This post is by Jeff Hoffman from Openview Labs
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Bringing in outside training and/or building a sales enablement function is an expensive investment, yet it’s critical to the success of your sales organization. But when do you do it? Well as in life, timing is everything. Too early and your team won’t have the proper baseline or pipeline to measure the results of these efforts. Too late and they are locked into bad habits and poor practices that impact your scalability. Regardless of your go-to-market strategy, arming your sales team with the tools, tactics and processes is paramount in their ability to execute. Here are three metrics that will indicate it’s time to pull the trigger.
1. The amount of deals that are ‘Closed Lost – No Decision’ has increasedLook at your ‘closed-lost’ deals. If you have more deals that have been lost to “no decision” rather than “competitor,” there is a high probability something isn’t working. This
metric indicates that your reps are either struggling with their closing techniques or with establishing value in the discovery phases of their pipeline. If you look at the pipeline across the organization, you’ll see a large bump in the middle of the funnel. This is because most of their deals will be stuck in that qualification or discovery stage. They won’t have many on the bookends of their pipeline, because they’re struggling with articulating your product’s value to their prospects. So how do you fix this? You’re not going to address this with a change of activity. You fix this with behavior training around the discovery and qualification stages. For example, a busy sales rep hears from a prospect –
“Thanks Kelly, this looks great, I just need to review the notes from the demo, share with my team, and I’ll get back to you.”And now, because they’re so busy, your rep, Kelly, doesn’t get around to following up, and then pretty soon the deal, which was in Stage 2, is sitting there, collecting cobwebs. And this is not only happening to Kelly, but to all your other reps on the floor. When your reps make discovery calls, they MUST CLOSE them. Most reps don’t do this because they are unsure what to close for. Build a playbook or arm them with training so that they know how to end a call with a close and a definitive next step. For example, that same prospect says to your rep, Kelly –
Prospect: “Thanks Kelly, this looks great, I just need to review the notes from the demo, share with my team, and I’ll get back to you.” Kelly: “Well, what’s the easiest way for me to schedule 30 minutes with you so we can review yours and your colleague’s reactions to the notes from the demo?”Now Kelly has set up another meeting with the prospect and can further qualify the opportunity. When your reps are closing discovery calls, you’ll see a decrease in ‘closed lost- no decision’ deals, and that bump in the middle of the pipeline will be evenly distributed throughout.