But there’s an alternative, one that’s highlighted by these same sorry sales statistics. In order to change the situation and increase revenue efficiency, organizations must improve the productivity of their front line sales teams.
Just as the well-stocked Texas ranch offers a vast improvement in “hunting productivity” over wandering through the Serengeti, a sales team well stocked with leads can achieve significant improvements in productivity, quota attainment, and revenue production. The percentage will vary widely depending on the type of business, but it’s safe to say that mature, profitable businesses spend between 15 and 40 percent of revenue on their sales organizations. That percentage is even higher in earlier stage, high-growth companies. Because the cost of sales is such a large part of what organizations spend, even small improvements in the efficiency of the sales process can have significant top-line and bottom-line impact and generate growth.
If your sales representatives can spend 20 or even just 10 percent more of their time talking to positively inclined and motivated prospects, instead of cold calling or wasting that time on unproductive territory administration, they will radically improve their quota achievement and booked revenue results. And the good news is that we now know exactly how to make it happen.
When marketing adopts effective processes for awareness building, inbound marketing, lead nurturing, and lead scoring ...