What we realized was that their sales process was driving their reps to generate a lot of activity, but there was no direct connection to results.
Everyone felt busy because they were busy. But the sales process was not generating improved results. In fact, the opposite occurred, as management focused on compliance with the activity-focused guidance embedded in their sales process.
Break-Even Sales Volume
Before deciding which activities to keep and which to eliminate from the sales process, we recommended they first calculate their Break-Even Sales Volume. We provided them the attached Best Practices Discussion Document to help them understand the concept. Once they knew the limits of how much activity was supported by the revenue that needed to be generated, they could then start deciding what to do about each step.
Value Chain Analysis
The way to do this best was to conduct a Value Chain Analysis. The result of this analysis is that they found out which sales rep activities the prospects valued and which ones they did not. Combined with the results of the Break-even Volume analysis, they were able to revise the sales process.
The result was a 24% increase in revenue generation over a 12 month period, with no change in the number of reps.