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January 11, 2017
Detective for Hire - Resource Planning Competitive Test
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The Competitive Test is one of several that can be evaluated and counted on to provide solid data to make informed decisions on sales force sizing. To hit revenue objectives, sales leaders must have the right size of sales force to provide the level of sales activity required to drive revenue.
Approach to Resource Planning – Sales Force Sizing Optimization
Effective resource planning requires evaluating sales force sizing through a series of tests. Each test is unique and provides a valuable insight that when analyzed together can be viewed common themes that converge together. Looking for trends across the multiple tests provides a complete picture to draw conclusions. The following are the main tests to rely upon in your resource planning to determine the optimum sales force size:
The Competitive Test
Understanding the size of your competitor’s sales force in relation to their market share provides a valuable piece of the puzzle when evaluating resource planning. The competitive test itself is very straight forward, yet can be elusive to complete since access to the data is not controlled to the same degree internal data is readily accessible for the other tests.
Depending on the industry, the size of a competitor’s sales force can be researched through public means. Perhaps the quickest and most accurate read is from employees who know the industry. In general, most companies have tenured personnel who know the industry and can provide an accurate count of the quantity of the sales force.
Market share depends in part, on the “share of voice” that a company enjoys through its sales force size. Large sales forces maintain a high level of visibility within customer accounts and thus participate in more sales opportunities as a result. Sales force size can be optimized to maintain market share even in a period of sales force size reductions. An understanding of competitor sales force size and their resulting market share are key elements to this sizing test.
Steps to implement the Competitive Test
Below is a list of the competitive information required for each competitor:
Value of Competitive Insights
Sales leaders benefit tremendously when they have confidence the sales force is the right size. Even when undersized, as long as there is objective data supporting this conclusion then expectations can be set for performance. Invest in resource planning to ensure your sales force has the right headcount to drive your revenue goals.
Have expectations gone up and left you wondering if you can make your number? Here is an interactive tool that will help you understand if you have a chance at success. Take the Revenue Growth Diagnostic test and rate yourself against SBI’s sales and marketing strategy to find out if:
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