{"id":7911,"date":"2012-07-12T14:17:51","date_gmt":"2012-07-12T14:17:51","guid":{"rendered":"http:\/\/www.matthew-j-smith.com\/?p=7911"},"modified":"2014-10-06T01:23:50","modified_gmt":"2014-10-06T01:23:50","slug":"investing-in-b2b-sales-transformation-side-by-side-comparison-of-two-models","status":"publish","type":"post","link":"https:\/\/www.matthew-j-smith.com\/?p=7911","title":{"rendered":"Investing In Sales Transformation \u2013 Side by Side Comparison of Two Models"},"content":{"rendered":"<p>In <strong>Jack Welch Is Wrong \u2013 Stop Churning D Reps If You Want to Improve Sales Team Attainment <\/strong>we argued that the classic approach of firing \u201cD players\u201d with the hopes of replacing them with a new hire that becomes an A or B Rep has many real world flaws.\u00a0 The alternate approach we recommend is to take out that D rep, but instead of replacing them right away invest their cost (and the cost to replace them) in an up to date, best practices-based B2B sales model.<\/p>\n<p>Implemented correctly, this new model provides a foundation that can consistently improve overall team results and therefore create fewer, stronger D\u2019s and even better results from top performers.\u00a0 \u00a0<em>But here\u2019s the big question.\u00a0 What kind of results should you expect?<\/em><\/p>\n<p>We talked in a recent post about the enablers for this improved sales model (as identified in a 2012 study by\u00a0<strong>Aberdeen Group<\/strong>), that include the following:<\/p>\n<ul>\n<li>External social media<\/li>\n<li>Email marketing<\/li>\n<li>Sales analytics\/forecasting<\/li>\n<li>Web analytics or website visitor tracking<\/li>\n<li>Sales force automation<\/li>\n<li>Lead management solutions<\/li>\n<\/ul>\n<p>Aberdeen reported that the Best-in-Class sales teams have these enablers in common and more importantly achieved these kinds of results:<\/p>\n<ul>\n<li>12.3% YOY increase in total team attainment of sales quota<\/li>\n<li>10.1% YOY increase in number of reps achieving quota<\/li>\n<li>8% YOY increase in deal size.<\/li>\n<\/ul>\n<p><strong>How do these percentages look when applied to a real sales team?<\/strong><\/p>\n<p>In our following comparison of two sales models, the <strong>Base Scenario<\/strong> team of ten reps achieves a total annual booking value of $6,550,00 at a total annual cost of $2,005,000.\u00a0\u00a0 The alternative team simply eliminates one D rep, invests in a best practices sales model (including the above enablers) and is able to achieve that 12.3% YOY increase in attainment for each of the remaining 9 reps.\u00a0\u00a0 Here\u2019s a summary of the difference. \u00a0Is this an approach worth considering for your sales team?<\/p>\n<table border=\"0\" width=\"388\" cellspacing=\"0\" cellpadding=\"0\">\n<tbody>\n<tr>\n<td colspan=\"5\" valign=\"bottom\" nowrap=\"nowrap\" width=\"388\">Remove 1 D Rep \/ No Replacement Hired<\/td>\n<\/tr>\n<tr>\n<td colspan=\"4\" valign=\"bottom\" nowrap=\"nowrap\" width=\"284\">Remaining 9 Reps Each Improve Performance by 12.3%<\/td>\n<td valign=\"bottom\" nowrap=\"nowrap\" width=\"104\"><\/td>\n<\/tr>\n<tr>\n<td colspan=\"4\" valign=\"bottom\" nowrap=\"nowrap\" width=\"284\">Booked Revenue grew by:<\/td>\n<td valign=\"bottom\" nowrap=\"nowrap\" width=\"104\">\n<p align=\"right\">\u00a0$707,000<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"3\" valign=\"bottom\" nowrap=\"nowrap\" width=\"203\">Team Cost Change decreased by:<\/td>\n<td valign=\"bottom\" nowrap=\"nowrap\" width=\"81\"><\/td>\n<td valign=\"bottom\" nowrap=\"nowrap\" width=\"104\">\n<p align=\"right\">\u00a0$(64,300)<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td colspan=\"4\" valign=\"bottom\" nowrap=\"nowrap\" width=\"284\">Investment in Sales Model Changes:<\/td>\n<td valign=\"bottom\" nowrap=\"nowrap\" width=\"104\">\n<p align=\"right\">\u00a0$300,000<\/p>\n<\/td>\n<\/tr>\n<tr>\n<td valign=\"bottom\" nowrap=\"nowrap\" width=\"65\"><strong>Net Gain<\/strong><\/td>\n<td valign=\"bottom\" nowrap=\"nowrap\" width=\"65\"><\/td>\n<td colspan=\"2\" valign=\"bottom\" nowrap=\"nowrap\" width=\"154\"><\/td>\n<td valign=\"bottom\" nowrap=\"nowrap\" width=\"104\">\n<p align=\"right\"><strong>\u00a0$471,300<\/strong><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td valign=\"bottom\" nowrap=\"nowrap\" width=\"65\"><strong>ROI<\/strong><\/td>\n<td valign=\"bottom\" nowrap=\"nowrap\" width=\"65\"><\/td>\n<td colspan=\"2\" valign=\"bottom\" nowrap=\"nowrap\" width=\"154\"><\/td>\n<td valign=\"bottom\" nowrap=\"nowrap\" width=\"104\">\n<p align=\"right\"><strong>200%<\/strong><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td width=\"65\"><\/td>\n<td width=\"65\"><\/td>\n<td width=\"73\"><\/td>\n<td width=\"81\"><\/td>\n<td width=\"104\"><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><a href=\"http:\/\/3forward.com\/wp-content\/uploads\/2012\/07\/Sales-Model-Comparison.jpg\"><img decoding=\"async\" loading=\"lazy\" class=\"size-full wp-image-5979 alignleft\" title=\"Sales Model Comparison\" src=\"http:\/\/3forward.com\/wp-content\/uploads\/2012\/07\/Sales-Model-Comparison.jpg\" alt=\"\" width=\"468\" height=\"505\" \/><\/a><\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>In Jack Welch Is Wrong \u2013 Stop Churning D Reps If You Want to Improve Sales Team Attainment we argued [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[22],"tags":[],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.matthew-j-smith.com\/index.php?rest_route=\/wp\/v2\/posts\/7911"}],"collection":[{"href":"https:\/\/www.matthew-j-smith.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.matthew-j-smith.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.matthew-j-smith.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.matthew-j-smith.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=7911"}],"version-history":[{"count":5,"href":"https:\/\/www.matthew-j-smith.com\/index.php?rest_route=\/wp\/v2\/posts\/7911\/revisions"}],"predecessor-version":[{"id":8164,"href":"https:\/\/www.matthew-j-smith.com\/index.php?rest_route=\/wp\/v2\/posts\/7911\/revisions\/8164"}],"wp:attachment":[{"href":"https:\/\/www.matthew-j-smith.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=7911"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.matthew-j-smith.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=7911"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.matthew-j-smith.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=7911"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}