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White Paper
Success Factors forHighly Effective Inside Sales Teams
A PhoneWorks white paper, courtesy of Marketo
 
 
 © 2008 PhoneWorks, LLC and Marketo, Inc. All rights reserved. Page 2
 
Introduction
Today’s sales leader is confronted with a dazzling list of possibilities to enhance and increaserevenues: CRM systems, new point solutions, channel strategies, Internet technologies,targeted lead generation programs, and many more. At the same time there is anunprecedented level of scrutiny into sales operations and demand for more reliable revenueproduction and forecasting. Following the burst of the “tech bubble” and in a climate ofincreased accountability, few executive management teams are willing to leave sales aloneand hope for the best.Instead, many companies strive to balance the efforts of various internal teams to maximizesales productivity. Increasingly, a key component in realizing this vision is having an insidesales team in addition to a field-based sales team. In our 2005 annual Inside/Telesalessurvey, 40% of responding companies have an inside sales group. Our survey indicates thatmore than half (56%) of inside sales personnel have less than two years of experience andannual turnover is 42%. With ramp-up times averaging more than six months, getting newpeople up to speed quickly and supplying your best reps with the tools and motivation neededto retain them are of paramount importance. You’ll want to consider the several best practicesoutlined here to establish and manage your inside sales team.
“One
 
of 
 
every
 
four
 
hours
 
of 
 
possible
 
selling
 
time
 
was
 
siphoned
 
off 
 
to
 
do
 
research
 
and
 
admin
 
tasks.”
 
Another statistic to keep in mind: 25% of inside salesrep time is spent either researching accounts or onadministrative tasks. That is a great deal of time, but it’simportant to be prepared before that first call. Are thosereps who aren’t doing as much research adequatelyprepared?
Importance of Inside Sales
Since inside sales is often the first touch point with a prospect, it is critical that the salesorganization have the proper level of focus and investment. When building or restructuring aninside sales operation, there are a number of factors that can make or break the effort.1) Have a Strategic PlanRather than simply hiring anumber of inside salespeople and putting themon the phone, it isimperative that you firstdesign and plan yourinside sales operation.Many companies skip thisessential first step andnever achieve the powerful
Strategic
 
Plan
 
 
Measurement
 
Buy-in
 
Design
 
Budget
 
Plan/Timeline
 
Business Goals
 
 
 
 © 2008 PhoneWorks, LLC and Marketo, Inc. All rights reserved. Page 3
 
results that are possible with an inside sales strategy that has been carefully thoughtthrough, integrated with the rest of the business, and “sold” internally as well as to yourcustomers.Include your management team and key staff to determine how inside sales can bestcontribute to your overall business goals. Establish a complete set of specific andmeasurable objectives for the group. Prepare a detailed implementation plan, budget andtimeframe that will serve as a roadmap for success. This strategic plan is a livingdocument that should be revised as changes occur within sales.2) Focus on Hiring the Right People, Managing and MotivatingWith a winning strategy in place and the right inside sales people on your team, superiorresults are sure to follow. If you hire the wrong people, you won’t have a chance ofsuccess. You can avoid the biggest mistakes by paying attention to:Appropriate Hiring Profiles and InterviewsYour implementation plan should clearly articulate the appropriate hiring profiles,experience and skills required to be successful in an inside sales role in yourcompany. Phone interviews and face-to-face interviews are critical given the nature ofan inside sales professional’s job.Professional Inside Sales ManagementAn inside sales team needs a dedicated,experienced manager. Numerous programsfail when a VP of sales or marketing is calledupon to manage the team on top of otherresponsibilities. Similarly, if you are starting upa new group or restructuring an existing one,you should not hire an inside sales rep for afirst-time management role, or an inside salesmanager who has never created a group fromscratch. The design, building and fine-tuningrequired in a new or restructured inside salesoperation are highly specialized skills, withoutwhich an inexperienced manager will flounder.Compensation and TrainingYour compensation and incentive programs should be aligned with the goals andobjectives of the inside sales operation and provide significant financial motivation forreaching and exceeding individual and/or group targets. New hire as well as ongoingtraining and one-on-one coaching should be provided to support the team and coverproduct, sales, systems, current marketing campaigns, and procedures within yourinside sales group. Training should occur at least quarterly (and more often if your
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