channel?
Field – Trying to get them to communicate and engage on a regular basis. How was the meeting, what are next steps, what can I do better? Their view can be unrealistic if a great communication vehicle is not in place…you have to be sure they don’t assume that every lead should close without any further education.

Marketing – You have to be careful or they can be out of alignment with sales. For instance, sales wants vertical messaging and marketing goes horizontal. Quite often Inside Sales can get caught in the middle of this situation if the inquiries they are working (which were created by Marketing) do not fit the expectations of the sales organization.

What issues would you be interested in brainstorming with your peers about?
How to ramp new hires more quickly! Even though I did read your posting on this topic, and I agree with you, I would like to talk to other executives about any methodologies or techniques they employ.

(This post is the first communication, in what will be an ongoing series of Ask the Experts questions, put to members of LinkedIn's Inside Experts Group - request to join here.  Whether you are a member or not, please share your thoughts and experiences by posting comments!)

Seth Gummere, Director of Inside Sales for Eduventures has a 2 part question he would like to pose to Inside Sales practitioners.

Background:
Seth's team is comprised of Inside Sales Reps that are responsible for setting meetings for the field. All face-to-face interaction is driven through this team.

Questions:

1. If you have a similar model, what is the ratio of inside rep to outside rep?
2. What methods do you use to drive an equal share of meetings for each rep?

 

One of the services I provide for The Bridge Group is to coach Inside Sales reps on effective prospecting and closing techniques.  This is the type of work I have been doing for technology companies for over 15 years and I thought I had seen it all...but apparently not!

I am starting to see a trend emerge that scares the heck out of me.  That trend is for Inside Reps to use email as opposed to the phone.  It makes me crazy knowing that reps have replaced having a conversation with a prospect to using email to communicate!  

I understand email is a viable tool, and if used properly, can be an advantage.  I do in fact recommend email be used as part of the process.  However, I've found it's overused, and in many cases has replaced human interaction.

We must consider the following:

• How do you initiate and drive the sales process via email?
    
• How do you effectively communicate your value proposition, conduct an in-depth qualification and handle objections via email?
   
• How do you establish a relationship and develop rapport?   

Now don't get me wrong, prospects do respond to email, in some cases, more often than voice mail.  Email is a great tool for:

• Helping to identify the correct contact
• Obtain a referral
• Schedule a follow-up conversation
• Confirm the details of a conversation
• Etc.. 

But it should be part of the process not the whole process!  Email should NEVER equate to more than 20% of a rep's activity metric.

Lastly, don't get me going on all of the grammatical and spelling errors I see.  Never mind the pure amount of information included... white papers, articles, demos, etc.  It's almost like we are assigning the prospect homework!   

What happened to providing appropriate information at various stages of the sales process?  Nope, let's throw it all out there and see what sticks!

I can hear Inside Reps saying "I get better response rates via email."  Yes, you do, but I bet they are mostly rejections and/or leads that are not fully qualified yet are progressed to the next stage.  No wonder sales reps complain about the quality of leads they receive!

Now, I have to go make some phone calls.  Thanks for listening.