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Running Up the Down Escalator:2017 CSO Insights World-Class Sales Practices Report Summary Copyright 2017, A Division of Miller Heiman Group
“CSO Insights” – Where do insights come from?New & Improved! For over twodecades, CSO Insights’ studies havehighlighted the processes, practices,and operational metrics that define2017 World-Class Sales Practices Study ParticipationData was collected globally from over 1,300 respondents across a wide rangeof industries, geographies, sales roles, and company types (products, sizes,sales structures, deal sizes).selling. For the first time, we’vedeveloped an overlay to the SalesRelationship Process (SRP) Matrix thatprovides specific best practices to drivesales success.Adversity or opportunity? We foundsurprises in unexpected places.If you make or influence decisionsabout sales strategy or need tounderstand how to win in the currentmarket, this report is for you.See the full report for a detailed demographic analysis. Copyright 2017, A Division of Miller Heiman Group
Downward Momentum Is Prevailing“We’re fighting an uphill battle!” Soundfamiliar? But at least when you’restruggling uphill, the hill stays still andyou make progress. Salesprofessionals today aren’t climbing ahill—they’re climbing a down escalator.2017 Quota AttainmentThe percentage of salespeople making quota has dropped from 63% to53% over a 5-year period.64%Stand still and you move backward.Improving or even maintainingperformance means countervailing theforces of change: more informed anddemanding buyers, economic andpolitical uncertainty, new disruptivetechnologies and more.62%These forces power and accelerate thedownward moving escalator. Five yearsof declining quota attainment bearwitness to this relentless, %53.0%50%48%20122013201420152016 Copyright 2017, A Division of Miller Heiman Group
The Sales Relationship Process (SRP) MatrixFor the tenth year consecutive year,two inter-related factors continue topredict sales success: customerrelationship level and sales processlevel.2017 Sales Relationship Process (SRP) MatrixFirst developed in 2007, the SRP matrix is a useful framework for evaluatingsales effectiveness through two dimensions: customer relationship levels andsales process implementation levels.The Sales Relationship Process (SRP)Matrix is a simple tool to demonstratethese factors. Where is yourorganization on the matrix today?How do your customers see you? As aSolutions Consultant, or maybe anotherApproved Vendor? How developed andconsistent is your use of sales process?Answering these two questionspinpoints which cell of the matrix yourorganization currently occupies. Copyright 2017, A Division of Miller Heiman Group
SRP Position Is Linked to Measurable ResultsThe SRP Matrix translates relationshipand process levels into performancelevels: 1-3.Want lower rep turnover and higher winrates, quota and revenue attainment?Of course you do!2017 Sales Relationship Process (SRP) MatrixFor the tenth consecutive year, organizations at higher performance levels havebetter turnover rates, win rates, and quota attainment and revenue planattainment than those at lower levels.Caution: Some Level 1 performersmoved up to Level 2, but an equalnumber rode the escalator down, from3 to 2.This is a good reminder that regardlessof your current level, you must keepmoving just to maintain your position.And continually improve to raise yourperformance level.Taking action, however, requires insightabout which practices will move you “upand over” on these two axes. Copyright 2017, A Division of Miller Heiman Group
Adopting World-Class Sales Practices Drives ResultsLet’s get specific. Statistical analysisyielded the top 12 practices (of morethan 60) most correlated with salessuccess.Organizational Practices Tied to Success MetricsThese 12 behaviors have a correlation significance score of greater than 50.The World-Class segment that exhibits these practices outperforms others.Six drive relationship levels (indicatedby an R in the table at right) and sixdrive sales process (indicated by a P).“World Class” respondents agreed orstrongly agreed (scale of 1-7) that theirorganization achieved at least 10 ofthe 12.Only 6.9% of survey respondents fellinto this World-Class segment. Theysignificantly outperformed the full set ofsurvey respondents in all four SRPbasis metrics. Copyright 2017, A Division of Miller Heiman Group
World-Class Performers Highlight the Need for ContextMapping onto the SRP Matrixpresented a surprise: World-Classperformance is not simply “the upperright-hand corner of the upper righthand corner” of the matrix.World-Class Performers Across the SRP MatrixWorld-Class performers (each represented as a purple dot) are concentrated inthe upper right. However, success is possible at each level, with careful caveats.While certainly more concentrated inthe upper right, World-Classperformers exist at each level!Level 3 is desirable, but it may not bestrictly necessary. A commoditiesbusiness may struggle to move beyondSolutions Consultant. Still, they canthrive by driving sales process levels.A small consultancy may succeed withrandom process if their clients viewthem as a Strategic Contributor.However, Performance Level 1 is notscalable for growth. Note that whilecustomer relationships may beconstrained by your value proposition,sales process is always under yourcontrol. Copyright 2017, A Division of Miller Heiman Group
Move Your Organization UpwardDoing nothing means going backward—fast. Sales leaders must determine howbest to move forward and upward.You Can Coast Down, But You Can’t Coast Up1. Where are you today?Plot your sales organization on theSRP Matrix.2. Set a realistic 12-18 month goal.Ask yourself where you need to be toestablish competitive strength.3. Identify possible actions.Benchmark against the World-Classsales practices. How successfully andconsistently have you mastered them?Are there fundamentals which will berequired first?4. Build a holistic/realistic action plan.Pick 2-3 practices to improve withinyour full sales system. Success is theresult of integrating and aligningfunctions and processes. It is rarelyderived from disconnected tactics.Visit www.csoinsights.com to learn more. Copyright 2017, A Division of Miller Heiman Group
About CSO InsightsCSO Insights is the independent research arm within Miller Heiman Group, dedicated to improving the performance andproductivity of complex B2B sales. The CSO Insights team of respected analysts provides sales leaders with the research, data,expertise, and best practices required to build sustainable strategies for sales performance improvement. CSO Insights’ annualsales effectiveness studies, along with its benchmarking capabilities, are industry standards for sales leaders seeking operationaland behavioral insights into how to improve their sales performance and to gain holistic assessments of their selling and salesmanagement efficacy. Annual research studies address sales and service best practices, sales enablement and salesperformance optimization.Terms and ConditionsPrinted in the United States of America. Except as permitted under the United States Copyright Act of 1976, no part of thispublication may be produced or distributed in any form or by any means, or stored in a database or retrieval systems, without theprior written permission of the publisher. For additional information, contact Miller Heiman Group, Inc. 10901 W. Toller Drive, Suite202, Littleton, CO 80127 email: info@csoinsights.comThe reader understands that the information and data used in preparation of this report were as accurate as reasonably possibleat the time of preparation by the publisher. The publisher assumes no responsibility to update the information or publication. Thepublisher assumes that the readers will use the information contained in this publication for the purpose of informing themselveson the matters which form the subject of this publication. It is licensed with the understanding that neither the authors nor thoseindividuals interviewed are engaged in rendering legal, accounting, or other professional service. If legal or other expert advice isrequired, the services of a competent professional person should be sought. The publisher assumes no responsibility for any useto which the purchaser puts this information.All views expressed in this report are those of the individuals interviewed and do not necessarily reflect those of the companies ororganizations they may be affiliated with Miller Heiman Group, Inc. All trademarks are trademarks of their respective companies. Copyright 2017, A Division of Miller Heiman Group
prior written permission of the publisher. For additional information, contact Miller Heiman Group, Inc. 10901 W. Toller Drive, Suite 202, Littleton, CO 80127 email: info@csoinsights.com The reader understands that the information and data used in preparation of this report were as accurate as reasonably possible
