Friday, 20 February 2015

Cost of Sales vs Sales Productivity




Head Sales of any B2B organization has to constantly fight with the challenge of Cost of Sales vs Sales Productivity.


In direct sales team model, organizations want Cost of Sales LOW while Sales Productivity to remain HIGH. It’s easier said than done. Low cost means lower skill set which generally translates to low productivity.


Organizations try to implement Channel model to improve Sales Productivity while keeping Cost of Sales in check. This model though popular but has intrinsic problems attached to it. The cost of sales difference is not too large compared to the direct model, channel focus towards your product / service always remains a concern.



What shall organizations do to maintain the above equation?

·   
      Develop a Strong Qualified Lead Generation System : More qualified leads means less effort to close sales thus improved productivity

·   
      Sales Pitch: Majority of time customer does not understand “what benefits will he get if he buys your product / service”. Crisp & to the point communication brings more conversions.

·   
      Review your Sales Process : A robust process improves your sales acquisitions by 20-50%

·   
      Training : A highly motivated and informed Sales Team closes deals faster


Saarthee Infoserve (www.saartheeinfoserve.com) is a sales and strategy consulting organization serving Entrepreneur’s, SME’s & Enterprises in India. We help implement proven methodologies in organizational ecosystem to maximize their sales productivity and effectiveness to create a high performance organization.

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