Sales Revenue Growth for 2014? More of the Same Won’t Deliver Results

In your 2014 plans, you likely have some significant revenue growth targets for the New Year.

To hit these targets you will have to do more, with most organizations investing in three key areas to try and drive results:

  • More Sales Reps
  • More Training
  • More Traditional Content

But is “more” really more, or will “more “result in the same, or worse, less?

The odds are that these investments will fall flat and not yield all the revenue growth results you expect.

Why is this? The #1 reason sales reps do not achieve quota goals is not a lack of leads, products, CRM or training – but a failure to effectively communicate value to today’s more frugal / skeptical prospect.

Let’s see how this plays out against the likely growth investments and your personal plans for 2014.

More Sales Reps
Listen to any quarterly conference call and you can hear CEO after CEO say that in order to meet reported growth goals, they are hiring big in Sales.

However, more sales reps do not mean more revenue. In fact:

  • New sales reps take a long time to ramp up. CSO Insights reports it now takes
  • 9 months for new sales reps to come up to speed. Worse, according to Forrester, up to 3 years for complex selling like for technology sales reps, medical equipment and many more.
  • Each sales rep costs as much as
  • $135,000 in additional costs beyond salary and incentives according to Forrester, including costs for training, CRM, sales enablement, content and leads. The high cost makes it more important than ever to get sales reps effective sooner, and incredible risk if the new hires don’t work out or take longer than expected to ramp-up.

Advice:  According to Jim Ninivaggi, Sales Enablement Practice Lead from SiriusDecisions, selling effectiveness, whether for new or veteran sales reps, “comes down to having the right one-to-one conversation with the prospect and being able to communicate in this conversation the relevant challenges you can help the prospect overcome and the value you can uniquely deliver”.

The key to new rep ramp-up is to empower a more effective value conversation– intelligently guiding the new rep conversation – recommending and supporting the right visual value storytelling, personalized compelling insights and financial justification.

Without this value conversation guidance, how sure are you that your new sales reps will succeed?

More Training
Sales organizations spend significantly in training every year, trying to impart new methodologies and skills. Lately, the training is particularly focused on trying to get sales reps to engage earlier and more provocatively with prospects, and evolve their engagements from product to value.

However, when we look at training effectiveness, the numbers are startling. According to the psychologist and a pioneer in the study of memory and learning Ebbinghouse, 87% of this training will be forgotten within weeks according to. Your training investments will likely fall victim to the Ebbinghouse’s Forgetting Curve – squandered in short order.

Advice: Training without point-of-sales-conversation guidance means that most of the knowledge is forgotten and not leveraged to deliver more effective conversa

You can overcome this by intelligently providing and guiding sales reps with the right value communications – the specific prospect /selling situation appropriate visual value storytelling, provocative and dynamic insights, and personalized financial justification.

Without this point-of-sales-conversation guidance and knowledge support, how confidant are you that this years training will be remembered and more importantly, really contribute to achieving growth plans?

More Traditional Content
SiriusDecisions reports that the average company now spends over $40K per salesperson per year on traditional content like white papers, PPTs, data sheets battlecards and more. However:

  • 65% of marketers indicate that their content marketing strategies and traditional deliverables are ineffective (CMI).
  • 90% of the large content investment is not leveraged in the Sales process (IDC), and as a result is not helping sales reps overcome the number one growth issue – communicating value to today’s more frugal / skeptical prospect.

Unfortunately, today’s prospect tunes out the same old look-alike white papers, PowerPoints and data sheets. At the same time, sales reps are not using these stale old-fashioned deliverables because they don’t provide the value communications to help them close deals.

In order to overcome the #1 issues of value communications, you can enable sales reps to better communicate your value messaging, leveraging visual value storytelling and value quantification in a form of content that is provocative, credible and fun to use.

So how does your current content help move the needle on sales growth, and how are you going to shift your content plans to focus on the visual value storytelling, provocative insights and financial justification needs? 

The Bottom Line: More is not More

More of the same old investments in new hires reps, training and traditional content may not help you achieve all your 2014 revenue growth targets unless your plans specifically address the #1 performance issue - value communication.

One of the best ways to accomplish this is to provide situation specific point-of-sale value communications - guiding sales reps with visual value storytelling, provocative dynamic insights and financial justification. Click here to learn more >

Want to learn more about how your planned investments could help achieve your sales growth plans, or potentially be at risk? Download our ValueStory iPad App, and register for /receive your free Sales Productivity Calculator.


Popular posts from this blog

Gartner: Buyers Demand Less Pitch, More Value-Story

On-Demand Webinar - From an ROI Business Case to a Value-centric Case for Change

Forbes Insights: Value First