Sales Effectiveness and Efficiency - Learn the Difference

The difference between effectiveness and efficiency can be summed up shortly, sweetly and succinctly – Being effective is about doing the right ... SalesEffectivenessandEfficiency–LearntheDifference Howcanyouincreasetheefficiencyandeffectivenessofyoursalesteam? Whatisthedifferencebetweeneffectivenessandefficiency?TheyaretwobuzzwordsthatarepopularlyusedbyCEOs,CRO’sandSalesVPsinchartingthecourseoftheirorganization.Yet,theyarealsocommonlymisusedandmisinterpreted,notjustinthelexiconofbusiness-speakbutalsoindailyuse.Forallintentsandpurposes,let’sbeginbydefiningefficiencyandeffectivenessingeneralterms,borrowingfromDictionary.com: Effective(adj.)–Adequatetoaccomplishapurpose;producingtheintendedorexpectedresult. Efficient(adj.)–Performingorfunctioninginthebestpossiblemannerwiththeleastwasteoftimeandeffort. Thedifferencebetweeneffectivenessandefficiencycanbesummedupshortly,sweetlyandsuccinctly–Beingeffectiveisaboutdoingtherightthings,whilebeingefficientisaboutdoingthingsright. Anotherwaytoillustrateefficiencyvs.effectivenessiswiththe2×2gridbelow.Byreferringtothischart,CEOsandsalesleaderscanfindanoptimalbalancebetweeneffectivenessandefficiency: Companiesusuallyseektoincreaseandimprovetheefficiencyoftheiroperationsandsalesprocesses.Afterall,whenworkingwithlimitedresources,theywouldprefertomaximizetheuseofeachoftheseresources,frombudgetandtechnologytotimeandsalesreps.However,bypursuingefficiencyatallcosts(ironyintended),someofthesecompaniesaremissingavaluablechancetotakeastepbackandlookattheiroveralleffectivenessfromabigpictureperspective. TheHolyGrailforeverycompanyistoalwayspursuethetoprightbox–pursuingtherightgoalsandbeingefficient,bymakinguseoftechnologicaladvances,notwastingtime,andhavingbetteralignmentandcollaborationofbetweenemployees.Manycompanieshavetheirheartsintherightplace–theyknowwhatgoalstheywanttoachieve,butareinefficientinachievingthosegoals.Othercompaniesaretightlyrunships,withallemployeesworkingtogether,hummingalongandallsingularlyfocusedonthetaskathand…butwhatifthetaskathandisthewronggoal? AnExampleofSalesEfficiencyVersusEffectiveness Forapracticalexample,considerthedifferencesbetweenactivityeffectivenessandactivityefficiencyamongyoursalesreps.Everysalesteamhasdaily,weekly,monthlyandquarterlygoalsthat,whenachieved,arerepresentativeoftheeffectivenessoftheirroles.Ifyourrepsaretaskedwithmaking70callseachday,andtheyeasilyhittheirnumbers,theyareeffectiveattheirjobs.Somemightevengoaboveandbeyondandmake80or90callseachday.Butwhatifthosedialsareproducingfewconnectsandevenfewerdeals? That’swhereactivityefficiencyratioscomein.Forasalesmanager,havingreportsthattrackhowmanycallsleadtoconnects,howmanyconnectsleadtodemosandhowmanydemosleadtodealscanbeanincrediblypowerfulindicatorofwhichofyourrepsarenotonlyeffectiveattheirjobsbutefficientinperformingthem. LearnHowtoMeasuretheEffectivenessandEfficiencyofYourSalesTeam Andthereinliestherub–isitmoreimportantforyourorganizationtopursueeffectivenessorefficiency?Ifyou’retryingtogrowaggressivelyandhaveresourcestoburn,optimizingeffectivenessmightbethewaytogo.However,ifasmallercompanyhasverylimitedresourcestoworkwith,theymightbemoreinterestedinpursuingefficientoperationsinordertomaximizetheircapabilitiesandnotstretchthemselvestoothin.Findingthesweetspotbetweeneffectivenessandefficiencyistrulythatultimategoalforallcompanies. Ifyouarelookingtoincreasetheefficiencyandeffectivenessofyoursalesteam,getintoughwithoneofourexperts.WecanshowyouhowInsightSquaredcanquicklyandeasilyimproveyoursalesprocessandmanagement. SalesEffectivenessandEfficiency–LearntheDifference3minread2013-08-092021-09-17https://www.insightsquared.com/wp-content/uploads/2021/07/is2-logo-dark.svgInsightSquaredhttps://www.insightsquared.com/wp-content/uploads/2021/02/is-featured-image.png200px200px ReceiveWeeklyUpdates Seewhereyoustackupwhenitcomestoforecastaccuracy,satisfaction,andperformance.Downloadtheresearch. PLATFORM RESOURCES COMPANY RevenueIntelligence AISalesForecasting RevOpsDashboards InteractiveReporting ActivityCapture ConversationalIntelligence GuidedSelling AdvancedSalesMath Staffing ResourceLibrary Blog Webinars&Events PressReleases Customers FreeApps AppStatus AboutUs Team Partners Careers ContactUs        PLATFORM RevenueIntelligence ConversationalIntelligence ActivityCapture GuidedSelling InteractiveReporting Forecasting Dashboards RESOURCES Resources FreeApps Events Ramp Customers Partners Blog COMPANY AdvancedSalesMath About AppStatus News Careers ContactUs        ©2021InsightSquared. PrivacyPolicy |  GDPR Salesforce,Salesforce.com,AppExchange,SalesCloud,ServiceCloud,Chatter,andothersaretrademarksofSalesforce.com,Inc.,andareusedherewithpermission.