Free up your sales force to sellinformation services & growth company
The VP Sales wanted more funding to build the sales team and to sell more. “We sell a complex service to senior managers,” said the VP, “so we need more account executives to make more sales.”
The CEO looked for a way to meet both sales and profit projections.
Investing freely in sales was a the right strategy when the company was a start-up. The company hired highly paid sales executives who owned the customer throughout the entire sales cycle – from first contact to closing a deal and making follow-on sales. The strategy worked well as the company gained market traction and enjoyed solid grew. Now it was time to jump to the next level and earn a profit too. The CEO’s executive explored several ways to increase profit – such as reduce operating costs, lower sales commissions or develop new services – they all required additional investment or threatened future growth. The CEO needed a solution that could be implemented now within its current budget. The challenge was to keep sales growing without hiring more sales executives..:
- Improve sales and operations and production planning:
The teams focused their efforts on a few of the highest-value S&OP levers in order to review the current planning process, identify gaps in the planning infrastructure and analytically understand demand and supply variability.
- Determine the right inventory level:
With hundreds of medications in the market, Pharm Ltd. needed a proper method to predict and manage their inventory. Using a mean absolute percentage analysis (MAPE), the teams defined appropriate levels for raw materials and finished products by mapping actual versus forecasted sales on the most important SKUs.
- Optimize the supply chain for perfect order planning:
The diagnostic determined the stressors that affected sales and service levels. The teams focused on resolving issues related to higher-than-normal back-orders and lead times, which stressed the entire supply chain and led to delays in medications reaching consumers.
Outsourcing presales solved the problem by freeing up the time of highly paid sales executives to sell more.
The CEO contacted Guided Leads and explained the challenge. We discovered that company sales executives spent less than 25% of their time with prospects that became customers or with existing customers that ordered additional services. Too much sales executive time was focused on contacting and qualifying new prospects and on nurturing current customers toward new purchases. The solution was to outsource presales activities free sales executives time to focus on well qualified new customer prospects and with existing customer who were ready to renew or purchase new services.
Profit grew as sales continued to meet the ambition company growth projection, without hiring new account executives.
- By the number, outsourcing presales:
- Sales executives sold up to 150% more over time
- Sales doubled before any new executives were hired
- New business conversion rate of qualified new leads rose six points
- Renewal and service upgrade success for nurtured customers was over 90%
- Customers were happier because they got quick access to a sales executive when they needed one