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Despite the reluctance of some executives to hire and train more salespeople, growth for language service providers is closely tied to developing a high performing sales function. Using responses from CSA Research’s 2017 Global Market Study, we tracked the percentage of LSPs that reported a revenue increase over the previous year and compared it to the level of maturity of providers. About two-thirds of those with a baseline maturity of Stage 0 through 3 on the LSP Metrix model reported an increase. Only Stage 4 companies unanimously reported revenue increases. This isn’t surprising as these more evolved companies have become sales machines capable of repeatable sales success and of controlling their destiny. Stay tuned for additional, similar datapoints in our soon-to-be-published data highlights series based on the LSP Metrix model. We also analyzed the number of dedicated salespeople that LSPs reported employing. Just above a quarter of respondents do not have any. Results vary based on level of business and operational maturity, geography, years in business, revenue, employees, and number of offices. However, on average, we found 4.45 employees in the business development role. The moment an LSP brings in a second salesperson, questions about sales territories are bound to occur. Business developers who see their territory split to accommodate a new recruit may feel cheated. As a result, executives have to carefully plan their strategy to organize their sales team. Fully 17% of LSPs in our sample have not implemented sales territories, thus creating a free for-all situation. The rest distribute opportunities around six common methods (see figure). Dividing accounts by geography and industry – or often a combination of both – were the most frequent scenarios.
Each territory division option has its advantages and disadvantages. As you formalize your territory division, consider the following approaches:
Disputes are common among salespeople. For example, a large multinational company with multiple divisions across verticals may purchase from several locations across the globe or have regional headquarters. Develop a clear and fair system, where lead ownership is documented in your customer relationship management (CRM) solution. Document the rules in your playbook and communicate them to salespeople. The sooner you implement a formal sales approach, the sooner you get to control your growth. Leverage the 12-modules of the CSA Research Sales Cookbook to help you set up the structure necessary to succeed without the painful trials and errors that LSPs often experience.
Director of LSP Service
Focuses on LSP business management, strategic planning, sales and marketing strategy and execution, project and vendor management, quality process development, and interpreting technologies
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