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Benchmark Report

Sales leaders are responsible for producing results regardless of economic conditions. This report helps you identify some of these areas by comparing your current sales practices to the practices of World Class sales organizations. The graphs in this report show your responses categorized in red, yellow, and green.

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100% found this document useful (1 vote)
110 views12 pages

Benchmark Report

Sales leaders are responsible for producing results regardless of economic conditions. This report helps you identify some of these areas by comparing your current sales practices to the practices of World Class sales organizations. The graphs in this report show your responses categorized in red, yellow, and green.

Uploaded by

Ravi Saran
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Generated on April 23, 2012

2010 Miller Heiman, Inc. All rights reserved.

www.millerheiman.com | 1-877-678-3389

Sales Performance Meter: Assessment Report | Generated on April 23, 2012

Introduction
Excuses won't save you; sales leaders are responsible for producing results regardless of economic conditions. Where will improvements make the greatest impact on performance in your sales organization? Most companies track their own performance year after year to measure their improvement, but few take a quantitative look at how they compare to other organizations. The purpose of this report is to help you identify some of these areas by comparing your current sales practices, based on your responses, to the practices of World Class Sales Organizations. The responses you provided for this report were based on several questions featured in Miller Heiman's annual, global study of sales organizations, the Miller Heiman Sales Best Practices Study. This study reveals the activities that are shown to have the greatest impact on producing results that are common goals for most sales organizations: Average account billing Sales force quota attainment Number of qualified opportunities/ leads Customer retention Forecast accuracy Revenue growth World Class Sales Organizations were significantly more likely to report year over year growth in these metrics. This report provides graphs and descriptions of how your responses compare to the activities that produced measureable sales results for these high- performing organizations.

How to Read the Report


The graphs in this report show your responses categorized in red, yellow, and green. Red activities represent an area for immediate attention. We have labeled these as Focus activities. These are activities that are not being practiced as rigorously as they are by the other respondents in our annual study. Yellow activities are comparable to the average in our study, but are below the World Class level. We have labeled these as Monitor activities. Green activities should be noted as strengths. These are activities that are equal to or greater than the benchmark set by World Class Sales Organizations. We have labeled these as Sustain activities. The activities included in this report have been statistically shown to impact sales results, therefore, we recommend that you sustain the practice of green activities, monitor the development of yellow activities, and focus on taking immediate steps to improve red activities.

Focus

Monitor

Sustain

2010 Miller Heiman, Inc. All rights reserved.

www.millerheiman.com | 1-877-678-3389

Sales Performance Meter: Assessment Report | Generated on April 23, 2012

The Miller Heiman Sales System

Developed as a framework to help sales leaders organize their thoughts and strategies for achieving sales results, this system has become a centerpiece for communications and planning sessions with our clients. The system should be viewed starting from the center with the concept that all strategy emanates from customer requirements. No strategy should be set unless it is based on customer requirements. Each of the elements that surround the customer forms your overall sales strategy. Next, take a look at your customer management strategies. How does your organization create opportunities and manage these opportunities to close? And, does your strategy support how client relationships are managed on an ongoing basis? Finally, examine how your strategies will be sustained. Is your organization structured in a way so decisions can be made quickly? Do your managers have specific roles and understand what they need to do to execute against organizational strategies? Is your entire organization supported by critical components like systems, marketing programs, and compensation plans that enable efficiency?

Summary of Results by Element of The Miller Heiman Sales System

Your Overall Score: Focus

Monitor Focus Focus Focus Monitor Monitor

2010 Miller Heiman, Inc. All rights reserved.

www.millerheiman.com | 1-877-678-3389

Sales Performance Meter: Assessment Report | Generated on April 23, 2012

Creating Opportunities Monitor


It is likely that you have salespeople on your team who are performing the activities in this element very well, but you recognize that there is work to be done. Coach your team to improve on the activities in this element and share the best practices of those who are performing well in this area. Continue to nurture these activities, but your first priority should be on activities in this report that are noted as red or 'Focus' activities. We find that the best sales organizations create opportunities very well. They develop consistent criteria for the types of accounts and opportunities they want to pursue, and walk away from those that arent a good fit. They first understand what the customer is trying to accomplish, fix, or avoid before presenting solutions. When they present a solution, they differentiate based on their unique strengths, and they gain commitment to keep the sale moving forward. They have a higher success rate in getting to senior- level decision makers and have strong, persuasive dialogue at this level. Companies can expect to grow their number of qualified sales opportunities when activities are performed well in this element. Those that reported they are practicing the activities in this area were significantly more likely to experience growth in qualified leads, an important early step in the sales process. Focus Sales and marketing are aligned in what our customers want and need. We consistently utilize comprehensive prospecting plans. Our salespeople have a solid understanding of our customers' business needs. Monitor Sustain

More Benchmarking Data


We have additional questions related to Creating Opportunities available for comparison in the Miller Heiman Sales Best Practices benchmark database: We have a formalized value proposition that is very compelling to our prospects. Our salespeople are experts in our products and services. We consistently follow a standardized process to qualify opportunities. Our salespeople are always held accountable for converting leads to closed business. Analysis of your organization compared to these related questions is available through our benchmarking services. Please contact us at www.millerheiman.com/ benchmark for additional information.

2010 Miller Heiman, Inc. All rights reserved.

www.millerheiman.com | 1-877-678-3389

Sales Performance Meter: Assessment Report | Generated on April 23, 2012

Managing Opportunities Monitor


Your results indicate you are likely doing many of the activities in this element well, but consistency may be your biggest issue. High performance is not something that's achieved and stays in place; this objective needs to be continually earned through constant attention and reinforcement of the activities that are producing results. Establishing a repeatable process for loss reviews and being very disciplined about the criteria for when to stop pursuing a deal are things to consider for improvement in this element. World Class Sales Organizations effectively manage opportunities through to close. This involves developing and executing a strategy necessary to win complex deals. These top- performing organizations effectively assign resources to the opportunity, identify the key players in the decision- making process, understand their issues, and influence them to support their solutions. These organizations are experts at involving the right people at the right time to win business. Companies can expect to improve their new account acquisition metric when things are working well in this element. Those who reported high performance in this area were significantly more likely to experience growth in new account acquisition. Expanding business with existing account is a likely outcome as well, especially when combined with the right activities in the next element, Relationship Management. Focus Our organization collaborates across departments to pursue large deals. When we lose a significant sales opportunity, we always know the reason why. In a large deal, we always gain access to key decision makers. We have an established procedure to know when to stop investment in large deals. Monitor Sustain

More Benchmarking Data


We have additional questions related to Managing Opportunities available for comparison in the Miller Heiman Sales Best Practices benchmark database: We have a disciplined process that is consistently used to pursue all large deals. We have an established procedure to know when to stop investment in large deals. Our salespeople are very effective at selling at an executive level. We have a formal process for utilizing executive- to- executive selling. We clearly understand our customers' issues before we propose a solution. Win or lose, we get accurate feedback on all proposals from our customers. When we give price concessions, we always get comparable value in return. Our salespeople immediately communicate with management when something unexpected happens to jeopardize a sale. Our price is almost always higher than the competition. Analysis of your organization compared to these related questions is available through our benchmarking services. Please contact us at www.millerheiman.com/ benchmark for additional information.
2010 Miller Heiman, Inc. All rights reserved. 5 www.millerheiman.com | 1-877-678-3389

Sales Performance Meter: Assessment Report | Generated on April 23, 2012

Managing Relationships Focus


Based on your responses to the questions in this element, it is likely that your account churn is higher than it should be. Account churn is a lagging indicator for this element though. Unstable relationships and inadequate dialog with high- level executives can be leading indicators of trouble to come. Without these relationships, you have no way of understanding the factors in play that could cause you to lose a significant account or prevent you from uncovering new opportunities. World Class Sales Organizations also manage relationships extremely well. Once they identify their strategic accounts, they treat these accounts like corporate assets. They invest in their largest, most strategic accounts in the same way they invest in their own people. They understand their business, engage in joint planning, make focus investments that add value to their client's business and ensure their mutual success. They build solid business partnerships that can't be easily displaced by competitors. Customer retention will improve as a result of achieving high performance in this element. Various reports put the cost of acquiring new business at multiples ranging from 4x to as much as 10x compared to retaining existing clients. Whatever the actual cost in your business, it is a clear case for protecting these corporate assets. Focus Our salespeople are definitely effective at producing year- over- year revenue growth from existing customers. We have relationships and dialog at the highest executive levels with all our strategic accounts. Our organization regularly collaborates across departments to manage strategic accounts. Monitor Sustain

More Benchmarking Data


We have additional questions related to Managing Relationships available for comparison in the Miller Heiman Sales Best Practices benchmark database: We always review the results of our solution with strategic accounts. When we lose a strategic account, we always know the reasons why. We jointly set long- term objectives with our strategic accounts. We regularly engage our strategic accounts in our product/ service planning process. Specific criteria have been established to define a strategic account in our company. Analysis of your organization compared to these related questions is available through our benchmarking services. Please contact us at www.millerheiman.com/ benchmark for additional information.

2010 Miller Heiman, Inc. All rights reserved.

www.millerheiman.com | 1-877-678-3389

Sales Performance Meter: Assessment Report | Generated on April 23, 2012

People & Organization Monitor


Identifying the reasons why your top performers are succeeding is a practice that offers high potential for payoff, but this discipline may be somewhat weak in your organization. Efforts to improve sales force performance should be monitored for signs of trouble. While some sales force turnover is healthy, undesirable turnover rates could be addressed by directing attention to this area. This element is not an immediate cause for concern, but it should be monitored. Salespeople are the face of your company and they spend the most time with your most important corporate asset, your customers. World Class Sales Organizations know their people extremely well and what differentiates high performers. They have distinct processes and tools for ensuring they have the right people in the right roles and an understanding of their current capabilities and areas for future development. Organizations that recognize their ability to play a role in the development of a high- performance sales team are at an advantage over those who focus too heavily on existing skills during the hiring process. People are often hired for the skills, experience and education they possess, but decisions to terminate salespeople are not usually based on a deficiency in those areas. Instead, it's often because their attitude leaves much to be desired. Skills can be developed, attitude is inherent. Focus Our organization requires the sales force to regularly participate in professional development programs. Our performance review process helps improve the sales force's job performance. We know why our top performers are successful. Monitor Sustain

More Benchmarking Data


We have additional questions related to People & Organization available for comparison in the Miller Heiman Sales Best Practices benchmark database: When we lose a high- performing salesperson, we always know the reasons why. Our performance reviews consistently include a coaching element. We proactively terminate poor performers. Our current under- performers are capable of significantly improving. Analysis of your organization compared to these related questions is available through our benchmarking services. Please contact us at www.millerheiman.com/ benchmark for additional information.

2010 Miller Heiman, Inc. All rights reserved.

www.millerheiman.com | 1-877-678-3389

Sales Performance Meter: Assessment Report | Generated on April 23, 2012

Support and Enablement Focus


As you prioritize your overall improvement plan, focus on this area after you have addressed any key issues in the customer management elements of the sales system. Being able to effectively support a sales team's productivity first requires a clear vision of the sales strategies. The odds for wasting time and resources are high in this element. Fortunately, there are also many opportunities that have a low cost and high return. World Class Sales Organizations clearly reinforce and support important processes and policies needed to drive consistency. They know that even the most compelling business processes wont stick in an organization if they are cumbersome to adopt. And, they carefully think through key change initiatives to maximize their success. For example, they may introduce technology to enable process change, or align compensation plans to reinforce the desired behaviors. Companies that effectively support their sales teams with management commitment and provide the tools they need to perform their job more efficiently report better forecasting capability than other organizations. Improvement made in this area should result in better revenue predictability. Focus Our organization's sales conferences are highly effective for reinforcing our sales process. Our sales performance metrics are aligned with our business objectives. Monitor Sustain

More Benchmarking Data


We have additional questions related to Support and Enablement available for comparison in the Miller Heiman Sales Best Practices benchmark database: Our sales compensation policies are aligned with our business objectives. Our sales management team is highly confident in the data available from our CRM system. Our CRM system significantly improves the productivity of our salespeople. We have significantly increased the use of online learning for our sales force. Analysis of your organization compared to these related questions is available through our benchmarking services. Please contact us at www.millerheiman.com/ benchmark for additional information.

2010 Miller Heiman, Inc. All rights reserved.

www.millerheiman.com | 1-877-678-3389

Sales Performance Meter: Assessment Report | Generated on April 23, 2012

Management Execution Focus


Companies that are not open to the changing needs of their customers will quickly lose business to hungrier competitors. This does not mean giving in to all requests for concessions; but it does require a deeper understanding of customer's needs so you can create a win- win scenario to help secure profitable business. Learn how your top performers win business in the face of these challenges and be sure to share these insights with your team. We find that the very best sales organizations rigorously execute their strategy, and they constantly strive to get better. They create metrics, track against these metrics, and use the information to support decisionmaking and drive accountability. Salespeople and executives spend adequate time staying close to customers and sales management coaching is focused on continuous improvement of the sales team. When discipline is applied across the six elements defined in the sales system, companies will see growth in key sales performance metrics, including revenue. While there are many other factors that can influence revenue and profitability, sales leaders must be held accountable for the activities within their span of control. Focus We leverage the best practices of our top performers to improve everyone else. Our organizational structure allows us to easily adapt to our customers' changing needs. Monitor Sustain

More Benchmarking Data


We have additional questions related to Management Execution available for comparison in the Miller Heiman Sales Best Practices benchmark database: Our executive leadership is actively engaged in our sales process. Our company has clearly defined the activities required for each stage in our sales funnel. In an average week, our sales force definitely spends adequate time with customers. In an average month, our sales managers definitely spend adequate time coaching each individual on the sales team. Analysis of your organization compared to these related questions is available through our benchmarking services. Please contact us at www.millerheiman.com/ benchmark for additional information.

2010 Miller Heiman, Inc. All rights reserved.

www.millerheiman.com | 1-877-678-3389

Sales Performance Meter: Assessment Report | Generated on April 23, 2012

Sales Performance Metrics


This chart shows how your responses provided for the following metric questions compare to the benchmarks of World Class Sales Organizations. Focus New account acquisition: Quantity of qualified opportunities/ leads: Quota achievement for our sales force: Customer retention rate: Revenue growth: Average account billing (or average purchase per customer): Sales forecast: Close rate (or lead conversion rate): Monitor Sustain

More Benchmarking Data


Metrics that fall within the Focus range are at or below the level reported by all study participants. Metrics in the Monitor range are above the benchmark set by overall study particpants but below the results reported by World Class Sales Organizations. Metrics that appear in the Sustain range are at or above the level reported by World Class Sales Organizations. Analysis of your organization compared to these related questions is available through our benchmarking services. Please contact us at www.millerheiman.com/ benchmark for additional information.

2010 Miller Heiman, Inc. All rights reserved.

10

www.millerheiman.com | 1-877-678-3389

Sales Performance Meter: Assessment Report | Generated on April 23, 2012

In Conclusion
While benchmarking has been used for years as a continuous improvement discipline, it is still relatively new to sales. Measuring top- line revenue influences in your organization can be accomplished through a few simple activities. Choose a small number of highly relevant metrics to measure. Create an internal baseline on those metrics, with a commitment to measure consistently over time without changing the definitions or metrics. Report on the metrics and make them visible. Create actionable improvement plans based on the results. When discipline is applied across the six elements defined in the sales system, companies will see growth in key sales performance metrics, including revenue. While there are many other factors that can influence revenue and profitability, sales leaders must be held accountable for the activities within their span control.

Next Steps
Schedule a consultation based on the results included in this report. Well schedule time for you with a consultant who has experience in your industry to answer questions about the activities in this report and provide recommendations for improvement. This report is based on your responses to a survey of 25 questions about sales best practices. These questions are from a more extensive set of questions included the annual Miller Heiman Sales Best Practices Study. Miller Heiman offers additional benchmarking services for companies that want to further explore how their organization compares to the best practices of World Class Sales Organizations. Our full benchmarking services can provide you with additional insights to help guide your sales performance initiatives: Input from more participants in your organization for a more comprehensive view of the activities being practiced by your sales force. Comparisons of your sales practices to others in your industry (for industries where data is available). Perception differences among functional levels in your organization: executive leadership, sales management, and field level. To discuss our benchmarking services, contact us at www.millerheiman.com/ benchmark. Or call us at: North and South America: 877-678-3389 UK: 0800 132595 Asia Pacific: +61 (02)9909 8699 Across the Globe: +44 1908 211212

2010 Miller Heiman, Inc. All rights reserved.

11

www.millerheiman.com | 1-877-678-3389

Sales Performance Meter: Assessment Report | Generated on April 23, 2012

About the Miller Heiman Sales Best Practices Study


Miller Heiman's annual research study of sales practices, success metrics, and World Class Sales Organizations is recognized as the largest continuous research project dedicated to sales performance in the world. Sales leaders benefit from the resulting trends, insights, and best practices revealed by our research. Even more significant, the research results support benchmarking exercises that enable companies to understand how they compare to their peers and how they can better identify areas for improvement. Since the study was launched, more than 25,000 sales professionals have participated. Our formal research projects, day- to- day business relationships with sales professionals, and the experience of our own executives and consultants enable us to continually validate and refine the services we provide our clients to help them achieve results. Miller Heiman's research focuses on complex, business- to- business sales. To date, participants in this study represent more than 20 industries in 30 countries.

About Miller Heiman


Miller Heiman is the proven leader and innovator in sales execution, with more than 30 years of helping businesses grow profitable sales by increasing their close rates, lowering the cost of sales and reducing the length of the sales cycle. The companys common framework of easily repeatable methodologies, combined with a tradition of research and thought leadership, helps firms of all sizes win complex sales. Miller Heiman is a worldwide leader in sales performance, with programs in 20 languages and corporate offices in the United States, the United Kingdom and Australia. For more information, visit www.millerheiman.com.

Copyright 2010 by Miller Heiman, Inc. All rights reserved. No part of this report may be reproduced in any form or by any electronic or mechanical means including information storage and retrieval systems without written permission from the publisher. Publisher Miller Heiman, Inc. 10509 Professional Cr., Suite 100 Reno, NV 89521 877-678-3389

2010 Miller Heiman, Inc. All rights reserved.

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