Do we really want people who earn $150 an hour creating PowerPoint presentations from scratch?

Mike Damphousse’s interview with Lee Levitt (formerly IDC – Sales Advisory Service), from September 2009:

Lee: “[…] We have identified a number of ‘choke points’ in the selling process, mostly in the area of access to information and time spent on activities that (should) support the selling effort. Sales people spend way too much time searching for information, giving up and creating sales assets on their own (assets that typically exist elsewhere in the organization). Do we really want people who earn $150 an hour creating PowerPoint presentations from scratch or searching Hoovers for basic company information about their prospects? [Related post from this blog]

Sales 2.0 empowers sales people with simple, efficient access to information about customers and prospects already in context, usable from the start. Pulling this information together, analyzing it, cleaning it, ensuring that it is relevant — these activities should be done by a centralized group and then provided to the sales person or team at the right time — just before a call planning session.

Mike: Another critical activity right now is demand gen. We all know that b2b demand gen has shifted dramatically in this 2.0 world. Where do you see outbound marketing and inbound marketing impacting the top line in the next 12 months?

Lee: Marketing activities must seek to answer the questions posed by the prospect or customer: “Why are you sitting in my office now? What do you know about my business that has earned you the privilege of 30 minutes of my calendar? What experiences do you bring with you that are particularly relevant to the critical business issues faced by my company today?” All marketing activity must either directly or indirectly support the conversations that ensue from these questions. [All posts on Conversation Enablement on this blog]

Mike: We recently completed a study that showed that with b2b appointments, a third of C/VP execs delegated down, do you see the sales process becoming more of a buying process where the prospects are dictating how we sell?

Lee: I’d look at the issue the other way. Sales people have always been trained to sell up (Selling to VITO), and they’ve overshot their goal. A senior level executive will take a meeting with a rep who brings value to the table. If they aren’t prepared to have that value discussion, they’ll be pushed back down the organization, or as our research shows, thrown out. Reps must work their way up the organization, conducting research, building an understanding of the challenges of the organization, and matching their company’s capabilities with the needs of the organization. In this manner, they earn the right to talk with the senior executive.

Mike: What will you be talking about at the [Sales 2.0] conference? Can we have a sneak peak?

Lee: Sure. It’s all about pipeline hygiene — efficiency and effectiveness of “co-creating” value with the prospect or customer. Selling is dead. The best salespeople today don’t sell, they consult. They’re on the same side of the table as their prospect and they’re working together to create value. This takes deep understanding of the customer’s environment and challenges, and skills that many salespeople don’t have today. It also takes a different set of metrics to gauge the success of the engagement, metrics that most organizations don’t track.”

 

Is Sales Enablement just Lipstick on a Knowledge Management Pig

Gerhard GschwandtnerIn case you have not seen http://sellingpower.typepad.com/gg/2009/07/is-sales-enablement-just-lipstick-on-a-knowledge-management-pig.html It is a must read!

I will try to discuss some of the aspects here on this blog later.

Gerhard Gschwandtner @gerhard20 the author is spot on when he writes:

“[…] Analysts don’t analyze the economic realities of a Sales Enablement solution. There are no ROI studies nor objective research that compares the effectiveness of SAVO vs. Kadient vs. iCentera.

Analysts don’t create user studies that tell you more about the information infrastructure, the flaws with the search functions, the project abandon rate by vendor, the average user acceptance, the obsolescence factor of the data, the amount of information that’s missing just because nobody knows where all the useful data is located, the amount of time it takes to train (and retrain) salespeople, or the end-user satisfaction level with the graphical interface (some of the designs are an insult to the eye).

The vendors want you to believe that their Sales Enablement tools allow you to harness the collective intelligence of your sales organization. It sounds great, but who in the world can define and measure what that means? How do we know what best practices can positively influence sales productivity? Who decides what not to make available (due to security issues)? Most salespeople can’t write coherently, and most of the top salespeople can’t articulate what makes them successful. So how do we really capture sales intelligence?

What’s the real cost of running a Sales Enablement solution? Is there a need for editorial staff to help create and edit content, to set up template standards and apply them?

How much of a company’s “best practices” and sales intelligence is reusable? If I am a salesrep, getting ready for a presentation to Boeing in Seattle, and I download a presentation that one of my peers created for Airbus, how much data can I reuse, and how much do I have to create from scratch?

Sales Enablement companies are NOT too savvy when it comes to social media. Search for Kadient on Twitter – zero results. iCentera has 43 followers, SAVO has 391, @BizSphere is the leader with 441 followers

The point is this: Social media tools allow people to connect with lightning speed. If Jill in Jackson wants a ppt presentation on jackhammers, I can tweet and send her a link in seconds. […]”

business case data for sales enablement solutions

This work in progress blog post collects data that Sales Enablement Solutions vendors use to make business cases.

This work in progress blog post collects data that Sales Enablement Solutions vendors use to make business cases.

The first one is from Lee Levitt (former Director, Sales Advisory Practice; IDC) in response to the question “Which percentage of what marketing teams make available ends up being used by sales?”:

November 22, 2010: “In researching this question two years ago at IDC, we found that between 50 and 90% of all marketing provided collateral goes unused. Sales people can’t find the right stuff, it’s too inwardly focused, it’s not tailored to client’s specific needs, sales people got a copy of something a buddy used that worked…

Good sales and marketing alignment can substantially reduce this vast wastage and help sales people to be more productive. It requires that sales and marketing executives together identify target markets, specific business issues, goals, etc., and jointly develop the plan to address the opportunity. The deliverables should then support that plan.”

Lee Levitt also wrote the following comment on July 29, 2009:

“[…] Companies are reporting results with sales enablement. American Express, for instance, indicated that Time-to-Revenue for new reps dropped from months to weeks after they implemented a leading SE environment. They reported this at an IDC Sales and Marketing summit in 2008.

For another large IDC client, we identified a 15% increase in sales productivity after the company implemented some basic sales enablement processes, a small subset of the possibilities in that multibillion dollar organization.

While it’s still early in the sales enablement game, virtually every midsize or larger company today does something in the area of sales enablement, typically based on internal processes and maybe some intranet or SharePoint support.

A very small handful of companies, maybe a thousand in total, have taken a focused approach at moving their sales enablement activities to what IDC refers to as the third generation of sales enablement.

In these early markets, innovators and early adopters don’t care about ROI. That’s for the late majority to worry about. They’re looking for competitive advantage…and they’re finding it. When companies seek to address specific business challenges (new rep support, competitive response, customer intelligence, campaign support, etc), they find substantial improvements in sales productivity and customer satisfaction.

We’ve only scratched the surface with sales enablement. We believe that the potential for sales productivity improvement is on the order of 30-50%, or more, particularly if employed with the other four levers of sales productivity and properly measured.

And the net savings to the organization may be substantial. The typical technology firm spends more $12,000 per rep per year in marketing collateral development, with the vast majority of that expense going to waste. Firms that take an outside-in approach in sales asset development will find this cost dropping by an order of magnitude.

There’s ROI for you – higher sales productivity and lower costs.”

This one is from Bruce A. Brien’s blog post “The core problem with sales enablement”, from July 9, 2009:

“[…] sample company does $10 million in annual revenue with a 40% close ratio and an average deal size of $100k on a 90 day sales cycle.

  • That means that the 5 sales reps are each closing 20 deals per year while working 50.  They are focused on 12-15 deals at a time.
  • If our sales enablement capabilities cause a 3% drop in our overall effectiveness, our sales people will only be working on 48 deals [each] and closing only 18 of them for an average price of just $97k. [18 * $97k * 5 sales people] The result is a revenue picture of $8.7 million or a drop of about 13%.
  • Assuming you have fixed costs in the 25% range and an operating profit of 15%, profits would drop by a whopping 47%.  The compounding effect can be devastating.  A 3% drop in sales effectiveness can easily result in the loss of half of your profits.
  • You could re-coup your lost revenues by hiring another sales rep at a cost of $150k and be faced with the same problem next year when your efficiencies drop further or you could address the core of the problem and shore up each part of your sales enablement platform for similar monies while building a solid foundation for future growth.”

Many Sales Enablement and Sales 2.0 start-ups are citing Forrester’s Scott Santucci’s ‘Uncovering The Hidden Costs Of Sales Support’ from April 13, 2009 to make a business case for their services:

“Technology vendors are spending, on average, 19% of their selling, general, and administrative (SG&A) costs or $135,262 per quota-carrying salesperson in support-related activities. Few are aware of this enormous amount because the costs are hidden — tucked away in many different budgets dispersed throughout the organization. Corralling these random acts of sales support presents a golden opportunity. By creating a strategic sales enablement program, marketers can drive significant cost savings in the short term, while improving their companies’ competitiveness to thrive in the new growth cycle.”

On July 7, 2009 Michael Gerard (VP, Research for IDC’s Executive Advisory Group) posted on his blog:

“[…] IDC research shows that over 40% of all marketing assets handed over to sales are not in use today (IDC’s Best Practices in Sales Enablement – Content and Marketing (to be published end of July)). This includes assets that have been developed for sales, channels, prospects and current customers. IDC estimates that at least 30% of companies’ marketing investment, including program and people spend, is dedicated to creating content and marketing assets. Clearly, marketers can leverage cost reduction opportunities if they take the time to improve their content management process and technologies.

– “Our content is all over the place…a more formalized content portal is being created to get our sales team the most relevant materials when they need them.”
– “…marketing is funding an improved marketing asset management system and we are hoping to achieve 3% – 5% reduction/reallocation of spend on annual asset development and improved production efficiencies.” (improvements in production efficiency, reduced program time-to-market, and reduced re-work).

In the next several weeks, IDC will be publishing a sales enablement report highlighting best practices in marketing content management from a lifecycle management, technology, and measurement perspective. Detailed company case studies will be also be included. […]”

In 2004 it was IDC’s ‘The Cost of Information Tasks to the Enterprise’:

Whitepaper IDC Hidden Costs 0405

In its February 2010 issue CRM magazine looked at Sales Enablement Tools:

“[…] THE NUMBERS

  • $135,262 is spent, on average, in support costs per year for each salesperson.
  • 7 hours per week is what the average salesperson spends looking for relevant information to prepare for sales calls.
  • 50 percent of the information is pushed through email.
  • 10 percent is “made available in a useful format.”

Source: Forrester Research & IDC Sales Advisory Service

I have not double checked the following numbers I found in the post ‘Sales people who research cost you big time!’:

“[…] So, what is the actual hourly value for a B2B salesperson? We’ve developed an excel calculator to help do the math. Let’s use a typical experienced B2B enterprise salesperson at a software company and apply these sample figures:

  • Annual compensation (at plan, or meeting quota): $200,000
  • Benefits Paid (20% of a 70K salary): $14,000
  • Annual Quota: $2 million
  • Include 2 weeks vacation and holidays

This salesperson’s true “hourly value” is $1,198!

For companies with higher quotas (I’ve seen annual quota’s as high as $14 million), this figure is even higher!

If you’d like to figure out your own salespeople’s hourly value, send me an email at silvia@industrygems.com and I will email you the calculator.

The next time you see your salespeople doing research, take interest. Using salespeople for anything other than selling, negatively affects your bottom-line. Find ways to remove those activities from their daily to-do list. It could be costing you over $1,000 an hour! Your sales people must focus on the thing they do best… selling!”

Over 40 percent of all marketing assets handed over to sales are not in use

On July 7, 2009 Michael Gerard (VP, Research for IDC’s Executive Advisory Group) posted on his blog:

“[…] IDC research shows that over 40% of all marketing assets handed over to sales are not in use today (IDC’s Best Practices in Sales Enablement – Content and Marketing (to be published end of July)). This includes assets that have been developed for sales, channels, prospects and current customers. IDC estimates that at least 30% of companies’ marketing investment, including program and people spend, is dedicated to creating content and marketing assets. Clearly, marketers can leverage cost reduction opportunities if they take the time to improve their content management process and technologies.

– “Our content is all over the place…a more formalized content portal is being created to get our sales team the most relevant materials when they need them.”
– “…marketing is funding an improved marketing asset management system and we are hoping to achieve 3% – 5% reduction/reallocation of spend on annual asset development and improved production efficiencies.” (improvements in production efficiency, reduced program time-to-market, and reduced re-work).

In the next several weeks, IDC will be publishing a sales enablement report highlighting best practices in marketing content management from a lifecycle management, technology, and measurement perspective. Detailed company case studies will be also be included. […]”

blog post from Michael Gerard (VP, Research for IDC’s Executive Advisory Group); posted on July 7, 2009

Do you want your sales people to spend their time customizing slide decks?

Many Sales Enablement startups are citing Forrester’s Scott Santucci’s ‘Uncovering The Hidden Costs Of Sales Support’ from April 13, 2009 to make a business case for their services:

“Technology vendors are spending, on average, 19% of their selling, general, and administrative (SG&A) costs or $135,262 per quota-carrying salesperson in support-related activities. Few are aware of this enormous amount because the costs are hidden — tucked away in many different budgets dispersed throughout the organization. Corralling these random acts of sales support presents a golden opportunity. By creating a strategic sales enablement program, marketers can drive significant cost savings in the short term, while improving their companies’ competitiveness to thrive in the new growth cycle.”

On July 7, 2009 Michael Gerard (VP, Research for IDC’s Executive Advisory Group) posted on his blog:

“[…] IDC research shows that over 40% of all marketing assets handed over to sales are not in use today (IDC’s Best Practices in Sales Enablement – Content and Marketing (to be published end of July)). This includes assets that have been developed for sales, channels, prospects and current customers. IDC estimates that at least 30% of companies’ marketing investment, including program and people spend, is dedicated to creating content and marketing assets. Clearly, marketers can leverage cost reduction opportunities if they take the time to improve their content management process and technologies.

– “Our content is all over the place…a more formalized content portal is being created to get our sales team the most relevant materials when they need them.”
– “…marketing is funding an improved marketing asset management system and we are hoping to achieve 3% – 5% reduction/reallocation of spend on annual asset development and improved production efficiencies.” (improvements in production efficiency, reduced program time-to-market, and reduced re-work).

In the next several weeks, IDC will be publishing a sales enablement report highlighting best practices in marketing content management from a lifecycle management, technology, and measurement perspective. Detailed company case studies will be also be included. […]”

In 2004 it was IDC’s ‘The Cost of Information Tasks to the Enterprise’:

Whitepaper IDC Hidden Costs 0405


OK, we are in 2009 now and a lot of productivity enhancing apps are popping up on the iPhones, LinkedIns and CRM platforms of today. Information workers in marketing and sales departments have many tools available to them that will free up time when used wisely. When Google Wave becomes available in the fall, searching in conversations you had with your team or in the history of documents you collaborated on will become much more enjoyable. However, when it comes to gathering information for documents, creating images, creating documents/presentations, editing/reviewing, filing and organizing documents, we all still lose a lot of time that should be spent on bringing in additional revenue.

How often do you find yourself copying and pasting value propositions, customer references from different industries and product images from older documents into new versions that are targeted at a slightly different audience?

ABC: Always Be Customizing (Sales Decks, Value Props,…)

We need to be able to generate highly customized documents on the fly by selecting the offering, the audience, the industry vertical etc… and we do not want to spend time re-formatting anything. We just want to chose a template that is then applied to all the content.

document generation feature tour

document generation


 

Save yourself and your sales people a lot of time and nerves, better spent with the customer!

Go beyond slides libraries! Basically bring it to the next level by breaking up slides into ‘content nuggets’ and use web 3.0 concepts to auto-generate customized files out of a mind-bobbling number of possible combinations. Saves real dollars / time normally spent on designing PowerPoint or other doc types. No more outsourcing to graphics agencies. Just pick the template and hit “generate”. The result will be polished and include cross-selling opportunities and case studies from the chosen country…

How do your sales people and channel partners navigate your product and services information?

Are you in Marketing/Sales Enablement at a business that sells to businesses all over the world? Do you have traditional intranet pages for each country or sales region you have sales people or channel partners in? Then you have thousands if silos to maintain and your users have hundreds of mouse clicks stealing their time!

offerings


  • Are you in Marketing/Sales Enablement at a business that sells to businesses all over the world?
  • Would it look anywhere close to the image above when all products and services, that your company needs to enable sales people and channel partners for, were shown in a taxonomy/hierarchy?
  • Do you have traditional intranet pages for each country or sales region that you have sales people or channel partners in?

If so, then you have thousands of silos to maintain and your users have hundreds of mouse clicks stealing their time! (Also see “Important characteristics of how typical sales reps at large organizations roll”.)cube


On May 15, 2009, @scottsantucci (Forrester Analyst covering Sales Enablement) tweeted:


“Had a briefing from BizSphere. Very interesting thinking, particularly about the need for an information architecture.”


Displaying your Sales Enablement resources and the feedback from your sales people and channel partners in…

  1. a context (an information architecture)
  2. in Rich Internet Applications using web2.0 technologies

… makes the scary amount of traditional intranet pages from the image above a thing of the past.

BizSphere Sales Web does exactly this. The result can look like the images below and requires an amazingly low number of mouse clicks to navigate.

sales web_mdt

BizSphere Sales Web

Buyers want the sales rep to provide information that is tailored to their unique needs

Jeff Ernest @jeffernst wrote “Sales 2.0 term still not used or recognized by sales leaders”, on May 19, 2009:

“[…] when a speaker asked a room full of sales and marketing folks “Who’s heard of the term Sales 2.0?” About 25% of the hands went up, almost entirely vendors. My take on the reason for this is that the definitions of Sales 2.0 that the vendors are bandying about are too focused on the usage of Web 2.0 tools by sales reps…namely social networks, blogs, wikis, etc. I’ve got a very different definition of Sales 2.0, and it starts with the buyer…

Because of all of the social media resources available to buyers today on the web, power has shifted from sellers to buyers. No one can deny that buyers today are much better educated about a seller’s offerings long before they talk with a sales rep.

Sales 2.0 is all about how the changing buying process requires changes in how companies sell. Buyers get frustrated if sales people are giving them the same general information they already have. They are demanding that sellers add much more value, by giving them information that’s tailored to their unique needs, at the exact time they need it.

Once we stop talking about Sales 2.0 as Web 2.0 tools for sales reps, and start recognizing it as a fundamentally different way to sell, it will become more relevant to and recognized by sales and marketing practitioners.

In a Sales 2.0 world, sales reps need to be better prepared than ever. What are you doing to prepare your reps?”

document generation

document generation feature tour

 

“Why re-creating content again and again? Why ending up with multiple versions of the same content across your enterprise? There’s a way to create a sustainable content base for your enterprise. BizSphere content re-use and single sourcing technologies allow you to plan and execute your content production in an organized way enabling content consumers to auto-generate the documents they need, when they need it – instantly and on-the-fly.”

This goes well beyond slides libraries! Basically brings it to the next level by breaking up slides into what they call ‘content nuggets’ and using web 3.0 concepts to auto-generate customized files out of a mind-bobbling number of possible combinations. Saves real dollars / time normally spent on designing PowerPoint or other doc types. No more outsourcing to graphics agencies. Just pick the template and hit “generate”. The result will be polished and include cross-selling opportunities and case studies from the chosen country…

“Six issues that content and inbound marketing technology fails to address” from on Wednesday, April 15th, 2009:

“[…] Generic content does not work anymore, you need to address each stakeholder, if you are selling to a CIO, CFO, HR, you need specific content to address their business requirements.”

Sales 2.0 Technology – Real Opportunity or Sales SOS? March 21, 2009 by Darren Cunningham, Director of Product Marketing at LucidEra [Links added by the author of this blog].

“[…] make my sales team more effective, not just efficient?

According to a recent IDC study (Don’t Understand Sales Enablement? You’re Not Alone!, 2009) 57% of customers feel that sales reps are not sufficiently prepared about the solution they offer, the country they are in and the industry the customer is working in. Therefore, by providing the seller with the latest and most specific content and experts within the organisation can help him prepare faster and better before his/her pitch.

Cross-Referencing the own offering portfolio (this product can be sold with this service, logistics say that this product is often shipped together with that product, etc) can enable upselling as well.”

The hidden costs of sales support

On April 27th, 2009 @Seamus Walsh attended “Uncovering the hidden costs of sales support” – hosted by Forrester’s Chief Financial Officer, Mike Doyle and Scott Santucci, Sr. Analyst Sales Enablement – and wrote ‘How to justify content and inbound marketing investments’:

“[…] “random acts of sales support” […] are activities dispersed though out organizations that carry a variety of hidden costs that are tucked away in various budgets. For this study, they examined 25 vendor and user companies and took a closer look at these “random acts” and activities to “help sales sell” and came up with eye-popping results:

“Technology vendors are spending, on average, 19% of their selling, general and administration (SG&A) costs of $132,262 per quota-carrying salesperson in support-related activities”

With sales and marketing budgets being slashed, there are things you can do to “hold the (budget) line” in your company,  start by inventorying these activities and costs and utilizing sales enablement and marketing automation systems to make these cross functional activities more effective and efficient.

Action items […]:

Each of these recommendations can leverage online tools and best practices. A sure way to reduce those hidden costs is to maximizing the business benefits of the web.  There are many solutions that will increase top line revenue, customer loyalty and your customers and prospects buying experience.  The issue, I see is that many continue to focus on content quantity and not quality. With everyone, including your competition, placing a greater focus on leveraging their online channel, those who build a more intimate and personalized buying and account management process will win more business.”

Definition of Sales Enablement and Conversation Enablement

Definition of Sales Enablement

This blog follows IDC‘s Michael Gerard’s definition of Sales Enablement as posted on his blog ‘Musings on the Science and Art of Selling’:

“The delivery of the right information to the right person at the right time in the right format and in the right place to assist in moving a specific sales opportunity forward”

John Neeson also has an excellent definition:

“Channel and Sales Enablement. Provide sales (direct and channel) the tools that will give them access to the knowledge assets that support in-process sales pursuits. Foster sharing of information on a two-way basis as information learned in the field can be used to tune, refresh, and continuously improve the knowledge base. […] focusing on “searchability and findability” of information.”

Definition of Conversation Enablement

Building on Michael Gerard’s definition of Sales Enablement, Conversation Enablement can be defined as:

The delivery of the right knowledge(=information provided in context) in the right format
and the right questions to ask (“Conversations are about discovery”)
to the right person at the right time and in the right place
necessary to move a specific conversation forward.