Top Three Trends in Sales Force Effectiveness
Sales force effectiveness (SFE) is gaining momentum as organizations seek to improve the productivity and efficiency of the work force. Organizations have realized the benefits of an effective sales force and are devising strategies to leverage it. By improving the sales force effectiveness, businesses strive to make a positive impact on the bottom line growth of the organization. A leading pharmaceutical company leveraged the insights of sales force effectiveness analytics performed by Quantzig. It helped them in profiling the needs of the physicians and accordingly promote different products to stay abreast of the changing market landscape.
In the pharmaceutical industry, companies are turning to sales force effectiveness tools in order to better equip their sales representatives to survive the competition in the market. SFE helps organizations to optimize their sales process thereby creating maximum value for all the stakeholders and driving sales. Sales force effectiveness enables the sales team to be effective by providing customer and product insights. It also helps the businesses to maximize the return on investment (ROI) and thereby drive profitability.
SFE involves devising a strategy for the workforce, talent acquisition, designing new compensation and incentive plan to motivate them and thereby improve the retention rate within the organization. Sales force effectiveness strategies offer a revised approach towards new market segments and potential customers and boosting the productivity of the sales representatives. In order to improve its sales force effectiveness, organizations must devise strategies that enables its work force to prioritize work and direct efforts towards high profit volume segments. Moreover, the organization must keep in mind the three trends of SFE which are as follows,
#1 – Shorter Processes Lead by High Consumer Awareness
The level of awareness among customers is high, thanks to the technological advancements globally. Customers know what they want and the products that can fulfill their needs. As a result, the consumer buying processes has become shorter, eliminating the middlemen. Therefore, it is essential for the companies to drive sales force effectiveness and train their workforce to understand the customer needs, thereby providing customized solutions. SFE is also important for the sales heads to ensure that the workforce remains updated on the latest trends and developments in the industry so that they can leverage this information to pitch in a better way and close the deals.
#2 – Younger Work Force in the Organization
Sales force effectiveness is an ideal strategy in today’s market scenario as majority of the organizations workforce belongs to the younger age bracket. This millennial generation refuse to work as per the traditional systems and follow the age old processes. Therefore, improving SFE is vital in order to keep them motivated, designing new incentive and compensation plans and enhancing their capabilities and skills. In order to deal with this changing labor market scenario, the sales managers need to improve sales force effectiveness by resorting to newer training and guiding methodologies and improving sales training so as to facilitate value creation among individuals.
#3 – Improved Performance Measurement
Earlier, businesses had multiple performance measurement metrics to gauge the sales forces effectiveness. But today, organizations are treading a more tailor-made path in terms of performance measurement. Instead of having a bunch of unrelated metrics, it now has a few related metrics that directly have an impact on the organizations bottom line. Improving sales force effectiveness helps measure each sales representative against these pre-decided set of metrics. Therefore, organizations can improve SFE by identifying a maximum of three metrics that matter the most and have a higher impact on the businesses’ bottom line.