According to CSO Insights
A CSO Insights study of Sales Performance shows that 25% more reps make quota in companies with a Dynamic Sales Process. Those companies also have 18% higher revenue growth than companies with no Sales Process.
CSO Insights defines the 4 Levels of Sales Process as follows:
Level 1—Random Process: Lacks a standard process. Salespeople do things their own way
Level 2—Informal Process: Sales process exists, but is not monitored or measured
Level 3—Formal Process: A defined sales process with periodic reviews to determine effectiveness
Level 4—Dynamic Process: Routine cadence of process accountability and continuous feedback on use of formal sales process. Modifies the process when changes in market conditions are detected.
As sales organizations move up the process level hierarchy, everything improves:
- % of salespeople making quota increases
- Revenue plan achievement increases
- Forecasting accuracy improves
- Competitive win rates improve
- Sales turnover decreases
- Accelerated new hire productivity
Random process leads to irregular pipeline.”
A formal sales process incorporates clearly defined stages with high impact activities designed to achieve specific outcomes (or milestones) in each stage.
Once you have your sales process defined, hold consistent reviews to ensure adherence to the process to create a Level 4 – Dynamic process and achieve your goals.
A well defined and executed sales process results in:
- A common language
- A common approach
- Accureate forecasts
- Increased efficiency
- Decreased sales cycles
- Better knowledge management
- Shared best practices
- Increased win rates
- Improved margins