Sales Organizations: Do You Know Your Sales ROI?

By: Alexander Group International, Revenue Growth Strategy, Sales Productivity

Businesses measure success in multiple ways, usually involving a combination of revenue, profitability, growth and customer satisfaction. Businesses are comprised of fundamental functions, generally including product, operations, services, as well as corporate functions such as HR and Finance. When it comes to measuring performance and results, the Sales function often operates with the most visibility and clarity–did the company hit the number, or not? In fact, the fate of the leadership of the sales organization often rests with this simple conclusion. Hit (or exceed) the number, and survive another year to do it again. Miss it, and be subjected to increased scrutiny and eventual replacement.

Experienced sales leaders recognize both the importance, and the limitations, of this overly crude metric. Yes, meeting or exceeding “Plan” is essential, but at what cost? And what else must good leaders take into consideration to reach this end? What levels of investment are required? What degree of support is necessary from marketing and services? Do front line sellers have the necessary tools and resources to achieve their goals?

Looking beyond the simple metric of hitting or missing Plan, nearly every company suffers from underutilization–wasted time, resources and money. Measuring sales utilization and ROI is not the same as one would measure factory production, inventory turnover and waste. But there are similarities; asking the right questions and tracking the right information can lead to considerable improvements for return on sales investment. Consider the following questions by general role type. How many of these questions would apply to your company?

  • CEO/CFO/CRO:
    Are we investing the right amount in sales?
    Are we getting the right ROI?
  • MD/GM/VP:
    Do I have sufficient sales budget to meet my target?
    Am I allocating sales investments most effectively?
    What options do I have to improve sales ROI?
  • Sales Operations:
    What elements make up sales ROI?
    Are we measuring sales productivity correctly?
    How can I identify opportunities for improvement?

Contact the Alexander Group and schedule a briefing where we will share benchmarks, insights and proven frameworks to help you evaluate and improve sales productivity and sales ROI this year.

Learn how to take action today to ensure your company can realize the highest return on your sales investments.

Original author: Paul Vinogradov

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Alexander Group

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