Structuring Sales Teams

Part
01
of two
Part
01

Sales Team Model Best Practices

Two best practices for structuring a sales team in a way that represents audience/segment expertise are organizing by the customer segment and focusing on engagement more than quota.

Best Practices for Structuring Sales Team

ORGANIZING BY CUSTOMER SEGMENT
FOCUS ON ENGAGEMENT MORE THAN QUOTA

RESEARCH STRATEGY

We began our research by looking for pre-compiled lists of best practices. We looked into various sales-related blogs to find precompiled best practices for structuring a sales team in a way that represents audience/segment expertise. We did find best practices, however, they were all related to either lead generation or simply structuring the sales team (without any focus on representing audience/segment expertise).

We then searched various media and news websites concerned with marketing and corporate news. We hoped to find articles providing best practices or examples that we can analyze to find the relevant best practices. We searched sites like Forbes, Harvard Business Review, Economic Times, New York Times, and Wall Street Journal. We found articles by experts on various structures of the sales team, but none were related to best practices focusing on audience/segment expertise. There were some isolated articles related to audience segmentation, but they were not concerned with the sales team structure.

We next chose to get creative and utilized the sources we found during our research. We chose to cross analyze the sources which provided sales team best practices and those which provided tips on audience segmentation to inform ourselves of best practices regarding the structuring a sales team in a way that represents audience/segment expertise.
Part
02
of two
Part
02

Sales Team Models Case Studies

CA Technologies and Justworks are among the companies that have built effective sales teams in terms of great customer experiences balanced with the need to retain, cross-sell, and acquire new customers.

CA Technologies

1. DESCRIPTION OF SALES TEAM
  • A sales-equity retention program at CA Technologies provides top performers with significant equity grants.
  • The company offers opportunities for salespeople to learn and grow by offering web-based training, instructor-led training, video and role-play environments for application learning, lab environments, and self-study materials.
2. SUCCESS IN TERMS OF CUSTOMER EXPERIENCE AND RETENTION
  • CA Technologies’ licensing customers have been with the company for decades. However, the company offered expensive upfront perpetual licenses for its enterprise products, which not only increased the incremental costs for customers but also prevented the company from realizing the full value of its mainframe tools. Therefore, the parent company, Broadcom, changed the licensing model to a fully ratable subscription model where the customers can use an “enterprise-wide all-you-can-eat license.” Hock Tan, the CEO of Broadcom, stated that this model will help save money by leveraging broad mainframe portfolio to drive more conversions to CA tools.
  • The company is expected to make a revenue of approximately $5 billion with the aforementioned sales strategy.
  • The mainframe sales at CA Technologies grew 7% in the fourth quarter of 2018.
  • CA Technologies increased the proficiency of its sales professionals with the help of Corporate Visions in building stronger customer relationships along with training them to negotiate for more profitable sales agreements. The introduction of proven negotiation principles, behaviors, tools, and planning methods instilled a disciplined and consistent approach to sales execution. This helped the company to achieve 45.8 to 1 return on investment (ROI), bookings and overall profitability grew by 15%, and won the Business Impact Gold Award from Chief Learning Officer Magazine and the Workplace Learning and Development Award from the American Society for Training and Development (ASTD).

Justworks

1. DESCRIPTION OF SALES TEAM
  • Justworks believes in supporting representatives’ success by providing regular commissions and benefits payout to high level reps at the 12-month net growth of any contracts signed in addition to being eligible for a retention bonus if those customers sign on for another year.
  • Andrew Froning, Strategic Sales Development Manager at Justworks adopted Chili Piper to help sales representatives be a lot more productive and to scale out the sales team.
  • The sales team is led by Robert Lopez, VP of Sales and Business Development. Brent Dougherty, Director of Sales and Amber Banks, Director of Sales Training and Emblement, directly report to him.
  • While sales managers report to Director of Sales, Sales Training Manager reports to Director of Sales Training and Implement.
2. SUCCESS IN TERMS OF CUSTOMER EXPERIENCE AND RETENTION
  • Justworks is the first in the PEO industry to offer 24X7 service and an expansion of its omnichannel support approach in 2018. As a result, Justworks achieved exceptional customer retention and an industry-leading NPS, which recently reached a high of +60.
  • Justworks won Silver Stevies in Customer Service Department of the Year categories in the 13th Annual Stevie Awards for Sales.

Research Strategy:

In order to build case studies of companies that have built effective sales teams in terms of great customer experiences balanced with the need to retain, cross sell, and acquire new customers, we commenced our search for the companies with effective sales team in publications such as Forbes, Selling Power, SalesDrive, LinkedIn Business, and many others that identified companies with most effective sales team in US. The idea was to find companies that have built effective sales teams in terms of great customer experiences balanced with the need to retain, cross-sell, and acquire new customers. Eventually, we leveraged ranking by Selling Power, which identifies companies with best salesforce in US in terms of 1) Compensation and Benefits, 2) Hiring, Sales Training, and Sales Enablement, and 3) Customer Retention and chose the best 2 companies in terms of sales force.
Once, these criteria was satisfied, we moved on to find the description of company's sales team and how the company has been successful in terms of customer experience and retention. We used the respective websites, press releases, mentions in news, and case studies by their partner companies to build a comprehensive overview.
Sources
Sources