Sales leaders are facing increased pressure to tighten up their stacks. The theme of client calls has shifted from improving the buyer experience to maximizing the value of tech to keep sellers engaged and productive. With the possibility of a recession looming, CFO’s are applying greater scrutiny around tech investments and how they benefit the larger organization.
It is evident through our research that CFOs are not asking sales leaders to reduce budgets (in fact, 73% of CSOs expect budgets to stay the same or increase going forward. CFOs have shown that they are willing to invest in tech if sales leaders can show the efficiency trade-offs and incremental sales that result from having tech to justify cost.
While that sounds easy enough if you’ve ever engaged in the exercise of measuring ROI on tech in dollar terms, you can appreciate how challenging it can be. Sales leads need to bolster their ROI case by focusing on the business wins the tech brings. So how do we do that?
7 Considerations to Improve Cost Control in Your Sales Tech Stack
- Get out your maps. Mapping your tech to high-value use cases along the seller journey allows you to identify overlap and gaps in tech capability. Rationalize the capabilities the technology enables within the revenue tech stack, i.e. this tech enables capabilities in the engagement layer, etc.
- Don’t forget about adoption. The ROI on a tool sellers are not using is zero. Looking for a quick win? Limit licensing to groups actively using the solution. Ask to re-negotiate terms with your vendor. Revamp tech implementation using an Agile focused methodology (Gartner subscription required).
- Efficiency is the goal. Cost optimization means you have created efficiencies in the seller journey, freeing up valuable time for selling. Identify what those efficiencies are, such as improvements in deal velocity, higher pipeline conversion rates, or increases in seller activities.
- Use your (human) resources. As a sales leader, you have limited visibility into how and the degree to which your sellers are using the sales tech you’ve provided them. Lean on your sellers to identify specific use cases stories for the tech to improve your tech use justification.
- Remember the pains and gains from the past. Revisit processes and identify steps that have been altered or eliminated thanks to your stack. Evaluate additional improvements that could be made based on any newly identified use cases.
- Sales tech mayhem = opportunities to consolidate. If you are wondering if sales tech mayhem will affect your stack, the answer is yes. Keep an eye on M&A activity with your vendors, you will see opportunities to consolidate capabilities in the near future.
- Reduce the drag, retain your headcount. We know from recent Gartner research that reducing seller drag is one of the most effective ways to avoid high attrition. Lower attrition equals lower onboarding costs. You see where this is going.
Don’t Stop, Just be More Precise
Now is not the time to take your foot off the gas. Keep your focus on tech cost optimization to support the ROI conversations you’re having now, but avoid near-term cuts that might derail your 12-36 month growth plan. Consolidate where it makes sense, but not at the expense of seller engagement. Without your sellers on board, the ROI you’re predicting from those tech investments will be difficult to realize.
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