{"id":821,"date":"2008-10-27T18:38:00","date_gmt":"2008-10-28T02:38:00","guid":{"rendered":"http:\/\/www.regnordman.com\/?p=821"},"modified":"2012-03-27T09:20:59","modified_gmt":"2012-03-27T17:20:59","slug":"making-the-number-how-to-use-sales-benchmarking-to-drive-performance-alexander-batels-drapeau","status":"publish","type":"post","link":"https:\/\/www.regnordman.com\/2008\/10\/27\/making-the-number-how-to-use-sales-benchmarking-to-drive-performance-alexander-batels-drapeau\/","title":{"rendered":"Making the Number. How to use sales benchmarking to drive performance. Alexander, Batels & Drapeau"},"content":{"rendered":"
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Image via Wikipedia<\/p><\/div>\n<\/div>\n

Making the Number<\/a>. How to use sales benchmarking<\/a> to drive performance. Greg Alexander<\/a>, Aaron Bartels & Mike Drapeau. 2008. ISBN 9781591842170.\u00a0 This book should take sales from Art to Science.\u00a0\u00a0 This is a very comprehensive work which any sales manager<\/a> looking to make a difference in the next 10 years, should read and start to implement.\u00a0 If you are also\u00a0 looking at top grading for sales, then this is a book you will need to learn from. The authors website <\/a>has\u00a0 published a list of sample data to help you get started on benchmarking. Its illuminating to see where some of the “top” 100 companies actually come out.<\/p>\n

They do a good job of isolating the various dependencies in sales.
\nDependencies<\/p>\n

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  1. Industry segment<\/li>\n
  2. Geographical areas<\/li>\n
  3. Sales channels<\/li>\n
  4. Sales force organization<\/li>\n
  5. Public, private, NGO<\/a><\/li>\n
  6. History.<\/li>\n<\/ol>\n

    Then they give a sample of data\u00a0 required in each category of sales such as:<\/p>\n

      \n
    1. Account planning – churn rate, lifetime value, customer share<\/li>\n
    2. Budgeting – break-even, gap to goal, net income\/rep, return on sales<\/a><\/li>\n
    3. Channel – Outside sales contribution, outbound lead ration<\/li>\n
    4. Comp- sales quota attainment, total available income, variable comp rates<\/li>\n
    5. Expense – cost of advertising, cost of marketing, cost of sales<\/a>, cost per rep.<\/li>\n
    6. management – Sales quota\/sale, sales productivity\/rep, forecast accuracy, pipeline ratio<\/li>\n
    7. methods – sales activities to close sale, sales cycle length, deal size<\/li>\n
    8. staff – ramp time to full productivity, sales rep\/manager ratio, sales rep\/ sales support ratio<\/li>\n
    9. talent – turnover rate, interview pool needed, sourcing pool needed, time to backfill a rep<\/li>\n
    10. infrastructure – sales growth rate<\/a>, CRM\/SFA utilization, lead source utilization, mobile utilization<\/li>\n
    11. territory – close rate, customer acquisition cost, customers \/rep, potential leads \/rep<\/li>\n
    12. training – budget, training hours per rep.<\/li>\n<\/ol>\n

      They break out sales types into an interesting six categories<\/p>\n

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      1. Delivery<\/li>\n
      2. Order taking<\/li>\n
      3. Missionary<\/li>\n
      4. Technician<\/li>\n
      5. Demand creator<\/li>\n
      6. Solution provider<\/li>\n<\/ol>\n

        This is a very useful book which could help save your job if you are a VP Sales and its tough going. The job is not easy , but this is a terrific way to help you manage.\u00a0 A bonus is the epilogue where they describe sales peering.\u00a0\u00a0 Visualize a souped up Linkedin Questions all about best practices<\/a> and benchmarking sales. Something really needed.<\/p>\n

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