The 4 C's of Sales Strategy and Restructuring

By Warren Shiver

We’ve worked with several clients on elements of their sales strategy, which clearly define who you are selling to, what you are selling, how you are selling, and why you are different -- all to support better returns for the sales organization (Revenues – Cost of Sales). Asking fundamental questions like these begin to point to significant gaps and opportunities around sales structure and alignment.

While decisions related to sales strategy, model, and structure are highly unique to an organization, we find that investigating four core areas -- what we call the 4 C's of sales strategy -- can help guide those decisions:

  • Customer – How do you segment customers based on size, potential, needs, capacity, location, etc?  Which are your highest priority segments?
  • Coverage – Based on what you learned in customer analyses, how should you define your coverage model to best align with your highest value segments?
  • Capacity – What is the workload required to sell and service customers and how do we size/resource our team (and selling roles within it) accordingly?
  • Capability – What competencies do our people need in order to engage in the right conversations with different levels of customers, which for many companies span strategic/consultative selling to tactical selling?

By examining each of these areas, a sales organization can maximize both selling efficiencies (e.g., reducing overlapping resources, reducing T&E, and expanding the “bag” of solutions) and sales effectiveness (e.g., more value for the customer through broader solutions, better experience through single point of contact).

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The Sales Resource Challenge -- How Many, How to Align?

By Michael Perla

According to Harvard Business Review, companies spent $800B on sales force compensation and another $15B on sales training in 2015.  If you add in another $15B investment in CRM according to Gartner, companies spent $830B on people, people development and enabling technologies, which is roughly 5% of total US Gross Domestic Product.  This is a staggering amount of money invested to deliver revenue growth. 

Contrast this figure to the investment we make annually in optimizing the return on that investment.  Once a year, typically during the budget process, we sit down and think through how many sales people we need in the organization.  We may base our sizing assumptions on how we performed this year, our revenue targets for the upcoming year, or a financial analysis of the costs (e.g., recruiting, on-boarding) versus the benefits (revenue ramp-up time). 

More often than not, we devote too little time prioritizing our customers, determining our coverage model, and sizing our sales teams. Our need to reassess is magnified when there have been major market or competitive shifts or if our company has grown through acquisition.

We all know the value of rebalancing our 401K to drive greater returns on our investment portfolio.  Yet, as collective stewards of nearly $1 trillion in sales investment, the question remains – why do we place so little time and effort in driving a greater return on our investment in sales? 

To answer that question, we developed an in-depth guide around the components of Sales Resource Optimization (SRO), including the 4 C’s of customers, coverage, capacity and capabilities. More and more of our clients are annually re-assessing how they organize and deploy sales resources to ensure they are keeping up with market/customer changes, which are happening at an accelerated pace today.

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7 Steps to Sales Force Transformation [Infographic]

By Symmetrics Group

Markets and customer expectations have changed overnight. You can plan to execute a sales transformation the right way or you should plan to fail. These are the 7 Steps you can't skip:

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Why Your Go-To-Market Strategy is Probably Wrong

By Michael Taylor

Is your go-to-market strategy really a go-to-market tragedy? Here are 5 common pitfalls.

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6 Challenges Diets & Sales Organizations Share

By Symmetrics Group

What does your sales organization have in common with the average diet? Here is advice to tip the scale in the other direction.

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Why Sales Leaders Need More than a Great Vision

By Warren Shiver

Competitive sales organizations are usually run by leaders with great vision. But vision alone won’t get your team to the top.

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What can Big Data do for the sales organization?

By Michael Perla

“Big Data.” There, I said it. They seem to be the hottest two words in business today. Some say it’s overhyped.

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