The TAS Group, the world leader in sales effectiveness solutions, today announced the TAS Index, the first and only global measure of sales effectiveness.
Based on input from more than 500 companies around the world, the TAS Index measures the effectiveness of sales organizations across areas such as deal close rates, sales cycle management, value creation and sales opportunity development. It analyzes the activities, behaviors and attitudes of sales organizations, their strategic alignment with their companies and the resultant sales velocity they can achieve.
The TAS Group is making the TAS Index available to companies without charge at www.tasindex2007.com.
In addition, the company also announced findings from its TAS Index Global Sales Effectiveness Benchmark Study. See today’s other announcement, Sales Targets Are Missed by More Than Half the Sales Team In 50% of Companies Globally; Europeans Tops in Sales Effectiveness.
“It has always been difficult for sales organizations, sales leadership and company executives to understand whether their sales teams are really good or not,” said Donal Daly, CEO of The TAS Group. “They can only measure actual sales results, sales per head, revenue per customer or other such lagging indicators — and then if it’s not working, it’s too late.”
The TAS Index Sales Effectiveness Benchmark has correlated activities, behaviors and attitudes to actual sales performance. It makes it possible to measure leading — not lagging — indicators, assess future performance and identify what weaknesses to fix before the damage happens.
“Companies need to be investing more in measuring the effectiveness of their sales departments in order to improve their top line,” said Dave Stein, CEO, ES Research Group. “Measurement is subtly complex, however. It requires an in-depth look at sales performance history, a defined and measurable improvement goal, and continuous monitoring so management can fine-tune its performance improvement course of action. The TAS Index is a big step in that direction.”
Daly added, “We believe there is real value to be delivered to companies around the world by enabling them to measure their sales effectiveness – in absolute terms for themselves and also relative to their peers – when benchmarked against the rest of the world. That’s why we are making this available at no cost. Companies can identify their strengths and weaknesses and develop an appropriate improvement plan.”
Key Findings of The TAS Index
· More than half of sales teams fail to make quota in more than 50% of companies.
· EMEA (Europe, Middle East and Africa) leads North America in sales effectiveness based on their average TAS Index score.
· Companies that use a sales methodology consistently are 50% more likely to make sales quota, and have 39% less turnover in their sales force.
· Revenue growth and customer retention are the main sales initiatives for 2007.
· The perception of sales performance varies widely between sales reps and their managers.
How the TAS Index Works
The TAS Index for an individual company is the measure of that company’s sales effectiveness, which translates to revenue generated for a fixed or variable cost. Whether a company is in growth mode, or in cost reduction mode, this fact always remains constant. The TAS Index derives this measure using the Sales Velocity Equation™ which, for a particular company, business unit or sales individual, incorporates the number of deals or qualified sales opportunities that are being worked; the value of each sales opportunity; the percentage of those deals that are closed; and the length of the sales cycle. To get more details on the TAS Index or to participate in the ongoing study and obtain results for themselves at no cost, interested parties should visit www.tasindex2007.com.
About The TAS Index (www.tasindex2007.com)
The TAS Index ™ is a global barometer of sales productivity and effectiveness. The TAS Index Global Sales Effectiveness Benchmark Study 2007 helps sales leaders determine the absolute and relative effectiveness of their sales organizations. The questions that formed the basis of the index were designed to act as a guide to examine the key challenges for their sales organizations in 2007, how to improve sales productivity, how to assess their CRM systems, sales process and sales methodology, and to evaluate the sales velocity of their sales organizations.
About The TAS Group (www.thetasgroup.com)
The TAS Group helps companies achieve predictable, profitable and consistent revenue growth through the combination of knowledge, technology and experience. The TAS Group has helped over 400,000 sales professionals succeed. Through the Intelligent Sales Effectiveness Platform™ The TAS Group integrates proven sales methodologies with Dealmaker – the most advanced technology platform for sales effectiveness. The TAS Group is fundamentally changing how companies achieve sales effectiveness through sales methodologies and sales training by encapsulating 16 years’ of knowledge and experience in the Dealmaker technology platform to increase sales – predictably, profitability and consistently. The company is headquartered in Seattle, with international headquarters in Dublin, Ireland
