Why Sales Productivity Matters

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To compete and win it is critical to harness the knowledge, resources, and experience of the company and deliver it to the salesperson, as well as other customer touchpoints, throughout the whole buying cycle. Making it easy for sales to access the critical information, when they need it, in order to have trusted advisory conversations is critical to both short and long term success.

An 8-year Bain Capital Ventures study of software companies cites sales productivity as a key indicator of a company’s success.

Surprisingly, it is not…

  • First mover advantage, or
  • The amount spent on sales, marketing or R&D.

“Sales-force productivity is the critical differentiator.  In successful firms, sales forces are 80% to 120% more productive than in unsuccessful ones,” according to Jeff Crisan, principal, Bain Capital Ventures.

How do sales people become more productive?

According to Bain, enabling your sales representatives to clearly and consistently tell prospects the value of your company’s offerings is critical. People buy when they believe the product or service will add value to their organization.

Fast Facts:

  • Over 50% of sales reps did not make their quota last year, and in many past years. 
  • Sales lacks knowledge and understanding of customer challenges and needs, as well as their own offers, decreased their ability to have the appropriate level of customer conversations. Consequently they could only speak generically about how their offerings were able to solve their customers’ problems.
  • Over 50% of sales reps were not prepared for their customer meetings.
  • Increasingly buyers want a deeper level of engagement with their vendors. This trusted advisory relationship is truly a competitive differentiator.

 Source: IDC, 2010

Increasing sales productivity promotes success.