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WHY THE SALES PROCESS IS VITAL FOR ACHIEVING CONSISTENT REVENUE GROWTH
Welcome to CappcoPartners’ new operational transformation blog! For those that don’t know me I am Mark Cappell, founder and Managing Partner of CappcoPartners. Today I am launching my blog. Here I will be writing about the issues associated with acquisitions and corporate turnarounds where revenue growth and creation is essential.
Today I am going to explain why having a formal sales process framework or model lays the foundations for revenue growth.
In simplest terms, a formal sales process framework improves pipeline visibility, drives sales execution, improves performance and is also the foundation for instilling selling discipline.
If the sales process is:
- Aligned to the customer’s buying process.
- Integrated appropriately with sales methodologies and technologies.
- Reinforced by management.
Then the process acts as the guiding framework to converting strategy into revenue, predictably, consistently and sustainably.
The ROI for sales processes based on best practices
It is not difficult to detect why sales breakdowns happen. Sales process breakdowns or problems always have symptoms. You just need to observe and assess a company’s current situation.
The top 10 symptoms of a sales process breakdown are:
- Forecast accuracy is poor and off-the-mark.
- Pipeline visibility is cloudy and speculative.
- Inability to pro-actively pin-point bottlenecks and barriers to success.
- Sales performance is inconsistent and unpredictable throughout the sales force.
- Win rates are declining.
- Longer sales cycles than forecast or anticipated.
- Coaching around sales opportunities is ambiguous and general.
- Inability to quickly leverage and replicate success across the organisation.
- Ramp-up time for new sales people is long and frustrating.
- Cost of sales is difficult to track and manage.
Sales process frameworks for revenue growth: The facts
• According to a 2012 Accenture CSO Insights ‘Sales Performance Optimisation Study’, in the last three years, between 36 to 47 per cent of sales representatives failed to reach their annual sales quota numbers. Whereas 92 per cent of representatives that consistently used a sales methodology achieved their quota.
• Elsewhere Gartner Group research revealed that only 35% of Senior Sales Executives had instituted a formal enterprise-wide sales process. According to the 2014 CSO Insights “Sales Performance Optimisation Study”, “Of companies who have no sales process 62 per cent stated their forecasts were incorrect”.
This correlation demonstrates that without a consistent sales process, sales pipelines and forecasts will not be accurate across the company.
Indeed our research has shown that there are 3 main reasons why companies should implement a consistent sales process. They are to:
- Create best practices so all salespeople can understand the best tactics to win deals.
- Ensure pipelines and forecasts are accurate.
- Increase internal efficiencies through more accurate communication from sales with regards to products, services and client and competitor behaviour.
And thus, the formal sales process framework will deliver in the form of concrete revenue growth.
About the Author: Mark Cappell is the founder of CappcoPartners and is an experienced executive with over 25 years’ experience of managing software and service companies. Mark has been CEO of 4 software and service companies and has managed 5 buy outs which have added value in excess of £300m for investors.