Here are several excerpts from an article by Barney Beal, News Director for SearchCRM.com, Sales Reps Are In For A Tough 2009, But CRM Sales Software May Help about the 2009 Sales Performance Optimization Survey from CSO Insights:
Just about everyone agrees that 2009 is going to be a tough year for business, but it could be particularly difficult for those in sales, judging from the results of an annual sales performance survey.
Despite the difficult times, a majority of companies (86%) said they were raising quotas for their sales force in 2009, according to the 2009 Sales Performance Optimization Survey from CSO Insights, a sales consultancy based in both Boulder, Colo., and San Francisco. Making that quota should prove a challenge, considering that only 58% of organizations made their overall sales quota in 2008, down from 61% in 2007.
“That’s like the coach of a high-jump team who sees that 58% make a jump at 6 feet and 42% can’t, and then moves the bar to 6 feet, 3 inches,” said Jim Dickie, a partner with the firm. “What do you think is going to happen, all things being equal?”
All things in 2009, of course, will not be equal. The survey of more than 1,800 sales managers showed that many are cutting expenses in sales, including travel, training and technology. Now in its 15th year, the results from the 2008 survey echo another time, according to Dickie.
“Everybody remembers 2002 was a down year — because the stock market went down, sales performance went down,” he said. In fact, that was the worst year for sales performance in the survey’s history. Only 48% of salespeople made their number. “2009 looks like it’s going to be rougher to us.”
Organizations are reducing sales expenses — CRM, training, headcount — and that is likely to mean reducing profits and margins as well, Dickie said.
“I think you need to invest your way to success,” he said. “We just think that people are going to have to invest in a lot of technology if they’re really going to help salespeople sell.”
That may not necessarily mean a core CRM suite, however. CRM implementations continue to rise, with 71% of respondents reporting that they have formally implemented CRM sales software. Of those who have yet to implement CRM, 40% say they plan to do so in 2009. Yet the top benefits that respondents cite from CRM are efficiency focused — improved communications, improved forecast accuracy, and a reduced burden on sales. The benefit of “increased margins” was cited by only 6% of respondents.
“If we think that technology is going to bail us out, core CRM doesn’t look like it’s doing it,” Dickie said. “Analytics, knowledge management — we think those can impact things.”
{ 2 comments… read them below or add one }
Now is a good time to implement CRM precisely because it will be a slower sales year. It’s a perfect time to reflect on what processes can be improved to help marketing and sales be more efficient and effective.
Do we need to improve the timeliness or quality of leads passed to sales? Are leads falling through the cracks? Do we need to reconsider the definition of a “lead”. Its back-to-basics time folks.
http://www.smartaboutsales.com
It surprises me that there are still businesses trying to decide whether or not to implement a CRM. The only decision being made should be which CRM best fits their needs.