As a sales leader, how do you know when your sales coverage model needs a change? Then, how do you implement that change?
At a previous Sales Leadership Community meeting, a panel of sales leaders from Amazon, TransUnion, Lenovo, and SOAR Performance Group shared suggestions for determining and changing your sales coverage model.
Continue reading to discover six key considerations for sales leaders to optimize sales coverage.
Six Key Considerations to Optimize Sales Coverage
1. Where is the potential?
The first step to optimizing your sales coverage model is to define your Total Addressable Market (TAM). To define your TAM, ask these questions:
♦ Which companies and buyers are you going after?
♦ What is their current spend for your category of solutions?
♦ If your solution does not fit into a current spend category, what other sources of funding can be accessed?
2. How do you access the potential?
Once your TAM is defined, consider how you can access the potential through your direct sales teams and/or channel resources. When it comes to sales coverage, existing relationships are your greatest resource. Take a step back and ask:
♦ Among your different teams, where can you strategically place people and investment across competing priorities?
♦ Do you work with partners, resellers, or influencers?
♦ How can you optimize these existing networks?
3. What is the existing buyer engagement model?
Existing buyers and buyer engagement models will drive the market approach and sales coverage model. Elements of buyer engagement to keep in mind when determining a sales coverage model include:
♦ How do you segment your buyers?
♦ How do resource application, cost structure, and the sales engagement model differ across different types of buyers?
♦ What are the knowledge and skill requirements for a successful sales professional for your solution and for each segment? (e.g. general vs. specialized)
♦ How long is the sales cycle with different buyers?
♦ What is the sales value and revenue stream with each buyer? (e.g. one-time vs. recurring)
♦ How involved is the sales professional in the sales cycle with each buyer? (e.g. is the sales professional involved in post-sale engagement)
4. How can you continue to ensure a great experience for buyers as you change sales coverage?
When considering how to optimize a sales coverage model, the real consideration is how to optimize serving buyers. If you decide to change sales coverage, consider:
♦ How will the buyer experience be impacted?
♦ How can you think beyond sales to create consistency in the buyer experience? (e.g. technical teams, product teams, sellers, professional services, etc.)
♦ How can you equip sales professionals with data and vertical expertise to be effective at point of sale?
5. How will you get buy-in from those who make investment decisions in your company?
Before you can change coverage, you must convince decision makers of the ROI for resources given to sales. To prepare for those conversations, estimate:
♦ How can you embed the buyer feedback loop in the decision-making process?
♦ How can you use market projections to encourage proactive investment?
♦ How can you clearly communicate the TAM and potential?
6. How will you manage a change in sales coverage?
A change in sales coverage requires traditional change management principles. Get buy-in from your team and buyers by considering:
♦ How can you engage your team in the decision-making process regarding how to change sales coverage?
♦ How can your sales team establish the value of a change in coverage model with buyers?
♦ How will you create alignment with internal teams (sales operations, finance, etc.)?
Answering these questions will kickstart the changes necessary to optimize the sales coverage in your organization. For more insights regarding optimizing sales coverage, listen to the full dialogue of the Chicago Sales Leadership Community. For more information on the Sales Leadership Community or how SOAR Performance Group can help your organization, visit soarperformancegroup.com.