Sales

How to leverage sales efficiency and sales effectiveness to improve sales productivity

By Tony Smith — On January 9, 2023

REFRESH_-How-to-leverage-sales-efficiency-and-sales-effectiveness1

As sales cycles become more complex, sales efficiency and sales effectiveness are more important than ever. Today, deal cycles consist of more touch points with more stakeholders who are more informed. In fact, before a buyer ever engages with one of your sales reps, they’ve already spent time researching your company, its products, and your competitors.

In order to engage these buyers and create repeatable success, organizations need processes that enable sales efficiency and sales effectiveness. We believe that sales enablement is a key differentiator that can help organizations unlock both.

In this post, we’ll share how better enablement leads to improved sales efficiency and sales effectiveness. 

What is sales effectiveness?

Sales effectiveness ultimately comes down to closed-won deals and revenue generation. Throughout the deal cycle, there are several opportunities for sellers to “win” with buyers. On average, there are 27 interactions with 11 business stakeholders involved in a purchase decision. Sales effectiveness measures an organization’s ability to win each of these touchpoints and repeat success over time.

What is sales efficiency?

Sales efficiency measures how much your organization spends to complete a deal. Sales efficiency can be calculated by dividing the amount of revenue generated by how much your organization spends on sales-related activities.

You can measure sales productivity when you combine sales effectiveness and efficiency. Sales productivity is the ratio of outcomes (effectiveness) to investments (efficiency). In sales terms, your outcomes can be the number of calls you make or demos completed in a day, whereas investments could be the time you spend on those activities. Based on this definition, if you can achieve more with less effort and associated costs, then productivity increases.

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