Growth is dependent on having the right ingredients. According to the author of Scaling Up, Verne Harnish, businesses who combine “engaging talent, savvy strategy, and effective execution with sound cash management” set themselves up for success. As discussed in his book, the goal of any successful business is to decrease the amount of output it takes to increase revenue, which will ultimately lead to scalable and sustainable growth. In this instance, he believes applying Toyota’s Lean process will help businesses do exactly that.
A recent Salesforce blog by John Cousineau provides some insight into what this means for businesses. The article notes that one of the biggest problems in any organization is that companies can get a lot of things done, but that doesn’t mean they’re always spending their time, money, or resources on the right tasks. Even if only 10 percent of your team’s time was spent on the “wrong” tasks, the accumulation of time spent on these tasks could be detrimental to your bottom line. This is especially true for sales teams when they are spending way too much time on administrative or unproductive tasks as opposed to speaking with viable prospects. So, how can you get the insight you need for your sales team to be successful?
Harnish says that sales teams need to know their Cash Conversion Cycle (CCC), or “how long it takes for a dollar your spend to make its ways through your business model and back into your pocket”.
Cousineau says, “A strong CCC can be a powerful tool to dominate your market. From what we’re seeing, what’s also needed are analytics that show, operationally, what could strengthen your CCC. If target buyers aren’t having conversations with your sales reps, there’s zero chance you’ll see any of your cash ‘out’ convert to cash ‘in’. If after having conversations, target buyers don’t go on to have any more conversations with your sales team, you’re equally knackered. Savvy firms know their yields of conversations and ‘next conversations’. Better than that, they’re ‘self-aware’ of how their execution practices are affecting their yields.”
We couldn’t agree more.
Without the appropriate analytics and technologies, your teams can’t effectively prepare or adjust. Sales force automation is designed to provide you with this information so that you can see what’s driving revenue for your organization and what’s not. This is what our Math of SalesTM solution is built to deliver: real-time analytics that reveal who, what, when, and how many of your team’s sales activities are driving revenue and which are falling short so next steps can be measured and effective. It answers questions like:
- Do you truly need to hire more reps? or…
- Are your current reps and processes unproductive?
- Do you just need more leads in the funnel? or…
- Are your current lead sources inefficient?
- How many prospects, precisely, will your team need to hit goal next month?
- How many ‘touches’, precisely, does it take for your team to set an appointment?
- How many ‘touches’, precisely, does it take for your team to close a deal?
- How much of your current revenue forecast is real?
If you’d like to learn more about using the answers to these questions to make data-driven decisions, download our new white paper, “Understanding Your SDR Needs: Identifying Your Input and Output Ratio,” by filling out the form below: