Do Your Sales Metrics Drive Challenger Behaviors?
As we've continued to meet with sales leaders across the globe about our research on the Challenger Rep, we always get a variety of reactions and responses as they think about how the research relates to their own experiences, teams and organization. And quite often, a leader will make a statement about how Challenger correlates to their sales metrics – comments such as "You know, our metrics around activities don't reinforce Challenger behaviors, they are more aligned to Hard Worker behaviors" or "my highest activity reps aren't my highest performing reps."
In fact, our 2011 Sales Metrics Benchmark Survey shows that 30% of respondents measure "customer appointments made per rep per month" as a rep performance metric. But does this metric necessarily align to the Challenger behaviors?
It's one of many interesting insights and questions our members ask when they see the research on the five sales rep profiles, including:
Does our organization have the right metrics in place to drive the Challenger behaviors?
What metrics should we be using to drive the behaviors we want?
Are our front line sales managers using metrics in the right way to coach or are they focused on simply increasing activity ("it's a numbers game, get out there in front of more people")?
While we'd bet that most leaders agree there needs to be some level of minimum activity (let's be honest, people sell to people, so you have to meet, visit and call them). But how can an organization select the best metrics for its organization…metrics that answer the questions posed above?
The Council profiled a best practice from Xerox Company as they encountered a similar metrics challenge. Xerox utilized a robust metrics selection process to identify and define the best set of actionable metrics for their organization. The process also helped prevent the number of metrics on their dashboard from growing too big and overwhelming.
Xerox applied a Lean Six Sigma process to select their sales metrics, which included steps such as:
Defining appropriate metrics—Xerox gathered extensive stakeholder feedback to identify their metrics requirements and to establish the end goal and purpose of the metrics initiative
Measuring and analyzing metrics—Xerox analyzed which metrics from their current dashboard did and did not work, and also conducted internal and external benchmarking to help guide selection of new metrics
(SEC Members can begin external benchmarking with SEC's 2011 Sales Metrics Benchmarking Survey Tool)
While sales metrics will vary from organization to organization, we'd like to hear from those of you who've begun or are on the Challenger journey about how you've used your sales metrics to support Challenger behaviors. How can we enable our sales organizations with the best, actionable metrics, without overwhelming leadership?
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