Sales Benchmarking Methodology: What, Why and How to MeasureBy: Alexander Group Sales Analytics, Sales Benchmarking
Executives are often drowning in data. Knowing what to benchmark requires expertise. The Alexander Group has more than 30 years of experience practicing the art and science of sales benchmarking to help you make strategic sales decisions with confidence.
Harnessing the power of relevant industry benchmarks to inform decision making requires three critical inputs:
- Select the right benchmarks
- Obtain the right data
- Interpret the results
1. Select the right benchmarks
Alexander Group’s sales benchmarking database provides a powerful set of benchmarks that consistently provide sales leaders with actionable insights. Focus areas include:
- Sales productivity
- Sales time
- Sales deployment ratios (by role type)
- Sales investment/expense
- Sales readiness
- Sales compensation pay levels and practices
- Industry specific benchmarks and practices
2. Obtain the right data
The value of sales analytics and benchmarking is only as good as the quality and relevancy of the data. Alexander Group maintains one of the richest databases of sales benchmarks in the world. Each set of new data goes through a detailed cleansing and validation process before it is added to the database. Comparison benchmarks are balanced by harvesting data from similar companies based on size, industry, sales model and selling roles.
3. Interpret the results
The answer is not always to be “at the benchmark.” Where you need to be relative to the benchmark depends on your marketing and sales strategies. There are legitimate reasons to target above or below benchmark. Experience and time-tested expertise in sales strategy and management is the key to unlocking valuable insights from the data. Alexander Group works closely with you to carefully prepare an objective review that will interpret the benchmark data in light of your situation.
If you want to learn more about how our Sales Benchmarking practice can help you make sales decisions with confidence, contact us today.
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