To out sell the competition you must get the Benchmarking Edge for Successful Sales Execution.
Benchmarking is the process where companies compare their performance over time against their competition. In some areas you’ll find that you are better than most, other areas you may need significant improvement.
The main point of benchmarking is to focus your efforts where you can get the best return.
1. Identify your metrics- the composition or arrangement of the key drivers of a companies sales performance.
Activities x Conversion x Transaction x Talent x Time = Revenue
The main thing is to identify the current activities that have the greatest impact on whether a deal is won today or tomorrow.
2. A non-constant variable is cost- benchmarking productivity results in an increase in Revenue, a decrease in selling expense is from benchmarking your sales costs. A company can boost earnings and its return on sales by doing both.
Select the metrics to measure once a non-constant variable is defined. The following is a guide for deciding which metrics to benchmark:
A) relevance to the companies overall sales performance.
B) degree to which each can be a leading indicator of sales performance.
C) availibility of the internal data and effort required to collect the data.
D) availibility of external data and effort required to collect the data.
3. Internal & External data collection : Internally, a company must have a clear understanding of how it is performing. Take the time to find the information that is already there. Sources could be CRM systems (customer relationship management), finance systems, payroll system, expense reporting system, HR systems, sales management systems. Externally, a company must know how its performing against its competition by comparing to statistical data (government data, market research, universities, research firms, trade associations, internet search etc…).
4. Compare & Contrast : compare & contrast the internal and external data. Externally a company is compared to its peers and Internally against its history. Compare the companies current revenue at its current performance level and compare it to its peer group’s performance.
5. Focused Action : A company develops a plan to create and sustain a competitive advantage. Identify whether your company is over or under performing in the market. Put a remedy plan in place and test it over time to measure its effectiveness. The focus is to improve the chances of hitting the target and reduce the risk of missing the sales target.
6. Sustained Improvement : a sustained improvement plan that takes the project from a one-time event to a permenant part of the operating procedures of the company. It should become a standard operating procedure. A sustained improvement plan will allow a company to stay on top of areas where it has developed new advantages and areas where it has lost advantages.
The basic steps in a sustained improvement plan are :
A) Appoint a Sales Benchingmarking project manager responsible for ongoing administration and oversight of the process.
B) Monthly internal review of company performance.
C) Monthly review of company performance against a new data source.
D) Monitoring of focused action implementation ensuring expected results are produced.
E) Monthly monitoring of the benchmarks in the context of statistical process control.
Your competitors are not going to stand still and the ultimate goal is a sustained competitive advantage. Sales Benchmarking must become a standard operating procedure and part of your long term strategy for success.
Renee Cloud-Virtual Assistant/ Clerical Solutions
Email: info@clericalsolutionsinc.net Website: www.clericalsolutionsinc.net
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