sales analysis supply vs demandOne of the hardest things for If the sales leadership team does not make this determination and asks sales reps to pursue every possible opportunity with a “pulse” the efforts of the reps will be diluted, selling time will be squandered and results will be disappointing. The leadership team needs to be proactive and make these difficult decisions for the sales reps

 

Sales operates in an environment of limited supply and demand. On the supply side, sales budgets are limited and only so many sales reps can be invested in. The precious supply resource is sales rep selling time. On the demand side, there are only so many prospects who can buy the products/services you sell. The precious supply resource is the sales ROI – the potential spend of each prospect divided by the selling hours required to facilitate the prospect’s buying decision.

 

Equilibrium of the sales supply/demand equation happens when selling time is pointed at the opportunities with the highest sales ROI

 

Achieving equilibrium requires that the sales analysis process define territories that target prospects with the highest sales ROI, taking into account the total available sales rep selling time across the sales force

 

The world class sales analysis approach described previously in this blog (A World Class Territory Design Process) provides all the data necessary to identify the potential of each sales opportunity and the selling time required to capture it. If prospects are stack ranked from highest to lowest by sales ROI, a line is drawn at the point of sales rep time saturation. Sales rep time saturation is the point at which all the available selling resources are 100% utilized to pursue the identified opportunities

 

Any prospects below the line are excluded from the sales analysis process. Those above the line are provided to the sales reps as part of the territory plan

 

Anyone who is a sales person at heart will have a very hard time saying no to any possible sales opportunity. But, world class sales leaders have mastered this skill. Next time you perform sales analysis; have the courage to make the hard decision. If you can and your sales team executes, the results will help you leapfrog the competition

 

Follow @MakingTheNumber

Sales Strategy Tour

ABOUT THE AUTHOR

Aaron Bartels

Helps clients solve the most difficult challenges standing in the way of making their number.

He founded Sales Benchmark Index (SBI) with Greg Alexander and Mike Drapeau to help business to business (B2B) leaders make the number. The world’s most respected companies have put their trust in and hired SBI. SBI uses the benchmarking method to accelerate their rate of revenue growth. As an execution based firm, SBI drives field adoption and business results.

 

His clients describe him as a consultant who:

 

“Makes transformational impacts on me, my people and my business”

 

“Solves my most difficult problems that to date we have been unable to solve ourselves”

 

“Brings clarity to an environment of chaos”

 

“Has real world sales operations experience making him qualified to advise us on a variety of sales and marketing challenges”

 

“Is able to spot proven best practices that once implemented will make a material impact on my business”

 

“Constantly challenges status quo and compels us to act”

 

“Focuses on execution and driving change to stick in our environment”

 

“Makes good on his promises while enabling our business to realize his projected results”

Read full bio >