smo 2011 sample benchmark

8/6/2019 SMO 2011 Sample Benchmark

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CSO Insights 2011 Sales Management Benchmark Report

Surveys Selected: Widget Industry (Sample)

These charts represent answers to our 2011 Sales Management survey from sales

executives in the Widget Industry. From their answers, you’ll get a good idea what

other executives are experiencing in today’s business environment.

As you review the charts, keep in mind what you would have answered to the

questions so that you can best interpret our comments. We recommend you use this

report alongside our 2011 Sales Management Optimization research report, as best

practices and case studies included in the report will help you devise an action plan.

We have provided comment on the charts for 10 metrics that we find have the most

impact on sales results. The rest of the charts, representing answers to all thequestions in our survey, are included without comment.

The data used for this benchmark comes from surveys completed by sales executives

between January and April 2011.

The information in this report is for internal use only. Feel free to share the report

with colleagues within your company.

For any other use of this report, please contact CSO Insights.

You may receive a PowerPoint version of this report so that you can use the slides in

presentations to your management team. Email Laura Andrus and request your

PowerPoint file.

Laura.andrus@csoinsights.com

Win, Loss, No Decision Rates

A sales manager’s main role is to help salespeople more effectively move

opportunities through the pipeline. One of the key metrics we have used to assess

how well managers are doing their job is to look at the close rate of forecast deals.

Win rates are low across the board in 2011. The Widget Industry has a higher win

rate than reported in our 2011 Sales Management research report, which is good.

The 27% no decision rate is 3% higher than the combined results, and represents a lot

of wasted cycles in the sales force.

Best Practice in this area is improved coaching by sales managers.

This metric is covered in the 2011 Sales Management Optimization report on pages 3-4.

Profile of First Line Managers

Participants in our 2011 Sales Management study made it clear that industry

experience is paramount for new managers. As a result, most companies hire new

managers from their industry or they promote sales reps from within their

companies.

The Widget Industry is more interested in promoting existing sales reps than in

bringing in managers from outside the company. 80% of these companies look to

existing sales reps to fill management jobs, versus 64% of all the companies in our

survey. Although sales results do not differ much between these choices, our data

show that turnover rates increase when sales reps are promoted to managers.

Best practices for this metric include watching turnover rates when promoting salesreps and in developing programs to ensure sales reps are ready to take the reins

before putting them into these important jobs.

This metric is discussed in the 2011 Sales Management Optimization report on pages

Sales Management Training Assessment

We look at this metric to see how committed companies are to making their

managers successful. In 2011, we saw an overall drop in the effectiveness ratings of

all types of manager training except CRM and forecast/pipeline management skills.

Coaching and mentoring took the biggest hit. This is not good in a year when 70% of

companies in our Sales Performance study said they were increasing their sales force.

New hires put even more demands on managers to perform, and the investment in

their training should reflect this.

The results for the Widge Industry are much worse than the overall Sales

Management survey population for coaching and forecasting. 60% of the Widget

Industry companies say coaching/mentoring training needs improvement comparedto 49% of the overall survey population. The numbers for forecast management are

Widget Industry 57% needs improvement, overall survey, 40% needs improvement.

Best practices include considering investing more in manager training than in rep

training and the critical need for coaching & mentoring training to be at the top of the

This metric is covered in the Sales Management Optimization report on pages 7-8.

Sales Manager Time Allocation

We look at this metric because of the importance of sales managers spending time

with the sales reps. If we see excessive time spent on other tasks, we can usually

predict trouble.

Manager time coaching sales reps and selling with sales reps was similar this year to

last. What did change was the ratio of reps to managers, which means each rep got a

little less time with the sales manager.

Managers in the Widget Industry companies spent 5% less time with their reps than

the average manager in the survey. The 5% went to internal meetings and

management tasks.

Best practices for this metric include adoption of CRM 2.0 tools to extend the

managers’ reach.

This metric is covered in the 2011 Sales Management Optimization report on pages 9-

Metrics Used to Assess Sales Manager Performance

We watch this metric because we know that companies get what they pay for. If the

primary compensation metric is making the sales team number, you may make the

overall number. If you make the number because the sales managers went out selling

their own deals or rode over the finish line on the backs of the superstar sales reps,

what does that mean for next year? For turnover rates?

Since this is a real possibility, more companies are compensating sales managers for

helping each and every sales rep make the number. 49% of the companies in the

overall study are compensating sales managers this way.

The Widget Industry companies are right in line with the others in the survey.

Best practices for this metric include increasing use of forecast accuracy as a

measurement of sales manager performance and better technology to calculate

commissions.

11-12.

Ability Assessment: Sales Intelligence & Knowledge Access

We watch this metric because sales intelligence and sales knowledge management

make great virtual sales coaches when the sales manager isn’t available.

The technologies for these applications are stable, affordable and invaluable to the

companies that use them.

The Widget Industry companies are ahead of the pack in sales intelligence, and

lagging behind more than 10% in sharing best practices and access to competitive

analysis. They’re also behind 5% in access to client marketplace information. Our

Sales Performance Optimization study supports this. Sales reps in the larger

companies have the most difficulty getting sales knowledge when they need it.

Best practices include an on-demand sales information repository at Experian.

This metric is covered in the 2011 Sales Management Optimization report on pages

13-14.

Level of Sales Process

Combined with the level of client relationship, this metric has the largest impact on

sales effectiveness, according to our results. The more formal the sales process, the

easier it is to train reps, measure their performance, forecast outcomes and win

43.5% of the participants in our study have a formal or dynamic sales process, which

leaves 56.5% who don’t.

39.8% of the Widget Industry companies have a formal or dynamic sales process.

That means 60.2% have a random or informal sales process.

Best practices for this metric include a 20% increase in the % of reps who make quotawith a dynamic sales process versus a random process.

15-16.

Sales Management Best Practices Execution Assessment

These are metrics we like because you can make a prioritized to-do list at one glance.

We selected these items because they are generally agreed-upon activities we rely

upon sales managers to handle.

Our survey population in 2011 fell particularly short in getting reps to develop

strategic account plans and identify all the stakeholders in a sale. They do fairly well

at getting reps call on executives, link the solutions to stakeholder needs and assess

opportunities before committing resources.

The Widget Industry companies had even greater issues with account plans and many

of the others. They remain in the one-digit percentages on ‘exceeds expectations’ for

all the metrics.

Everyone walks away from this list with an action item.

Best practices for this metric include finding a Sales Intelligence provider.

17-18.

Ability Assessment: Forecast Management

This list of metrics defines 6 forecast-related activities for sales managers. Successful

execution of these activities will give sales managers a good handle on the forecast.

We first asked the survey takers how important these items were to making their

numbers.

Finding reps who need coaching, finding the forecast deals that are slipping and

effectively coaching sales reps were rated ultra-high in importance. The ability to

execute these tasks was not so high among the survey takers.

The Widget Industry companies have the same issues, to a larger degree. While the

“needs improvement” stats were in the 30%-40% in our overall survey, 40%-50% of

the Widget Industry had issues with several of these critical activities.

Best Practices for this metric include sales analytics and Coaching By Exception.

These metrics are discussed in the 2011 Sales Management Optimization report on

pages 19-10.

Sales Management Effectiveness Priorities Going Forward

This metric gives us an idea what the CSO thinks the problem is, as they are planned

initiatives for this year.

#1 this year and last year is improving the ability to show benefit and value. #2 is

competitive differentiation. These really go together.

The Widget Industry agreed on #1, but went another way on #2 – Optimize Sales

Process. And #3 was Increase Customer Loyalty. Improving sales process will be part

of showing value. As for customer loyalty, perhaps this group has spent so much time

chasing new accounts that they realize they’re not getting as much out of the base as

they should.

Best practices for these metrics fall all over the map. But rest assured they all involve

improving the sales process and making your relationship with the customer more

strategic.

21-22.

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smo 2011 sample benchmark

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