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3 Things You Need to Be a Predictive Sales Organization

predictive analytics Selling Power

Do you look into your revenue future and see uncertainty?

If so, that might be because you’re still looking at backward-focused data rather than making predictions based on future-focused insight.

Business Intelligence vs. Predictive Analytics

As early as 2013, experts at Gartner were saying that using business intelligence (which looks back at what happened in the past) was no longer enough to be competitive. Instead, they encouraged leaders to look at the potential of predictive capabilities.

This year, the mission of the Sales 2.0 Conference is to educate business-to-business sales leaders about the power of predictive analytics. The reason predictive tools are so powerful is that they help you answer two key questions:

  1. “What could happen?”
  2. “What should we do?”

What Questions Can Predictive Analytics Answer?

Predictive capabilities improve your ability to make informed, intelligent decisions about how to manage your team and generate revenue. In their book, The Power of Sales Analytics, experts at global sales and marketing consulting firm ZS Associates write that data and technology can be used to address the following common questions for sales leaders.

  • How can salespeople identify the right customer opportunities? What sales activities best seize those opportunities?
  • How can sales activities be organized into effective selling roles? How many people do we need in each role?
  • What is the profile of a successful salesperson? Does our recruiting program acquire the best talent? Are we training and developing the right competencies?
  • What information and tools does the sales force need to create value for customers?
  • Are incentive programs, goals, and performance-management processes aligned to motivate high achievement and drive results?

Three Ways Sales Teams Can Become Predictive

If you want to adapt to a predictive future, you need to take the following three steps.

#1: Embrace your organizational data.

Analytics run on data. The good news: you don’t need any extra data to become predictive. Predictive applications use data you already have to make useful predictions about future events.

#2: Don’t play the waiting game.

Many sales organizations are still behind the data curve. In this month’s Selling Power magazine cover story, Jenny Dearborn, senior vice president and chief learning officer at SAP and a past presenter at Sales 2.0 Conference events, said that very few sales leaders know how to leverage data in a comprehensive way that impacts the sales cycle “from start to finish.”

She observes that, by contrast, leaders who are using data and predictive analytics are driving “breakthrough results.”

To hear specific examples of how these tools are helping sales leaders, join Mike Moorman, managing principal of sales solutions at ZS Associates, at the Sales 2.0 Conference in San Francisco in April. His presentation, “Sales Analytics Truths, Myths & Realities: Insight from 30 Years of Sales Analytics Leadership,” will show

  • how leading companies have, are, and will use sales analytics to increase profitable revenue growth;
  • the sales analytics business case;
  • how to achieve world-class sales analytics capabilities.

It can be intimidating to tackle mounds of expanding information about your customers, sales transactions, market potential, competitors, sales activity, and salespeople, but the longer you wait, the more difficult it will be to start turning data into predictive insight.

#3: Use your CRM system diligently.

Most sales organizations today rely to varying degrees on a customer relationship management (CRM) system. Ideally, it holds important, useful data related to prospects, pipeline coverage, sales opportunities, and customers; however, salespeople aren’t always using this tool consistently or diligently. As a result, data is often inaccurate, incomplete, or just plain missing.

Becoming a predictive organization will require a culture change, starting with the consistent use of the CRM system. Once salespeople see the results and what predictive tools can do for them, they’ll be ready and willing to do so.

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Lisa Gschwandtner Lisa Gschwandtner is editorial director at Selling Power and manages the Sales 2.0 Conference media team. Find her on Twitter @SellingPower20.

 

[Image via Flickr / Mark Weaver]

 

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New Sales Conversations Helped Us Regain Our Competitive Edge

Often it’s difficult to realize and accept that changing your business approach could be beneficial or necessary – especially if your company is well-established and an industry leader.

Thanks to changing healthcare regulations and growing competition, we at Philips Respironics (a Fortune Global 500 company) recently found our dominance as the leading providor of sleep apnea products challenged for the first time in more than 30 years. We realized we needed to do something different and break out of our traditional mold – we had to elevate our messaging, positioning, and training and help our sales representatives differentiate in a competitive market.

First, we reached out to The Corporate Executive Board (CEB), which had published research about the importance of differentiating sales messaging from marketing messaging to see if they knew of any companies that could help us accomplish this task. The CEB referred us to Corporate Visions, Inc., who then helped us reassert authority in our market by shifting our approach to sales conversations.

Historically, our sales conversations focused on our individual products, their features, and pricing. Corporate Visions helped us realize that promoting these features didn’t differentiate us in the eyes of the customer, and that our solutions blended with those of our competitors. We needed to create differentiated messages focused on how our products solve the unique challenges of our customers and how we can help them to meet their business goals.

After completing a series of positioning and training workshops (and training sessions for in-house trainers and sales managers) our salespeople took their new skills and messaging to the field. Just four months after the initial deployment, third-party measurement company BeyondROI surveyed 87 members of our sales force that participated in the messaging and training workshops to determine the quantifiable results. The impact was almost unbelievable:

  • We generated a 10-fold return on specific deal closings and our overall sales pipeline.
  • We realized a $4.6 million impact on new business deals and a $1.4 million impact on won deals.

Tellingly, salespeople who were classified as “high adopters” (those who use the new messaging/skills more than 70 percent of the time) saw a nearly 5 percent increase in their monthly quota performance, whereas “low adopters” (those who applied the new messaging/skills only 43-64 percent of the time) saw a less than 1 percent increase in their monthly quota performance. High adopters also had an average deal size of $82,128 – double that of low adopters.

While altering our business approach was not comfortable or easy, elevating our sales messages and updating our delivery had an irrefutable, positive impact on our overall sales. It awakened our sales force, helped us differentiate, and positioned us to successfully reign as the market leader for another 30 years.

Susan McGinnis Philips Respironics resized 600Susan McGinnis is a Senior Corporate Sales Trainer at Philips Respironics. 

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How to Succeed as a Sales Manager

As a sales manager and leader, are you measuring the right metrics for sales success?

At Vantage Point Performance, we recently wrote a book based on a groundbreaking research study we conducted about the metrics that leading sales forces are using to measure and manage their sellers. Interestingly, we discovered that thousands of sales metrics fall into one of three categories:

  1. Business results (such as revenue and market share).
  2. Sales objectives (such as acquiring new customers and selling certain products).
  3. Sales activities (day-to-day tasks like planning and conducting sales calls).

A key insight from the research is that only sales activities can truly be managed. Numbers related to sales objectives and business results are important to everyone, but these numbers cannot be directly controlled by sales management.

In fact, sales objectives and business results are trailing indicators of a sales force’s performance – they only show what you’ve accomplished in the past. Measuring sales activities, on the other hand, (which provide insights into current behaviors) are leading indicators that foretell whether those objectives and results will be attained in the future.

Amazingly, only 17% of the metrics in our study were focused on sales activities. Or, stated differently: more than 80% of the things sales forces are measuring are things that they cannot actually control.

You can’t control revenue – you can only control the things that your sellers are doing day-to-day. For example,

  • which types of prospects your reps are calling this week;
  • what types of conversations they’ll have;
  • whether they’re completing their call plans; and
  • whether they’re proactively managing their opportunities.

Clearly, many sales managers are only looking at metrics that tell them how successful they’ve been in the past. But as our research shows, a far more effective approach is to start measuring and managing sales activities instead. These are the critical inputs to success.

It’s important to remember that CRM is just a tool, and it only does what we tell it to do. Information goes in, and information comes out. Which information we request and what we do with that data is up to us as sales managers. Once we start using CRM to measure the right metrics, we’ll begin to predictably influence the future and manage sales teams that fulfill their highest potential.

To discover the best practices and frameworks you can use to influence the future, register to download a free chapter from Cracking the Sales Management Code, including a forward by Neil Rackham, best-selling author of SPIN Selling.

Jason Jordan
Jason Jordan is a partner of Vantage Point Performance and coauthor of Cracking the Sales Management Code.