The implementation of a sales playbook can be one of the most impactful initiatives for any sales organization. There are two reasons for this tremendous ROI. First, by following some simple guidelines, it can be a remarkably easy initiative to implement, and second, research shows that this results in 33% additional revenue.

We have done hundreds of Sales Playbook deployments with Dealmaker Smart Sales Playbook. Here are the 12 Elements of a great sales playbook that you should use to guide your implementation. 

1. Repeatable Winning Sales Processes

The key word here is ‘repeatable’. When everyone adopts the same sales process, there is a common language that is understood, not just by sales, but by the whole organization.  Recent research shows that while only 60% of sales teams have a sales process that is well defined, and well executed – those who do are 33% more likely to be High Performers*.

2. Customized to the Buying Cycle

Customers buy in lots of different ways; some purchases are guided by a single decision maker, while in other cases there can be a large buying committee. Some issue RFPs (health-warning!), others invite recognized suppliers to discuss their issues,  an increasing number learn in the Social Universe, and just a few remain with the incumbent supplier trading ‘the devil you know’ for potentailly more advanced or competitive solutions. Unless you visualize the journey the customer wants to take, you won’t be with them when they reach their destination.

3. Sales Tools in Context at Each Stage

At each stage of the buying process, salespeople need to employ just the right tools – at the right time to advance the sale to the next stage in the process.  A B2B sale is not a single event. In fact it is a collection of micro-sales events, each crafted to move closer to the eventual goal. Salespeople are busy and often don’t know which tool they need, where to find it or how to use it at the specific point in the micro-sale. Integrating sales tools into the playbook as part of the sales process is the solution.

4. Industry Sales Process Templates

It is widely accepted that tailoring your sales process to the specific needs of an industry will increase your chances for success. Third party industry sales templates are readily available from suppliers who have been tracking and analyzing millions of sales cycles.  That is the catalyst you need to get started.

5. Many Simple and Complex Processes

One playbook or sales process does not fit all.  Sometimes you are pursuing a brand new customer or a very large deal that demands a complex and sophisticated set of ‘plays’ to win the deal.  In other cases, the transaction might be quick,  one that suggests a diffferent rhythm. Your sales playbook should have the requisite intelligence to support that automatically and serve up the right playbook at the right time.

6. Process, Benchmarks and Insight

Benchmarking delivers many advantages for companies looking to improve the performance of their sales organization. Your playbook must capture those benefits, learn from them, and uncover inisghts that help you to drive your sales velocity.  When deploying a playbook, ensure that you have built in a capability that guides you to progress through these stages of evolution for your sales team.

7. Team Visibility for the Sales Manager

Being a front-line sales manager is one of the hardest jobs in sales.  It is also the critical link in sales.  Unless the sales manager has with all the tools he or she needs to easily manage the business, the whole performance of the sales organization suffer.  You need to provide them with the ‘Easy Button’.  Sales playbooks are often designed just with the sales person in mind.  Remember that the sales manager is the critical link.

8. Integrates with CRM System

This one should be a ‘no-brainer’. The playbook must integrate tightly with the CRM system so when the sales person works with an opportunity, the playbook will always be present, just where it needs to be.  That way the playbook (if it is smart enough) can react to the attibutes of the opportunity, like the size of the deal, or the products included in the opportunity record to present the right playbook for that opportunity. Complete integration with your CRM delivers the  optimum experience for the sales person, and provides sales managers with greater flexibility on how they view the data in the context of the rest of the business.  It is important.

9. Informs Sales Forecast Visibility

Salespeople spend about 2.5 hours each week on sales forecasting, and for most companies, the accuracy of sales forecasts leave a lot to be desired. To maximize the impact of your sales playbook on the accuracy of your sales forecast, there are two things to consider. (1) Does the sales playbook incorporate intelligence that objectively monitors the close date of the sale? (2) Does the sales playbook provide the sales manager with insight into deal vulnerabilities and risks in the forecast?

10. Motivational and Visual

There are only two reasons why an individual does not complete a task.  Either they do not have the competence, or they are not motivated enough  to do it.  Think about that – these are the only two reasons.  Your sales playbook should improve competence and increase motivation.  The competence piece is easily understood.

Motivation is a little more challenging. A study on What Motivates Sales People shows that, perhaps surprisingly for some, compensation is not the primary motivator. ‘Making Progress of Winning’ is ranked by sales people as the main reason they get up in the morning. To entice adoption of the sales playbook (rather than force compliance) your sales playbook needs to provide true value for the sales person – resolve that reward/effort equation, so that the salesperson gets more back from the playbook that they put into it.

11. Social and Collaborative

As B2B companies rely more heavily on social collaboration tools, some of the biggest gainers are going to be salespeople. Sales people who are the leaders in their organization are using social tools such as Chatter in Salesfore to improve collaboration in their own sales teams. Leading sales playbooks help by letting everyone ‘follow’ the plays, contributes to the conversation, and collaborate on the deal. The B2B world is constantly becoming more social and collaborative and you should ensure that your sales playbook accommodates this advancement.

12. Mobile and Cloud

Time is precious, and the sales person’s time is incredibly precious, both to them and to the sales organization looking to maximize the performance of their key quota-bearers.  Since so much of a sales person’s time is spent moving between A and B and back again, they should be equipped with the mobility to connect to their sales playbook allowing them to be responsive, productive, collaborative and consistent at any time, wherever they are. In other applications, mobile and cloud capabilities are being leveraged to facilitate access anywhere, anytime.  It must be the same with your sales playbook. Unless mobile and cloud are core elements of your sales playbook plan, the initiative could face severe challenges in a very short term.

In June 2012, Angela Ahrendts, CEO of Burberry appeared on the cover of Fortune magazine.  As Fortune reports it:

 Last May, Burberry CEO Angela Ahrendts flew to California from her London headquarters to introduce herself to an executive she thought could be critical to the future of her business: Salesforce.com CEO Marc Benioff. When the two met at the Ritz-Carlton in Half Moon Bay, they stood in the hall batting around ideas for 15 minutes before even sitting down. Ahrendts explained her vision: to create a company where anyone who wanted to touch the brand could have access to it. She just needed a digital platform to make it happen.

Click for bigger image

Benioff sketched a diagram of how Burberry could become a “social enterprise,” overlaying technology like Salesforce, SAP, Twitter, and Facebook atop the entire company. (Benioff signed the drawing “Angela + Marc = LIKE,” and Ahrendts keeps the framed original, pictured below right, in her office.) “I told him, ‘I think I finally met someone who talks faster and has more energy than I do,’ ” she says. “We just connected.”

However, as anyone who attended any salesforce.com event between mid-2011 and 2012, physical or virtual, could tell you, you could see that Ahrendts’ new celebrity status is due in no part to the level of exposure given her by Benioff. It even got to the stage that Twitter contributors were wondering if she was going to wear ‘that white suit again’.  Benioff – certainly one of this era’s marketing geniuses – knows how to make his high-profile customers feel special – and knows, better than most, the value of the Customer Network Value.

In many cases customers are totally bypassing the early stages of the traditional buying cycle.  Rather than calling a company for information, they are instead joining forums on line, engaging in conversation on Twitter or Facebook, looking to people with ‘Klout’ or influence to guide them through the information gathering and evaluation phases of the buying cycle.

They look for recommendations from peers and others ‘like them’ to short-list potential suppliers, refine their requirements, and gain insight in the application of a vendor’s product that often surpasses that of the vendors sales person.

To care about your Customer’s Network Value, you must first care about your customer, and treat customer service, and every customer interaction as an extension of marketing.  Caring about your customers before they become customers is actually more difficult but increasingly important.

You can achieve this firstly by participating in the same networks in the Social Universe as the customer traverses the Contact phase of the buyer/seller transaction.  Then you need to monitor what is happening and respond to your customer during the Control phase, as that is where they can have most impact on your future customers.  In any case, if the customer wants to interact in the Social Universe, it is your job to facilitate that interaction.  It is increasingly becoming an implicit part of your promise to deliver – and you need to be prepared.

We need to recognize that our customers and prospects hang out somewhere, and that somewhere is increasing somewhere online in the Social Universe, where each is weaving their own tapestry with the threads of their network.

You really do want to be one of the threads!

Unless you want to become irrelevant, or unless you can consistently be the low-price provider servicing those who care only about price, then you need to be part of the ‘recommendation chain’. You must establish trust, and the customer must see you as someone more ‘like them’ than a representative of your company.  But, the threshold is high – because in the end, for new customers, you’re going to ask them to do business with you. Being ‘like them’ breaks down some barriers, but it’s not enough.  You must continually add more value in the Social Universe than you expect to get in return.  You’re looking to recoup the return on the influence you have developed online later.

[This is the third in a series on 6 Factors that are transforming B2B Sales in 2012. This factor deals with Social - and I have broken that down into four separate posts that will be published over the coming week.]

If Mobile is the needle, then Social is the thread.

Mobile makes information accessible anytime, anywhere, and can make information location sensitive.  But Social weaves all of the information together, and we each get to create our own tapestry – being curators of information from multiple and varied sources, engaging and allowing us to shape, create, and co-create information in our own voice, and, amplify the voices of others – all in a global community.

Remember, it is not that long ago that we were all chained to the desk locked down by the desktop computer. In 2000, wireless networking did not exist, and social network sites had yet to emerge.  For most people, information on the Internet was consumed, but not created.

Now as a new tapestry emerges, we get the opportunity to color our own patterns.  The confluence of mobile and social has changed the dynamics of time, location and information.  As we each move our own needle, we get the opportunity to weave personal and participatory shades with an immediate and synchronous rhythm.

And the rhythm is being amplified, causing waves that are being felt everywhere. Becoming increasingly social through their mobile devices, 24% of US adults look to the advice of their online virtual peers as they shop in the offline world, checking out product reviews on the Internet before they make a physical purchase. More than one in five post photos and videos from their phones and about a third engage in social network sites as they roam.

Social networks are the ties that bind us, and irrespective of race, income, or gender, two-thirds of us now use social networks, primarily to reach or communicate with friends, current and re-discovered, and stay in touch with family.

These behavioral developments started in the consumer world, but quickly transitioned to the business world. Remember, not all consumers are B2B buyers, but all B2B buyers are consumers.  All business people – including both sellers and buyers – are consumers, and the lessons they learn in ‘consumer-land’ shape their thinking and expectations in ‘business-land’.

Social Business / Social Enterprise

A social enterprise used to be an organization that applied commercial strategies to maximize improvements in human and environmental well-being, rather than maximizing profits for external shareholders. This term has been hijacked in recent times – the main culprit being Marc Benioff, CEO of salesforce.com, which is perhaps interesting, given his impressive philanthropic record – to refer to the application of social media, social network, and collaboration technologies to business systems, particularly in the cloud.

Before salesforce.com appropriated the term Social Enterprise, or released Chatter, our research team had investigated how we could make our Dealmaker application ‘social’. What would be the impact if Dealmaker ‘tweeted’ (privately to you) every time there was an important change in a sales opportunity?  That was the genesis of Dealmaker Pulse – back in late 2009.

We decided that Dealmaker Pulse should provide intelligent social networking for sales, with instant objective deal alerts, and allow sales people and leaders to benefit from keeping their ‘finger on the pulse’ of their selling organization and get instant knowledge of what is happening across their teams and deals.

Since then, with the development of Chatter, Jive, Yammer, and other social enterprise tools, sales people and leaders can now elect to follow opportunities, accounts and users, and their messages (or ‘pulses’ in our language) delivered in real time.

Above all, social should be collaborative, and our focus has since evolved to how we can use the intelligence of Dealmaker to inform the other social and CRM platforms with which we integrate.

Collaboration is important as it positions all parties on the same side of the table and helps to develop a trusting relationship.  Trust needs to be at the center of the Social Universe, and I will discuss that in the next post.

In my previous post, Which B2B Social Network is the Most Valuable? I referenced the research we did through the DealmakerIndex and it was very clear that LinkedIn is valued a lot more by B2B professionals than any of the other outlets in the Social Universe. There has been much written about LinkedIn best practices, but just this week Dave Stein at ES Research put together his thoughts on LinkedIn and some observations about how it is used.

I liked very much what Dave had to say, and with his permission I have included his thoughts here. The comments in [italics] are my additions.

In Dave’s words …

• I use LinkedIn to help clients with blind reference checking of candidates for sales and sales executive positions.  Recently a client took my advice by looking at who I was connected to that might, in turn, be connected to a VP of Sales candidate they were getting close to hiring.  Bingo.  I was able to introduce the CEO with a number of close contacts who generously spent a lot of time with my client. The candidate never knew the conversations took place.  He was hired last week.? [It is always very important to check references, and LinkedIn is great place to select references you might want to check, other than those offered by the candidate.]
• I always look someone up on LinkedIn before speaking with them the first time, or after not speaking with them after a long time. Amazing how things change for people. New company, new position, new contacts. Conversations are so much more productive when you get a fix on the other person’s perspective.?[I’d suggest that to really get inside someone’s head, Twitter is a better place to get a feeling for who someone is.  LinkedIn tends to be less spontaneous, and consequently provides less insight.]
• When someone I know contacts me to network their way into a new position, I’ll often suggest they look through my connections.  I’m generally willing to make introductions, although recommending them is out of the question for me if I haven’t worked with them directly.  The book makes another point. Don’t wait to start networking when you’re looking for a job.  Take the time to build a network based on mutual value before that need arises. I completely agree with that.
• I cull my connections regularly.  I’m not a collector of connections on LinkedIn.  In fact I think those that are miss the point of real networking. I believe it’s the quality of the relationships that determine how networked you are, not the number of names you can collect.  For that reason I don’t accept connections from those whom I don’t know, have not been recommended to me, or with whom I don’t have something in common.  I (almost always) send a reply which explains my position, assuring them that my unwillingness to connect with them isn’t personal. I expect some get offended anyway, or think I’m odd.?[I couldn’t agree more – it’s about connections, not contacts.  If those who you link with have a massive network, but you are not really connected to them, then it dilutes the value of your network, as they keep popping up as the link, and that sometimes gets in the way of people who you really now, and who might really help.]
• I feel the system is being abused when someone wants to connect with me, but can’t take one minute to overwrite the ubiquitous, “I’d like to add you to my professional network on LinkedIn.” Take a minute and tell me what I can do for you, or even better, what you can do for me, or even better than that, what we both can do for someone else. ?[LinkedIn’s recent practice of continuously suggesting new people to connect with is partly to blame for this I think, but if someone does not write a personal message, then I’m with Dave here.]
• Salespeople who are not looking for a job should construct their LinkedIn profiles centered on the value they have delivered for their customers through each of the positions they have held. [I think there is an opportunity to provide a quick overview of the value your current company provides, or how you can provide value to customers based on your current company's offerings.] Those who are looking for a job should stress sales performance.
• I’m not big on recommendations. I have a few that are important to me, but I don’t publish others. I think they are, for many, part of a profile-expanding quid pro quo approach. In those cases, I don’t even read the recommendations.?[It is amusing sometimes when Fred recommends Jane, and Jane recommends Fred – but I don't know who Fred and Jane think they are kidding.  Seriously though, recommendations are typically solicited, and are not reviews, but compliments that are asked for, and as such have little value.]
• I’m a little miffed at LinkedIn.  There is no iPad app. I don’t keep up with iPad app development news. I wonder when the iPad app will happen.  Anyone know??[I found this LinkedIn iPad app.  Can’t comment on it though, I’ve not used it.]
• I’ve used both LinkedIn ads and job postings. The job posting facility worked very well when ESR was searching for another analyst last year.? [I’ve used LinkedIn for job postings regularly as we have found some great candidates that way. However, you do have to trawl through a lot of chaff.]
• The groups and discussions are all over the map.  Some groups are tightly controlled.  That’s good. Others are like the wild West.  If I want to get updates on new discussions from some groups, I get barraged with spam. If I turn off the notices, I’ll surely miss that occasional important discussion I need to know about.  With all that said, I spend some time each week commenting on others’ posts.?[Much of the activity on groups seems to be consultants selling to consultants, or vendors promoting their wares.  Occasionally though you can find good groups that are tightly controlled and conversations are more meaningful.]
• By all means, have someone read through your profile. I have a problem with professional profiles that contain very noticeable grammatical errors and misspellings.  I’ve seen some profiles where the names of companies have been misspelled by those that worked there.
• I don’t quite get it when people don’t include a photo in their profile.  Do they know how to import one?  Do they have a photo?  Do they care?
• Finally, if you’re going to ask me for a favor, please don’t include me on a Linked in (or any other) distribution list. Especially don’t begin the mass email with, “Since you are someone I trust and respect…”

Beyond Dave’s excellent points, there are few questions I’d ask …

1. Should you always try to connect on LinkedIn with new prospects?  If your competitors are watching you, you might need to be careful.
2. Should companies enforce a standard description of the company for all of their employees, or is LinkedIn more personal?
3. Is there an optimum number of connections you should have on LinkedIn?  Can you really have ‘connections’ with 5000 people?

As ever, I’d welcome your thoughts and comments.

The Dealmaker Index has been running now since early November 2011 and we have been learning a lot from all of the participants. Here is sample report so that you can see the kind of information you can get if you participate in this free study. The report comes in four parts: Summary Infographic, Executive Summary, Detailed Analysis and Personal Dealmaker Index Report. The Executive Summary and Detailed Analysis components each relate to the company Dealmaker Index score, and the Personal Dealmaker Index Report is tailored to the individual who completed the study.

Summary Infographic

The infographic is a quick summary or dashboard of the results for each participant and their company.  On the left you can see the results for the participant’s company, starting with their Dealmaker Index overall score. In this example, the company scored well, and was graded at 77%, placing them in the High performers category.  This is an absolute score.  Below that Sample Co received 70% on the Peer Group Relative Performance scale. This means 30% of the peer group who participated in the study scored better. Immediately below that are the four sub-indices that together make up the overall Dealmaker Index score. As you may know, we measure sales velocity (i.e. the amount of revenue achieved per day) by more factors; the average deal Value, the Number of qualified opportunities, the Win Rate of those opportunities and the Sales Cycle.  The four sub-indices measured here, represents how well the participant’s company performs against the elements that determine whether they are optimizing their performance in each of these areas.

On the right hand side of the graphic are the absolute and relative personal Dealmaker Index scores for the individual who participated in the Dealmaker Index study.  Jane Smith did really well (89%), and is classified as a Dealmaker Ace.  Consequently she is at the top of her peer group.

You can participate in the Dealmaker Index Global Sales Benchmark Study yourself for free here.

Executive Summary

Based on the data provided, Sample Company has an overall Dealmaker Index of 77% which places the company in the High Performer category of participants in the Dealmaker Index study.

• Dealmaker Value Index: 76%
• Dealmaker Number Index: 76%
• Dealmaker Win Rate Index: 75%
• Dealmaker Sales Cycle Index: 80%

The level of revenue that is generated by any company in any sales period is a function of the number of deals or qualified sales opportunities that are being worked; the value of each sales opportunity; the percentage of those deals that are closed; and the inverse of the length of the sales cycle.

In the case of Sample Company, based solely on the information provided, the analysis of the attributes that contribute to the performance across each of the sub-indices provided the following insight. The initial analysis here is supplemented by detailed analysis later in the report.

Many factors influence the effectiveness of your sales organization, or the sales velocity you can achieve. If you can increase your performance in each of the metrics above the line by just 10%, i.e. grow the number of deals, the average value per deal, and the percentage close rate by 10%, and decrease the length of the sales cycle by 10%, you will increase your sales effectiveness by 48%. That’s equivalent to increasing your number of sales representatives by half, without making one additional sales hire.

Dealmaker Value Index: Value optimization doesn’t appear to be a major problem for your company. This of course means that you need to close fewer opportunities to achieve your revenue goal, and it is likely that the profitability of your deals is pretty good. Bear in mind – I’m making this assessment based on the information you provided me. Check that real differentiation is being well articulated consistently – particularly in a competitive situation. Look for avenues of expanded value offering to further optimize the return from each customer. [Minimal revenue increase potential]

Dealmaker Number Index: Based on the information you have provided, you’re better that average at finding good opportunities. Stay on it. Make sure the value you articulate is mapped to the buyer’s needs. Develop and replicate refined qualification processes. Shorten the ramp-up time for your new sales hires by incorporating – in an optimized sales process – the ‘best practices’ that are working. Look to the detailed analysis later to see areas where you might improve further. [Minimal revenue increase potential.]

Dealmaker Win Rate Index: The company would appear to have ingrained ‘closing’ behaviors, practices, and departmental interrelationships that support above average close ratios. Your company’s score – based solely on the information you provided – place you well above average for your ability to close deals. Make sure that the factors that govern this performance are further institutionalized in your company. [Minimal revenue increase potential.]

Dealmaker Sales Cycle Index: Now is the time to institutionalize the best practices you have developed to manage the length of your sales cycle. It would appear that your company’s performance in this area is quite a bit better than average. Make sure you have a living sales methodology, a buyer-centric sales process – all supported by technology to maintain your above average performance in this area – and facilitate continuous improvement. This will keep you at the top of the pyramid. [Minimal revenue increase potential.]

First Action: 5 Key Areas to Focus On: Keep, Change, or Stop

KEEP: I’m pleased to see that you have a well defined sales process. Hopefully it reflects the customer’s buying process. Our experience, and that of our customers, would suggest that having a well defined sales process, mapped to the customer’s buying process, and then executing well on the process, is a powerful accelerant to any company’s progress. Stay on it.

STOP: As the saying goes – companies don’t buy, people buy. Failing to gain access to key influencers in a deal is definitely one of the main reasons why deals are lost – and unfortunately it seems your company has some work to do here. You’ve said you’re not effective at gaining access. First, you need to identify who the real influencers are; and then consider things from their perspective. If you were in their shoes, why would you spend the time? Usually senior executives – who are often the key influencers – will only take a meeting if someone in their internal organization asks them to. The second key most likely to open the door is a referral from someone in their industry, perhaps a peer at a similar company. Unless you figure out how to gain access your win rate will definitely be sub-optimal.

KEEP: You’ve said that you are confident that your sales team is good at uncovering the customer’s business problem. That’s really good, and the alternative is not pretty. As you know, without understanding the customer’s business problem, there is no way you can know the value your offering will provide, or indeed even how to apply your solution to solving the problem. Then it becomes a feature or price battle, and that’s an abyss that, thankfully, you seem to be able to avoid.

KEEP: It’s evident from your input that you’re comfortable that the sales team is effective at differentiating against the competition. You seem to have this in hand, but is possibly worth revisiting the factors that would get in the way of this being untrue. There can be only three reasons for a sales team to fail this effectiveness test. (1) You don’t understand the Unique Business Value (See above) you provide, (2) You don’t know your competition – a grievous sin, or (3) You can’t position competitively. You have to be competent in the first two before you address the third. One more thing – I’m assuming that you understand the specific problem the customer is trying to solve (See above) because without that any effort spent on competitive differentiation is a waste of time.

KEEP: Our research suggests that sales people spend on average two and a half hours a week on sales forecasting. Yes, that’s right -150 selling minutes. And then the deals that are forecasted don’t close as forecasted. Thankfully you’re bucking the trend. That is really valuable to your company, as the alternative is one of the most damaging aspects of some sales teams’ behavior. You’re probably aware that there are evidence based sales forecast tools available, and you might be already using one. As you know you will achieve much greater sales forecast accuracy if the team follows a well defined sales process – one that is designed to map to the customer’s buying process (See above). Good work.

You can participate in the Dealmaker Index Global Sales Benchmark Study yourself for free here.

Detailed Analysis

Strategic Alignment
It’s good that you think that sales and company strategies are aligned. Selling against the corporate direction is hard, but it doesn’t seem like that is the case here. ~ It would be better if there was enough evidence for you to be clear that the sales and marketing functions worked well together. You’re saying you’re not sure about that. Sales and marketing alignment is crucial. Think of it this way: You’re supposed to be working together to beat the competition. Get everyone behind that goal with a shared purpose and common resolve. ~It’s good to see that you believe that the leadership of your company looks for strategic input from the sales organization. This is one up for the good guys. Nothing happens until someone sells something. The sales function is strategic, and so must be part of the overall strategic picture. Make sure those who need to know this, actually know this, and always consider what is going to ease the buyer (your customer) / seller (your sales organization) relationship. ~ When a company’s culture encourages support of the sales organization, it usually means that the focus is right on target. Congratulations, you’re in a good place, as it seems that the sales function is getting the support it needs. The sales team needs to hold up its end of the bargain and make sure that reciprocal respect is forthcoming.

Sales Process Analysis
I’m pleased to see that you have a well defined sales process. Hopefully it reflects the customer’s buying process. Our experience, and that of our customers, would suggest that having a well defined sales process, mapped to the customer’s buying process, and then executing well on the process, is a powerful accelerant to any company’s progress. Stay on it. ~ Read again what I said earlier regarding the importance of a well defined sales process. I’m pleased to see that you believe that your sales process is well understood and executed by the sales team? Assuming it is a well defined process – one that is mapped to your customer’s buying process – then you’re optimizing your chance of success. Well done. ~ Sometimes it is hard to get all of the company to understand that they are a critical cog in the sales machine, so I can understand why you’re uncertain about the ‘non-sales’ people’s understanding of their role in supporting the sales team’s execution of the sales process. Perhaps you might try this. Take out a piece of paper, or get to the white-board, and sketch out all of the touches a customer has with your company; this should cover how the phone gets answered when the customer calls; the product or service being used, the response time on queries; the stories in the press; your presence in the Social Universe, and so on. Then think about the steps in the sales cycle, and consider how each of these interactions might impact the execution of each step. That might help everyone understand the role they play. Understanding is usually the hardest part of this task. ~ Understanding sales process is fundamental. It’s as simple as that. The only long-term alternative is organizational pain. I’m glad that you recognize this. How can you arrive at the right destination if you don’t have a map? You’ve indicated that you think this is a Very Important competency for your company. I’d probably like to see it in the Essential category.

Sales Velocity
It is very positive that you feel good about the sales team’s ability to effectively qualify opportunities. I remember a wise experienced sales professional asking me one time why I was working on unqualified opportunities, when I could be making money. It is good that the team is focused on the latter. Continue to make sure that the definition of a qualified opportunity is clear to everyone and that the sales team has the skills, and inclination, to ask the hard qualifying questions. ~ You’re not confident that your sales close ratio is satisfactory. You need to ask yourself three questions. What is the underlying cause? What is the impact? What can you do to improve it? And then perhaps consider how you define win rate. Close ratio is one of the four main factors in the Sales Velocity Equation and a critical component of profitability. It costs real money (and of course time) to pursue each deal, and when you’re not achieving an acceptable win rate, both revenue and profitability suffer. There are really only two reasons why you ever lose a deal; (1) You shouldn’t have been in the deal in the first place – in other words you did not qualify correctly, and perhaps your offering is not suitable. See comments above on qualification. (2) This was a qualified opportunity, but you were outsold. Think about it and consider whether your sales process is truly aligned to the customer’s buying process, and whether the sales team has the right supporting tools to present the right value proposition to the customer at each stage in the buying cycle. Only then will you be able to guide the sale in the direction you need, thereby increasing your win rate. ~Being comfortable with the sales cycle duration is a very healthy indicator. You said that you think the sales cycle is about the length you think it should be. This is one of the fundamental factors in the Sales Velocity Equation, and a strong predictor of success.

You’ve been non-committal in your assessment as to whether your company is effective at maximizing the potential from your major accounts, or maybe you’re just unsure, or you don’t think it is applicable. If your major accounts are indeed ‘major’ then you can’t do this on your own, and you need corporate level buy in, and sustained commitment. Major account development takes time before it provides the return, and there is no point in trying to develop major accounts unless your company has the infrastructure, inclination and ability to apply the necessary resources to make it work.

Coaching and Getting the Basics Right
The first line sales management job is really difficult. But it is also particularly important. Managers should most of their time coaching. The answer you selected would suggest that this is the case. There is abundant research that supports the fact that sales teams who are frequently coached will dramatically over perform those who don’t receiving that kind of guidance. If the managers are spending their time chasing details of sales opportunities, there is very little value added to the sales person. Make sure that your company continues to do what it takes to make this embedded practice in your company. ~ It was Albert Einstein who said – never stop questioning. He might not have known it at the time but he was articulating one of the key commandments of the sales profession. Alongside listening and presentation skills, these are really basic skills that every salesperson should master. You’ve indicated that you’re pretty happy with this, and that is great. The good news is that if competencies begin to slip, this is one area that is pretty easy to fix. Keep up the good work. ~Efficient utilization of company resources is always important. You are in the happy position where you believe that the company efficiently allocates resources to well qualified opportunities. This means that resources are applied to the ‘most-deserving’ opportunities, and investments that you would like to see in other supporting functions, such as product development, marketing or support, are not being wasted. The sales organization should care deeply about this. ~ It is always healthy to retain an adequate focus on the basic skills. I am pleased that you view Level 1 Individual Selling Skills as Very Important. These skills are foundational. ~ Demonstrable Level 2 Selling Skills (Gaining Executive Access, Discovery, and Understanding Customer Needs etc.) are some of the most common skill deficits that lead to missed revenue. Recognizing the importance of this is crucial, and I’m pleased to see that you share this perception. Now, just be sure that your program to embed these skills is sustained.

Social Media
Whether we like it or not, social media is here to stay. Twitter, LinkedIn, Facebook, company blogs, YouTube video channels, self-service capabilities on the Internet like Dealmaker Genius and Dealmaker Index, and community sites are examples of just some of the facilities in the Social Universe being used by your customers, and your competitors – and it’s not just for consumer focused businesses. If your company is not really leveraging social media it is undoubtedly developing a competitive disadvantage for itself. Not all social channels need to be used, but to use an off-line analogy, this is where your customers are ‘hanging-out’. This is an increasingly important destination for your customers, and it’s where they are increasingly having conversations. If you’re not part of the conversation, then it is less likely that you will be the person they call when a business opportunity arises. It’s that simple.

Keeping Customers
You’re not ready to say that your customer retention rate is satisfactory, and that is a concern for me. Customer retention is an issue you must address if you’re to pursue a sustainable growth strategy, or even if you just need to achieve a healthy profit margin. Perhaps somewhat surprisingly, customer retention is not usually a result of price pressure or product features or capability. More often customers switch to an alternative supplier because they are unhappy with the service being provided. Now armed with that knowledge, what actions can you take to improve your customer retention rates? ~ You must be pleased that your company understands that effectively developing and maintaining long term customer relationships is the key to achieving an optimum renewal rate for your recurring business. You’ve said that you believe renewal rates are satisfactory. Keep effectively communicating with your customers and continue to elevate the renewal conversations to a business level, demonstrating the true benefits of renewing from a customerÆs perspective.

Competitive Differentiation
Differentiation is key. There is just so much noise out there. And clearly your company has figured it out. You said that your sales team finds it easy to differentiate your offering. While everyone else is talking about USPs or Unique Selling Proposition, your team is more likely thinking in terms of a Unique Buying Proposition, or a Unique Business Value, or they might call it a Unique Value Proposition. In any case, you’ve figured out that it should be considered from the buyer’s perspective. That works. ~ As the saying goes – companies don’t buy, people buy. Failing to gain access to key influencers in a deal is definitely one of the main reasons why deals are lost – and unfortunately it seems your company has some work to do here. You’ve said you’re not effective at gaining access. First, you need to identify who the real influencers are; and then consider things from their perspective. If you were in their shoes, why would you spend the time? Usually senior executives – who are often the key influencers – will only take a meeting if someone in their internal organization asks them to. The second key most likely to open the door is a referral from someone in their industry, perhaps a peer at a similar company. Unless you figure out how to gain access your win rate will definitely be sub-optimal. ~ You’ve said that you are confident that your sales team is good at uncovering the customer’s business problem. That’s really good, and the alternative is not pretty. As you know, without understanding the customer’s business problem, there is no way you can know the value your offering will provide, or indeed even how to apply your solution to solving the problem. Then it becomes a feature or price battle, and that’s an abyss that, thankfully, you seem to be able to avoid.

Your company clearly understands that the key to crafting solutions aligned with the customer’s need is to first understand the customer’s business problem. (See above) You’ve indicated that the sales organization is good at designing solutions. This is a very valuable asset in your company. To ensure that you maximize this advantage, you might consider using collaborative techniques with the customer to ascertain specific, and I mean very specific, features or attributes of your product/solution/offering that can be applied to solve very specific aspects of the customer’s problem. I know you would never do this, but the temptation is often to pitch your entire solution to solve the customer’s entire problem, and that approach rarely provides adequate insight for the customer as to how you bring real differential advantage. ~ It’s evident from your input that you’re comfortable that the sales team is effective at differentiating against the competition. You seem to have this in hand, but is possibly worth revisiting the factors that would get in the way of this being untrue. There can be only three reasons for a sales team to fail this effectiveness test. (1) You don’t understand the Unique Business Value (See above) you provide, (2) You don’t know your competition – a grievous sin, or (3) You can’t position competitively. You have to be competent in the first two before you address the third. One more thing – I’m assuming that you understand the specific problem the customer is trying to solve (See above) because without that any effort spent on competitive differentiation is a waste of time. ~ Harking back to an earlier comment, we know how important it is to be able to effectively describe the value that you can bring to a customer. You’re clearly comfortable enough to say that this is something that your sales team can do well. That’s not as common as you think – so, well done. Many organizations struggle with this. I’d strongly recommend that you maintain a deep focus on this. Here’s what I would suggest. Go to your CEO, Head of Product Development, or Head of Marketing, and ask them a question in two parts. Firstly – would your customers care if your company went out of business? Next – what is it about the products or service you offer that they would miss most? If the answer to the first question is no, then you’ve got a bigger problem than I can help you with here; but if it’s not, then the answer to the second question should be illuminating.

Sales Methodology & CRM
Most sales methodologies are poorly implemented, the training books gathering dust on the shelf. One of the ways to address this problem is to tightly integrate the sales methodology into your CRM System. When I say tightly integrate, I mean surfacing the methodology in context when the deal is being worked. I don’t mean just adding the fields to the CRM or adding a ‘dumb’ (read not intelligent) data entry form. The integration should be smart enough to identify for you vulnerabilities in the deal, acting like a sales coach always there to help while proactively offering suggestions. You say that your sales methodology is effectively integrated with your CRM. Does the integration provide you with all of these benefits? If not, it is a missed opportunity (pun intended). ~

You can refer to them as Key Accounts, Strategic Accounts, or Major Accounts, or whatever you want; but when a company is successful at penetrating large accounts, it is usually because they’ve followed a structured account planning methodology. Based on the level of importance you’ve assigned to this competency, you’ve clearly identified this. But, as you know, Key Account Planning and Management is not for every company, or sales person, as it requires significant resources and a certain type of business model or level of product maturity. Make sure that this is the optimum time for your company to allocate resources in this area, or if other areas should receive your focus. ~ It’s a positive statement that you’ve selected a sales methodology. I’m not going to comment here on the usage levels of the methodology in your company, as I want you to step back with me for a second and make sure that we’re setting the bar high enough. Implementing a sales methodology is not a trivial initiative. It is expensive to do and expensive to sustain. But when it is done well (an all too infrequent occurrence) it can deliver dramatic benefits. Here are a few principles to consider: Don’t think that a tactical sales training event will have a strategic impact on your business; Do give your sales team the credit that they deserve – they do want to apply sales methodology to be more successful, it’s just that in many cases in the past it’s just been too hard to do; Don’t waste your money on sales methodology/sales training unless you’re prepared to set quantifiable business results that you want to achieve; Do measure yourself against those goals; Give adequate time to consider the role that technology has to play in sustaining the effectiveness of your sales methodology. Recent developments in this area are very exciting.

As your business develops you might give some thought to the strategic nature of the CRM, and examine whether your current CRM system approach will get you to where you need to be. Consider the reason why you purchased the CRM in the first place. Less than one in five CRM installation succeed in driving revenue for the customer. When intelligent sales process, sales methodology and CRM are well integrated, significant revenue advances occur. As you probably know, there have been considerable advances in CRM capabilities in recent years – particularly in respect of integration capabilities. Make sure you are taking full advantage. ~ Now that you’ve had the CRM in place for more than five years, you’ve had the opportunity to get all of the best practices embedded, and, in terms or organizational effort, there are really no excuses for a sub-optimal implementation.

Revenue Performance Management
Our research suggests that sales people spend on average two and a half hours a week on sales forecasting. Yes, that’s right -150 selling minutes. And then the deals that are forecasted don’t close as forecasted. Thankfully you’re bucking the trend. That is really valuable to your company, as the alternative is one of the most damaging aspects of some sales teams’ behavior. You’re probably aware that there are evidence based sales forecast tools available, and you might be already using one. As you know you will achieve much greater sales forecast accuracy if the team follows a well defined sales process – one that is designed to map to the customer’s buying process (See above). Good work. ~ Congratulations on the fact that you have and use a clearly defined process for managing your sales forecast. If you don’t have a defined process, then any degree of accuracy you achieve is pure chance and down to the individuals who are the component parts of the rolled-up sales forecast. The subjectivity inherent in that approach is your enemy. It is not an approach you can trust, and it’s certainly not an approach that can scale if your business grows. Stay true to the discipline. It will serve you well.

I’m not sure I even know why I asked this question – but there were many that disagreed. It defies me to understand how a company could operate in today’s fast moving world if sales forecasting is not at the heart of the business. You strongly agreed with the statement ‘Our sales forecast is a critical component of the overall business planning’. It just has to be. ~ There are a lot of myths around pipeline management. The most dangerous one is that bigger is always better. People talk about the need for 3x, or 5x, but in reality that rarely considers sales cycle duration or funnel velocity. One of the most important attributes of a pipeline is its integrity. The opportunities in the pipeline need to be real and active. That’s the only way for the pipeline to give an accurate picture of future business. Thankfully in your case, you agreed with the statement that the sales pipeline gives an accurate picture of future business. Continue with your pipeline management practices. Continue to qualify hard and clean out dead deals.

The hardest thing to deal with in business is a surprise. There are revelations, bluebirds and bombshells, but whatever the form, any surprise usually causes business disruption. When one materializes in the form of missed revenue, or inaccurate sales guidance, then the pain can be severe. You can end up with too much inventory on the shelves, too little stock in the stores, disgruntled shareholders, or dissatisfied customers; all because your sales forecast was inaccurate. And that’s without considering the productivity impact on the sales organization referenced elsewhere in this report. Clearly you understand this, and I’m thrilled to see that you think that a competency in sales forecasting is Essential. ~ While many companies’ financial quarters force measurement in four financial quarters, few customers’ buying cycles maintain a similar rhythm. Focus on this competency is all too rare, and you should be proud that it’s getting the attention that it is at your company. Maintaining a strong pipeline is the only way to constantly have enough deals in hand to avoid a sinusoidal revenue profile. Pipeline management can be a complex endeavor, but, as you know, it merits prioritized attention, as without it you end up in what feels like an almost circadian pattern of surprises. And you know what that means.

You can participate in the Dealmaker Index Global Sales Benchmark Study yourself for free here.

Personal Dealmaker Index Report

Based on what you’ve told me, I’ve calculated you have a Personal Dealmaker Index of 89%. I’ve assessed both your approach to sales and your execution ability, and you’re in the Dealmaker Ace category.

There are a number of elements that are factored into this analysis, but clearly there are some things that I have not been able to consider. I hope that as you review the analysis you will get some ideas that will prompt action and will help you increase your sales performance and reach your full potential.

Sales Engagement
You will generally make more progress and gain more insight talking to customers than in any other activity. I’m not entirely sure you are having enough customer meetings. Step away from the computer and call someone. ~ Analyzing why you won or lost a deal is possibly the most valuable insight you can get to what you should change (or keep) about your approach to a customer. How else can you uncover such deep market insight? If you’re doing it less than half of the time – you said 25-50% – you’re missing out on more than half of the insight. That’s not my recommended approach. ~ As you know, I’ve said before that a sales process is fundamental, and I’m glad to see that you’re on the same page. If you could nudge your application of this discipline from ‘Most of the time’ to ‘All of the time’ I believe you will see a noticeable difference in your results. ~ There is conclusive evidence that a referral from a peer is one of the most effective ways to gain access to busy executives, and get the chance to explore business opportunities. If you have delivered value to one customer and built up some credibility, then you’ve earned the right to ask for a referral. You say you are asking for referrals more than half of the time. If so, you know that this is one of your most valuable sources of leads and opportunities. Try to improve on the ratio. ~ You’ve selected ‘Needs Analysis’ as the most important stage of the sales cycle, and you are absolutely correct. Well done. Unless you can figure out what the customer really wants, all of the rest of the steps are less valuable. ~ I’m glad you selected ‘Needs Analysis’ as the most difficult stage in the sales cycle. Based on my experience it is the area where most sales people fail – and then everything else falls apart. In my opinion, Needs Analysis is both the most important and the most difficult. Getting behind the customer’s business problem is a skill very few have mastered.

Personal Perspective
So, you’ve figured out that in most cases customers will only buy from you when that is a best choice for them. Usually that means you need to be able to differentiate your product from your competitor’s offering. You’ve indicated that you’re pretty effective at this. It is always good to check that you are doing the best job you can here. Perhaps you might take the time to validate your perspective with your customers or colleagues. You may well learn something. ~ In a competitive situation most sales people fail. That is a mathematical certainty. Developing a competitive strategy for an opportunity means that you consider the people involved, the problems they have and the relative strength of your solution compared to your competitors’ – all in the context of the customer’s decision criteria. Most sales people don’t craft a competitive strategy, though – based on your input – I’m pleased to see that you are an exception. Keep it up. ~ You really only have control of two things; who you meet, and what you do when you meet them. It’s clear that you appreciate this. You’ve said that you’re always clear about what you want to achieve in advance of a meeting. That’s great. You might also think about considering why you might not achieve your call objectives, and develop a ‘Plan B’.

You have indicated that your negotiation skills are well developed. Make sure that you are not just negotiating at the ‘negotiation stage’ in the sales cycle. In truth, how you position your solution right through the sales cycle sets up the negotiation landscape. ~ As you know, you need to be having business conversations with business leaders if you are to be a successful sales professional. Based on your input it would appear that you know that this means you need to understand how to read an Income Statement, understand a company’s 10K filing, and look for strengths and weaknesses in a Balance Sheet. When executives want to discuss ROI, understanding the underlying fundamentals that the financial calculations are based on is the key. Perhaps you might check your skills level with your CFO or other executives. ~ Communication with your peers enriches the fabric of your knowledge – always. I’m glad that you understand that your success is tightly linked to how well you communicate with your peers. We all need help. ~ Your job as a sales person is to deliver value to your customer. At least that is my opinion. It’s the only way I know how to maintain long term relationships and build a personal business portfolio. Sometimes that requires tough love. I take it from your answer that you’re in agreement with that. I’m pleased to see that. It underpins the integrity of the relationship.

Leveraging Infrastructure and Systems
You seem to have a healthy relationship with your CRM. It is not always fun, but effectively used it should help you to better manage your personal business. ~ There is a direct correlation between consistent usage of a (good) methodology and revenue performance. You seem to be on the right track here. ~ LinkedIn is a good source of networking insight. With the recent additional capability (following etc.) it can be a valuable resource. Your usage appears to be quite healthy. ~ Facebook has not yet penetrated the business world enough for it to deserve the same focus as LinkedIn. In my opinion, it has value in a pure social networking sense, but you need to manage the noise levels well. To get the ‘network benefit’ you probably need to participate a little more than you are currently doing I think. ~ If you’re looking for up to date information on what is happening in you marketplace, Twitter is the place to ‘hang out’. If you do nothing else except listen to the conversation it can be a truly valuable resource. You’ve recognized that, and that’s a plus. Remember the shelf life of a tweet is really short, so frequent visits are necessary.

You can participate in the Dealmaker Index Global Sales Benchmark Study yourself for free here.