2010 Inside Sales Metrics Snapshot
Phone Works LLC
is a Sales 2.0 implementation resource
with proven results in increasing revenues
while decreasing sales costs for our clients.
Phone Works services include
optimizing inside and field sales teams,
improving sales and marketing collaboration,
and piloting new phone/Web sales productivity
programs and tools, including social media.
www.phoneworks.com
2010 Inside Sales Metrics Snapshot
INTRODUCTION
During the spring of 2010, Phone Works conducted a survey among technology companies in
the San Francisco Bay area at the request of the Bay Area Tele-Business Alliance (TBA). We are
pleased to provide you with this snapshot of the results.
The respondents to this survey included:
Vice Presidents, Directors and Managers
40% responsible for both Inside Sales & Lead Generation
28% responsible for Lead Generation only
32% responsible for Inside Sales only
Industry Affiliation
78% of respondents were in the technology industry
8% considered themselves in the health care industry
14% handled technology-related services/products in specialized industries
Company Information
46% consider themselves “start-up”
92% sell business-to-business
A few highlights from the 2010 survey:
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The average annual quota for inside sales reps has increased dramatically, from $642K
in 2007 to $1.6M in 2010 (Chart 18).
During the same time, the percent of reps achieving quota has declined from 62% in
2007 to 58% in 2010 (Chart 19).
Inside sales reps achieving 75% or more of quota, carry an annual average quota of
$1.2M (Chart 19).
Inside sales reps achieving 75% of quota or better close an average of 17 deals per
quarter, compared to the total respondents average of 15 deals per quarter (Chart 20).
Keep in mind that metrics will vary depending on your market, your position in the market, your
target audience, and your implementation of technology and process.
A separate report, 2010 Lead Generation Metrics Snapshot is available.
www.phoneworks.com • page 1
2010 Inside Sales Metrics Snapshot
TABLE OF CHARTS
Chart 1:
Chart 2:
Chart 3:
Chart 4:
Chart 5:
Chart 6:
Chart 7:
Chart 8:
Chart 9:
Chart 10:
Chart 11:
Chart 12:
Chart 13:
Chart 14:
Chart 15:
Chart 16:
Chart 17:
Chart 18:
Chart 19:
Chart 20:
Chart 21
Chart 22:
Chart 23:
Chart 24:
Chart 25:
Ratio of Inside Sales Reps to Manager
Ratio of Inside Sales Reps to Field Sales Rep
Ratio of Inside Sales Reps to Dedicated Systems Engineer
Ramp Time for Inside Sales Reps
Percent of Inside Sales Reps Managing Own Accounts
Quota Assignment of Inside Sales Reps Partnering with Field
Number of Steps in Sales Cycle
Lead Follow-up vs. Cold Calling
Daily Prospecting Time per Inside Sales Rep
Percent of Inside Sales Rep Time on Proactive Calls
Daily Calls per Inside Sales Rep
Daily Talk Time per Inside Sales Rep
Daily Emails per Inside Sales Rep
Daily Percent of Time on Demos
Weekly Demos per Inside Sales Rep
Weekly Trials per Inside Sales Rep
Weekly Proposals per Inside Sales Rep
Inside Sales Rep Average Annual Quota
Percent of Inside Sales Reps Achieving Quota
Quarterly Closed Deals per Inside Sales Rep
Conversion Rate: Qualified Lead to Pipeline
Conversion Rate: Pipeline to Forecast
Conversion Rate: Forecast to Closed Deal
Percent Revenue Generated from Marketing Leads
Social Media used in Sales Process `
About Phone Works
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www.phoneworks.com • page 2
2010 Inside Sales Metrics Snapshot
Chart 1: Ratio of Inside Sales Reps to
Managers
10:1 and
greater
16%
2:1
8%
3:1
16%
8:1
12%
6:1
8%
Chart 2: Ratio of Inside Sales Reps to Field
Sales Reps
1:1
14%
>1:10
2%
Sales 2.0 Best Practice
recommends that the inside
sales rep-to-manager ratio
should not exceed 8:1.
4:1
24%
5:1
16%
No Field
Reps
32%
The first six charts provide
insight into the organization of
inside sales teams among the
survey respondents.
1:2
11%
Approximately 30% of the
survey respondents do not
have field sales. The ratio of
inside reps to field reps is
dependent on a variety of
factors, including product,
market focus on customer base
or new accounts, and territory
composition.
1:3
18%
1: 4-10
23%
www.phoneworks.com • page 3
2010 Inside Sales Metrics Snapshot
Chart 3: Ratio of Inside Sales Reps to
Dedicated Systems Engineer
>15:1
17%
The majority of respondents
have at least one dedicated
systems engineer to support
the inside sales team.
2:1
28%
5:1 - 8:1
16%
3:1
11%
4:1
28%
Chart 4: Ramp Time for Inside Sales Reps
9 months
4%
1-2
months
13%
Average ramp time for Inside
Sales Reps to achieve production goals is 4 months. This is
slightly longer than the average
ramp time of 3 months
reported in 2007.
6 months
26%
4 months
18%
3 months
39%
Average = 4 months
www.phoneworks.com • page 4
2010 Inside Sales Metrics Snapshot
70%
Chart 5: Percent of Inside Sales Reps
Managing Own Accounts
58%
60%
50%
Average = 72%
Survey respondents were
heavily weighted with teams
that managed their own
accounts. Only 21% of reps in
the survey do not manage any
of their own accounts, but work
exclusively with field sales.
40%
30%
21%
20%
13%
8%
10%
0%
0%
50%
70 - 80%
Chart 6: Quota Assignment of Inside Sales
Reps Partnering with Field
Quota Part
Shared and
Part Own
22%
Quota Shared
w/Field
17%
100%
This chart further supports the
preponderance of respondents
with Inside Sales reps who carry
an individual quota vs. those
who share quotas with field
reps.
IS Reps Carry
Own Quota
61%
www.phoneworks.com • page 5
2010 Inside Sales Metrics Snapshot
Chart 7: Number of Steps in Sales Cycle
7
12%
6
28%
10 +
8%
Charts 7-18 provide insight into
activities commonly performed
by inside sales teams.
A majority of companies have
developed a sales process with
defined steps, with 2 to more
than 12 steps. Having a defined
sales process is the first step in
establishing measurements for
inside sales.
2-4
28%
5
24%
Average = 6 Steps
40.0%
Chart 8: Lead Follow-up vs. Cold Calling
36.0%
36.0%
35.0%
28.0%
30.0%
Inside sales teams vary in the
amount of activity related to
lead follow-up vs. cold calling.
Teams seem to be evenly split
among three categories.
25.0%
20.0%
15.0%
10.0%
5.0%
0.0%
Following up on
Marketing Generated
Leads
Cold Calling
Both
www.phoneworks.com • page 6
2010 Inside Sales Metrics Snapshot
35%
30%
Chart 9: Daily Prospecting Time per IS Rep
33%
29%
Average = 32%
25%
21%
20%
17%
15%
Quota-carrying inside sales reps
are spending an average of 32%
of time prospecting. Companies
may want to test whether the
addition of a sales development
team (lead qualification) could
provide sales-ready leads to the
sales team and more opportunities to close deals.
Phone Works offers a 90-day
pilot program to test the sales
development concept for its
clients.
10%
5%
0%
10 - 19%
20 - 30%
40 - 50%
60 - 80%
Chart 10: Percent of Inside Sales Rep Time on
Proactive Calls
50%
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
Average = 52%
44%
Chart 10 further supports that
inside sales reps are spending
significant time on proactive
calls (cold calling).
33%
22%
20 - 30%
60 - 70%
80%
Percent Proactive Calls
www.phoneworks.com • page 7
2010 Inside Sales Metrics Snapshot
Chart 11: Daily Calls per Inside Sales Rep
33%
35%
Average = 34 calls
29%
30%
25%
20%
21%
The average number of daily
calls per inside sales rep has
decreased to 34 calls per day,
from 47 calls per day reported
in 2007.
Sales 2.0 best practice is 50
calls per day, with 10
conversations, resulting in
moving 1-2 prospects ahead to
the next step in the sales
process.
17%
15%
10%
5%
0%
10 - 20
25 - 30
35 - 40
41 - 50
Daily Calls
Chart 12: Daily Talk Time per Inside Sales Rep
47%
50%
45%
Average = 2.4 hours
40%
35%
30%
25%
20%
21%
16%
16%
15%
10%
Inside sales reps spend an
average of 2.4 hours talking
with prospects and customers.
This metric was not reported in
the 2007 survey.
Sales 2.0 best practice is 3-4
hours of talk time per day. If
you combine the hours of talk
time with the hours spent on
demos (Chart 14), the total
time working with buyers is
slightly more than 4 hours.
5%
0%
1 - 1.5 hrs
2 hrs
2.5 - 3 hrs
4 - 5 hrs
Daily Talk Time
www.phoneworks.com • page 8
2010 Inside Sales Metrics Snapshot
Reps achieving more than 75%
of quota send fewer emails –
an average of 26 emails daily
compared to 31 emails daily for
the total respondents.
Chart 13: Daily Emails per Inside Sales Rep
33%
35%
Average = 31 emails
29%
30%
24%
25%
20%
15%
14%
10%
5%
0%
5 - 15
20 - 25
30 - 40
50 or more
Sales 2.0 best practice indicates
that emails should be integral
to the “contact strategy” and
steps in the sales cycle, and not
take the place of personal
contact. Emails should be
tracked to determine effectiveness of generating response
and interest among prospects.
Daily Emails
Chart 14: Daily Percent of Time on Demos
30%
28%
24%
25%
Average = 22%
Inside Sales reps spend an
average of 1 hour and 40
minutes on performing demos
each day.
20%
20%
16%
15%
10%
8%
4%
5%
0%
0%
5 - 10%
15 - 20%
25 - 30%
31 - 40%
70%
www.phoneworks.com • page 9
2010 Inside Sales Metrics Snapshot
Chart 15: Weekly Demos per Inside Sales Rep
40%
35%
35%
Average = 5 Demos/Week
30%
25%
25%
25%
20%
15%
10%
10%
5%
The number of weekly demos
performed has increased
slightly from 2007, when it was
4 demos per week.
It is interesting that companies
reporting quota achievement of
more than 75 % have a lower
weekly demo performance of
only 3.8. However, the large
majority of these teams (more
than 75%) have a primary focus
on incremental sales.
5%
0%
1-3
4-5
6-7
10
More than 10
Weekly Demos
Chart 16: Weekly Trials per Inside Sales Rep
43%
45%
40%
36%
Building additional sales among
the existing customer base is a
strategy that Phone Works
helps its clients to implement.
The number of weekly trials per
inside sales rep has increased
from 3 per week in 2007.
Average = 4/Week
35%
30%
25%
21%
20%
15%
10%
5%
0%
1
2-5
More than 5
Number of Weekly Trials
www.phoneworks.com • page 10
2010 Inside Sales Metrics Snapshot
40%
Chart 17: Weekly Proposals per IS Rep
36%
35%
Average = 6 /Week
30%
There has been a slight increase
in the number of proposals
issued weekly, from an average
of 5 per week in 2007, to an
average of 6 per week in 2010.
27%
25%
20%
15%
14%
14%
9%
10%
5%
0%
1-2
3-4
5
8 - 10
Weekly Number of Proposals
20 or more
Chart 18: Inside Sales Rep Average Annual
Quota
$2M -3M
20%
$5M +
$500K or
8%
less
16%
$1M - 1.5M
28%
Average = $1.669M
$600K 775K
20%
Charts 18-24 provide insight
into the results that inside sales
teams are achieving.
The average annual quota for
inside sales reps has increased
significantly from 2007, when it
was $642K, to $1.6 million
today. The Inside Sales reps
achieving more than 75% of
quota have an average annual
revenue quota of $1.2 million.
$800K 900K
8%
www.phoneworks.com • page 11
2010 Inside Sales Metrics Snapshot
50%
Chart 19: Percent of IS Reps Achieving Quota
43%
45%
40%
Average = 58%
35%
30%
30%
25%
20%
17%
15%
9%
10%
The average percent of inside
sales reps achieving quota has
decreased from 62% in 2007 to
58% in 2010, which tracks to
other research studies among
sales organizations.
The only differentiator we
noticed among the higher
performing teams is they have
a strong focus on incremental
sales among their customer
base.
5%
0%
25 - 35%
40%
50 - 60%
70 - 80%
100%
Chart 20: Quarterly Closed Deals per Inside
36%
Sales Rep
35%
32%
30%
Average = 15 Deals/QTR
25%
18%
20%
14%
15%
Inside sales reps achieving
more than 75% of quota are
closing 17 deals per quarter vs.
15 deals per quarter average
for all respondents.
Phone Works Sales 2.0 Best
Practice “Scorecard” can
identify areas for improvement
in your inside sales operations
that will lead to closing more
deals with the same headcount.
10%
5%
0%
3-9
10 - 15
20 - 25
30 - 33
For a look at how the Sales 2.0
best practices scorecard helped
one company achieve a 40%
sales increase, watch the video
at www.phoneworks.com.
www.phoneworks.com • page 12
2010 Inside Sales Metrics Snapshot
Chart 21: Conversion Rate: Qualified Lead to
Pipeline
42%
45%
40%
Average = 46%
Inside Sales teams achieving
75% or more of quota, convert
49% of qualified leads to the
pipeline vs. the 46% average for
all respondents.
35%
30%
25%
20%
21%
21%
16%
15%
10%
5%
0%
20% or less
25 - 39%
40 - 50%
60% or more
Conversion Rate
Chart 22: Conversion Rate: Pipeline to
Forecast
45%
40%
42%
There is no significant difference in this metric among the
teams that are achieving more
than 75% of quota.
Average = 46%
35%
32%
30%
25%
20%
15%
16%
11%
10%
5%
0%
20% or less
25 - 35%
50 - 60%
80 - 85%
Conversion Rate
www.phoneworks.com • page 13
2010 Inside Sales Metrics Snapshot
Inside Sales Teams that average
75% of quota or more have a
slightly higher conversion rate
of forecast to closed deal,
which is 46%.
Chart 23: Conversion Rate: Forecast to Closed
Deal
40%
Average = 43%
35%
35%
30%
30%
25%
20%
20%
15%
15%
10%
5%
0%
Less than 20%
20 - 30%
50 - 65%
70 - 85%
Conversion Rate
30%
Chart 24: Percent Revenue Generated From
Marketing Leads (vs Cold Calling)
25%
25%
Average = 57%
21%
The improvement in this metric
appears to indicate that more
companies have implemented
lead tracking programs. The
respondents which indicated
“unknown” to this question
should consider implementing
Sales 2.0 practices or technology to improve lead
tracking.
20%
17%
15%
17%
13%
10%
Respondents report a higher
percentage of revenue generated from marketing leads, up
from an average of 31% in
2007.
8%
5%
0%
10% or less
11 - 20%
60 - 70%
80 - 89%
90 - 100%
Percent of Revenue from Marketing Leads
Unknown
www.phoneworks.com • page 14
2010 Inside Sales Metrics Snapshot
Chart 25: Social Media Use in Sales Process
Using,
Positive
Results
15%
Using,
Results
Unknown
35%
Not Using
50%
Approximately one-half of the
respondents have made some
attempt to inject social media
tactics into the sales process,
with 15% realizing positive
results. Most respondents
who answered yes to social
media indicated it was too soon
to evaluate the results of this
media.
www.phoneworks.com • page 15
2010 Inside Sales Metrics Snapshot
About Phone Works
For more than 19 years, Phone Works has helped 350-plus technology companies increase
sales, reduce sales costs and improve lead management results by implementing Sales 2.0
practices, including
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Sales Development teams that nurture leads to create sales-ready opportunities.
Inside Sales Teams that carry sales quotas
Process/Procedures to transition sales accounts from field to inside sales
Working with all levels of management on behalf of the executive team, Phone Works identifies
the most effective inside sales strategies to achieve your goals. Then we work with your staff to
design and implement pilot programs and build scalable inside sales process to gain velocity
and optimize ROI.
For example, at the end of the first year following a Phone Works engagement, Phone Works
clients have achieved the following results:
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40% increase in sales per territory
$7 Million in incremental revenue at end of first year
15% increase in sales rep productivity with a 17% decrease in headcount
Sales pipeline tripled
Sales cycle reduced by 50%
New sales rep productivity increased by 50%
If you already have inside sales operations, Phone Works will assess your operations and
provide a scorecard against industry best practices to ensure your team is working at maximum
effectiveness.
Phone Works LLC
(510) 749.9073
info@phoneworks.com
www.phoneworks.com • page 16