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The Morgan
Sales, Revenue and Margin Assessment
This audit helps to identify the
strengths and weaknesses of your business, as it impacts your ability to
grow revenue and margins. We
look at 7 key areas:
1.
Overall
Business Competitiveness
2.
Product
or Service Competitiveness
3.
Sales
Process
4.
Sales
Management and Control
5.
Sales
Organization
6.
Customer
Perceptions
7.
Top
Management issues
A typical survey result identifies
the weak areas:
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1. Overall
Business
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42%
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2.
Company/ Product Issues
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68%
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3. Sales
Process
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39%
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4. Sales
Management and Control
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34%
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5. Sales
Organization
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37%
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6. Customer Survey
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50%
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7. Top
Management Issues
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75%
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Average
Scorecard
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45%
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The process is both quantitative and
qualitative. The interviews may
be very free form, but in the end each interviewee’s responses are
summarized in a consistent format.
This approach quantifies the relative importance of the various people
involved, and helps identify areas of wide concern. Without this quantitative approach,
there is the risk that the outcome is strongly influenced by a few
individuals.
An Example of an assessment is
outlined below. We have picked
one area, Sales Management and Control for this example. For detailed explanations of what
all this may mean please call.
Each area is built on a set of Benchmark
Qualities, e.g.:
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4. Sales Management and
control
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34%
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a. CRM system robust
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29%
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b. Customer loyalty to the
company
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75%
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c. Good reporting of key sales
metrics,
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39%
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d. Hunt, Farm, Fish, Marry
– strategy robust
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4%
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e. Steak and Sizzle –
strategy robust
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4%
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f. Adequate understanding of the
customer buying process
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29%
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g. Customer help the process –
strong inside salesmen
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54%
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h. One "face to the
customer"
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79%
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i. Long range revenue and
margin planning robust
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4%
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And each of the Qualities has a set
of best practices, e.g
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4a
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Customer
Relationship Management System
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Good:
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We use a web based, database
product, which is accessible to all the team members, and easily undated
and current.
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Tasks are assigned, completed and
documented in the system.
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Management can quickly see what is
getting done and what is not getting done.
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X
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Our important customers have
multiple relationships in our organization.
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Bad:
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X
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Each of
our salespersons keeps his own “black book” with customer
information. Some on these
are on their laptops, and some are a paper system.
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X
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We
have ongoing problems keeping information current.
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X
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If a
salesman leaves the company, he can take his contacts with him, and we
have inadequate backup for his contacts and relationships.
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He/she
is the only person from our company who has a relationship with this
customer.
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Each of these assessments results
from interviews with key people, internal and external. The summary assessment is built up
from the responses of the various participants. Each participant can be “weighted”
for importance, if necessary, and each factor can be adjusted in importance
for the particular industry and market.
When all participants agree, this is an indication that the
assessment is real. When there
is a large variation in responses, this may
be a very big problem.
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Example for 7 internal interviews
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4. Sales Management and control
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|
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|
|
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a. CRM system robust
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0
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0
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1
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6
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0
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b. Customer loyalty to the
company
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0
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7
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0
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0
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0
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c. Good reporting of key sales
metrics,
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1
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1
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1
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2
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2
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d. Hunt, Farm, Fish, Marry
– strategy robust
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0
|
0
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0
|
1
|
6
|
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e. Steak and Sizzle –
strategy robust
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0
|
0
|
0
|
1
|
6
|
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f. understanding of the customer
buying process
|
0
|
0
|
1
|
6
|
0
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g. Customer help the process
– strong inside salesmen
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0
|
1
|
6
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0
|
0
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h. One "face to the
customer"
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1
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6
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0
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0
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0
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i. Long range revenue and margin
planning robust
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0
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0
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0
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1
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4
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Total
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2
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15
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9
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17
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18
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If a participant has no opinion, his input
is ignored. If his opinion is
less important, or if a particular assessment area has less importance than
others, its importance can be reduced.
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Company Name: _______Typical
Company_____
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Type of business:__________Industrial
Equip______
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Date: ______Got to have
one_________
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Reviewer _____Sales
Executive___________________________
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8
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Reviewer
Weighting Importance
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Industry
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Relative
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Weight
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Weight
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10
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4. Sales Management and
control
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0.5
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a. CRM system robust
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1
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b. Customer loyalty to the
company
|
|
|
1
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c. Good reporting of key sales
metrics,
|
|
|
1
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d. Hunt, Farm, Fish, Marry
– strategy robust
|
|
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0.5
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e. Steak and Sizzle –
strategy robust
|
|
|
1
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f. Adequate understanding of the
customer buying process
|
|
|
1
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g. Customer help the process
– strong inside salesmen
|
|
|
1
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One "face to the
customer"
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|
|
0
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h. Long range revenue and
margin planning robust
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Finally, the process produces a set
of specific action items for consideration by management. Importantly, each of these comes
from the “process”, not from the pronouncement of the
consultant. The process
generates HUGE buy-in from the participants, making change a reasonable
outcome – (instead of “let’s fight”).
“Sales Channel
Development
Currently, you only have one
sales strategy – hunting the next big customer. There may be opportunities to expand
this single strategy, e.g. partnering with another vendor in this space,
selling via reps, and farming via your customer referrals. Finding a good distribution partner
could be a home run, as your pricing has plenty of room to pay good
commissions or markups, which is key to getting
them sold via this channel”.
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125 Poppasquash Rd
Bristol, RI
02809
617-592-8379 V
401-254-9684 F
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