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Channel Sales Performance: Benchmarking Study Sponsored by BayGroup International

April 07, 2011

(San Francisco, CA USA) BayGroup International, a leading global performance improvement firm, has helped underwrite an important new Aberdeen Group benchmarking study on third-party channel sales organization effectiveness: The Extended Sales Enterprise: Channeling Better Results.

The study, which examined 295 organizations' channel sales effectiveness, found that best-in-class companies approach the management of third party sales channels in different and important ways to deliver substantial, accurately forecasted sales results. The study found that:

  • Best-in-Class companies achieve an average of 107% of their annual sales quota, compared to 74% for Industry Average and 36% for Laggards.
  • Average lead conversion rates for Best-in-Class companies grew by 5.4%, year over year, versus 2.1% for Average firms and a 0.9% decrease for Laggards
  • Best-in-Class companies boast an average 4.6% year-over-year increase in average deal size or contract value, as compared to 2.2% for Industry Average firms and a 2.6% decrease among Laggards.
  • Best-in-Class companies enjoy an average 54% channel lead acceptance rate, versus 34% and 28% for Average and Laggard firms.
  • The annual growth in the percentage of channel partners attaining sales quota grew by 5.5% among Best-in-Class companies, as opposed to 2.1% for Industry Average firms and a 3.7% decrease among Laggards.

According to report author Peter Ostrow, Research Director, Sales Effectiveness, Aberdeen Group, "Rather than let the complexity of channel sales management create barriers, the Best-in-Class tackle them head-on with processes, best practices, technology products and services that yield top-drawer business results."

"We're proud to be a sponsor of this important sales benchmarking research," said Paul Hennessey, BayGroup International Executive Vice President of Marketing, Research, and Development. "The research clearly shows that high-performing channel organizations do a better-than-average job gaining mindshare and improving sales performance of their partners. They do this through effective use of technology, processes, and training. This helps them have better visibility into channel performance, including knowledge of where partners are in their stage-by-stage sales processes."

To obtain a copy of the report, visit

http://www.aberdeen.com/Aberdeen-Library/6865/RA-channel-partner-sales.aspx

About Aberdeen Group, a Harte-Hanks Company

Aberdeen provides fact-based research and market intelligence that delivers demonstrable results. Having queried more than 30,000 companies in the past two years, Aberdeen is positioned to educate users to action: driving market awareness, creating demand, enabling sales, and delivering meaningful return-on-investment analysis. As the trusted advisor to the global technology markets, corporations turn to Aberdeen for insights that drive decisions. As a Harte-Hanks Company, Aberdeen plays a key role of putting content in context for the global direct and targeted marketing company. Aberdeen's analytical and independent view of the "customer optimization" process of Harte-Hanks (Information - Opportunity - Insight - Engagement - Interaction) extends the client value and accentuates the strategic role Harte-Hanks brings to the market. For additional information, visit Aberdeen Group or call (617) 854-5200, or to learn more about Harte-Hanks, call (800) 456-9748.

About BayGroup International

BayGroup International is a global performance improvement firm that helps corporate leaders reach critical business goals quickly, profitably, and with high impact. The firm helps its clients close the gap between expected results and actual bottom-line performance by embedding a powerful, management-driven discipline for building Pivotal Agreements - with customers, with suppliers, and between employees-that make or break business success. Since its founding in 1980, Baygroup International has built a select client list of major global corporations, focusing on the technology, telecommunications, pharmaceuticals, transportation, consumer products, insurance, and financial services industries. For additional information, visit BayGroup International or call (415) 464-4400. Contact: Paul Hennessey (paul@baygroup.com; 415-464-5316)

April 4, 2011