In our continuing series on revenue performance, we outline those attributes of underperformance and the steps to take to drive revenue performance and predictability.
Some characteristics of an underperforming sales team:
- Over the last 8 quarters, actual bookings have been less than 70% of forecast.
- Fewer than 35% of deals past the proposal stage close as forecasted.
- You lose greater than 50% of your forecasted opportunities.
- Documentation of why you lose is limited, and often simplistic: price, product fit, etc.
- CRM utilization is sporadic, especially in the early sales process stages.
- Key deals are lost late in the quarter.
- Under 50% of your account executives meet quota.
- Measures of sales performance do not include account profitability or return-on-investment.
- 70% of your sales campaigns fail due to lack of collaboration between marketing initiatives and sales execution.
Do these characteristics describe you?
QSS Revenue Performance Matrix
- Consistently fail revenue targets
- Blindness: what to monetize
- 'Flavor of the month' solution
Our research of hundreds of B2B companies, corroborated by findings of a leading research organization, shows that greater than 2 in 5 B2B companies have experienced sustained under performance when measured over a 5-year period.
If you identify your sales efforts as underperforming, don’t despair. There are 3 key steps that have proven to lead a company to improved revenue performance:
Smart Targeting: based upon your current product and recent sales success, define your optimal customer profile:
- Create 3 to 5 ideal use cases for your product or solution.
- Define the profile of your ideal customer: company attributes, vertical market, geography, etc.
- Re-validate the persona of your buyer or buying teams.
- Align all sales and marketing efforts to these established profiles and personas.
Establish and manage to the 4Rights for every opportunity:
- Confirm you are working on the right opportunity using the Smart Targeting steps above.
- Ensure each opportunity is in the right stage and mapped to the buyers’ journey.
- Make sure to document and deliver to the prospect the right value.
- Verify you have the right close date.
Create North Star Metrics and KPIs that provide reports and dashboards that allow all organizational stakeholders to be on the same page as it pertains to:
- Strategy: your near-term and long-term bookings and revenue goals.
- Structure: the process, procedures and interdependencies required to meet your revenue goals.
- Enablers: the infrastructure and tools required to manage your entire sales lifecycle.
- Management: how you measure enterprise collaboration, performance and profitability.
Where are you in the QSS Revenue Performance Matrix? Please look on our website for other blog posts that identify appropriate strategies to move up and to the right on the QSS Revenue Performance Matrix.