Sales Org Evaluation Tool
Sales Org Models
Stratification
Description – Stratify accounts based on size (spend, potential, etc.)
When to deploy this structure
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Significant amount of market potential sits at top of the market
Mid-tier buyers willing to buy virtually with infrequent visits from a rep
Long-tail buyers willing to engage with inside sales
Buying process increases in complexity up the pyramid
Pros
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Best people aligned to best accounts
Strategic customers get required attention
Maximize rev/head in limited resource
environments
Generalists can incorporate SMEs where
necessary
Drives customer engagement at the highest
levels
Selling expenses aligned with opportunities
Cons
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Prospects/Customers not managed equally
Generalists at lower levels may struggle to sell
all products
Feeling of ‘elite’ vs. ‘regular’ sales reps
Territories may exhibit large geo dispersion
Balancing mix of current and potential difficult
without proper segmentation
Hunter-Farmer
Description – Roles based on specific activities
When to deploy this structure
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Customer base requires significant Account Management
Customers want to see fewer sales people
Margin available to accommodate two types of sales roles and management
Efficient for high dollar, complex, long sales cycles
Pros
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Sales force develops deep knowledge of how
to perform sales activities
Efficiency is achieved through assigning
specific tasks to reps (role clarity)
Hiring to specific roles often easier
Recurring revenue is protected with focused
resources
Selling expense drops over time
Enables focused acquisition of top prospects
Cons
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De-emphasizes customer focus and
relationship built during initial campaign
Increased coordination effort when handing
off accounts
When to hand off accounts can be challenging
Time to results can take longer
Increased Management headcount raises
selling expense
Geography
Description – Structure sales organization based upon rep proximity to geographic areas
When to deploy this structure
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Customers are densely populated in clustered geo locations
Customers want someone present when they have a problem
Generalist vs. specialist model is able to be deployed
Need to keep T&E costs low
Pros
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Plays to customers’ desire for generalists
Provides customers with local/state
knowledge
Cost containment (keeps T&E expenses low)
Cons
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Doesn’t align the best sales resources against
the best opportunities
Each geography needs committed resources
Smaller accounts can inadvertently consume
resources
As product set grows, becomes more difficult
for reps to have expertise
Talent pool potentially reduced by being
location-specific
Industry Vertical
Description – Organize to focus on specific verticals
When to deploy this structure
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Customer base requires significant subject matter expertise on their industry
Industry can support a dedicated sales force
Significant margin available to accommodate multiple role types in the same geo
Efficient for high dollar, complex, long sales cycles
More common in services vs. product companies
Pros
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Sales force develops deep knowledge of how
to sell into specific industries
Potential to leverage referral networks via
industry-specific groups
Can obtain premium pricing based on need for
expertise
No need for SME support
Cons
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Selling expense becomes very high
Reps require larger geos to make the #
T&E expense can escalate
Increased Management headcount raises
selling expense
Product
Description – Structure sales organization based on specific products
When to deploy this structure
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Customers require deep product knowledge
Customers need expertise in product deployment
Product complexity is high
Product can support dedicated sales force
# of products grows beyond the ability for one rep to acquire necessary expertise
Often deployed in silo’d product organizations with BU/GM leadership
Pros
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Customers need to understand the value the
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product delivers
Customers need to comprehend
implementation requirements to be successful •
Ensures faster results for new products
Reduces the sales cycle for new products
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Cons
Customers may become confused with
multiple sales representatives calling the same
accounts
Increased selling expense in highly geodistributed account base
Limited Cross-sell/Up-sell due to silo’ing
Product sales teams become over-resourced
as market saturation is reached
Social Proximity
Description – Structure sales organization based on social proximity to specific buyers
When to deploy this structure
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Access to high-level buyers is difficult
Marketing has not been able to stimulate enough demand
Evangelical sales that require leveraging relationships to gain access
Pros
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Reps can gain access to buyers based on
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relationships
Reps can get into sales early to stimulate
latent demand
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Opportunities can be created through strong
referral networks
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Sales able to bring key insights specific to wellknown buyer community
Cons
Customers may become confused with
multiple sales representatives calling the same
accounts
Potentially larger territories can increase
selling expense
Reps need to be product/industry generalists