A Unique Understanding of Inside Sales Compensation: Take Our Survey

We’ve just released our annual survey covering compensation for inside sales professionals. The survey evolves every year with the help of our clients and the inside sales community, who review and edit the questions before we release it. It’s crucial to get the questions right, as an increasing number of companies start up or grow their own brand of phone and Web selling initiatives. Because we at Phone Works spend every day starting up, expanding, optimizing and testing inside sales groups of all sizes, we have a unique perspective on what inside sales professionals and their executive managers need to understand when budgeting and structuring incentive compensation. Asking, “What do your inside sides reps earn in base salary and commission?” is no longer a specific-enough question, as specialized roles emerge.  Consider, for example, the differences in hiring profiles, job requirements, objectives and compensation in the following positions:

• “hybrid” (inside/field) reps who spend most of their time “inside” but also travel when appropriate
• reps who engage, generate and qualify sales opportunities but do not close
• reps who manage a territory with a field rep partner and carry a team revenue quota
• reps who only sell new business or only sell to existing customers
• reps who only renew service agreements or subscriptions monthly, quarterly or annually
• VPs, directors or managers who have other managers reporting to them vs. a team of reps as direct reports

Take a look at the (free) compensation survey reports we’ve produced in the past. And if you want early results that will help you with end-of-year planning and budgeting, take this year’s survey now.

Sales 2.0 Leaders Interview – When Planets Align: Sales and Marketing

I’m publishing a series of Q&A excerpts from my interviews with Sales 2.0 leaders, which will appear in my next book. This is the second excerpt from my interview with Andrew “Birchy” Birch, CEO of Sungevity, a leading provider of home solar-energy systems.

Sungevity is creating Solar 2.0 through Sales 2.0, and proving it is possible to work for social change and make a profit. Birchy worked with my company, Phone Works, to test and implement a customer-focused inside sales system and successfully introduce the principles of Sales 2.0 to the solar-energy industry.

Anneke: A key theme in Sales 2.0 is sales and marketing alignment. Marketing programs really drive prospective customer interest in Sungevity’s options. How are marketing and sales working together?

Birch: A lot of solar companies have fantastic experience in installation and technology, but the majority aren’t as professional as they could be in marketing and integrating that into sales. We’ve hired great people with really strong marketing skills, and with [Phone Works’] help, we’ve implemented some of the best practices in the inside sales industry. It’s really about the people who do those jobs having that skill set; that hasn’t really happened in the solar industry to date.

Step one is the people, and step two is the process and what you’re actually doing. Our marketing campaigns tend to be more focused on the online segment, and we do a lot of PR just because this is such a fantastic story about positive change. We do high-impact things such as the White House campaign, and we emphasize that going green is now easy with a zero-cost solar system. We try to get that message out through non-conventional PR channels, as well.

That integrates to sales through our online design tool. Sales has to manage the volume going through the design phase and manage the quality, which is really key. Then sales obviously needs to have active communication on a daily and hourly basis, through the software, to see what’s coming down the funnel and make sure each of the sales people has a good pipeline of candidates.

Anneke: What would you say to a CEO who’s managing a more traditional business? Why even entertain Sales 2.0?

Birch: It seems very logical that all CEOs would be, first and foremost, focused on the customer. My belief, having implemented inside sales in this industry, which hadn’t really seen inside sales before, is that this is a fundamentally better customer experience, so it’s definitely worthy of testing. Thereafter, assuming that is correct, the economics will take care of themselves.

Read the full interview with Andrew “Birchy” Birch in the Resources section of this website.

Tags: inside sales, Sales 2.0, sales and marketing alignment

Findings From Phone Works Inside Sales Metrics Surveys: How Do You Compare?

Process and metrics are the lifeblood of inside sales organizations. Leaders of phone/Web sales organizations — or their sales operations managers — typically measure conversions at every step of the sales cycle, in addition to average sales cycle length, average deal size and other more common metrics. Sales 2.0 companies are following their lead and putting increased focus on tracking and measuring their key performance indicators (KPIs) in all sales channels in order to predict and improve results at both team and individual levels.

But not every sales manager knows which metrics to track or how their productivity measurements compare against those of other companies. If you want to see what leading B2B companies in the San Francisco Bay Area are measuring, check out the latest inside sales (quota-carrying phone/Web sales) and lead generation (sales development/pipeline-building) metrics reports produced by Phone Works, based on surveys sponsored by the Bay Area Telebusiness Alliance (TBA).

Here are some highlights:

Inside Sales Survey

• The average annual quota for inside sales reps has increased dramatically in the past three years
• During the same time period, the percent of reps achieving quota has declined
• Inside sales reps achieving 75% or more of quota carry an annual average quota of more than $1 million
• Inside sales reps achieving 75% of quota or better close an average of 2 more deals per quarter, compared to all respondents

Sales Development Survey

• Companies that are achieving 100% of quota have a 6–8 attempt contact strategy to reach the prospect
• Average talk time has increased 18% in the past 3 years
• The number of qualified leads generated per week increased an average of 38% in the past 3 years
• Average daily volume of e-mails increased 31% in the past 3 years

Metrics will, of course, vary, depending on factors such as your market, your position in the market, your target audience, and your implementation of technology and process.

How do your sales metrics compare? What sales KPIs do you measure? Which metrics would you like us to add to future surveys?

Tags: inside sales, lead generation, Metrics, Sales 2.0, sales development

5 Reasons to Guest Blog on The Sales 2.0 Advocate

Have a Sales 2.0 idea to share? I am actively seeking guest bloggers! I’ve spent 18 months doing the lion’s share of writing on this blog, which I’ve enjoyed immensely. However, adding diverse ideas and opinions through the addition of other expert voices — such as Brent Holloway’s post on measurement and morale, David Satterwhite’s on the freemium model, and Chad Levitt’s on sales reps becoming better marketers — makes the blog all the more interesting and valuable.  To that end, I aim to evolve into a content curator rather than just a writer.

You may have considered blogging but have company restrictions, or you don’t want to make the commitment to regular daily or weekly posting. Or perhaps you’re an active blogger already. In any case, there are many benefits to being featured on The Sales 2.0 blog:

1. Establish Your Sales 2.0 Expertise

Blogging gives you a platform for demonstrating your leadership and knowledge of innovative and proven sales practices and technology, both inside and outside your company.

2. Build Your Personal Brand

You can establish your brand as a Sales 2.0 thought leader by appearing here.

3. Advance Your Career

Differentiate yourself from other candidates — for internal promotions or new job opportunities — by including links to your blog posts.

3. Share and Compare Ideas

Blogging provides the vehicle for sharing thoughts, getting input from like-minded professionals and engaging in stimulating online conversations.

4. Increase Your Reach

The Sales 2.0 Advocate is syndicated to many sites, including The Customer Collective and Customer Think, which puts your name in front of a large audience of sales and marketing executives. Posts also appear on my Amazon author page, and are publicized (“socialized”) on Facebook (Anneke Seley, Phone Works and Sales 2.0), Twitter (@annekeseley, @phoneworks) and LinkedIn (Anneke Seley, Sales 2.0 Community group, Telebusiness Alliance group).

5. Have Some Fun!

I find blogging not only helps me clarify my thinking, but it’s also a fun and creative way to express myself.

Sales Exec David Satterwhite put it well: “As executives, we only get to do one job at a time. Advising, through blogging, gives you an opportunity to reach outside your current assignment. It’s beneficial to share ideas with colleagues in the market place.”

And co-author of Sales 2.0 Brent Holloway says, “… you get your name out there as an ‘expert,’ and it helps you solidify and organize your thoughts on a specific subject.”

Have an idea for a guest post? Comment below, or send me an e-mail!

Tags: blogging

Sales 2.0 Leaders Interview: Solar 2.0 Meets Sales 2.0

I’m publishing a series of Q&A excerpts from my interviews with Sales 2.0 leaders, which will appear in my next book. This is the first excerpt from my interview with Andrew “Birchy” Birch, CEO of Sungevity, a leading provider of home solar-energy systems.

Sungevity is creating Solar 2.0 through Sales 2.0, and proving it is possible to work for social change and make a profit. Birchy worked with my company, Phone Works, to test and implement a customer-focused inside sales system and successfully introduce the principles of Sales 2.0 to the solar-energy industry.

Anneke: There really wasn’t a Solar 2.0 model before; you guys are breaking new ground with how you’re selling. Phone Works applied what we know works in other industries, and then modified that for Sungevity based on customer feedback, results, metrics and measuring.

Birch: It didn’t exist before we implemented it. Some 99.5% of all solar sold in California and across the states is sold by a very labor intensive, unscalable model. The customer goes to the Yellow Pages, online or however they find those installers; they then have to take valuable time to get someone out on the job a few days or weeks later. That experience is incredibly time-consuming, and it increases sales pressure, which makes the face-to-face sales process really intrusive on your life. You’ve got a guy or gal who’s just driven a truck at great expense, and they know they have to close that sale; they’ll push pretty hard.

The great thing about having much more of a pull strategy on the sales side is customers come to you and call the inside sales consultant to request information at their own pleasure and time frame, seven days a week from 8 am until 7 pm. They can get that service with no pressure, so it suddenly becomes a much nicer experience for the customer.

Anneke: Solar 1.0 reps are trying to force a decision in one in-person call. Because solar is still early-adopter territory for most people, they can’t make a decision that quickly. Your approach is not economics-driven. You can avoid the pressured sales approach that is necessary to cover the cost of the face-to-face sales call. You call that visit a “truck roll,” right? How much does that cost?

Birch: The cost of doing that truck roll generally adds up to about 10% of the end cost of the residential system. By removing that truck roll, you have a real economic advantage, which is basically passed on to the customer in the shape and form of a lower electricity bill with solar energy.

The process has made a meaningful impact on renewable energy, which is kind of unusual. If you think about it, most people wouldn’t imagine Sales 2.0 and Solar 2.0 could affect solar uptake, but it’s a really smart model.

Read the full interview with Andrew “Birchy” Birch in the Resources section of this website.

Tags: inside sales, Sales 2.0