Companies face turbulent economies, tighter labor markets, expanding performance expectations, ongoing cost management requirements and globalization. To succeed, managing and compensating sales forces to ensure superior company performance and sales growth are key to a firm’s ability to thrive in an ever-changing marketplace.

Watson Wyatt’s 2008 study report, Maximizing Sales Growth and Performance, demonstrates that a $20 billion company with a sales force of 5,400 new business developers (NBDs) and account managers (AMs) can derive roughly $600 million to $700 million in incremental expected revenue by defining roles clearly, allocating time appropriately and guiding salespeople to the right customers or prospects.

This year’s study focuses on how the structure of NBD and AM roles can enhance performance and a company’s growth. To maximize effectiveness, these roles need to be designed, deployed and motivated to emphasize activities such as business planning, prospecting and needs identification. Companies leave millions of dollars in revenue on the table by not organizing, deploying and rewarding sales forces effectively.

Key Findings

• Shifting two hours a week from administrative to selling activities could lead to as much as $225 million in additional sales for a company with 1,800 NBDs.
• Companies can derive even greater value from their sales forces by carefully allocating activities between NBDs and AMs. Reallocating time and resources can create more than $600 million in additional sales for a $20 billion company.
• For NBDs, sales is a “contact sport” that rewards high touch and persistence. Top-performing NBDs prefer to communicate with clients and prospects in person (other NBDs rely more on the phone) and are more likely to cultivate a prospect over an extended period of time.
• Administration creates more than $300,000 in lost expected sales per NBD per year. Pushing nonselling administrative activities downstream from NBDs to AMs, and then from AMs to an administrative sales support role, can increase productivity.
• Top-performing salespeople report annual incomes that are 24 percent (NBDs) and 23 percent (AMs) higher than those of other salespeople in the same roles. Sales-related variable pay for top performers represents 90 percent (for NBDs) and 75 percent (for AMs) of this difference.
• Optimal productivity for sales roles varies considerably based on the company’s level of growth.
  • During periods of high growth: NBDs should focus on prospecting, qualifying leads, entertaining customers and closing deals. AMs should conduct business planning with customers, focus on needs identification and solution development, handle sales administration and concentrate on professional development.
  • During periods of lower growth: NBDs should focus on identifying opportunities to expand existing customer relationships, conduct needs identification and solution development, continue to entertain customers and close deals. At this level of growth, successful AMs become more prominent in the business development process, prospect more among existing customers, qualify leads, develop proposals and help close deals.

Watson Wyatt brings unmatched global breadth and deep technical expertise to help you optimize the performance of your sales, marketing and services teams.

For more information, contact your local Watson Wyatt office or read more about our Sales Effectiveness and Compensation services.