Poor sales management costs mid-size firms £65bn a year

Poor sales management is costing...

Poor sales management is costing mid-sized firms more than £65bn in lost sales a year.

Research from analyst Gartner says that through to 2010, enterprises will miss the equivalent of 5% to 10% of annual sales as "lost opportunities", that could have been captured through improved management of sales territories, quotas and compensation plans.

There are more than 48,000 mid-size businesses in the UK, employing between 100 and 500 staff. They have a combined turnover of £655bn.

This means that improved sales management could deliver up to £65.5bn in extra potential income for mid-size organisations.

Previously, the benefits of increased automation through sales performance management (SPM) were best obtained by larger organisations.

However, the growth of on-demand computing provides a flexible and cost-effective way for smaller companies to benefit from SPM.

The on-demand model allows businesses to pay a monthly charge to use software hosted outside their organisation, reducing overall costs and administration.

"Mid-size organisations are the backbone of UK business and are critical to the overall economy," said Bill Schuh, vice-presidents for Europe at on-demand SPM firm Callidus Software.

"By not having a proper handle on their sales functions they are currently missing out on a huge revenue opportunity. With belts tightening across the economy, now is the time to look at better control of sales in order to improve the bottom line," he said.



Enjoy the benefits of CW+ membership, learn more and join.

Read more on Business applications



Forgot Password?

No problem! Submit your e-mail address below. We'll send you an email containing your password.

Your password has been sent to: