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IDC’s 2013 Trends, Benchmarks, and Essential Guidance for Technology Sales Organizations
IDC Exclusive Webcast: Annual Sales Productivity Benchmarks Study
September 27, 2012
May 3, 2023
© IDC For Internal Use Only. Not for Distribution without IDC Permission.
Sales Advisory Service: Technology Sales Productivity Study Webcast
Michael GerardVP, Sales Advisory
Practice
2
Look for these boxes which indicate additional resources for Sales Advisory Service clients
Thursday, September 27: 2013 Sales Strategies
A View into the Current Buying Environment 2013 Guidance for Sales and Sales Operations Executives Productivity Benchmarks and Trends Additional Resources
Irina ZvagelskyResearch Analyst,
Sales Advisory Practice
May 3, 2023
© IDC For Internal Use Only. Not for Distribution without IDC Permission.
Sales Leadership Board Mtg.
IDC Team
Sales & Mktg. Taxonomy
Source of Data, Insight and Guidance for Today’s Webcast
Sales Productivity Benchmarks
Database (2012 update)
3
Best Practice Studies Next Gen. Sales Ops. Sales Methodology Account Planning Sales Measurement Sales Coaching Sales Enablement Custom Intelligence for Sales
May 3, 2023
© IDC For Internal Use Only. Not for Distribution without IDC Permission.
Today’s Marketing and Selling Environment – What’s Different?
Larger buying teams means more people to “sell” to– 2010: 5 People– 2011: 6 people– 2012: 7 people
Longer Buying Cycles– 2010: 5 months– 2011: 5.2 months – 2012: 5.4 months
Buyers are more knowledgeable, more connected - and busier!
40% to 50% of the buying decision is made before your potential buyer even says “hello” to your sales
rep. Refer to “The IT Buyer Speaks” webcast, www.idc.com , #WC20120913
4
May 3, 2023
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The good news?. . .
How are Sales Folks Doing with Buyers in this New Environment?
5
Over ½ of buyers who switched vendors during the past year did so as a result of their newer vendor being more diligent and reliable to their needs.
Our best vendors help us solve problems. . . . “Interact more with our internal teams at a functional level to understand where our pain points are, and provide solutions to improve our revenue & profitability."
Buyers are inundated: “Much of my commute home is “delete, delete, delete,…”
There is opportunity to differentiate and move ahead of your competition
May 3, 2023
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How Do Sales Teams Need to Evolve?
6
Sales Needs to: Add more value to the
individual buyer:– Communicate a vision;– Be a trusted advisor.
Pre-90s 90s 2000s 2010+
IT’S ALL ABOUT...
IT’S ALL ABOUT...
THE BUYERME
Selling Focus
Product Solution Company’s business need(s)
Individual buyer’s business & professional needs
Knowledge Transfer
Collateral (hard copy)
Trans-parencies
1 to Many Web Site
Collateral (soft copy)
PowerPoint
Sales enablement
Targeted Web content
Rapid Customer enablement
Customized workspace
Interaction Snail mail In-Person Phone
Email Mobile
Conference call
Mobile Text
Instantaneous or asynchronous Social media Telepresence
Leverage new channels to learn, prepare, interact. . . Intelligent Interaction
Provide relevant and focused knowledge and insight for the individual buyer and the buying team
May 3, 2023
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The Pathway to Productivity: IDC’s 2012 Guidance for Sales Executives
7
Source: IDC's Sales Productivity Benchmarks Database
IDC’s Sales Performance Matrix
Sales Success in 2013 Yes, you still need a Next Gen. Sales
Operations team Track and analyze sales investment,
prioritize Refocus investment into sales
methodology Optimize your sales pipeline
management process (SPM) Better enable sales reps
May 3, 2023
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A Quick Level Set: Our Focus is on Impacting an Organization of 100s or 1000s of sales folks
8
% Quota Attainment
# Sa
les
Rep
s at
Quo
ta L
evel
Up or Out Include in planning Learn from them
Instill process to help these folks succeed
ABC
May 3, 2023
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The Next Generation Sales Operations Team
9
ExecutiveSales Mgmt.
Regional Sales Mgmt.
DirectSales.
Prof.Services
IndirectSales.
Field Sales Support
Business Technical
SalesAdmin.
Sales Operations
Sales Programs
Sales Strategy &Planning
SalesForecasting
SalesAnalytics
SalesCompensation
Quote toOrder
Next Gen. Sales Operations
SalesEnablement
Sales Automation
New
ClassicSales Operations
Next GenerationSales Operations
Target SO Staff Levels: 8-12%; 1/4 to 1/3 CoE team
The Next Generation Sales Operations Team (IDC Document #224122)
May 3, 2023
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The Pathway to Productivity: IDC’s 2012 Guidance for Sales Executives
10
Continue to build the next generation sales operations team
Refocus investment into sales methodology
Optimize your sales pipeline management process (SPM)
Better enable sales reps
May 3, 2023
© IDC For Internal Use Only. Not for Distribution without IDC Permission.
What is a “Sales Methodology”
A sales methodology is a consistent set of sales processes that are executed by individuals and sales teams across the organization in order to optimize sales productivity, maximize quota attainment for sales teams, and maximize revenue and profit for the company. Each sales process consists of: A taxonomy of applicable terms Roles and responsibilities of key parties A set of activities A set of metrics enabling tracking of the success of the process and managing
its continuous improvement.
Common Components
Sales management and coaching Opportunity/pipeline management
Forecasting Sales call planning
Sales Stages Demand generation & mgmt.
Account Planning Territory Planning
11
May 3, 2023
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The Value of Having and Using a Sales Methodology in the Organization is High
12
“Disagree”
“Agree”
Best Practices in B2B Sales Methodologies (IDC #236236)
The Good News. . . Most agree that sales methodologies are critical to success! . . . “Enabling me to:– Achieve or exceed
individual or team quota– Increase opportunity
conversion rates– Improve forecasting”
Q: How much do you agree with the following statements about the use of sales methodology in your organization.
* IDC’s Sales Investment and Productivity Benchmarks Database
The Good News. . . Most agree that sales methodologies are critical to success! . . . “Enabling me to:– Achieve or exceed
individual or team quota– Increase opportunity
conversion rates– Improve forecasting”
The Bad News. . . – At least 1/3rd of sales reps
are still not using a sales methodology on a regular basis*; and
– The average organization uses at least 2 to 3 sales methodologies
Source: IDC's 2012 B2B Sales Methodology Study (n=100)
1
2
3
4
5
"Critical to our success"
"Primarily for operational ef f iciency"
"For complex deals/accounts"
"Only for some reps"
"No value"
Rat
ing
May 3, 2023
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The Pathway to Productivity: IDC’s 2012 Guidance for Sales Executives
13
Continue to build the next generation sales operations team
Refocus investment into sales methodology
Optimize your sales pipeline management process (SPM)
Better enable sales reps
May 3, 2023
© IDC For Internal Use Only. Not for Distribution without IDC Permission.
Sales Pipeline Management Defined
14
The activities executed by sales and sales operations personnel to, as rapidly as possible, progress opportunities along the pipeline toward closure. SPM begins once sales accepts a Marketing Qualified Lead
(MQL) by classifying it as a Sales Qualified Lead (SQL) or when sales creates a lead and considers it sales qualified.
The Sales portion of the overall customer creation process
Typically broken down into a series of stages that may/may not be allocated to different sales roles (e.g., telesales, inside sales, outside sales, etc.)
Intimately tied to the forecasting process
Automated by the biggest single area of sales technology investment: CRM and related solutions
May 3, 2023
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The Bigger Picture:The IDC Customer Creation Framework
15
1. Buyer-centric2. Integrated marketing
and sales3. “Smart”: Data-driven
Conduct the Digital Dialog
Conduct the Interpersonal
Dialog
BUYER COMMUNICATION
Exploration Stage
Evaluation Stage
Purchase Stage
BUYER’S JOURNEY
Sales Pipeline Management
Process
Marketing’s Lead Management
Process
Buy
“Raised Hand”
Agree to be Pursued
Best Practices in Sales Pipeline Management (#TBD-October);Pipeline Metrics in Appendix
May 3, 2023
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Impact on Sales Productivity
Pervasive use of SFA data to support strategic decisions and tactical guidance (i.e., coaching)
Highly evolved executive and sales rep level dashboards and reporting
Data and function integration across groups
Enterprise-wide data & process standards
Next gen. sales operations team in place
Sales aligned with marketing across a continuous customer creation process
Fully leveraging SFA Data:High level of integration a/c functional areas
SFA used to automate forecasting Management level reporting in wide use;
basic rep-level reporting “Stealth” SFA eliminated Strong data standards
(e.g., sales stage def.) evolving
Next gen. sales operations team taking shape, providing foundation for more improved reporting and data integration
Sales/marketing alignment on lead handoff
Data-Driven Sales Management:Data used to run the business
IDC’s Sales Pipeline Management Maturity Model
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Mat
urity
of S
ales
Pip
elin
e M
anag
emen
t Pro
cess
Reps enter data but do not use SFA for opportunity management
Mgmt uses SFA for basic pipeline insight
“Stealth” SFA (Excel) still in use Weak standards for data input Basic sales operations support Poor marketing and sales alignment
Traditional SPM:Transaction Oriented
Best Practices in Sales Pipeline Management (#TBD-October)
May 3, 2023
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The Pathway to Productivity: IDC’s 2012 Guidance for Sales Executives
17
Continue to build the next generation sales operations team
Refocus investment into sales methodology
Optimize your sales pipeline management process (SPM)
Better enable sales reps
May 3, 2023
© IDC For Internal Use Only. Not for Distribution without IDC Permission.
Buyer Insight: Most Valued Resources When Making IT Decisions
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Q: As part of your pre-purchase IT product or solution-related activities, please indicate the relative importance of the following on your decision-making process by using a pool of 100 points.
n = 204* Vendor Content: e.g., Collateral, white papers, case studies, webcasts, product information, other information available on their web site**Refer to IDC’s Sales and CMO Advisory Research
0 10 20 30 40
Other
Interaction with vendors' corporate executives (e.g., CEO, COO)
Interaction with sales representatives
Consumption of vendor content*
Interaction with vendors' technical teams (e.g., engineers, CTO)
Distribution of a pool of 100 points
May 3, 2023
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Buyer Insight: Most Valued Content When Making IT Decisions
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Q: What types of vendor content do you most value during the IT investment decision process?
n = 204
0 10 20 30
Other
Customer Case Studies
Vision/Thought Leadership
Competitive Comparisons
Industry Trends
Peer/Customer References
Product/service Reviews and Test Results
Product Demo or Proof of Concept
Product features
Financial Justification/ROI
% of Participants
May 3, 2023
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How are we Doing to Enable Sales Reps with the Most Valued Resources?. . .
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Q: On average, how long does it take for a sales rep to find the following types of information within your organization? Check 1 for each category.
Source: IDC's Sales Productivity Benchmarks Database
Product Information
Customer Purchase & Service History
Best Fit Pre-Sale Individual
ROI Related Sales Assets
0% 10% 20% 30% 40% 50% 60% 70% 80%
% of Respondents
1 week + 1-5 days 4-8 hours <1/2 day
May 3, 2023
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14 Attributes of a Best-in-Class Sales Enablement Strategy
Accountability SE function in marketing Next generation sales
operations team
Relevant and Valuable Intelligence Content and asset
lifecycle Content review board Customer intelligence for
sales Staff: SMEs, curators,
moderators
Sales Readiness Sales process integration Deployment strategy (e.g.,
marketing, training) Regional enablement
Technology Content management
system Sales enablement
platform(s) Social for sales
Feedback Sales and customer
feedback process Performance measurement
SalesEnablement
Contact IDC for Details for each Area
21
Source: IDC’s 2013 Sales Enablement Strategy PowerPoint
Contact IDC for an on-site “2013 Sales Enablement Strategy Session” (free for clients)
May 3, 2023
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Track and Analyze Sales Investment:
IDC’s Sales Productivity Benchmarks & Trends
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May 3, 2023
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Sales Productivity Scorecard (1/2)
AttributeKey Performance Indicator (KPI, Current FY)1,2 All IT Vendors Trend/Guidance
Sales Investment
Sales Budget Ratio (sales spend/revenue) 8.6% Know what you spend, as well as how you spend it
Sales Investment Change (most recently closed to current fiscal year)
4.1% Keep pace with revenue growth at a min; increase support infrastructure
Sales Staff Efficiency
Sales Staff Spend KPI(staff spend as a % of total sales spend)
79% Do leverage external resources
Sales Reps’ Time Allocation(% of sales reps’ time spent on: Customer Interaction / Prep. Time / Lead Mgmt./Admin. Time)
47%:20%:
10%:19%
Increase the “quality” of customer interactions(55%:20%:15%:10%)
Sales Support Staff KPI (support staff as a % of total sales staff)
44% Increased vs. ‘11; Increased support yields greater productivity and customer satisfaction
T&E (travel and entertainment) per Sales Staff $17,500 Better Leverage Collaboration Technology and Evaluate Coverage Models
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1 IDC's Sales Productivity Benchmarks Database (weighted average KPIs based upon current FY at survey completion)2 IDC’s Worldwide Sales and Marketing Taxonomy, 2012: A Blueprint for Cost Control
May 3, 2023
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SalesSalesProductivityProductivity
IDC’s Sales Productivity Framework
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Refer to “Notes Page” and Appendix for additional details.
SALES OPERATIONS
CustomerIntelligence
SalesEnablement
Talent Management
SalesManagement
Sales Methodology
May 3, 2023
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Sales Productivity Scorecard (2/2)
AttributeKey Performance Indicator (KPI, Current FY)1 Insight/Guidance
Sales Productivity Levers
Talent Management 30% of companies lack a formal, new rep on-boarding process (53% is role specific vs. generic training, and should be higher)
15% sales staff turn-over (7% increase over ‘11)
Sales Management/ Methodology Adoption rate of a common sales methodology = 74% (18% increase y/y)
18% of a first line sales managers’ time is spent coaching sales reps (needs to be higher)
Customer Intelligence CI Maturity Score: 4.1/10 (Decreased in ‘12)
Ability to obtain and leverage:
– Share of wallet information: 3.9/10
– Role-based intelligence : 3.8/10
Sales Enablement Quality of marketing and sales assets: 5.6/10
Most sales reps rely on digital files as well as calling or emailing an individual as part of sales enablement
Sales Operations Maturity2
Sales Operations Staff Level
(sales operations staff as a % of total sales staff)
Average = 10.2%
Target: 8-12%, with 1/4 to 1/3 represented by a COE team2
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1 IDC's Sales Productivity Benchmarks Database (weighted average KPIs based upon current FY at survey completion)2 Refer to “The Next Generation Sales Operations Team” (IDC Doc.#224122)
May 3, 2023
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0% 10% 20% 30% 40% 50%
Sales Program and Other
Sales Administration
Sales Overlay
Indirect Sales
Sales Management
Sales Operations
Field Sales Support
Direct Sales
% of Total Sales Employees
Resource Allocation: Global Sales Staff Levels and Allocation as a Starting Point
26
Q: Please allocate your sales employees into the following functions:
Source: IDC's Sales Productivity Benchmarks DatabaseContact IDC regarding our Sales Resource Assessment model
0% 10% 20%
Inside Sales
SMB Accounts
Enterprise Accounts
Global/Named Accts.
May 3, 2023
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Optimizing Sales’ Time in Front of Customers
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3 Focus Areas:Talent Management – Customer Intelligence – Sales Enablement
IDC Target: 55:20:15:10
Q: On average, what % of time do your sales reps spend on the following:
*Total of Face-to-Face and FacelessSource: IDC's Sales Productivity Benchmarks Database
0%
10%
20%
30%
40%
50%
Direct Customer Interaction*
Preparing for Customer Interaction
Administrative Time Territory/Lead Development
Other:
Average quality of time spent is 4.9/10! [2012 Sales Barometer]
May 3, 2023
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The Most Relevant Customer Intelligence is Not Getting to the Sales Organization
Best Practices in Customer Intelligence for Sales (IDC #224520) & Ask for your free IDC Sales Executive Portfolio review
28
Q: Please score the following CI components within the context of the sales organization: (1 = major gaps exist today; 10 = very minor gaps exist today which are being addressed through continuous improvement processes)
Source: IDC's Sales Productivity Benchmarks Database
3.8
3.9
4.9
6.1
6.2
6.9
1 2 3 4 5 6 7 8 9 10
Role-based Intelligence
Share of Wallet Information
Competitive Intelligence
Purchase & Relationship History
General Customer Data
Customer Satisfaction Data
Score
May 3, 2023
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Sales Enablement: Access and Effectiveness of Internal Information
Free On-Site Sales Enablement Strategy Session for clients
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Q: How do sales reps access internal information in preparation for customer engagements? (Please allocate 100 points to these channels.)
Source: IDC's Sales Productivity Benchmarks Database
Digital asset files
Calling or emailing an individual
Discussions during internal
sales calls
Formal training
Social media (e.g., Chatter, Yammer, etc.)
Video Other0
10
20
30
40
Allo
cate
d Po
ints
Access Effectiveness
First Year as #1
May 3, 2023
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Sales Enablement: Insight into Existing and Planned Platform Capabilities
30
Q: Does your sales enablement portal (i.e., the main portal through which your sales reps access marketing and sales related content):
Source: IDC's Sales Productivity Benchmarks DatabaseAsk for IDC’s ebook “In Pursuit of Effective Sales Enablement”
0% 20% 40% 60% 80% 100%
Tie Usage to Revenue
Map content by sales stage and/or opportunity
Intergrate with SFA
Rate content (including comments)
Enable connection to SMEs
Enable rep connection through social media
Filter by Role
Measure Usage
Allow reps to post content
Current Ability Planned within 12 mo. Not Planned
May 3, 2023
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Suggested Next Steps After this Webcast. . .
31
IDC’s Sales Advisory Service:An Extension of your Sales Operations & Strategy Team
Share this insight with your team– Forward this PowerPoint deck to them– Have IDC present this insight as part of your next sales operations
and sales executive meeting (no charge for clients) Leverage insight and benchmarks data to build and
communicate your 2013 sales strategy plan Tap into additional Sales Advisory Service resources (in
Appendix) Utilize the Sales Advisory Service team to bullet-proof your plans
and activities Attend the next Sales Operations Leadership Meeting in Boston,
Oct. 16-17
May 3, 2023
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IDC’s EAG Is a Top Provider of Sales and Marketing Advice to Technology Leaders
IDC Executive Advisory Group provides sales and marketing executives with critical insights and research-based information to plan investments, prepare operations, mobilize resources, and measure results. We help our clients: Set competitive sales and marketing
budgets Organize sales and marketing staff for
optimal performance Implement “high ROI” sales and marketing
practices Identify key programs and campaigns that
tie to organization and corporate goalsWe are the industry standard for marketing and sales investment benchmarking
32
May 3, 2023
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IDC Sales Advisory Service: 2012 Deliverables Schedule
33
= In Progress: Contact us to participate
Annual Sales Productivity Benchmarking Study (Sept 2012)– Telebriefing & slides– Sales Productivity
Planner (Sept 2012)
Sales Operations Best Practices & Insight
Leadership Board Meetings & Events
Sales & Marketing Automation
Worldwide Sales & Marketing Taxonomy (Oct 2012)
Custom Sales Benchmarking Analysis
Sales Barometer Study (March, 2012)– Telebriefing & slides
Best Practice Studies– Preparing Sales
Managers to Become Coaches (May 2011)
– Social Collaboration for Sales (March 2012)
– Sales Methodologies (Aug 2012)
– Sales Pipeline Management (September 2012)
Insight Reports – 2012 Buyer Experience
Study (September 2012)– Next Generation Sales Ops
Team Update (Fall 2012)– Sales Enablement at
Oracle & Toshiba– A Cohesive Sales &
Marketing Strategy– Top Action Items for a New
VP of Sales
Best Practice Studies
Sales Leadership Board Meetings– Feb 29-Mar 1 2012,
San Jose, CA– June 5-6 2012,
Santa Clara, CA– October 16-17, 2012,
Boston, MA
Events– Directions 2012 (March 7
San Jose CA & March 13, Boston)
Telebriefings– Results of 2012 Sales
Barometer– Social Collaboration for
Sales Enablement (May 2012)
Hot Topic Peer-to-Peer Calls– CRM Replacement (April
2012)
IDC Sales Automation Framework
User Summit Updates– SAVO– Eloqua– SFDC– Oracle
Pulse Surveys– Sales Enablement
(ongoing)
UnlimitedAnalyst Inquiry
Extensive Research Library
May 3, 2023
© IDC For Internal Use Only. Not for Distribution without IDC Permission.
Custom Sales Productivity Benchmarking Analysis: Top Level Analysis thru Detailed Productivity Components
34
Efficiency Effectiveness Staff and Program Mix
Attribute KPI ClientTarget Group
Sales Investment
SBR 11% 9%
Investment Change 2% 8%
Sales Staff Efficiency
Sales Staffing KPI 85% 75%
Sales Rep Time Allocation
55:15:10:20
60:20: 10:10
Support Staff KPI 45% 35%
T&E per Staff $25,000 $12,000
+Client
TargetGroup
Sample Data
Gap Analysis, Recommendations and Essential Guidance
Custom Sales Productivity Benchmarking AnalysisSales Performance Matrix
May 3, 2023
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IDC’s Sales Operations Leadership Board Meetings
Board Model 3 meetings per year, 2 days each 25-30 attendees per meeting Titles: Sales and Sales Ops. Executives Format: research review, interactive
discussion, problem-solving, networking
Attendees Feedback >70% indicate actionable results from
meetings “content and discussion facilitation are
excellent” “we were able to express our opinions
openly and with confidentiality. I rarely have this environment with my peers”
Why do clients come? Get external perspective Problem-solve with peers Network Client-driven research Attendee case studies
SLBBoard*
Sample Topics (board-driven) Sales Operations Processes Sales Performance Measurement Sales Enablement First Line Sales Manager Practices
35
* partial attendee list
May 3, 2023
© IDC For Internal Use Only. Not for Distribution without IDC Permission.
Sales Advisory Service: Customized Client Presentations
36
sales
May 3, 2023
© IDC For Internal Use Only. Not for Distribution without IDC Permission.
Sales Advisory Service: Currently Available Published Research on www.IDC.com
37
Sales and Sales Operations Best Practice Series Best Practices in B2B Sales Methodologies (IDC #236236, Aug. 2012) Social Collaboration for Sales: Cutting through the Hype (IDC #233340, Feb. 2012) Leveraging Sales Enablement to Improve Sales Productivity: A Best Practice Case Study
at T-Systems (IDC #232490, Jan. 2012) Sales Enablement - 90% Process, 10% Technology: A Best Practice Case Study of Sales
Enablement at Oracle (IDC #230546, Oct. 2011) Best Practices in Preparing Sales Managers to be Coaches (IDC #227923, April 2011) Best Practices in Sales Performance Measurement: A Focus on Productivity (IDC
#226727, Feb. 2011) Best Practices in Customer Intelligence for Sales (IDC #224520, Sept. 2010) Best Practices in Account Planning (IDC #223295, May 2010) Best Practices in Sales Enablement – Marketing Content and Asset Management (IDC
#219418, Aug 2009) The State of the Art in Sales Enablement: An Intensive Study of Current Practices (IDC
#219182, Aug 2009) Best Practices in Sales Performance Improvement: The Role of the First Line Sales
Manager (IDC #218087, April 2009) Best Practices in Sales Performance Improvement: Global Inside Sales Strategies (IDC
#216773, February 2009)
May 3, 2023
© IDC For Internal Use Only. Not for Distribution without IDC Permission.
Sales Advisory Service: Currently Available Published Research on www.IDC.com
38
Investment and Productivity Foundation Studies IDC’s 2012 B2B Sales Barometer Highlights (IDC #WC20120322, Mar. 2012) IDC’s Worldwide Sales and Marketing Taxonomy, 2012: Guidelines for Cost Control and
Resource Allocation (IDC #231252, Nov. 2011) IDC’s 2012 Sales Investment and Productivity Planner: Trends, Benchmarks, and
Essential Guidance for Tech Sales Organizations (IDC #230919, Oct. 2011) 2011 Technology Sales Barometer: A Year of Stabilization (IDC #228071, May 2011) Content Management and Sales Enablement Survey Results (IDC #225701, Dec. 2010) IDC’s 2011 Trends, Benchmarks and Essential Guidance for Technology Sales: Sales
Productivity Benchmarks Study (IDC#225089, Sept. 2010) 2010 Tech Sales Barometer: Maintaining the Momentum for Productivity Improvements
(IDC#222485, April 2010) Sales Enablement 3.0: A Transformation of Sales Enabled by a Transformation of
Marketing (IDC #218546, June 2009) 2009 Tech Sales Barometer: Remaining Optimistic in a Down Economy (IDC #216889,
March 2009)Buyer(Customer) Research
The Buyer Speaks: IDC’s 2011 Buyer Experience Survey – Guidance for Sales and Marketing (IDC #228987 July 2011) (annual study)
May 3, 2023
© IDC For Internal Use Only. Not for Distribution without IDC Permission.
Sales Advisory Service: Currently Available Published Research on www.IDC.com
39
Sales Insights Customer Enablement for Sales Reps: Helping Your Champion to Succeed (IDC #236471, Aug. 2012) IDC’s Sales Operations Quiz (IDC #236148, July 2012) Sales and Marketing Leadership Meeting Highlights, June 5 and 6, 2012: Sales Rep Panel, Sales
Enablement, Pipeline Management, IT Buyer Insight, and SFA Optimization (IDC 235656, July 2012) Increasing Sales Productivity Through Innovative Technology: A Case Study of SAP’s Deployment of
iPads (IDC 233842, April 2012) IDC Sales Leadership Board Meeting Notes, February 29 and March 1, 2012: B2B Sales
Methodologies, 2013 Sales Operations Planning, Sales Operations and IT Alignment, and the RFP Process (IDC 233678, April 2012)
Top Action Items for a New VP Sales (IDC 232588, Jan. 2012) Vendor Profile: Qvidian Sales Enablement Playbooks and Proposal Automation (IDC 231889, Jan.
2012) What’s Killing the Traditional Funnel? (IDC 232490, Jan. 2012) Oct, 2011, Sales & Marketing Leadership Meeting Highlights: Customer Panels, Sales Enablement,
Lead Management and IDC Productivity Benchmarks (IDC #231281, Nov. 2011) The Sales Enablement Vendor Space Heats Up (IDC #229339, July 2011) IDC Sales Leadership Board Meeting Notes, May, 2011: 2012 Sales Operations Planning, Social
Media for Sales and The Buyer Speaks (IDC #228452, May 2011) IDC Sales Leadership Board Meeting Notes: Feb 15 and 16, 2011 (IDC #227269, March 2011) Clouds Filled the Sky, But the Mood Was Sunny and Full of Chatter at Salesforce.com’s Eight Annual
Dreamforce Conference (IDC #226676, Jan. 2011) Update: The Savo User Summit 2010 (IDC #225593, Nov. 2010)
May 3, 2023
© IDC For Internal Use Only. Not for Distribution without IDC Permission.
Sales Advisory Service: Currently Available Published Research on www.IDC.com
40
Events (PowerPoint presentations) Best Practices in B2B Sales Methodologies Companion Presentation (IDC #236367, Aug. 2012) IDC Sales Leadership Board Meeting Presentations: June 5-6, 2012 (contact [email protected] for a
copy) IDC’s 2012 B2B Sales Barometer Highlights (IDC #WC20120322, Mar. 2012) A Cohesive Sales and Marketing Strategy: Real Key Performance Indicators to Assess your
Investment and Process Alignment (IDC #WC20111208, Dec. 2011) IDC's 2012 Sales Investment and Productivity Planner: Trends, Benchmarks, and Essential Guidance
for Technology Sales Organizations (IDC #230919, Oct. 2011) IDC's Trends, Forecast, and Essential Guidance for BtoB Sales: 2011 Sales Barometer (IDC
#227697, Mar. 2011) Best Practices for Customer Intelligence for Sales – Companion Presentation (IDC #225791, Nov.
2010) IDC’s 2011 Trends, Benchmarks, and Essential Guidance for Technology Sales Organizations (IDC
#225089, Sept 2010) The Next Generation Sales Operations Team – Companion Presentation (IDC #224354, July 2010) IDC Sales Leadership Board Meeting Presentations: May 25 and 26, 2010 (contact
[email protected] for a copy) IDC’s Third Annual Buyer Experience Study – Guidance for Sales & Marketing (IDC #TB20100422,
April 2010) Sales & Marketing Strategies for 2010: Key Success Factors for Growth (IDC #TB20100318, March
2010) IDC 2010 Directions – Track 1: Three Recipes for Sales Success (IDC #DR2010_T1_MG, March
2010)
May 3, 2023
© IDC For Internal Use Only. Not for Distribution without IDC Permission. 41
The Executive Advisory Group
Irina ZvagelskyResearch Analyst, Sales [email protected] Phone: 305-351-3060
Rich VancilGroup Vice PresidentExecutive Advisory [email protected]: 508-935-4327
Michael GerardVice PresidentEAG and Sales Advisory [email protected]: 508-988-6758
Sam MelnickResearch Analyst, CMO Advisory [email protected]: 508-935-4492
Gerry MurrayResearch Manager, CMO Advisory [email protected]: 508-988-7974
Henry MorrisExecutive Sponsor/[email protected]: 508-935-4266
Wendy PembertonSales [email protected]: 816-569-1286
Kathleen SchaubResearch Vice PresidentCMO Advisory [email protected]: 925-999-9839
Jason CunliffeConsulting [email protected]: 305-351-3037
Scott McLarnonGVP [email protected]: 508-935-4392
Tina RiainConsulting [email protected]: 508-935-4563
Mary MenendezSr. Inquiry [email protected]: 508-935-45-85
May 3, 2023
© IDC For Internal Use Only. Not for Distribution without IDC Permission.
Appendix
IDC’s Sales Productivity Framework
IDC’s Sales Automation Roadmap
Additional Data Output from IDC’s 2012 Sales Productivity Study
Pipeline Definitions
42
May 3, 2023
© IDC For Internal Use Only. Not for Distribution without IDC Permission.
Just a Sample of IDC’s Latest Sales Advisory Service Research on www.IDC.com
43
CustomerIntelligence
IDC’s Annual Technology Buyer Experience Study – Guidance for Sales Teams (www.idc.com)
Best Practices in Customer Intelligence for Sales (IDC #224520)
Social Collaboration for Sales: Cutting through the Hype (IDC #233340)
Sales Enablement : A Best Practice Case Study at T-Systems (IDC #232490)
Sales Enablement - 90% Process, 10% Technology: Oracle Case Study
2013Sales Enablement Strategy Session (free on-site session for clients)
SAP’s Deployment of iPads (IDC #233842)
The State of the Art in Sales Enablement (IDC #219182)
SalesEnablement
Best Practices in Sales Pipeline Management (TBD-October)
Best Practices in B2B Sales Methodologies (IDC #236236)
Executive Sponsor Program Strategies (IDC#225024)
Best Practices in Account Planning (IDC #223295)
KSFs for Launching and Best Leveraging Your CRM Application (IDC#224737)
Sales Methodology
Best Practices in Preparing Sales Managers to be Coaches (IDC #227923)
The Role of the First Line Sales Manager (IDC #218087)
The Next Generation Sales Operations Team (IDC#224122)
Talent Management
IDC’s 2013 Sales Investment Planner – Benchmarking your Investment and Productivity
Top Action Items for a New VP Sales (IDC 232588)
Best Practices in Sales Performance Measurement: A Focus on Productivity (IDC #226727)
Best Practices in Global Inside Sales Strategies (IDC #216773)
SalesManagement
May 3, 2023
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Develop a Sales Automation Roadmap
44
IDC Sales Automation Framework
Strategic Planning
Sales Compensation
Forecasting & Account Planning
Customer Intelligence
Content and Asset Management
Sales Force Automation
List Management
Internal and External Communications
Proposal & Quote Processing
Strategic
Planning Talent
Management
Forecasting &
Acct. Planning
Customer
Intelligence
Sales
Enablement
Analysis &
Reporting
CategoriesSales
Workflow
Pipeline
Management
Telemktg. &
Telesales
On-
Prem
ise
Hos
ted
App
licat
ion
On
Dem
and
Brainshark, Citrix GoToMeeting, Clearslide, Ribbit, Webex
Callidus, Xactly, Varicent, Authoria
Microsoft, Oracle, SalesLogix, SF.com, SAP
Hoovers, Jigsaw, LinkedIn, SalesGenie, ZoomInfo
SFA apps., Altus, iCentera, Kadient, SAVO
Google, IBM Cognos, Lattice Engines, SAP BusinessObjects,
SAS, Stratascope
Microsoft
Revegy, Right90, SAS
BigMachines
Source: IDC Sales Advisory Service
May 3, 2023
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Additional Data Output from IDC’s 2012 Sales
Productivity Study
45
May 3, 2023
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IDC’s Sales Productivity Benchmarking Survey Demographics
~$200B in revenue represented by participating companies
Data directly from sales and sales operations executives
No data provided on a company-specific basis
No duplicate responses
46
(n=33, Ave. Revenue >$5B)Source: IDC’s Sales Productivity Benchmarks Database
% of Companies by Sector % of Companies by Revenue
% of Revenue from Direct Sales vs. Indirect Sales
Direct Sales65%
Indirect Sales35%
Hardware45%
Software28%
Services27%
< $500M18%
$500M-$999M18%
$1.0B-$2.9B15%
$3.0B-$9.9B36%
>$10.0B12%
May 3, 2023
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Allocation of Sales Program Expenses
47
Q: Please allocate your sales organization's total program expenses across the following categories by the end of your current fiscal year:
Source: IDC's Sales Productivity Benchmarks Database
0 10 20 30 40 50
Other
Telesales Programs/Lead Development
Competitive Programs
Sales Training
Channel/Alliance Partner Programs
Sales Automation Expenses
Travel & Entertainment Expenses
% of Total Program Expense
May 3, 2023
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Distribution of Sales Force by Quota Attainment
48
Q: How will your company or group's sales force (both direct and indirect sales) be distributed along the following quota ranges by the end of your current fiscal year?
Source: IDC's Sales Productivity Benchmarks Database
Below 50% of quota
50-79% of quota
80-94% of quota
95-105% of quota
106-120% of quota
Over 120% of quota
0
5
10
15
20
25
30
35
% o
f Com
pany
or G
roup
’s S
ales
For
ce
May 3, 2023
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Sales Rep. Skills Assessment
49
10
9
8
7
6
5
4
3
2
1
Average Rank
We do not have a "standard" sales rep assessment process.
We have a formal skill-set assessment process and reps are assessed at least once a year.
5.6 We have a "standard" sales-rep assessment process; however, its use across the organization is extremely inconsistent.
Source: IDC's Sales Productivity Benchmarks Database
Q: Which of the following describes your sales rep skill-set assessment process? (i.e., to develop a skill-set improvement plan)
May 3, 2023
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Sales Rep. Skills Assessment Attributes
50
Source: IDC's Sales Productivity Benchmarks Database
Q: On which attributes do you assess sales rep skill-sets? Please allocate 100 value points within the options below.
Selling Skills Product Knowledge
Industry Knowledge
Sales Management
Skills
Ability to Leverage Internal
Company Resources
Financial Capabilities
Other0
5
10
15
20
25
30
35
40
45
Valu
e Po
ints
May 3, 2023
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Sales Rep Training Per Year
51
Source: IDC's Sales Productivity Benchmarks Database
Q: Please indicate the total number of weeks of training that each sales rep. receives per year.
In-person (e.g., classroom)
Remote (i.e., on-line) Other Total0
1
2
3
# of
Wks
per
Yea
r
May 3, 2023
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First Line Sales Managers Activities
52
Source: IDC's Sales Productivity Benchmarks Database
Q22. Please estimate what % of First Line Sales Managers' time is spent on the following activities:
Visiting clients with their sales reps
Coaching sales reps
Administrative Time
Pipeline monitoring
and management
Sales forecasting
Visiting clients without their sales reps
Other 0
5
10
15
20
25
% o
f FLS
Ms’
Tim
e
May 3, 2023
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The Importance of the First Lines Sales Manager and a Culture of Sales Coaching
53
10
9
8
7
6
5
4
3
2
1Average
Rank
We have a formal sales manager coaching process and related tools and training; and it’s supported by management
We do not have a culture of sales coaching. Sales managers focus solely on quota and do not spend time coaching their sales team.
5.1We have a “standard” sales manager coaching process; however, its use and supportis inconsistent.
Study: Best Practices in Preparing Sales Managers to be Coaches, IDC Doc #227923 (including Xerox & Amdocs Case Study)
Q: Which of the following best describes whether you have a “culture of sales coaching”?
Source: IDC's Sales Productivity Benchmarks Database
Questions to Address . . .
Who’s accountable for your coaching strategy?
Have you defined core competencies for sales managers?
Are you creating a culture of “coaching” vs. “inspection”?
What role is sales enablement playing in the success of FLSMs and their teams?
What rewards do you have in place to support cultural change?
May 3, 2023
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Level of Forecast Accuracy
54
Source: IDC's Sales Productivity Benchmarks Database
Q: Approximately how accurate are your sales forecasts at each stage prior to the end of a typical selling or reporting period? (select one measurement per stage):
30 Days Prior
60 Days Prior
90 Days Prior
0% 10% 20% 30% 40% 50% 60% 70%
% of Respondents90%+ accuracy 80-89% accuracy 70-79% accuracy Less than 70% accuracy
May 3, 2023
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Sales Reps’ Ability to Access the Right Resources for your Customers
55
Source: IDC's Sales Productivity Benchmarks Database
Q: On average, how long does it take for a sales rep to find the following types of information within your organization? Check 1 for each category.
Customer Success Story
Customer Purchase & Service History
Product Information
ROI Related Sales Assets
Best Fit Pre-Sale Individual
0% 10% 20% 30% 40% 50% 60% 70%
% of Respondents
1 week + 3-5 days 1-2 days 4-8 hours 1-4 hours Under 1 hour
May 3, 2023
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Level of Customer Intelligence Maturity
56
10
9
8
7
6
5
4
3
2
1
Average Rank
4.1
No high quality CI across the sales organization and/or the sales organization does not leverage it well.
Great CI and it is being consistently used and leveraged across the sales organization.
We have good CI; however, its use across the sales organization is extremely inconsistent.
Source: IDC's Sales Productivity Benchmarks Database
Q: Please indicate the level of maturity of CI across your sales organization:
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How is CI currently accessed?
57
Source: IDC's Sales Productivity Benchmarks Database
8.1
10.2
20.4
26.3
35.0
0 10 20 30 40
Other
A business or customer intelligence team that gathers and maintains info. for sales reps
Multiple customer databases accessible directly by sales reps
Individual sales reps' information sources
One unified online portal accessible directly by sales reps
May 3, 2023
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Quality of Marketing and Sales Assets For Sales Rep
58
10
9
8
7
6
5
4
3
2
1
Average Rank
Marketing and sales assets are out-of-date, not relevant to customers, and/or difficult to understand and leverage
Assets are highly relevant to our customers and have been a key success factor in our sales' productivity and ultimate success
Asset quality is significantly better than in prior years, however, much improvement remains to impact sales
5.6
Source: IDC's Sales Productivity Benchmarks Database
Q: Please indicate the quality of marketing and sales assets that are availability to sales reps?
May 3, 2023
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IDC’s Marketing and Sales Pipeline Taxonomy
59
Targets Targets include the total number of individuals included in an outreach marketing (e.g., email, events)
Responses Prospect names and related information collected through various marketing activities (e.g., email, events)
Contacts Responses that have been determined to be “real” individuals (information may also be appended to these contacts)
Marketing Qualified Leads (MQLs)
Contacts that have met specific criteria indicating that they are ready to move on to the next stage in the customer creation process (e.g., BANT — Budget, Authority, Need and Timing). Ideally these leads will have a score attributed to them by marketing based upon past interaction and activity.
Sales Qualified Leads (SQLs)
Sales has accepted the MQLs, including agreeing to actively pursue these leads within the sales process (i.e., probability for closure = 20% to 49%)
Opportunities SQLs have been determined to have the potential for the deal closure within a certain period of time (i.e., probability for closure = > 50%)
Won Deals Opportunities that have signed a contract
IDC segments leads in terms of ‘Value’ accounts and ‘Volume’ accounts
Value Accounts Value Accounts are large named accounts with 1000 or more employees
Volume Accounts Volume Accounts are SMB accounts with fewer than 1000 employees
May 3, 2023
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2012 Pipeline Conversion Benchmarks
6501
120
69
20
4
2
1
1Rounded2 Value Accounts (over 1000 employees)
“How many leads do we
need?”
Targets
Responses
Contacts
Marketing Qualified Leads
Sales Qualified Leads
Opportunities
Deals2
18.5%
57.3%
29.1%
20.4%
44.4%
57.1%
Source: IDC’s 2012 Sales Productivity Benchmarks Database and IDC’s 2012 Tech Marketing Benchmarks Database
Areas improved over 2011 rates
May 3, 2023
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2012 Pipeline Velocity Benchmarks
Targets
Responses
Contacts
Marketing Qualified Leads
Sales Qualified Leads
Opportunities
Deals2
3.51
3.4
2.4
1.3
4.8
2012:19 Months
1Months a lead spends at this pipeline stage2 Value Accounts (over 1000 employees)Source: IDC’s 2012 Sales Productivity Benchmarks Database and IDC’s 2012 Tech Marketing Benchmarks Database
2011:19 Months
The Time it Takes to“Create a Customer”
61
3.7