PERFORMANCE

IMPROVING

05
FORCE
SALES

80011A Sales Performance_09.indd 1 12/31/08 12:26:03 PM

 OGILVY & MATHER - WE SELL - OR ELSE

80011A Sales Performance_09.indd 2-3 12/31/08 12:26:03 PM

 Improving Sales Force Performance

80011A Sales Performance_09.indd 4-5 12/31/08 12:26:03 PM

 For further information, or to discuss how Ogilvy can help optimise your CONTENTS
budget and marketing plans, please contact:

Toni Lee, North America (toni.lee@ogilvy.com)

Paula Bernasconi, Latina (paula.bernasconi@ogilvy.com) Introduction 2
Serge Nicholls, Europe, Middle East/Africa (serge.nicholls@ogilvy.com)
Soames Hines, Asia Pacific (soames.hines@ogilvy.com) Background 4

Other Ogilvy & Mather Booklets available:

Sales Acceleration 8
Optimising the marketing budget in recession
How to get more effective advertising
Digital in a downturn: smart strategies for tough times
How is this done? 10
The new PR – leveraging digital influence to drive sales and reputation
Turning shoppers into buyers Phase 1 – Discovery: Understanding the size and cost of the gap 11
Optimising production expenditure and creative assets
Phase 2 – Alignment: Aligning the organisation 12

Phase 3 – Enablement: Improving the performance 13

of the sales force

Phase 4 – Accelerate Sales: Increasing sales conversions 15

Measurement and optimisation 16

Companies benefiting from Sales Acceleration 17

What about technology? 17

Getting started 18

References 19

Published in 2008
By Ogilvy & Mather

© Ogilvy & Mather 2008

80011A Sales Performance_09.indd 6-7 12/31/08 12:26:03 PM

 INTRODUCTION How to use this booklet
“It is not the strong, nor the intelligent who survive, This booklet outlines areas in which businesses that
but those who are quickest to adapt.” sell via a sales force or reseller channel can optimise
performance to save money, generate more profit and
Charles Darwin create competitive advantage.

How to increase your profits when times

are tough
We face one of the most challenging business
environments for years. Virtually all businesses today
are considering how they will make it through the
current global financial crisis. For many of them, cost
cutting is seen as the only viable strategy. This, in turn,
triggers a reassessment of their expenditure. And right
at the top of list are marketing and sales.

Perhaps this scrutiny is already underway in your

company or it will be in the very near future. If your
company has a direct sales force or sells through a
reseller channel, then this booklet focuses on a number
of options that are particularly relevant in the current
economic downturn.

This booklet shows you how to optimise your sales

force’s performance to save money, generate more profit
and create competitive advantage. Ogilvy also offers
practical advice on other potential pain/gain points in
your company, including:

– Optimising the marketing budget in recession

– How to get more effective advertising
– Digital in a downturn: smart strategies for tough times
– The new PR — leveraging digital influence to drive
sales and reputation
– Turning shoppers into buyers
– Optimising production expenditure and creative assets

These booklets are available on www.ogilvyonrecession.com

2 3

80011A Sales Performance_09.indd 8-9 12/31/08 12:26:03 PM

 BACKGROUND
Selling through traditional sales methods is getting
more difficult, forcing Chief Sales Officers into an
increasingly tight spot.
_ The role of sales representative in most companies has
expanded from product specialist to solution seller,
adding knowledge and skill components to the job
which were not known a decade ago.
_ The cost of an individual sales call continues to
increase — it may be a high as $600 for a single call1.
Couple this with the consultative solution selling
approach and what may have taken a single call to get
an order can now take a half dozen. Admittedly the
potential order size increases with solution selling, but
for CSOs and their sales managers, it can make for
some sleepless nights as sales reps’ forecasts look more
like hockey sticks than rocket launches.
_ Reaching the decision maker has become a game
of ‘cat and mouse’, with experienced ‘gate keepers’
keeping sales contact to a minimum. Live detailing by
pharmaceutical reps, for example, may be as short as
6 minutes2.
According to the CSO Insights 2007 Sales
Performance Optimisation Report, “For the third
consecutive year, new rep ramp-up times to full
productivity has gotten longer, sales cycles have
increased, and 43% of sellers are under quota3.
Moreover, as much as 90% of sales opportunities
don’t close as forecast4. In a growth economy, the
consequences of these statistics are often overlooked
in favour of the ‘rising tide’ of top-line growth. But
in a down economy, the inability of a company to do
something about these statistics can be the difference
between profit and loss. In an increasing number of
cases, it can also mean the difference between survival
and ending up on the corporate scrap heap.
4 5
80011A Sales Performance_09.indd 10-11
The Chief Sales Officer has a number of tools available
to help raise the level of sales force performance. Among
these tools are Customer Relationship Management
(CRM) systems, virtual and face to face training
programmes, role models and experienced coaches. (If
43% are under quota, then 57% are over; somebody’s
doing something right). There are also less appealing
options, such as culling the sales force of low performers
and formal downsizing programmes.
At Ogilvy we have begun to offer pilot programmes in
an area we believe has even greater promise than these
tools alone can deliver. In our experience, we have
seen that an untapped source of support for sales force
performance is better alignment between the Sales and
Marketing Functions.
Traditionally Sales and Marketing exist in an adversarial
relationship to one another. And in fact the fights are
real, if not physical, with each side arguing that the
company’s budget could be better spent — by more
promotions, if you’re Marketing, or more feet on the
street, if you are Sales. The issue is not whether the
argument is a legitimate one. It is. The issue is how well
do the two functions manage this tension.
Recent research by the CMO Council — ‘Closing the
Gap: The Sales and Marketing Imperative’ — indicates
that in companies where they don’t manage the tension
very well, that is, where there is the least amount of
alignment between the two functions, performance
on some of the key differentiators of top-line success is
clearly at risk. Specifically, five differentiators are placed
at risk when Sales and Marketing are not aligned. See
table overleaf:
12/31/08 12:26:03 PM
 Figure 1: Goals most threatened by poor alignment
Leverage benefit of product launches
Ability to meet quota
Consistent brand reinforcement
Ability to sell value over price
Ability to differentiate product
0 10
Source: Sales & Marketing Management/American Marketing Association survey of 1,508 executives
Looked at positively, however, there is clearly an
opportunity here for companies to leverage an
Goals most threatened organisational capability that already exists. We call
by poor alignment of
Marketing and Sales.
our approach Sales Acceleration and it is designed to
both accelerate sales and save costs by creating better
alignment between the Sales and Marketing organisations.
Companies that use our Sales Acceleration tools are already
finding that they are able to answer a variety of difficult
(and often expensive-to-get-wrong) questions:
20 30 40 50 60 70 80
1. Should I cut low performers or invest in them?

2. How can I get more of my mediocre performers up the

Notice that two of the goals fall into the traditional learning curve faster?
Marketing arena: product launches and brand
reinforcement; while three of the goals fall more into 3. How do I ensure that I don’t lose my best performers?
the Sales arena: meet quota, sell value, differentiate
product. However, when there is common direction 4. How do we maintain a value sell and not discount by
among Sales and Marketing, both groups own all goals, cutting price?
enabling the sales force to be best in class performers.
5. How can I better equip my sales force with the marketing
Gaining alignment among two traditionally competing tools they need so they’ll spend more time talking to
camps is no easy task. As Figure 2 shows, there are prospects and less time prepping?
some pretty dramatic disconnects between Marketing
and Sales.
Figure 2: The sales and marketing disconnect

_ 58% of companies have not formally defined the steps of their selling processes.

_ 80% of those companies that have defined their sales processes have not aligned that process
with the customer’s buying activities.

_ 75% of companies still do not have an effective process for dispersing and managing leads.
Most that do have not integrated that process with their sales force’s opportunity
management systems.

_ 85% of companies do not have an integrated marketing and sales prioritisation and planning
process.
Source: Fixing the Marketing-Sales Disconnect, Bob Schmonsees. April 2005.

6 7

80011A Sales Performance_09.indd 12-13 12/31/08 12:26:03 PM

 SALES ACCELERATION Figure 3: The Sales and Marketing dynamic

Sales Acceleration is Ogilvy’s answer to amplifying Company / Brand

the impact of a company’s sales and marketing
Advertising
investments by defining — and then closing — the One to One
performance gap that is created by lack of alignment PR
Sales Promotions
between Marketing and Sales. Early pilots have been
encouraging. In one client organisation, we found that
mediocre sales performers were able to up their game
by modeling the performance of star sales people,
resulting in a 50% increase in sales volume on the same Consumer Sales Channel
Activation, Loyalty, CRM
expense base. In another case, we found that speeding
the buying cycle could leverage conversions by a further
20%. Although the situations were very different, the Company / Brand
core contributor to changed performance was better
alignment between Marketing and Sales. Sales Acceleration
Channel
As the pioneer of 360-degree brand stewardship, Performance
Improvement
Ogilvy has long known that every point of contact helps
to build the brand. In fact sales is often the human
manifestation of the brand — be it a direct seller, a
telesales person or a channel partner who is interacting Consumer Sales Channel
Sales Acceleration
with a customer or prospect. And yet few marketing
initiatives proactively include the strategic education Sales Enablement and
and enablement of the sales organisation. Sales Optimisation

8 9

80011A Sales Performance_09.indd 14-15 12/31/08 12:26:03 PM

 HOW IS THIS DONE?
The Sales Acceleration four phased methodology focuses
on quantifying the size of the gap, then closing it by:
_ Eliminating inefficiencies and aligning sales and
marketing efforts.
_ Amplifying the performance of sales channels.
_ Reducing sales cycles.
_ Increasing volume and reducing sales cycles by providing
sales leads at the optimum position in customers’
buying cycle.
Figure 4 – Sales Acceleration methodology
PHASE 1 — DISCOVERY: UNDERSTANDING
THE SIZE AND THE COST OF THE GAP
The size of the sales and marketing gap is unique to
every company and as such there is little information
available within the companies that quantify it. What’s
evident is that most companies are not aware of the size
of the gap or, in many cases, that it actually exists.
A study by R.L. Polk of 1,329 automotive dealerships
conducted over a 15 month period with data from over
1 million leads reported that, “56% of leads result in a
sale, however 92% bought from a different dealership,
76% of them bought a different brand and only 24%
bought the brand they initially enquired about.” This
highlights a need for closer collaboration between
marketing and sales throughout the buying cycle.

Using our proprietary Strategic Alignment

C-level discovery consulting to help
quantify the size and cost of the
sales and marketing gap, and to
identify where money can be saved or
redirected
A series of facilitated workshops
to develop a strategy and change
management plan to align sales and
marketing
Methodology, we can ascertain the present situation
and the potential improvement that can be made.
The outputs are:
_ The quantification of the sales and marketing gap.
_ The level of internal support required for change.

_ Impact on the brand and customer experience.

Consulting methodology and
programs designed to optimise
demand generation and lead
nurturing to reduce buying cycles and
increase volume
Sales performance improvement
strategies and productised solutions
designed to improve organisational
performance through better
enablement of sales and marketing
_ Identification of processes that impede strategic
implementation.
_ An estimate of the ROI from making the improvements.

_ A strategic framework.

_ Data to design the alignment strategy.

10 11

80011A Sales Performance_09.indd 16-17 12/31/08 12:26:03 PM

 PHASE 2 — ALIGNMENT:
ALIGNING THE ORGANISATION
The information gathered in the discovery phase allows
alignment strategies to be designed. These focus on
aligning marketing and sales within a framework that
ultimately results in a coordinated go-to-market plan
making the most of sales opportunities.
To achieve this outcome, a series of facilitated
workshops are undertaken to develop the strategic
framework into a plan with shared KPIs for sales,
marketing, operations and management. The expected
outcomes are:
_ Alignment of the stakeholders
_ The identification of cost optimisations
_ A roadmap with key milestones
_ Aligned goals and KPIs
_ Message optimisation
_ Target and channel optimisations
_ Processes that are integrated
_ Common technology and databases
_ A common understanding of customers’ buying cycles
12
80011A Sales Performance_09.indd 18-19
PHASE 3 — ENABLEMENT: IMPROVING
THE PERFORMANCE OF THE SALES FORCE
Sales performance strategies are then developed into
plans to enable and improve the readiness, capability and
performance of the sales force. A combination of bespoke
solutions and proprietary products are deployed to leverage
the efficacy of sales and marketing.
These include:
_ Strategic sales programs that connect the marketplace
message to the products and services being sold.
_ Tools and specific information that enable more of the
sales force to perform like their best in class peers. These
can be delivered as a portal, a set of web pages situated on
a company’s sales intranet.
_ Simplified access to the relevant information — from
customer needs, through competitor information to
objection handling.
13
12/31/08 12:26:03 PM
 _ Marketing material and support that complements sales
throughout the buying cycle.
_ Alignment strategies that focus on selling value over price.
_ Sales training and a closed-loop feedback process.
_ Incentive programmes that are aligned to sales targets and
performance improvement.
One of the easiest ways to increase the impact of your
marketing investment is to include sales as a key audience
for every campaign. By providing your sales force with
the information and insights they need to move the
conversation from broad market issues to needs to
specific products and services, you can speed the buying
cycle and improve the overall performance of your
marketing investment.
14
80011A Sales Performance_09.indd 20-21
PHASE 4 — ACCELERATE SALES:
INCREASING SALES CONVERSIONS
It’s not a sales cycle. It is a buying cycle. And prospects
set the pace.
In this phase, we provide nurtured ‘ready to buy’ leads to
the sales force. Proprietary demand generation software
optimises a database of prospects and customers by
using triggers to release leads at the optimum moment
in their buying cycle. This process provides the added
value of identifying the prospects’ needs to identify
the most appropriate solution to be sold or the best
customer up-sell or cross-sell opportunities.
Processes are put in place to ‘market’ the leads once
they are passed to sales, to maximise the conversion.
The R.L. Polk study mentioned earlier found that 32%
of sales converted within 30 days, with the remaining
68% after 90 days. Dealers who employed rigorous
follow-up strategies were able to exploit the opportunity.
We have seen up to 20% improvement in the conversion
of sales in dealerships using this process for an
automotive company5.
15
12/31/08 12:26:03 PM
 MEASUREMENT AND OPTIMISATION
The process allows for continual optimisation, meaning
you can see the difference that Sales Acceleration is
making to your business. It also allows for ‘what if ’
scenario planning, a key benefit when making decisions
on cutting or investments.
Sales Acceleration has been developed to address and
optimise the performance of the following areas and by
doing so close the Sales and Marketing Gap.
_ Investment: Where budgets should be saved and where
you can make the best ROI on any investment.
_ Target and channel: Who are your best customers and
resellers and how they can impact on your sales.
_ Message: Aligning your marketing and sales messages for
maximum impact.
_ Sales Force: Improving the performance of your sales
channel.
_ Communication: Identifying the most effective
communication tools and channels.
_ Buying Cycle: Reducing the buying cycle through effective
lead and customer management.
16
80011A Sales Performance_09.indd 22-23
COMPANIES BENEFITING
FROM SALES ACCELERATION
Sales Acceleration is already working for a number of
companies. A number of Ogilvy’s multinational clients
are currently using parts of this methodology to optimise
costs whilst amplifying the performance of their sales and
marketing efforts.
One of the many advantages of this process is that it
does not require a company to start at discovery or end
with demand generation. The appropriate point of
entry is determined by a company’s current situation.
Some organisations may have completed the discovery
phase with other consultants and may be looking for
implementation, others may have a short-term objective to
generate demand or improve performance.
WHAT ABOUT TECHNOLOGY?
You will have noticed that we have not promoted a
technology solution. Sales Acceleration differs from
other solutions in the marketplace in that it is not sales
force automation, CRM software or a database but a
methodology for identifying the size of the Sales and
Marketing Gap and closing it.
17
12/31/08 12:26:03 PM
 GETTING STARTED REFERENCES

You know your company is ready to benefit from Sales 1. Pharma Marketing blog — Fewer sales reps leads to
Acceleration if you agree with any of the following higher costs
statements:
2. Face to face interview with pharma rep
_ I am planning to make cuts in my sales force, but could
do with a more scientific approach to determine how 3. IDC — CMO research study
deep they should be.
4. CSO Insights 2007 Sales performance optimization
_ Retaining my best sales people is key, especially in the report
current trading environment.
5. OgilvyOne client example — Automotive
_ I am sure that our company would benefit from closer
collaboration between sales and marketing. Acknowledgements
_ I see our company running marketing campaigns and Sherri Leopard — Leopard Communications
sales plays — but they’re completely disconnected from Rowan Jackson — Change Masters International
each other. Richard Harris PhD — Change Masters International
William Fonvielle — Change Masters International
_ I know that all customers are not created equal, yet I
often find our sales and marketing activities treat them
all the same.
_ I don’t want sales creating their own sales presentations
and promotional material. They usually don’t look good,
plus it’s a waste of their valuable time — I’d much
rather they were out with prospects and customers.
_ Finding an inexpensive way to keep all our sales
opportunities nurtured until they are ready is an
attractive proposition.
_ I see an opportunity to beat my competition in
today’s market.

Contact us for a free, confidential consultation from
which you can get a greater understanding of how
Sales Acceleration can help you close your sales and
marketing gap.
18
For more information please contact:
Toni Lee, North America (toni.lee@ogilvy.com)
Paula Bernasconi, Latina (paula.bernasconi@ogilvy.com)
Serge Nicholls, Europe, Middle East/Africa
(serge.nicholls@ogilvy.com) or
Soames Hines, Asia Pacific (soames.hines@ogilvy.com)
19

80011A Sales Performance_09.indd 24-25 12/31/08 12:26:03 PM