Sales Operations

Executive summary

Sales Operations

Marketing encompasses many facets of the revenue generation function; Branding, awareness, customer loyalty, targeting markets, advertising and promotion, direct mail, pricing, proximity of product to customers. Within the marketing function in most mid-sized organizations is a direct sales department. Sales Operations is the science of aligning the correct and appropriate amount of sales resources to the current and anticipated needs of the business and available market. Direct sales, telesales, inside sales, customer service all touch the customer, and are responsible for maintaining profitable customer relationships, as well as identifying and acquiring new customers. Managing the various sales coverage models efficiently is a daunting task for many organizations. ROI is often difficult to determine due to overlapping customer coverage models, the point in customer life cycle with the organization, and external factors such as competition and market drivers like seasonality and other economic factors. Sales Operations consulting helps client companies rationalize and validate their current sales philosophy, quantify the investment vs the reward, and determine overall sales effectiveness. Customer coverage, seller span of responsibility, stratification of the sales efforts across coverage types, compensation, new customer acquisition and indirect sales are all evaluated to help clients understand if their current sales processes meet the needs of the current business and are appropriate to capture profitable new market share.

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Service Methodology

A comprehensive evaluation of client’s current marketing and sales state would be the baseline for work in Sales Operations. Understanding how customers are serviced in terms of the various sales coverage models, how customers are acquired and developed through the life cycle, and how internal sales resources are compensated for growth and retention. Once the initial current state analysis is complete, then ROI would be calculated relative to profitability of the sales coverage model. Better said, what cost to the client organization exists to maintain and grow their business? Once ROI is established and agreed upon, recommendations are then made to adjust coverage for current state and propose investments in sales coverage for anticipated growth. Sales Effectiveness overall improves, sales management process is enhanced to consider these analyses for investment decisions, and client leadership is briefed on the proposed end gains to productivity and effectiveness.

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Service Options

Companies can elect whether they just require Appleton Greene for advice and support with the Bronze Client Service, for research and performance analysis with the Silver Client Service, for facilitating departmental workshops with the Gold Client Service, or for complete process planning, development, implementation, management and review, with the Platinum Client Service. Ultimately, there is a service to suit every situation and every budget and clients can elect to either upgrade or downgrade from one service to another as and when required, providing complete flexibility in order to ensure that the right level of support is available over a sustainable period of time, enabling the organization to compensate for any prescriptive or emergent changes relating to: Customer Service; E-business; Finance; Globalization; Human Resources; Information Technology; Legal; Management; Marketing; or Production.

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Service Mission

To evaluate, validate, and consolidate a client ‘s overall marketing and sales approach to the marketplace; increasing productivity and ROI, improving customer loyalty and retention, and allowing for new customer attainment. To educate the client in a sustainable sales and sales management process, thereby improving overall sales effectiveness of their sales investments.

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Service objectives

The following list represents the Key Service Objectives (KSO) for the Appleton Greene Sales Operations service.

1. Sales effectiveness
   Comprehensive evaluation and validation of client sales force effectiveness. Coverage, stratification, compensation and overall ROI analysis. This analysis takes a high level view of client’s current state from outside direct sales, telesales, customer service, and any third party channels to market. Contribution of each coverage model evaluated for penetration of existing customer base, appropriate coverage model, new customer acquisition, lead generation and follow up. Recommendations made to client in terms of improving penetration, allocating sales resources, and increasing ROI (productivity and profitability) of sales investments.
2. Sales process
   Sales process engineering is the engineering of better sales processes. It is thus the quest to design better ways of selling, making salespeople’s efforts more productive. It has been described as “the systematic application of scientific and mathematical principles to achieve the practical goals of a particular sales process.’ Evaluation of client’s process integrating marketing, sales and customer service. Concepts such as “Pipeline” or “Sales Funnel” are introduced to properly organize existing customers, run rate, opportunity closure rates, and new opportunity identification. Forecasting is also introduced as a mathematical process for salespeople vs the traditional guessing that occurs by salespeople. The stage is also set for a discussion of the Sales Management Process.
3. Sales Management
   This section is devoted to analyzing the client’s sales management process for alignment with seller processes. To maximize results and productivity, the seller’s activities and tasks should align with overall corporate strategy and goals. It is the sales manager, utilizing a proven and practical management process that directs, coaches, counsels and guides sellers to invest in the most lucrative activities to obtain the sales goals. When sales management performs this arduous task correctly, corporate strategy is brought to life through seller activity and inputs, bringing entitlement to the organization. This process applies to direct sales, telesales, inside sales and customer service. It is also the responsibility of sales management to conduct upward communication to senior management about key opportunities or concerns with major customers, markets or segments for strategy adjustment where warranted.
4. Sales automation
   Automation allows seller resources to manage their time and efforts transparently and immediately for all departments within the organization. Customer discussions and opportunities are captured via CRM (Customer Relationship Management) software or operating system. CRM tools are essential to manage the customer life cycle with client firms, allow visibility of plans to the entire customer service and sales management teams. CRM is the science behind the sales funnel and pipeline processes as it captures and organizes customer sales data and analytics into useable formats for all associated departments. This organization and immediacy of access to opportunities, improves urgency, increases sales and productivity, and provides a higher customer satisfaction rating (retention).
5. Sales compensation
   Salespeople are motivated by two things; money and recognition. In this analysis, we look at client company compensation structure, and alignment to overall corporate strategy and objectives. From a compensation perspective, how much base pay or salary is allocated vs incentive or commission compensation? Does this current mix support organizational goals? Does it accurately and fairly compensate the sellers for their efforts and results? Rewards and recognition are also evaluated such as President’s Club, Annual and quarterly awards, incentive trips and other incentives. How effective are these incentives at motivating the correct seller and sales manager behaviors toward corporate strategy entitlement?

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Achievements

Vertilux LTD

Increased sales by 50% and profits by 30% simultaneously by identifying the most lucrative US opportunities and penetrating relevant and immediate opportunities. Also drove a sense of urgency in areas of customer service, accurate delivery and inventory. Having a defined marketing strategy combined with a principled sales management and operations focus allowed Vertilux to attain never before seen results in the US/Canadian marketplace.

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Grainger, Inc.

Successfully developed, led and executed refined and targeted sales process in safety supplies arena. By defining core objectives and measuring against performance to those objectives, growth rates in the safety category were 3X growth of the general supplies business. Aggressively utilized supplier support resources to align with the strategy to compliment resources within the company to drive results exceeding goals. Developed sales management and sales operations strategy and protocol to insure consistency of service and continued, profitable growth. Vast experience in the industrial supplies and equipment distribution model over 22 years with the company.

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Gehrson Lehman Group

Provided subject matter expert consulting on Industrial supplies, MRO, national and region al players within the industry to major consulting firms, hedge funds, and capital groups worldwide. Many consults on threat of web based retailers on players within the segment and projected trends and long term competitive pressures. Also evaluated an acquisition of a regional player in the industrial supplies sector and was offered a seat on the board of the investment firm. Consults for GLG span 2012 to present and still growing in terms of engagement.

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Bain Consulting

”Was most helpful as SME in both the industrial supplies/MRO arena, as well as the textiles and consumer goods areas. Demonstrated expertise in customer behavior, procurement process, and consolidation of suppliers within the sectors. Is a valued and trustworthy source for impactful information and is responsive and articulate. Able to summarize vast data into digestible, useful information.”

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Vertisol International

Opened the door for our goods to the US and Canadian markets, while increasing profitability and sustained volume growth. Helped improve quality and was a source of information for new product ideas and launches in 2014 and 2015. Successfully educated our plant on how to capitalize on the needs of the North American market, quality requirements and delivery urgency and accuracy. Strong understanding of entire US marketplace, key segments and most lucrative opportunities.

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More detailed achievements, references and testimonials are confidentially available to clients upon request.

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Industries

This service is primarily available to the following industry sectors:

Manufacturing

In the most recent data, manufacturers contributed $2.09 trillion to the economy. This figure has steadily risen since 2009 when manufacturers contributed $1.73 trillion. The sector accounts for 12.0 percent of GDP.1 For every $1.00 spent in manufacturing, another $1.37 is added to the economy, the highest multiplier effect of any economic sector. Manufacturing supports an estimated 17.6 million jobs in the United States—about one in six private-sector jobs. More than 12 million Americans (or 9 percent of the workforce) are employed directly in manufacturing. Manufacturers in the United States are the most productive in the world, far surpassing the worker productivity of any other major manufacturing economy, leading to higher wages and living standards. Manufacturers in the United States perform more than three-quarters of all private-sector R&D in the nation, driving more innovation than any other sector. Taken alone, manufacturing in the United States would be the ninth-largest economy in the world. Consistent pressure for manufacturers to increase productivity, decrease fixed and variable expenses, and compete in a global economy will increase the need for outsourced consulting and learning management functions. Small to medium sized manufacturers don’t have the full time resources to effectively drive LEAN and Continuous Improvement initiatives through an organization in a sustainable fashion. Light manufacturing, Technology, Medical/Surgical products, Aviation and Defense will drive the economy in this sector, with automobiles and other heavy manufacturing declining to continued global competition and quality.

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Healthcare

The healthcare industry (also called the medical industry or health economy) is an aggregation and integration of sectors within the economic system that provides goods and services to treat patients with curative, preventive, rehabilitative, and palliative care. Healthcare in the United States is provided by many distinct organizations. Health care facilities are largely owned and operated by private sector businesses. 58% of US community hospitals are non-profit, 21% are government owned, and 21% are for-profit. According to the World Health Organization (WHO), the United States spent more on health care per capita ($8,608), and more on health care as percentage of its GDP (17.2%), than any other nation in 2014. At $2.9 trillion, the state of the U.S. healthcare industry is strong and growing. Average life expectancy increases annually each year, and as the population increases each year, the sheer economics of healthcare are formidable and should grow for decades to come. Changes in legislation allowing for more Americans to obtain quality healthcare also have driven consumption in this sector. Both the med/surg and facilities sectors within healthcare will continue to grow due to higher variable consumption in med/surg and need for more bricks and mortar to perform and house acute and subacute procedures, as well as long term care facilities.

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Construction

The construction sector comprises establishments primarily engaged in the construction of buildings or engineering projects (e.g., highways and utility systems). Establishments primarily engaged in the preparation of sites for new construction and establishments primarily engaged in subdividing land for sale as building sites also are included in this sector. The US construction industry is set to pick up over the next five years. Investments to modernize the country’s aging infrastructure and renewable energy sector, alongside the growing population which will generate demand for residential buildings, will be part of a number drivers of this growth. Though cyclical, and dependent on the health of the overall economy and GDP, construction represents a growth sector for the foreseeable future. Industrial equipment, supplies, building materials, architects and designers will be in higher demand. As well, the second tier, small and medium subcontractors, designers, and service providers will be in a growth cycle. The construction sector generally lacks the discipline of cost containment and productivity measures as they struggle to manage deadlines. Consultants can help put processes in place during the upswing that will insulate construction firms during the downswings.

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Consumer Goods

A category of stocks and companies that relate to items purchased by individuals rather than by manufacturers and industries. This sector includes companies involved with food production, packaged goods, clothing, beverages, automobiles and electronics. Performance in the consumer goods sector depends heavily on consumer behavior. When the economy grows the sector will see an increased demand for higher-end products. When the economy shrinks there is an increased demand for value products. While some product types, such as food, are necessary, others, such as automobiles, are considered luxury items. This sector is heavily dependent on population g