Wednesday, March 10, 2004
Issue: Sales Force Performance
Sales team performance and productivity obviously are critical to a channel’s success. However we find that different executives think about different metrics when the term is mentioned. Corporate officers think of ROI, sales per head and sales growth as synonymous with performance. Sales VPs and Channel VPs, on the other hand think of the close rate, deal size, margin, competitive wins, account penetration and the sales funnel. In short, performance for field sales is about hitting the number and performance in the company is about leveraging sales infrastructure.
As a professional channel executive, we have to deliver both types of performance. We have to manage field sales behavior for measurable results and account for our stewardship and deployment of corporate performance. Remember, field sales salaries, local incentives and training are three of the largest line items in corporate SG&A.
As I mentioned last week, channels and sales are often not managed strategically, but treated as mercenaries. It is not good enough to “train and deploy” the sales force and hope for performance improvements. It is insufficient to manage sales where 80% of the revenue comes from 20% of the reps. To effect change in sales team performance requires changing sales management and specific sales rep behavior.
Although written for the channel provider, the points in my latest ChannelZone column, Managing Sales Force Productivity, are just as applicable to the channel executive looking to increase sales team performance. My past ChannelZone columns below also are relevant to sales performance:
The Top Ten Issues Facing Today's Reseller: Business performance, not products are what are important to your partners. Vendors that can link programs to these issues will get loyalty and committment form their channels.
How to Get More Out of Your Strategic Vendors: Channel programs fail to establish the kind of business relationships needed to move markets. Five steps that change the nature of how your account reps engage covered accounts.
Fueling the .NET Migration: Why are ISVs procrastinating the move to .NET. The answer can be summed up in one word: Money. Without capital, ISVs will not be eager to embrace new technologies. Where does the channel get its capital and how can vendors impact it.
Scott Karren, The Channel Pro
Sales team performance and productivity obviously are critical to a channel’s success. However we find that different executives think about different metrics when the term is mentioned. Corporate officers think of ROI, sales per head and sales growth as synonymous with performance. Sales VPs and Channel VPs, on the other hand think of the close rate, deal size, margin, competitive wins, account penetration and the sales funnel. In short, performance for field sales is about hitting the number and performance in the company is about leveraging sales infrastructure.
As a professional channel executive, we have to deliver both types of performance. We have to manage field sales behavior for measurable results and account for our stewardship and deployment of corporate performance. Remember, field sales salaries, local incentives and training are three of the largest line items in corporate SG&A.
As I mentioned last week, channels and sales are often not managed strategically, but treated as mercenaries. It is not good enough to “train and deploy” the sales force and hope for performance improvements. It is insufficient to manage sales where 80% of the revenue comes from 20% of the reps. To effect change in sales team performance requires changing sales management and specific sales rep behavior.
Although written for the channel provider, the points in my latest ChannelZone column, Managing Sales Force Productivity, are just as applicable to the channel executive looking to increase sales team performance. My past ChannelZone columns below also are relevant to sales performance:
The Top Ten Issues Facing Today's Reseller: Business performance, not products are what are important to your partners. Vendors that can link programs to these issues will get loyalty and committment form their channels.
How to Get More Out of Your Strategic Vendors: Channel programs fail to establish the kind of business relationships needed to move markets. Five steps that change the nature of how your account reps engage covered accounts.
Fueling the .NET Migration: Why are ISVs procrastinating the move to .NET. The answer can be summed up in one word: Money. Without capital, ISVs will not be eager to embrace new technologies. Where does the channel get its capital and how can vendors impact it.
Scott Karren, The Channel Pro
