A sales strategy is a comprehensive plan that outlines how your company will sell its products or services to generate revenue and achieve growth. It defines not just what you aim to achieve, but how you will reach those goals. This plan should include key elements such as:

• Sales tactics for approaching the target market

• Pricing and quotation strategies

• Compensation structures and quotas for the sales team

• Key Performance Indicators (KPIs) to measure success

• A defined sales process, guiding the team from opportunity creation to deal closure

• Clear roles and collaboration between different teams such as sales, presales, channels, and demand generation

• Rules of engagement and accountability to ensure customer satisfaction and streamline internal cooperation

• Alignment across teams to ensure deals are closed efficiently and effectively

A solid sales strategy ensures that your team is well-coordinated and focused on delivering value to the customer while achieving business objectives.

A sales strategy is an ongoing process that every company needs. Building and refining a sales strategy is crucial for business success, regardless of the company's size or stage.

• For Startups: At the startup stage, you may ask yourself:
  

  • Do you know where you're going to focus your sales efforts?

  • How will you set your sales quotas, and what are they based on?

  • Do you have the right compensation plan to motivate your sales team?

  • How will you measure success, and what Key Performance Indicators (KPIs) will you track?

  • What is the sales process, and is it clearly defined from lead generation to deal closure?

If these elements aren't clearly defined or the answers are unclear, a sales strategy is essential as soon as there’s a sales team in place.

• For Established IT Companies: Sales strategy should already be in place, but the real question is:
  

  • How effective is team collaboration across sales, presales, marketing, and other departments?

  • What is the current revenue growth, and are we on track with targets?

  • Are we successfully expanding into new markets or retaining customers?

  • Is the sales team aligned with the company’s strategic goals?

  • Are sales processes optimized, or are there bottlenecks slowing down deal closures?

  • Is the compensation model driving the right behaviors and results?

  • Are we leveraging the right technology (CRM, sales automation) to boost productivity?

• Sales Strategy focuses mainly on the HOW – how your company will sell the product. It addresses important elements such as setting the right compensation model, defining the sales process, how to effectively cover the sales territory, how to measure activities, and ensuring the sales team is aligned. It’s all about execution, making sure the quota is achieved efficiently, optimizing resources, and having the right structure and model in place to get things done.

• Go-to-Market Strategy focuses primarily on the WHAT, WHO, and WHERE – what product or service will be launched, who the target audience is, and where to focus efforts to create demand. It outlines the right model to cover different tiers of accounts, strategies for market penetration across various tiers, the correct messaging, and who the key decision-makers or personas are in those markets.

In essence, the sales strategy is about execution and ensuring your team is structured and equipped to close deals, while the go-to-market strategy is about positioning your product in the market, identifying the right audience, and determining how to penetrate the market effectively.

We begin by gaining a deep understanding of how your sales workforce operates within the company. We study previous sales forecasts, analyze the existing sales processes, and conduct discovery sessions to uncover challenges and opportunities. Through interviews with your sales team, we identify pain points and learn how opportunities are created. We also examine how quotas are assigned and gather data from your CRM to assess the overall performance.

Once we have this understanding, we start refining the sales strategy. Assuming there is a well-defined target segmentation, we work to ensure that realistic targets are assigned at every level, from top-level revenue goals down to individual contributors. We also ensure that the right organizational structure is in place for revenue-generating teams, including sales, channel partners, demand generation, and supporting functions, with clear roles and contributions.

We review and refine the sales process, ensuring it is well-defined and optimized for efficiency. Key Performance Indicators (KPIs) are established to measure success, and we ensure that your CRM accurately reflects these processes and metrics.

Our approach varies depending on the specific challenges and needs of your organization. We tailor our solutions to provide the right KPIs, tools, and strategies that drive continuous improvement, ensuring that your sales strategy remains effective and aligned with your business goals.

There are various parameters that determine the effectiveness of a sales strategy, which can vary from one company to another. While revenue growth percentage is a major metric, it's not the only one. Some other critical factors to consider include:

• Revenue per head or productivity per headcount: This measures how effectively each sales team member is contributing to overall revenue.

• Sales cycle length: Shortening the time it takes to close a deal is a key indicator of a more efficient sales process.

• Win-loss ratio: Tracking this ratio and comparing it to previous periods helps assess improvements in deal closure rates.

• Customer acquisition cost (CAC): The cost to acquire each new customer should be optimized, and a lower CAC suggests a more effective strategy.

• Customer lifetime value (CLV): A higher CLV indicates better customer retention and long-term value generation.

• Lead-to-customer conversion rate: This shows how efficiently leads are being converted into paying customers, reflecting the effectiveness of targeting and follow-up efforts.

• Pipeline length: The health and size of the sales pipeline are important indicators of future revenue potential.

• Salesforce hygiene: Ensuring that the sales team is following processes, updating CRM data, and maintaining discipline in tracking activities is essential for measuring and improving performance.

By focusing on these metrics, companies can get a clearer picture of how well their sales strategy is performing and where adjustments might be needed to drive greater success.

Before implementing a sales strategy, it's crucial to have a clear market segmentation and well-defined customer profiles in place, along with a go-to-market plan that outlines how each customer tier will be addressed. The sales strategy will then focus on how to execute the sales tactics mentioned in the go-to-market plan, as well as how to implement and measure these tactics effectively.

There are many factors that go into defining quotas and sales targets. While past revenue and historical performance are often used as key indicators, they aren't always the most accurate predictors of future potential. For example, previous revenue, especially productivity per head, may not reflect the true potential if the company has been primarily fulfilling demand rather than actively creating it. Additionally, many companies may have been targeting the wrong territory or using an ineffective strategy, which can significantly limit growth.

When defining quotas, a more comprehensive approach is needed. Here are some of the main factors to consider:

• Market Potential and Total Addressable Market (TAM): Understanding the full potential of the market, including untapped opportunities, helps set realistic and ambitious targets.

• Competitive Landscape: Analyzing what competitors are doing can help gauge market share potential and set realistic goals based on industry standards.

• Account Segmentation and Strategy: Implementing the right strategy with a focus on high-potential accounts, rather than just relying on historical territories, can greatly impact quota setting.

• Sales Team Capacity: The ability of the sales team to handle a certain volume of deals, including their experience and current workload, should also be factored in to avoid overwhelming the team.

• Market Conditions and Growth Trends: The economic environment, industry trends, and potential disruptions can influence both target setting and execution.

• Sales Productivity per Head: By optimizing the sales process and focusing on the right accounts, the expected productivity of each sales rep can be higher than historical numbers suggest.

• Historical Revenue: While not the only factor, past revenue (especially recurring revenue or renewals) provides a benchmark for future expectations.

A well-defined quota reflects a blend of historical data, market opportunity, competitive analysis, and the internal capacity to execute. It’s important to align these factors with the broader company strategy to ensure that the quotas are realistic, motivating, and achievable.