Joining us for today’s show is Shannon Gregg, a sales operations leader who knows a thing or two about impacting revenue growth in a meaningful way. Today’s topic is focused on sales operations and we are going to demonstrate how to improve the efficiency of the sales team. It’s difficult to grow revenue faster than your industry’s growth rate and faster than your competitors. Leverage the How to Make Your Number in 2018 to access a revenue growth methodology to hit your number quarter after quarter, and year after year.
Helping me with our demonstration is Shannon Gregg, the head of sales operations for TeleTracking Technologies, a clinical workflow company. Shannon is uniquely qualified to speak on this topic with 15 years of sales operations experience.
Lifetime Value Analysis is the number one way to prove the value that sales operations can bring to an organization. This is the ratio of CAC to CLTV. In general, for every dollar that you spend to acquire a customer, it should be generating four to five dollars over the lifespan of your customer. The sales operations team who provides this ratio provides the key to achieve great clarity for the head of sales, the CEO, the head of marketing, and the product leader. When you understand this number, this opens many options for the sales and marketing leaders to invest acquiring new customers.
Shannon describes how she tracks Customer Acquisition Cost (CAC) and Customer Lifetime Value (CLTV) to provide the executive team with a clear read on how much to invest to acquire a customer. Shannon’s company enjoys long-term retention of customers that can be up to 25 years with a retention rate of 95%.
Why this topic? Sales operations has become a catch-all phrase. The sales op leader gets assigned all the work no one else wants to do. Often underfunded and under staffed, sales operations leaders fail to deliver a meaningful revenue contribution, yet the best growth executives understand that sale ops are the most strategic sales function in the entire company. They understand that when deployed correctly, sales ops can impact revenue growth in a very meaningful way. Do not starve this key department. If you do, you’re going to miss your revenue goal.
Shannon begins the show providing a foundation of the strategic focus areas of her sales operations team. She begins with the strategic focus of reducing the administration time of your people in the field to increase their available revenue generating time. Shannon asks herself, how can sales operations create more time with efficiency and effectiveness to allow the sales team to get out there and do what they’re doing best, which is closing deals and making money? To make this happen, her team provides predictable processes, operational resource planning, revenue projections, pipelines, forecasting and technology so that the sales team can use systems, tools and processes that give sales more time in the field.
Watch the dialogue regarding the use of descriptive and predictive analytics. Shannon describes how she is going beyond what happened to reliably predict the future. Her team looks at traditional KPIs, velocity, volume, customer touches to understand exactly what’s coming out of this team. Understanding geographies and what’s happening in the industry helps Shannon understand in how to redeploy resources, including where we should be pulling resources. The insights from analytics also inform where to perform early stage of marketing and nurturing campaigns to generate marketing qualified leads. Shannon understands exactly what pathway sales operations should direct marketing to focus alongside the traditional sales process.
Would you like help developing your sales operations strategy? Come see me in Dallas at The Studio, SBI’s multimillion dollar, one-of-a-kind, state-of-the-art executive briefing center. A visit to The Studio typically results in getting three months of work done in three days. The immersive sessions accelerate everything, dramatically reducing the time it takes to diagnose a problem, develop a solution, and create an implementation plan.