In an analysis of 73 B2B companies, McKinsey & Company found that the top 25% had double the sales ROI of that of the bottom 25%. In examining the differences between the two groups, the biggest factor contributing to the ROI gap was sales strategy and execution.
The top 25% of companies have a better mastery of time that allows sales executives to focus on selling. They accomplish this by hiring an additional 30% more sales staff in support roles than the bottom 25%.
“One leading high-tech-equipment business, for example, found that 28 percent of sales-rep time was spent on low-value activities like handling complaints. They then shifted about half of these transactional activities into a sales factory and freed up 13 percent of sales reps’ time for selling. (source)”
The overall sales lift from the freed up time compensates for the increased overhead of the sales support and results in a higher ROI.
Hiring additional staff to support your sales team can be a difficult and lengthy process. Instead, you can look to a third party sales partner to take over some of the additional tasks that your sales executives may be handling.
The Mckinsey & Company article also found that the top companies they analyzed understand multichannel selling.
“Companies that effectively sell across multiple channels (inside sales, outsourced agents, value-added resellers, third-party retail stores, distributors, or wholesalers) achieve more than 40% higher sales ROI than companies wedded to a single channel model (only key account management and/or field sales). Managing multiple channels calls for effectively addressing selling opportunities based on value versus on volume, and recognizing that not every channel is optimal for every product. For instance, inside sales reps can handle key accounts with low-complexity products, whereas more costly in-person support should be assigned exclusively to key accounts with high-complexity products. (source)”
The key takeaway from this research is that you cannot be afraid to tinker with sales. If you want to improve your sales ROI you should try to increase the amount of time your sales executives spend selling. Hiring a third party company to provide sales support can free up time and valuable resources, allowing salaried sales executives to focus on high ROI/value prospects. Managing this critical component is how top companies succeed. Are you doing the same?
Download our guide on sales outsourcing titled “MarketSource’s Consultative Guide on External Sourcing”