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Sales effectiveness metrics help defeat common obstructions

By September 5, 2017January 16th, 2023No Comments

When sales just aren’t clicking along, it can be difficult to pinpoint a culprit. A slump may just be a fleeting performance dip, but it could also be indicative of a larger issue. Either way, there are any number of factors that could be the reason for underperforming sales. More likely, it’s a conflation of several different contributing causes. However, identifying the root determinant of lackluster sales is imperative to combating it effectively. As the saying goes: “you can’t manage what you don’t measure.” Sales effectiveness metrics can help organizations gain more useful insight into the factors that could be contributing to poor performance. With data and patterns on their side, organizations can move to correct inefficiencies, and even prevent them before they occur.

Sales effectiveness metrics help isolate the variables
There are many facets of a sales approach that could be impeding an operation’s progress. A recent survey by CSO Insights asked more than 1,200 companies to identify the factors that had a negative impact on business-to-business sales potential. The lack of qualified leads was the most common inhibitor to sales effectiveness, with 46.2 percent of survey respondents identifying it as a barrier. However, the wide variety of other obstructions to sales performance indicates that companies are facing a lot of challenges, and often several competing issues simultaneously. Among the other most common barriers to sales effectiveness:

  • Competitive differentiation (36.7 percent of respondents)
  • Overly lengthy sell cycles (27 percent)
  • Close rates were not high enough (27 percent)
  • Ineffective sales approach (19.2 percent)
  • Lack of a common sales approach (19 percent)
  • Hard to establish sales ROI (18.8 percent)
  • Lack or alignment between sales and marketing (17.7 percent)

These are just some of the factors that prove perennially problematic for sales professionals. With sales effectiveness metrics, companies can delineate the different aspects of their sales process and isolate these variables. With the help of sales personnel, who can chart their own activity and identify issues along the chain, companies have a much clearer idea of the challenges that have the most significant effect on their organization.

How to program prevention
Ultimately, the most viable use of sales effectiveness metrics is in eliminating the barriers to sales productivity and profitability. Organizations can use metrics and analytics to help achieve this goal by communicating with employees about the aspects of the process that need to change and implementing any new techniques in a way that meshes immediately with current approaches.

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Ballast Point Ventures

Ballast Point Ventures is a later-stage venture capital fund established to provide expansion capital for rapidly growing, privately owned companies in diverse industries, with a particular emphasis on companies located in Florida, the Southeast, and Texas. The BPV partners have more than 70 years of combined experience investing in and building high-growth companies in a number of industries, including healthcare, business services, communications, technology, financial services, and consumer goods. BPV has $200 million under management and seeks to make equity investments ranging from $3 million to $10 million.

Harbert Management Corporation

Harbert Management Corporation seeks to generate superior returns for their investors by identifying and investing in the most promising early growth stage companies in the Southeastern U.S. HMC seeks to capitalize on what it believes are compelling regional dynamics, such as a strong and fast-growing economy, significant research and development activities, and an established entrepreneurial community. The HMC team combines substantial investment, advisory, and operating experience with capital and networking contacts to support great entrepreneurial teams in successfully executing their growth plans. With offices in Birmingham, Alabama; Richmond, Virginia; and Gainesville, Florida, it’s well positioned to partner with entrepreneurs throughout the Southeast.

KBH Ventures

KBH Ventures was an early investor in Iconixx Software. KBH's investment philosophy plays a significant role in the firm's successful track record. KBH believes in running businesses to be cashflow positive and profitable every month. Startups and companies in a startup mode, such as one that has been purchased in distress, are expected to generate revenue within the first six months and reach profitability within the first 12 to 18 months. KBH also only invests in or acquires companies that are in the startup phase or have less than $20 million in revenues. KBH targets technology companies that offer business-to-business services.

S3 Ventures

S3 Ventures is an early expansion and growth stage venture firm with $200 million under management. It’s focused on information technology solutions that solve large business problems. S3 also invests in medical devices that improve the human condition. S3 invests in category-defining opportunities. It partners with the team and help focus methodically on what it takes to build a successful company. S3 today helps talented entrepreneurs take their technology and market knowledge and form valuable businesses in a repeatable fashion. Investment sizes start at several million or more for Series A, B, and C financing.