Let’s say you’re a private equity firm that’s invested in a software company, and then works with that company to develop a better sales methodology. After seeing the results, you’re pleased with the increase in sales revenue – and the impact it’s likely to have on company valuation. Now, it’s time to make that successful process scalable.
If you could apply this sales methodology to the rest of your portfolio of companies, you’d begin to reap major rewards from these private equity investments.
In order to create a sales process that’s repeatable, efficient and scalable, you need solid data, transparency and the tools to share best practices with reps and sales managers at similar companies across your portfolio.
Best Sales Practices For Maximizing Sales For Private Equity Portfolio Investments
1. Rigorous Recruiting
Before you take your product to market, you need to hire the best salespeople for the job. A great process doesn’t amount to much if you don’t have the right people to implement it. Rigorous testing as part of your recruiting process helps you identify the critical attributes for success and hire the people who deliver the combination of strengths you need.
2. Ongoing Training
Sales training doesn’t stop with new hires. Ongoing training and coaching helps to ensure your sales reps are armed with the necessary tools to move leads through the pipeline and quickly convert them to closed deals.
3. Dynamic Team Management
What was known as the “art of the sale” is being transformed by today’s technology and data analysis methods. One-on-one coaching and mentorship still play an important role in managing sales teams, but those interactions are informed by metrics and training processes that use CRMs such as Salesforce, intelligent sales automation and call-tracking software.
4. Transparent Reporting
For the companies in your portfolio to grow, they need continuous access to the real-time dashboards and forecasts related to their sales and marketing program. The first step is to establish custom Key Performance Indicators, then put reporting mechanisms in place to analyze those KPIs in terms of trends and insights that drive revenue.
5. Incremental Optimization
With a scientific, data-driven approach, customized sales analytics make it easy to identify the lead management efforts that are performing best, as well as the tactics that fail to connect with prospects and drive revenue. These insights then allow your portfolio of companies to continuously refine the sales strategy with tweaks that generate more qualified leads and improve efficiency.
These five best practices help you to share knowledge across your portfolio of companies, creating a scalable, successful sales process that maximizes the value of your private equity firm’s investments.