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Optimizing Sales Performance in 2016:
Business Case for Sales Training
2
© MHI Global, Inc. All Rights Reserved.
• Sales Performance Research and Benchmarking Firm
• Survey Thousands of Firms Each Year Worldwide
• Focus on Understanding Challenges, Causes, and Solutions
2016 SPO Study Currently Underway
Give Us your Input,
We’ll Give You the 150+ Page Analysis
Email me at Jim.dickie@csoinsights.com
3
© MHI Global, Inc. All Rights Reserved.
40%
50%
60%
70%
2014 2013 2012 2011 2010 2009
58.1% 58.2%
63.0% 63.0%
59.4%
51.8%
Percentage of Salespeople Making
Quota
2009 - 2014
4
© MHI Global, Inc. All Rights Reserved.
So how’s that working for you? – Dr. Phil
94.5% of Firms
Raised Goals
5
© MHI Global, Inc. All Rights Reserved.
Today we have a surplus of “similar” companies,
employing “similar” people,
with “similar” backgrounds,
coming up with “similar” ideas,
producing “similar” things,
with “similar” quality & “similar” pricing!
Kjell Nordström & Jonas Ridderstråhle
– Funky Business
6
© MHI Global, Inc. All Rights Reserved.
Win Rate
of Forecast Deals
45.9%
49.3%
Seriously?
Odds of
Winning at Craps
7
© MHI Global, Inc. All Rights Reserved.
Multiple Decision Makers
Multiple Influencers
Multiple Agendas
- Modern Buyers
- Procurement Buyers
- Generational Buyers
- Old School Buyers
- Stereotypical Buyers
8
© MHI Global, Inc. All Rights Reserved.
Sales Force Enablement:
A strategic, cross-functional discipline
designed to increase sales results and productivity
by providing integrated content, training and coaching
services for salespeople and frontline sales managers
along the entire customer’s journey,
powered by technology.
9
© MHI Global, Inc. All Rights Reserved.
Level 1:
Level 2:
Level 3:
Level 4:
Random
Informal
Formal
Dynamic
13.2%
of firms
45.3%
of firms
26.8%
of firms
14.7%
of firms
10
© MHI Global, Inc. All Rights Reserved.
Trusted
Partner
Strategic
Contributor
Solutions
Consultant
Preferred
Supplier
Approved
Vendor
Random
Process
Informal
Process
Formal
Process
Dynamic
Process
11
© MHI Global, Inc. All Rights Reserved.
Meets/Exceeds
Expectations
Needs
Improvement
47.7%
52.3%
12
© MHI Global, Inc. All Rights Reserved.
Sales Training
Meets Expectations:
$2,489/Rep
Sales Training
Needs
Improvement:
$2,202/Rep
Sales Training
Exceeds Expectations:
$2,885/Rep
$673/Rep Difference
Between NI and EE Groups
13
© MHI Global, Inc. All Rights Reserved.
14
© MHI Global, Inc. All Rights Reserved.
Sales Training
Meets Expectations:
47.3% Win Rate
Sales Training
Needs
Improvement:
39.3% Win Rate
Sales Training
Exceeds Expectations:
52.3% Win Rate
15
© MHI Global, Inc. All Rights Reserved.
Understanding the Customer’s Buying Process
Training: NI
29.8% Meets
or Exceeds
Training: EE
76.7% Meets
or Exceeds
16
© MHI Global, Inc. All Rights Reserved.
Differentiation versus the Competition
Training: NI
38.9% Meets
or Exceeds
Training: EE
83.6% Meets
or Exceeds
17
© MHI Global, Inc. All Rights Reserved.
Align Solution to Customer Journey
Training: NI
36.0% Meets
or Exceeds
Training EE
83.6% Meets
or Exceeds
18
© MHI Global, Inc. All Rights Reserved.
Coaching on Pursuing Right Opportunities
Training: NI
14.9% Meets
or Exceeds
Training: EE
78.9% Meets
or Exceeds
19
© MHI Global, Inc. All Rights Reserved.
Coaching on Selling Value/Avoiding Discounting
Training: NI
35.3% Meets
or Exceeds
Training: EE
80.0% Meets
or Exceeds
20
© MHI Global, Inc. All Rights Reserved.
Training: NI
Total Turnover
26.2%
Training: ME/EE
Total Turnover
14.1%
21
© MHI Global, Inc. All Rights Reserved.
$672/Rep Increased
Investment
Less Sales Force Churn
Higher Margins
Better Seller Buyer Alignment
More Predictability
More Revenues
© MHI Global, Inc. All Rights Reserved.
22
© MHI Global, Inc. All Rights Reserved.
Build: 47.4% of Firms Buy: 52.6% of Firms
23
© MHI Global, Inc. All Rights Reserved.
Cost
Adoption
Impact
Build Buy
Ratings
24
© MHI Global, Inc. All Rights Reserved.
Cost
Adoption
Impact
Build Buy
Ratings

Difference of $67/Rep/Year
Between Build and Buy
Assume 100 Sales People
Savings of $6,700/Year
25
© MHI Global, Inc. All Rights Reserved.
Cost
Adoption
Impact
Build Buy
Ratings

Sales Process Adoption:
Level 3 – Formal or Level 4 Dynamic
Build: 41.0% of Firms Surveyed
Buy: 58.5% of Firms Surveyed

26
© MHI Global, Inc. All Rights Reserved.
Cost
Adoption
Impact
Build Buy
Ratings



Sales Effectiveness Ratings as
Related to Build Versus Buy
Training:
Build
Training:
Buy
World-class Rating 4.5% 9.7%
Very Effective Rating 7.1% 18.1%
Effective Rating 36.5% 26.9%
27
© MHI Global, Inc. All Rights Reserved.
Cost
Adoption
Impact
Build Buy
Ratings




Percent of Overall Plan Attainment
Build: 87.1%
Buy: 90.4%
$100M Company Generates
$3.3M in Topline Revenue
Why Build if You Can Buy?
28
© MHI Global, Inc. All Rights Reserved.
29
© MHI Global, Inc. All Rights Reserved.
RESEARCH DATA EXPERTISE
Research, Data and Expertise Sales Leaders Respect and Trust Globally.
Best Practice
Frameworks & Trends
Sales Performance &
Productivity Research
Peer & Standard
Benchmarking
Assessment &
Measurement Tools
In-person & Online
Executive Networking
Advisory
We provide sales analysis and decision making support to sales
leaders: the individuals who are responsible for the creation and
execution of the sales strategy.
30
© MHI Global, Inc. All Rights Reserved.
How Effectively are You Connecting with Your Clients?
How Well are You Supporting Your Sales Teams?
What is the “Cost of Doing Nothing” to Change?

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Building Business Cases for Sales Training

  • 1. Optimizing Sales Performance in 2016: Business Case for Sales Training
  • 2. 2 © MHI Global, Inc. All Rights Reserved. • Sales Performance Research and Benchmarking Firm • Survey Thousands of Firms Each Year Worldwide • Focus on Understanding Challenges, Causes, and Solutions 2016 SPO Study Currently Underway Give Us your Input, We’ll Give You the 150+ Page Analysis Email me at Jim.dickie@csoinsights.com
  • 3. 3 © MHI Global, Inc. All Rights Reserved. 40% 50% 60% 70% 2014 2013 2012 2011 2010 2009 58.1% 58.2% 63.0% 63.0% 59.4% 51.8% Percentage of Salespeople Making Quota 2009 - 2014
  • 4. 4 © MHI Global, Inc. All Rights Reserved. So how’s that working for you? – Dr. Phil 94.5% of Firms Raised Goals
  • 5. 5 © MHI Global, Inc. All Rights Reserved. Today we have a surplus of “similar” companies, employing “similar” people, with “similar” backgrounds, coming up with “similar” ideas, producing “similar” things, with “similar” quality & “similar” pricing! Kjell Nordström & Jonas Ridderstråhle – Funky Business
  • 6. 6 © MHI Global, Inc. All Rights Reserved. Win Rate of Forecast Deals 45.9% 49.3% Seriously? Odds of Winning at Craps
  • 7. 7 © MHI Global, Inc. All Rights Reserved. Multiple Decision Makers Multiple Influencers Multiple Agendas - Modern Buyers - Procurement Buyers - Generational Buyers - Old School Buyers - Stereotypical Buyers
  • 8. 8 © MHI Global, Inc. All Rights Reserved. Sales Force Enablement: A strategic, cross-functional discipline designed to increase sales results and productivity by providing integrated content, training and coaching services for salespeople and frontline sales managers along the entire customer’s journey, powered by technology.
  • 9. 9 © MHI Global, Inc. All Rights Reserved. Level 1: Level 2: Level 3: Level 4: Random Informal Formal Dynamic 13.2% of firms 45.3% of firms 26.8% of firms 14.7% of firms
  • 10. 10 © MHI Global, Inc. All Rights Reserved. Trusted Partner Strategic Contributor Solutions Consultant Preferred Supplier Approved Vendor Random Process Informal Process Formal Process Dynamic Process
  • 11. 11 © MHI Global, Inc. All Rights Reserved. Meets/Exceeds Expectations Needs Improvement 47.7% 52.3%
  • 12. 12 © MHI Global, Inc. All Rights Reserved. Sales Training Meets Expectations: $2,489/Rep Sales Training Needs Improvement: $2,202/Rep Sales Training Exceeds Expectations: $2,885/Rep $673/Rep Difference Between NI and EE Groups
  • 13. 13 © MHI Global, Inc. All Rights Reserved.
  • 14. 14 © MHI Global, Inc. All Rights Reserved. Sales Training Meets Expectations: 47.3% Win Rate Sales Training Needs Improvement: 39.3% Win Rate Sales Training Exceeds Expectations: 52.3% Win Rate
  • 15. 15 © MHI Global, Inc. All Rights Reserved. Understanding the Customer’s Buying Process Training: NI 29.8% Meets or Exceeds Training: EE 76.7% Meets or Exceeds
  • 16. 16 © MHI Global, Inc. All Rights Reserved. Differentiation versus the Competition Training: NI 38.9% Meets or Exceeds Training: EE 83.6% Meets or Exceeds
  • 17. 17 © MHI Global, Inc. All Rights Reserved. Align Solution to Customer Journey Training: NI 36.0% Meets or Exceeds Training EE 83.6% Meets or Exceeds
  • 18. 18 © MHI Global, Inc. All Rights Reserved. Coaching on Pursuing Right Opportunities Training: NI 14.9% Meets or Exceeds Training: EE 78.9% Meets or Exceeds
  • 19. 19 © MHI Global, Inc. All Rights Reserved. Coaching on Selling Value/Avoiding Discounting Training: NI 35.3% Meets or Exceeds Training: EE 80.0% Meets or Exceeds
  • 20. 20 © MHI Global, Inc. All Rights Reserved. Training: NI Total Turnover 26.2% Training: ME/EE Total Turnover 14.1%
  • 21. 21 © MHI Global, Inc. All Rights Reserved. $672/Rep Increased Investment Less Sales Force Churn Higher Margins Better Seller Buyer Alignment More Predictability More Revenues © MHI Global, Inc. All Rights Reserved.
  • 22. 22 © MHI Global, Inc. All Rights Reserved. Build: 47.4% of Firms Buy: 52.6% of Firms
  • 23. 23 © MHI Global, Inc. All Rights Reserved. Cost Adoption Impact Build Buy Ratings
  • 24. 24 © MHI Global, Inc. All Rights Reserved. Cost Adoption Impact Build Buy Ratings  Difference of $67/Rep/Year Between Build and Buy Assume 100 Sales People Savings of $6,700/Year
  • 25. 25 © MHI Global, Inc. All Rights Reserved. Cost Adoption Impact Build Buy Ratings  Sales Process Adoption: Level 3 – Formal or Level 4 Dynamic Build: 41.0% of Firms Surveyed Buy: 58.5% of Firms Surveyed 
  • 26. 26 © MHI Global, Inc. All Rights Reserved. Cost Adoption Impact Build Buy Ratings    Sales Effectiveness Ratings as Related to Build Versus Buy Training: Build Training: Buy World-class Rating 4.5% 9.7% Very Effective Rating 7.1% 18.1% Effective Rating 36.5% 26.9%
  • 27. 27 © MHI Global, Inc. All Rights Reserved. Cost Adoption Impact Build Buy Ratings     Percent of Overall Plan Attainment Build: 87.1% Buy: 90.4% $100M Company Generates $3.3M in Topline Revenue Why Build if You Can Buy?
  • 28. 28 © MHI Global, Inc. All Rights Reserved.
  • 29. 29 © MHI Global, Inc. All Rights Reserved. RESEARCH DATA EXPERTISE Research, Data and Expertise Sales Leaders Respect and Trust Globally. Best Practice Frameworks & Trends Sales Performance & Productivity Research Peer & Standard Benchmarking Assessment & Measurement Tools In-person & Online Executive Networking Advisory We provide sales analysis and decision making support to sales leaders: the individuals who are responsible for the creation and execution of the sales strategy.
  • 30. 30 © MHI Global, Inc. All Rights Reserved. How Effectively are You Connecting with Your Clients? How Well are You Supporting Your Sales Teams? What is the “Cost of Doing Nothing” to Change?

Notas del editor

  1. Modern Buyers – abundance in info via Google Procurement Buyers – price vs. value mindset Generational – boomer vs. millennial Old School – non tech, non social Stereotypical – academic
  2. $68,500 cost difference for 100 sales rep company
  3. What if we trained them and they left vs. what if we trained them and they stayed