Making the Number

About the Author

Greg Alexander, Aaron Bartels, and Mike Drapeau are the co-founders of Sales Benchmark Index, a sales and marketing consulting firm that helps businesses improve their sales performance through benchmarking. Greg Alexander is the CEO and president of the Atlanta chapter of Sales & Marketing Executives International. Aaron Bartels and Mike Drapeau are executive vice presidents at Sales Benchmark Index. Together, they have extensive experience in the sales industry and have successfully implemented sales benchmarking strategies in various organizations. Their book, Making the Number: How to Use Sales Benchmarking to Drive Performance, offers a comprehensive guide to improving sales through benchmarking.

Main Idea

In Making the Number, the authors make a convincing case for improving the sales function of an organization through benchmarking. Sales benchmarking, they explain, takes the guesswork out of sales and turns the sales function into a highly predictable, dependable engine that ultimately increases shareholder value. The book outlines the process, strategies, best practices, and steps to effective sales benchmarking. It also addresses common objections and implementation obstacles, and provides case studies of companies that have successfully employed sales benchmarking.

Table of Contents

1. Sales Benchmarking: The Time Has Come
2. What's in It for the Executives?
3. Diving Deeper into Sales Benchmarking
4. Five Steps to Effective Sales Benchmarking
5. Overcoming Objections to Sales Benchmarking
6. Overcoming Implementation Obstacles
7. Case Studies

Sales Benchmarking: The Time Has Come

The authors begin by explaining the importance of sales benchmarking in the current business environment. Globalization and technological advancements have created a competitive landscape where traditional sales methods are no longer sufficient. Michael Porter's theories on competitive advantage are referenced to illustrate how companies can establish and maintain their market positions through overall cost leadership, focus, and differentiation.

“Sales benchmarking can dramatically increase revenue growth and decrease cost of sales.” – Greg Alexander

The authors emphasize the critical role of customer service as a differentiation strategy and the impact of consumer empowerment through the internet. The need for accountability in sales performance is highlighted, with statistics showing the high turnover and low productivity rates among salespeople. They note that "the average shelf life of a sales manager is 15 months," and that "nearly four out of 10 salespeople will lose their jobs this year." Such alarming figures underscore the urgency of adopting more reliable methods like sales benchmarking.

The authors argue that many organizations are prevented from achieving their revenue goals because they cling to the idea that sales success is an intangible art. By contrast, they assert that sales benchmarking transforms sales from an unpredictable art into a measurable science. This approach aligns with the broader trend towards data-driven decision-making in business.

What's in It for the Executives?

Sales benchmarking is valuable for everyone in a public firm, from sales reps to the corporate boardroom. It increases profits and aligns the goals of management and shareholders by providing objective, quantitative evidence of sales performance. The authors use a fictional company, Consolidated Inc., to demonstrate the financial benefits of reducing sales costs through benchmarking.

“Sales benchmarking helps organizations understand how to use data to uncover the root cause of individual sales problems.” – Mike Drapeau

By benchmarking against industry standards and peers, companies can identify performance gaps and opportunities for improvement. This approach not only enhances shareholder value but also builds a culture of continuous improvement within the sales organization. The authors argue that "shareholders control the firm and are focused on maximizing shareholder value," and that "conflicts between management and shareholders arise when corporations pursue managerial goals at the expense of shareholder goals." Sales benchmarking helps realign these interests by providing clear, data-driven insights into sales performance.