Need to prove that sales activity management software will be a worthwhile investment? We understand. After all, your chief financial officer gets bombarded with budget requests daily.
You understand the ROI of sales activity management. But to purchase the software, your CFO needs to see it, too.
We’re here to help. Here are 3 talking points – backed by research, data and case studies – to demonstrate that sales activity management brings substantial ROI.
The Value of Sales Activity Management Software
1. Sales activity management connects revenue to sales team activities.
Most teams consist of three skill levels:
- 20% top performers
- 60% middle performers
- 20% bottom performers.
That middle-performing majority has the greatest impact on sales. In a study of 625 sales reps across 11 states, The Sales Executive Council found that a 5 percent performance gain from those middle performers yields 70 percent more revenue than the same gain in top performers.
Sales activity management boosts performance by focusing on the specific activities that lead to sales. Increasing general activities won’t work. Reps need the right inputs to achieve desired outputs.
For example, if your company wants $10 million in revenue this year, and your average deal size is $100,000, your sales team has to close 100 deals. Let’s say you only win 1 out of every 3 proposals sent out. The team has to send 300 proposals. And the reps only get to the proposal stage for a quarter of the meetings they have, so there need to be 1,200 meetings. But it takes 10 phone calls to get a meeting, which means 12,000 phone calls have to happen this year.
This process breaks down the revenue goal your CFO relies on into day-to-day activities for the sales team. To achieve revenue, the sales team fulfills each activity goal. Sales activity management automatically tracks the critical activities, monitors pacing and alerts reps and managers when they should focus on a specific metric to stay on track.
When a sales team focuses on activities critical to closing business, they make the most efficient use of their time and generate greater ROI. Without sales activity management, reps take a trial-and-error approach to winning deals. Your CFO can’t afford that.
2. Sales activity management creates proactive sales managers who over-perform.
According to Vantage Point Performance partners Jason Jordan and Michelle Vazzana, measuring sales activities is a key ingredient to better sales management. In “Cracking the Sales Management Code,” they explain that tracking sales activities doesn’t lead to micromanagement. It leads to proactive management.
And better sales management leads to higher goal attainment. During a study of 515 sales managers at global B2B sales forces, Vantage Point found that the top quarter of sales managers performed at 115 percent of their target. What’s more, they outperform the bottom quarter of sales managers by 39 percent.
Sales activity management systems empower proactive sales managers. The managers can review sales metrics daily and course correct in real time when sales performance lags. With the system’s data, they uncover which reps struggle with which activities and then coach accordingly. Ultimately, they create more accurate sales forecasts that tie directly back to the controllable actions of the sales team. Any CFO can appreciate that.
3. Sales activity management drives instant ROI.
Every software solution promises ROI, especially those that help reps perform tasks like sending emails or entering data more efficiently. The theory is that time saved on tedious tasks allows salespeople to spend more time on selling. You’re hoping the extra time will bring ROI. Hoping.
But sales activity management drives the right activities that lead to sales. When those activities occur more often, so does revenue. It’s a mathematical certainty. Therefore, sales activity management software directly correlates to selling more.
There’s proof: Staples increased key selling activities by 182 percent, doubling their number of opportunities created. Ryerson saw a 60 percent increase in profit per month. Veritas experienced 130 percent more contacts created, 105 percent more proposals sent and 8 times more meetings scheduled.
When you understand how sales activity management creates ROI, it’s easy to understand why 56% of sales organizations have already invested in it. Will you be next?