For most organizations, landing the major account is the ideal end goal for individual sales representatives, and the de facto definition of effectiveness for the sales organization. Yet focusing on account wins alone overlooks the importance of selling efficiency. Selling efficiency describes the productive use of firm resources in pursuit of account wins. These resources include the seller's own personal selling time, engaging team selling or support personnel, and financial resources via the use of discounting. Selling efficiency is a key determinate of selling costs and deal profitability. In the age of "salesperson empowerment," salespeople themselves greatly influence the efficient use of resources in pursuit of deals and customers.
In two different studies, Florida State University's Sales Institute (FSUSI) examined key factors that influence salesperson resource allocation decisions. Research findings are quite surprising. Several factors that most managers would argue to be important drivers of sales rep success were also major contributors of overspending by the sales force. In this presentation, FSUSI member, Dr. Leff Bonney, will present an overview of these studies focusing on the implications for sales managers.
