£2.15 Billion Lost in EMEA Telecoms Due to Poor Sales Management
Telecoms carriers across EMEA are missing out on £2.15 billion of efficiency savings due to poor sales management, according to analysis from Callidus Software.
Costs associated with sales are one of the largest ongoing expenses for carriers, meaning that successfully reducing them would unlock huge savings, vital in current economic conditions. Currently, the average carrier spends 10 percent of revenue on sales costs, according to industry figures. With analysts predicting 2009 EMEA carrier revenue to be £432.73 billion, this means that nearly £43 billion is currently spent on sales.
Based on analysis of its global telecommunications customer base, Callidus Software believes properly implemented sales performance management solutions can drive efficiency gains of at least five percent of compensation spend. This means that across EMEA, carriers could save £2.15 billion through better sales management. In addition to these expense line benefits, automating sales performance management enables companies to generate incremental revenue. One of Callidus Software's telecoms customers reduced annual sales costs by £2.7 million within two years. Their return on investment in the solution was achieved within six months.
"The telecoms market in EMEA is at a crossroads", said Bill Schuh, vice president for EMEA at Callidus Software. "The combination of saturated markets in Western Europe and expansion in the Middle East and Africa mean that getting sales right has never been more important. Additionally, the current economic downturn is focusing organisations on driving efficiency, visibility and agility if they are to thrive in difficult times. Carriers of all types need to go back to basics and enhance their sales processes to underpin business success."
Callidus' analysis is based on its unrivalled global telecoms customer base, combined with its market and sales experience. Over 35 fixed line, mobile, cable and converged carriers, including four of the ten largest in the world, rely on Callidus' expertise in sales performance management to deliver increased productivity and efficiency.
In the telecoms market, sales performance management can deliver both efficiency savings and revenue increases, through five key areas:
1. Productivity & Motivation: Increasing sales through a better motivated, focused sales force and business partners.
2. Visibility: Avoiding compensation errors through accurate, timely and improved sales visibility.
3. Agility: Adjust the focus of all revenue generation streams to react to competitor or market activity.
4. Customer Retention: Improving customer retention by incentivising all staff through customer service metrics.
5. Automation: Reducing cost of sales compensation administration by automating previously manual and often cumbersome processes.
"Managing sales across multiple channels and in a fiercely competitive market is incredibly complex", added Schuh. "With new services, handsets and packages being introduced all the time, it is vital that carriers have the visibility and control to focus their efforts on selling profitably to new and current customers. This requires sophisticated systems and a structured approach to managing sales, rather than disparate, inaccurate and unreliable manual processes that hold back telcos from achieving their potential."
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