How does a sales productivity analysis work?

sales audit structureA Sales productivity analysis reviews the complete sales process of the company, from the use of certain software, profiling of the sales people, to the sales strategy that is implemented.
This type of productivity analysis is very different from a financial audit, where a company will compare its operational costs with sales revenue generated.
A sales productivity analysis evaluates the effectiveness of all aspects of the sales process and helps companies to determine whether their approach is cost effective and generates sufficient revenue.

Certain companies will do the productivity analysis internally, but there are a number of advantages of engaging a third party, like: more objectivity, experience and a fresh look at things.

Gandamo’s methodology analyses 3 areas:

  • Resources
  • Processes
  • Execution

 


 

Resources

icon_PeoplePeople

The human factor determines the quality of execution. Have you engaged enough resources?
Do they have the required profile and training?

 

icon_Money-BagBudget

Have you got the proper investment in the right areas? (Lead generation, training, team building, etc…).

 

icon_ToolsTools

Have the sales people got the right tools to do a good job? (CRM, methodologies).

Processes

icon_Leaf-256Maturity

What is the maturity level of each process, in analogy with CMM (Capacity-Maturity-Model)?

 

icon_HammerImpact

Are there sufficient processes? Are all necessary processes present? are there any superfluous processes?

Execution

icon_Measuring-TapeEfficiency

How efficient is the execution, both in terms of costs as well as resources used?

 

icon_Race-Flag-256Effectiveness

Is the execution effective, in other words, are the defined targets met?

 


 

Cycle structure_ENThe full sales operation is essentially composed of 4 activities, that are all equally important.

  • Planning
  • Lead management
  • Sales
  • Customer retention

These 4 activities are not, “de facto”, solely the responsibility of the sales department. some aspects need to be covered by other departments (marketing, management, after-sales-service, etc…)

 

 

 

 


Planning

G2M Plan

The go-to-market plan is developed by management, together with Marketing. Here a decision is made on how, where and when specific market segments will be approached.

A productivity analysis will bring problems to light that, because of the leverage effect, have a big impact on the end result.

 

Sales Plan

This is the conversion of the G2M plan to the sales teams and individual sales people.

A productivity analysis check whether the repartitioning of the objectives happens in a realistic and balanced way, in view of  the result that needs to be met and the motivation.

 

Commission plan

In the end a sales man is mainly driven by what he can earn.

A productivity analysis checks if the commission plan motivates the sales people, but also stimulates them to sell in line with the above plans.

Lead Management

Lead Generation

Marketing takes care of Lead generation via marketing activities, like e-mail campaigns, trade fairs, seminars, events, advertising,
etc…

A productivity analysis evaluates if the leads have the right profile, indeed show some form of interest and whether the cost per lead is acceptable.

 

Lead Filter

Wrong filtering of leads can lead to useless costs and the loss of opportunities.

A productivity analysis will evaluate both the rejected and the accepted leads to bring this problem to the surface, if it presents itself.

 

Lead Nurturing & Tracking

Leads that are not ready to convert to prospects, need to remain in the loop of all marketing communication and activities.

A productivity analysis is useful to avoid the unnecessary loss of leads.

Sales

L2P Filter (Lead-to-Prospect)

Sales people need to evaluate all leads they receive or create through cold calling and if necessary, follow up within 24 hours. Speed is of the essence.

A productivity analysis must confirm clear final responsibilities and effective and fast execution.

 

Sales process

The individual selling process is central in the productivity analysis. The productivity analysis will look at the approach, the profile of sale people, their knowledge, training, etc…

The value proposition will be evaluated and compared to the sales strategy.

Conversion ratios (prospect-customer) will be analysed.

Even a number of customers will be contacted within the framework of the productivity analysis.

Retention

Customer nurturing

Without wanting to kick in open doors, it remains much easier to keep existing customers than to make new ones. This responsibility is shared with Marketing , after-sales-service and admin.

A productivity analysis will specifically focus on everything related to “customer retention”.

 

Incremental sales

Systematic follow-up of incremental business opportunities with existing clients will also be an area of interest during the productivity analysis.