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How Can Pareto Analysis Help your Sales Operations Minimize Opportunity loss

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What lessons can you learn from executing Pareto analysis within your organization?
The illusion of numbers: Perhaps your sales team meets its targets and enables you, as a manager, to show positive results. However, drilling down into each and every team member’s performance can (most probably) reveal that there are team members who are far from their targets and goals, while others are excellent performers and are actually the lighthouse of your team.
The weak spots in your sales team: Top performers and weaker performers, most sellable products, and those which are hardly sold – all these are the endpoints of your sales spectrum. Contrary to what you may think, your top performer(s) or your most sellable product can easily become your weak points. They actually produce almost 80% of your revenue, and once they are not functioning, your revenue is gone!
And your opportunity loss: Sales team members who are far from attaining their goals and targets, as well as products which do not contribute to your cash flow, are signs that you are not optimizing your full potential, that there is room for much more growth, and that opportunity loss must be minimized.

Lead the change – In light of the Pareto analysis, what should be your CTA?
Personalization, review and carefully drive your rewards, incentives and compensation strategies: Through the Pareto analysis, you can easily understand the differences in sales behavior among your sales team. More personalization in the way you acknowledge and reward your team members will boost their performance. Weak performers should be excelling more, while top performers should remain in their position, resulting in the improvement of the entire business as a whole.
Create mitigation path to low performers: Utilizing prescriptive analytic techniques, you can create a clear mitigation path for low performers, redeeming them from being at the bottom of the organization’s performers. These techniques can clearly guide them to reach their next level of performance, by focusing them on the specific product/package to sell, which will optimize their payments.
Refresh your product offering: The Pareto analysis is a great opportunity to ask questions about your product offering, and understand what changes need to be made in order to increase your market share. The Pareto analysis helps you understand which products have a higher demand, and ensure your cash flow, while others have a lower demand and hardly contribute to your cash flow. Furthermore, you can inquire as to why the low demand – Is it an indication of the product’s relevancy to the market? or perhaps connected to the way they are offered to the market.

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5 rules of thumb to ensure a lower risk, lower cost, successful project

In the world of Sales Performance Management (SPM), probably one of the most important acronyms is ‘TtV’ (Time-to-value). Three tiny unassuming letters that can, if you pay attention to them, ensure a successful SPM project in addition to saving you considerable time and money.

“Time to value (TtV): The period of time between a request for a specific value and the initial delivery of the value requested.  Said value is a desirable business goal that can be either quantifiable (tangible) or abstract (intangible).”

When integrating a new SPM system into an organization, any system integrator will tell you that the success of the project can largely be attributed to two key factors; a successful technical integration and… the clock.

(And not necessarily in that order).

Why?

…Because SPM is unbelievably vulnerable to both internal and external changes both during and after deployment.

In order to avoid long, inefficient, ineffective and costly SPM implementation, you’ll want to make sure you have these five key issues covered:

  1. Short Design or Gap Analysis

Ensure that you fully understand the design / gap analysis process. Does it require long, drawn out designs and approvals, etc., or is your selected SPM platform technology agile enough to provide a gap analysis / design in days and weeks respectively due to its built-in flexibilities, as opposed to months?

 

  1. KPIs: Later rather than sooner

Does your selected SPM require your company to provide all your KPIs (number of products sold, number of product returns, etc.) before implementation or can they also be created within the system, afterwards based on transactional data?  If your system administrator can expand on just a basic number of initially programmed KPIs after implementation, you’ll significantly cut down on TCO.

 

  1. Friendly GUI?

Just how intuitive, flexible and friendly is your GUI? Does it allow you to make changes and updates freely? You’ll want to make sure your chosen SPM is code-free so that your administrators are free to define new business models, geographical territories and evolving organizational structures without having to get a PHD in technical code writing This one little item alone can save you a small fortune in TCO.

 

  1. Data enrichment on-the-go

Advanced SPM system allows customers to merge various data elements into every transaction so that all calculations include that information at any stage of the sales cycle or payment collection that will occur shortly thereafter.  That’s the power of turning raw data into much more meaningful information.

 

  1. Just how long until go-live?

This is the holy grail of successful SPM integration. Find out, in black and white, just how long it will be until you can expect the system to be fully up and running.  Get this right and you’re good

 

When it comes to successful SPM system implementation, the devil is in the details. If you get these five points right, you’ll be laughing all the way to the sale.