We are entering the next stage of sales evolution.
Teams invest $12B annually to increase activity volume.
Sales teams have aggressively adopted digital tools to accelerate sales and turn the process into a machine. And we did it based on yesterday’s paradigm.
We took all the things we were already doing and increased the volume. The assumption was “if I can keep my close rate the same and I can double the number of calls and emails, I can close twice as much.
Doubling activity doesn't double sales.
They make more phone calls, send more emails, and because of that, they manage more deals. Deals have lots of moving parts. Each deal has its own cast of characters, timelines, and activities that need to be checked off to move it to close. It’s easy to get off-track.
This is not the outcome we envisioned.
The machine we built is really good at starting conversations, but not so good at closing deals. After $12B investment, this is where we are.
of reps hit quota.
average manager tenure
average VP of Sales tenure
So why is this happening?
Before the machine era, rep activity volume was lower and they managed fewer deals.
When you speed up the machine without making adjustments, it starts to break down.
- Misqualifed leads
- Lower confidence in pipeline forecast
- Poor hand-offs between SDRs and AEs
- Reps waste time on bad deals
- Reps lose “sure things”
Sales tools haven’t evolved to keep up with increasing demand on reps.
Managers live in CRM.
It’s where they go to see what their reps are doing and what they use to track the sales pipeline. In order for that to work, reps have to enter data.
CRM is built for contact management and it’s great at that job. It wasn’t built to help reps sell.
Reps turn to ad hoc tools instead.
Reps turn to ‘ad hoc’ tools like Google Docs, Evernote and post-it notes to help them sell. But post-it notes, Google Docs, and Evernote weren’t built to gather important information that helps both reps and potential customers understand why they should work together.
Ad hoc tools lead to ad-hoc execution.
A negative chain reaction occurs, and it starts with the rep.
Reps don’t consistently follow sales methodology or reliably capture key deal insights in CRM.
Sales Managers have no visibility into deal quality and are forced to coach reps reactively.
VPs don’t have confidence in the pipeline forecast and can’t explain major win/loss drivers.
Which leads to bad outcomes
Rep attainment increases substantially when they consistently manage deals.
Which leads to sales teams as a whole beating their targets.
Successful companies that have made this transition have given reps the tools to gather key information from prospects to keep deals on-track, given managers visibility into the quality of each deal so they can help reps win, and helped VP’s understand what’s working and what’s not, all while integrating with the solutions they already use – like CRM.
It's time for deal management.
It’s a new way of working that aligns frontline sales reps, managers, and VPs of sales to help everyone work together to close more deals. That’s why we built Costello.