In the fast-evolving world of sales, businesses are constantly looking for ways to improve efficiency, accelerate sales cycles, and crush quota attainment. One approach that has gained traction in recent years is sales enablement—the process of providing sales teams with the resources, tools, and training they need to close deals more effectively. While the benefits of sales enablement are widely recognized, businesses often face one crucial question: What is the return on investment (ROI) of a sales enablement program?
Measuring the ROI of your sales enablement strategy can be challenging, but it’s essential for proving its value to stakeholders and ensuring that resources are allocated efficiently. This chapter will break down the key components of sales enablement ROI and how businesses can effectively measure its impact on their bottom line.
What is Sales Enablement ROI?
Sales enablement ROI is the tangible return that a business receives from its investment in sales enablement tools, processes, and strategies. This return can come in various forms, such as increased revenue, decreased ramp time, improved sales efficiency, faster deal cycles, higher conversion rates, and enhanced collaboration between sales and marketing. Essentially, it’s the balance between the costs associated with implementing a sales enablement program and the measurable benefits that result from it.
Calculating sales enablement ROI is critical because it allows businesses to justify the investment in sales enablement technologies and initiatives, proving that these efforts are making a positive impact on overall performance.
Sales Enablement ROI stats that will Blow Your Mind
It’s no secret that sales enablement can have a huge impact on your organisation, spanning your entire go-to-market function. Here are some eye-popping stats that showcase the ROI generated when you invest in sales enablement.
- Companies that invest in sales enablement have a 49% win rate on forecasted deals, compared to 42.5% for companies that don’t.
- 76% of organisations that invest in sales enablement see a 6–20% increase in sales.
- Companies with a sales enablement team are 52% more likely to have a sales process that’s aligned with the buyer’s journey.
Need more convincing? Baker Tilly, a top ten advisory tax and assurance firm, had a disorganised content repository making it extremely difficult for sales reps to get the information they needed quickly.
With sales enablement content spread across multiple systems, the team also lacked a unified way to analyze and report on performance, making it difficult to identify content gaps and make strategic decisions. By investing in sales enablement, and keeping track of the right metrics and performance indicators, they were effectively able to increase win rates by 16%.
Key Components of Sales Enablement ROI
To fully understand and measure the ROI of sales enablement and the success of your go-to-market initiatives, businesses should focus on several key components:
1. Revenue Growth
Sales enablement aims to give sales teams the tools (CRM) and training to be more effective in closing deals. This should lead to an increase in revenue as sales reps are better equipped to engage with prospects, address objections, and close more deals.
- Metrics to Track: Revenue growth attributed to sales enablement, sales rep productivity, deal size, and overall sales performance before and after implementation.
2. Improved Sales Productivity
Top sales enablement platforms often automate repetitive tasks and provide easier access to sales content, which allows salespeople to spend more time selling. The increase in selling time can directly improve productivity and efficiency.
- Metrics to Track: Time spent on selling activities, number of deals closed per rep, percentage of time reps spend on administrative tasks versus selling.
3. Shortened Sales Cycles
Sales enablement accelerates the sales cycle by providing reps with the right information at the right time, empowering them to move prospects through the buying process more quickly. The faster a deal moves from prospect to close, the more efficient the sales process becomes.
- Metrics to Track: Average time to close a deal, sales cycle length, and the time spent at each stage of the sales funnel.
4. Higher Conversion Rates
Sales enablement equips sales managers and reps with relevant content, personalised messaging, and training, which leads to more effective buyer engagements. As a result, the chances of converting prospects into customers improve.
- Metrics to Track: Lead-to-opportunity conversion rate, opportunity-to-close conversion rate, and the win/loss ratio before and after implementing sales enablement.
5. Better Sales and Marketing Alignment
A successful sales enablement program fosters better collaboration between sales and marketing teams. Marketing provides the sales team with the right content and insights, while sales offers feedback on what content works best in the field. This alignment leads to more effective content usage and improved lead quality.
- Metrics to Track: Content usage by sales, lead quality, and the percentage of marketing-generated leads that turn into closed deals.
6. Reduced Onboarding & Ramp Time for New Reps
Sales enablement tools often include onboarding, sales training, and coaching features that help new hires get up to speed faster. Reducing the time it takes to onboard new reps directly impacts revenue, as they become productive more quickly.
- Metrics to Track: Time to full productivity for new reps, speed of onboarding, and first-year sales rep performance compared to historical averages.
7. Content Effectiveness
Sales enablement solutions often come with analytics that allow businesses to track which content is being used by your salesforce and how prospects engage with it. This insight helps teams create more impactful content and remove underperforming materials.
- Metrics to Track: Content usage rates, content engagement metrics (views, shares, downloads), and the correlation between content usage and deal success.
How to Measure Sales Enablement ROI
To calculate the ROI of sales enablement, businesses need to track specific metrics and tie them back to revenue generation and cost savings. By doing so, you can quickly get an idea of how your go-to-market initiatives are performing and understand how they support ROI. Here’s a step-by-step guide to measuring sales enablement ROI:
1. Identify Key Metrics
Start by identifying the key performance indicators (KPIs) that align with your sales enablement goals. These may include revenue growth, sales cycle reduction, conversion rates, sales productivity, and content usage.
2. Track Baseline Performance
Before implementing a sales enablement program, track the current performance of your sales team across the identified KPIs. This baseline will serve as a comparison point to measure improvements after the program is in place.
3. Monitor Post-Implementation Results
After implementing sales enablement tools or strategies, continuously monitor the same KPIs over time. Look for positive changes in revenue, deal size, sales cycle length, and productivity that can be directly attributed to sales enablement efforts.
4. Calculate the ROI Formula
Once you have your pre- and post-implementation data, use the following ROI formula to calculate the return on investment:
Sales Enablement ROI=(Net Benefits−Cost of Sales EnablementCost of Sales Enablement)×100\text{Sales Enablement ROI} = \left( \frac{\text{Net Benefits} – \text{Cost of Sales Enablement}}{\text{Cost of Sales Enablement}} \right) \times 100Sales Enablement ROI=(Cost of Sales EnablementNet Benefits−Cost of Sales Enablement)×100
Where:
- Net Benefits: This is the total financial impact of sales enablement (e.g., increased revenue, reduced costs).
- Cost of Sales Enablement: This includes the cost of sales enablement software, training programs, content creation, and other related expenses.
5. Refine and Optimise
Sales enablement is an ongoing process. Continuously refine and optimise your sales enablement program based on the insights you gather from tracking ROI. This will ensure that the program remains aligned with your business goals and continues to deliver value.
Calculate Your Sales Enablement ROI and Start Saving Time and Money
Once you measure your ROI, the real strategy begins. It’s important to keep an eye on all the metrics that contribute to ROI every month to be able to improve or test new strategies continually.
Use the data from your sales enablement platform to pinpoint what competencies need development, what content needs to be repurposed, or how to switch up the sales strategy. You will need to be able to compare monthly data to understand what improvement looks like.
Not only that, but improving your sales enablement ROI will also mean improving onboarding, content management, and sales strategy development to maintain goals and improve ROI in the future.