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Time changes, people change and so do their needs, choices, and ways of interaction. In this constantly changing scenario of events with innovations coming in every other form, businesses need to continuously evaluate their sales strategies to be on top of the game. The success of a business depends on multiple factors, one of the most vital ones being how well you utilize your resources to grow.
A business needs its resources to function. There are costs incurred in every step to run a business effectively. These costs are seen as necessary investments for the productive functioning of the business and its profit generation. The better you can plan your costs and utilize your resources, the better will be your revenue generation.
But how does one plan and structure their business costs and resources to improve sales efficiency? You can do it with a little planning and strategizing your business functions. And we are going to tell you exactly how, with 13 tried and tested ways, simplifying your planning process!
What is sales efficiency?
As the term insinuates, sales efficiency means how efficient your sales have been in relation to the costs you have made while generating them.
Let’s try to understand with the help of a layman's example.
Suppose you have developed a project management solution. You have spent $1000 in buying a marketing automation solution and hired an operator for $2000/month to use and operate this solution. Further, you have also spent $500 on paid ads to promote your solution.
At the end of the month, your overall sales were $5000. So, your sales efficiency will be the gross revenue or total sales, which is $5000 divided by the total amount you have spent on your marketing efforts which is $1000+$2000+$500= $3500, which is 5000/3500=1.43. Therefore, your sales efficiency will be 1.43 or 143%.
Sales efficiency finds its value in data through calculations like in the above example. It can also refer to the speed of your sales operations. It is measured in a specific time frame which is generally a quarter. This process helps you evaluate your sales reps' performances and observe how fast they can convert leads and generate sales.
13 Tried and Tested Ways to Improve Sales Efficiency
Improving your sales efficiency is not as easy as it sounds. Every business needs to plan and strategize its marketing activities to boost sales. Sales effectiveness depends on a lot of factors, and we are here to spell out the ways you can improve them.
Let's have a look at 13 proven ways to improve your sales efficiency.
- Set clear and measurable goals
- Market to the right consumer base
- Define your sales process and work according to it
- Find alignment between marketing and sales department
- Schedule your periodic activities and review them frequently
- Review and update your training program periodically
- Identify your sales territories and assign them strategically
- Utilize sales tools
- Find out what your customer wants
- Communicate effectively with your team
- Keep your team motivated and accountable
- Hold periodic meetings with the team
- Utilize your human resources
1. Set clear and measurable goals
The first step towards planning any strategy is setting a clear goal of its objectives, is attainable, has no unrealistic expectations and is measurable. With a defined set of goals, you and your team will only feel lost working in an arbitrary space.
The most crucial part of setting and defining business goals should be measurable. Immeasurable results can negatively impact your business performance, as you will not evaluate your performance and growth. Therefore, you must develop appropriate KPIs or Key Performance Indicators to give you an overview of your progress and setbacks.
2. Market to the right consumer base
Often, sales reps waste their time pitching to the wrong consumer base. They reach out randomly to people and try to advertise their products and services. This not only leads to a waste of time but also resources.
To eliminate redundant sales activities and save time, you must create your ideal consumer profile. Know who is looking for the types of services and products you sell. Various intelligence tools available on the internet will help you create your buyer’s persona and identify prospects by presenting reliable data.
We know that it is difficult to reach out to the right customer base. That’s exactly why you need a sales enablement tool like Salesken. It can analyze the conversations between customers and sales reps to find out the level of intent of the customers. Accordingly, it performs a lead scoring to distinguish the high-intent leads from the low-intent ones and fill your sales pipeline with convertible sales leads.
3. Define your sales process and work according to it
A sales process is a repeatable set of actions with defined stages to effectively attract prospects and close deals. Every business should have a blueprint of its sales process to plan its move strategically. Having a sales process saves time and prepares your sales personnel to face challenging situations with thoughtful approaches.
4. Find alignment between marketing and sales department
The marketing and sales departments are the most vital players in operating your sales functions. There should be proper coordination between the two departments. There will be a huge setback if the activities of the departments do not complement each other’s work. Therefore, the sales and communication department must communicate and coordinate well.
5. Schedule your periodic activities and review them frequently
Plan and schedule your daily, weekly, and monthly activities. It gives you a clear idea of your periodic tasks and goals. Achieving a task, however small it is, achieving a task gives you a sense of achievement. Therefore, setting goals in small time frames can be a productive way to spend your working time. Also, frequent reviews will help you assess if you are moving on the right track.
6. Review and update your training program periodically
Your sales team relies on the training, content, and knowledge you provide to help them close a deal effectively. Their sales performance will depend on how well you train and prepare them to face and persuade the prospect for a successful sales conversion. Therefore, it is important that you continuously review and update your training practices and programs.
7. Identify your sales territories and assign them strategically
Sales territories are specific geographical locations given to a particular sales rep to handle. The sales activity of your reps should not overlap between territories. Take proper measures to distribute and allocate the reps to territories based on important criteria such as industry, business size, revenue, etc.
8. Utilize sales tools
With technology being in the best state to serve humankind, many online sales tools are available to measure your business performance and sales growth metrics.
Using these tools will help you save a significant amount of time while giving accurate information and access to effective sales management. Human beings cannot be free from errors and have speed limitations. As such, including tools in your business can help in the efficient management of sales.
9. Find out what your customer wants
There are thousands of other businesses and companies selling the same product and services as you. Why will the consumer choose you if you are not selling what they want? Creating your buyer's persona and knowing what they want is essential to boost sales.
Your approach to sales should be customer-centric rather than business-centric. Design your sales funnel in a way that appeals to your consumers. You can get your customer insight with the use of a sales tool.
10. Communicate effectively with your team
All successful businesses have great teamwork. One person can't bear the weight and responsibility of a business. That is why we have teams. A substantial part of successful teamwork is how effectively you communicate.
You must ensure there is no communication barrier between your team members, especially your sales and marketing team. Establish specific communication channels and standards if need be, so there is no confusion and barrier.
11. Keep your team motivated and accountable
It is not possible for your team to always perform with enthusiasm and be successful. There may be times when they feel discouraged and demotivated. You must be able to motivate them and keep them going.
Also, ensure that there is a proper accountability network in your team. Each member should be accountable to someone they report to. It is essential to keep track of daily deadlines and reports and make your team responsible.
12. Hold periodic meetings with the team
Meetings should be held once in a while to discuss important matters and the progress of your sales function. Your team should meet periodically, preferably every week, to discuss and share their progress or any setbacks.
13. Utilize your human resources
The best resource you can have as a business owner is your human resource. They are vessels full of knowledge, experience, and stories. Learn from them whenever you can. You never know who inspires you to make an innovation.
How to improve sales efficiency in a remote working environment?
With the changing work-culture, companies have remote and hybrid sales teams. As much as workers find comfort in working in a remote environment, there might also be certain challenges when working and communicating as a team.
Managing a remote working team is a challenging task. But with proper communication, half of the battle is won. Make sure you communicate effectively with your members and encourage them to be socially active.
Invest in resources to simplify work. Many companies work in the cloud for real-time sharing of data and resources. It is an efficient way of working.
Also, be available to your team members when they need you. Make sure you have a stable internet connection or get them on call if your internet is bothering you but ensure to remain connected during working hours.
Improving your SaaS sales efficiency can seem like a daunting task, but it is possible with consistent and smart team efforts. Not every sales pitch you make will see conversion, but you can definitely see more conversions if you know how to plan and strategize your business functions.
We have tried to present a comprehensive approach to improve sales efficiency. Hope it helped! Also, to develop a data-driven sales strategy, you can always opt for Salesken. Click here for a quick demo!
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