You probably know how much you spend on Sales. But do you know your Sales ROI, or return on investment, or what you get back for every dollar that you put in?
Symmetrics Group released information earlier this year showing how Sales costs companies up to 100 times more than Marketing. Yet while marketers have long been required to prove ROI, Sales have escaped that to date, but things are changing. It is no longer enough for Sales to deliver, they need to deliver efficiently for maximum return on investment.
Sales reps are spending only 36% of their time actually selling. By contrast, up to 40% of their time is spent on administration. So frontline sales people are spending more time on admin than on sales. No wonder there are questions about Sales ROI!
If you're not tracking sales efficiency as well as performance, how are you going to overcome this issue? How are you going to deliver better results than your competition?
There are a number of ways you can use your CRM to help. But first you will need the right mindset about sales. You need to recognise that there is a process to sales. That good sales results are not the result of a mystical art form.
The science of measurement and analysis does not inhibit sales. It supports it. Mathematics is the backbone of some of the best artworks in history, It can be seen in some of the most beautiful parts of nature too.. Consider sports. Sports professionals use video feedback to analyse their swing, stride, release, follow-through or tackle. Why not use similar techniques to help your sales team? It must be better than analysing your team's performance based on memory or hearsay. And far better than "winging it" completely?
Reporting is your best indicator of performance. If your sales process is logged through CRM, everything can be de-mystified. Every customer is different, but you can use CRM to identify emails or phone calls which were turning points. Which turned a cold lead into a major new contract. Knowing this, companies can remove processes which aren't working, reduce the length of the sales cycle and improve overall ROI.
Managers can also see at a glance which sales funnels are performing, and where to focus time to manage staff interactions with clients.
Different members of your sales team will have varying levels of performance. Track the sales cycle of the top performers in CRM and identify their specific techniques. Then you can use these techniques to improve the success rate of mid- to low-level performers. For example, if a quick turnaround is required and the customer is at the purchase stage, waiting a week to get back to them may mean a missed opportunity. Analysing the work of a successful sales staff member may show that all leads are responded to within the same day, or followed up the next business day. With CRM, you have visibility and are not relying on personal observation or the staff member's memory to get the process refined.
Use CRM to automate recurring tasks, and remind you of jobs coming up. This simplifies your task list so you have more time to focus on higher level analysis. CRM can also flag exceptions for your reps. Or for their managers.
Reducing administrative workload means sales staff will have more time to focus on servicing current and potential clients. Combined this with an automated task list which makes following up with clients a more robust process, and you're well on the way to a better ROI on Sales.
Opsis is an expert CRM consulting company. We are not an IT company, nor a management consultancy, although we often work with both of these. Our focus is wholly CRM, and particularly Microsoft Dynamics CRM. We are based in Sydney, NSW, with clients in Sydney, Canberra, Melbourne, Brisbane and across Australia. Our range of CRM services include CRM strategy, CRM scoping, CRM implementation, technical support and CRM training.