article | January 8, 2012
Why is Your Territory Sales Expense Out of Control?
This approach will also reveal a huge problem.
As a best practice driven sales consulting firm, we are continually surprised by the number of companies that fail to invest appropriately in two critical areas:
The chart below illustrates an account management organization with a tremendously imbalanced sales expense as a % revenue.
So how can you operationalize this concept for your company? This is an effective way to analyze, calculate and execute the results. It has two simple components:
In the example below, a best-in-class account management cost was 15.1% selling expense cost of territory sales. This organization was stunned to realize that many of its reps far exceeded this target.
The outcome of this activity is the realization of the need to cut back investment into certain patches that continue to underperform, while investing into richer higher potential regions.
If you wish to learn more about industry benchmarks and world class benchmarks, please join or next webinar on January 12th.