Sales efficiency

All businesses face opportunity costs. In the case of a sales organization, money, time, and effort allocated to accounts A and B are resources not available for accounts C, D, and so on. That reality drives the distinction between effectiveness (optimization by doing the right things) and efficiency (doing things right) that Peter Drucker and others made years ago.

A confusion between efficiency and optimization plagues many sales efforts. If we use an automobile analogy, sales efficiency (SE) initiatives — like CRM, training, and KPI dashboards — improve the engine’s horsepower. Sales optimization (SO) decisions — like aligning sales tasks with business strategy, customer selection, and sales force deployment across opportunities — set the direction in which the car will travel. As the saying goes, “If you don’t know where you’re going, any road will take you there.” But if a car is going in the wrong direction, getting there faster is not the solution.

Companies will spend about $30 billion on CRM alone by the end of 2015, according to Gartner. But consider the work of the Boston Consulting Group, which indicates that Sales optimization (SO) practices, such as targeting high-value customers and deploying sales resources with strategically-appropriate criteria, have more than three times the impact on revenue growth than sales efficiency (SE) initiatives.

The lesson is clear: How and where you allocate available sales resources is where the leverage resides for more profitable growth.

ProAptivity works with our customers to drive sales efficiency within their business through the implementation of CRM. For more information contact us today on 028 9073 5630 or via email at info@proaptivity.websitebuild.xyz

Source: HBR

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