Many organizations have a hard time defining Sales Enablement.  Which makes it nearly impossible to determine success.  But if you invest in Sales Enablement, you should be able to measure it. 

 

Leverage the How to Make Your Number in 2018 Workbook to access a revenue growth methodology to hit your number quarter after quarter, and year after year.  Test your ability to hit the number, and determine if you are likely or unlikely to make your number. You can’t solve the problem if you can’t measure it.  It’s well worth your time.

 

How is Sales Enablement measured? 

 

Let’s start with the definition of Sales Enablement: 

 

Right Content > Right Time > Right Person > To Progress a Sales Opportunity 

 

And to go a level deeper.  Sales Enablement is about increasing the effectiveness of your Sales team.  Not increasing the efficiency.  That’s an important distinction.  Here is why:

 

  • Effectiveness is about making your Sales team BETTER at their jobs.
    • Example: Closing a higher percentage of deals in the pipeline.  ‘John’ historically had a close rate of 25%.  Then, after a Sales Process training, the close rate increased to 33%.  That’s a tangible and measurable impact.  ‘John’ became better at closing deals.

       

  • Efficiency is about making it EASIER for the Sales team to do their jobs.
    • Example: Increasing selling time by removing wasteful tasks.  It took ‘John’ 2 hours to put a quote together.  But Sales Ops implements a new CPQ (Configure Price Quote) solution.  This decreased the time to quote to 20 minutes.  That’s a VAST improvement.  But that doesn’t make John any better as his job.  It gives him more time to sell.  Or essentially, makes part of his job easier. 

       

Both efficiency and effectiveness are important. You want your Sales people to improve at their job.  You also want to make their jobs easier or increase their selling time.  The key is that you know the difference.  And that you are measuring both efficiency and effectiveness.  The important distinction is that the Sales Enablement leader should be measured on effectiveness

 

 

What Should You Be Measuring? 

Measuring effectiveness is highly contextual to the organization and its initiatives.  There are two types of measurements – leading and lagging. Each plays a role in measuring the effectiveness.  

 

Let’s dive into each.

 

Leading Indicators:  Measurable factors that can reasonably predict future performance

 

Example KPI:

 

As Measured By:

 

Participation in Sales Enablement Program. 100% of your sales team completes the Sales Enablement activities.  i.e. Sales Training, Sales Coaching, Job Aid Usage, etc.

 

Certification

 

100% of the team completes and passes the multi-tiered Certification Program.

 

Pipeline to Annual Quota Ratio

 

Pipeline to quota ratio improves by 2X.  The increase in pipeline is a result of training on more effective prospecting.

 

Lagging Indicators:  Measurable factors that change as a result of a particular pattern or trend

 

Example KPI:

 

As Measured By: Quota Attainment

 

Percentage of reps that achieve quota increases by 5%.  As a result of the Sales Enablement Certification Program.

 

Close/Win Rates

 

Close Rate improves by 5%.  As a result of the Sales Enablement Certification Program

 

Deal Size

 

Deal size increase by 10%.  As a result of the Sales Enablement Program.

 

The above examples are just a starting point to measure your effectiveness.  But they give you a feel of the types of metrics you should be tracking.  

 

Why track both leading and lagging indicators?  The answer is straight forward.  If your leading indicators are pointing to failure, you can then course correct.  Determine what the source of the problem is.  And fix it.  Your lagging indicators will tell you if you have succeeded or failed in your initiative.  It’s that simple.  Did you meet your goal or not?  

 

No matter the initiatives, defining and measuring indicators is essential.  How else would you know if your initiative is a success or failure?  

 

The same is true for Sales Enablement.  You first need to define your goal of the initiative.  Then you need to track both leading and lagging indicators.  This will determine success or failure.  

 

Sales Enablement is a need, not a ‘nice to have’ in today’s selling environments.  Prove its value to the organization by measuring the initiatives.  Ensure you are tracking to success.  

 

Have expectations gone up and left you wondering if you can make your number? Here is a Revenue Growth Diagnostic 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:

 

  • Your revenue goal is realistic
  • You will earn your bonus
  • You will keep your job

     

Sales Revenue Growth

 

ABOUT THE AUTHOR

Eric Estrella

Helps clients grow by creating innovative go-to-market strategies.

Eric specializes in helping clients solve some of the most prevalent go-to-market problems in today’s complex selling world. He is an expert in many industries including software, telecommunications, ecommerce, manufacturing and technology. He helps them align strategies and develop go-to-market programs to lower the cost of customer acquisition and increase customer lifetime value.

 

Recently he developed corporate, product, marketing and sales strategies for an emerging telecommunications solution provider that resulted in a quadrupling of revenue and EBITA in two-year span.

 

Eric’s background in strategy, sales operations and enablement allows him to provide thought-leadership in emerging best practices in sales and marketing.

Read full bio >