Unlocking Value with Commercial Ratio

Welcome to the Inside: Sales Enablement Podcast Episode 47

In this episode, the guys are joined by Tom Pisello, the ROI Guy who shares his thoughts on the commercial ratio.

To calculate the commercial ratio of your organization (www.commercialratio.com):

1. Take your current annual revenue 
2. Subtract it from the annual revenue of the previous year 
3. Divide it by the total sales and marketing spending 

The guys talk about :

• Why value is so important to understand in sales
• Why value is critical to sales enablement programs
• How sales and marketing are viewed as "growth programs" by investors
• The relationship between strategy and tactics in creating ongoing programs to improve value communication with a portfolio of sales teams
• The fundamentals of calculating the commercial ratio
• How the commercial ratio is used by investors and executives
• The role of Sales Enablement in moving the needle on the commercial ratio

Join us at https://www.OrchestrateSales.com/podcast/ to collaborate with peers, join Insider Nation, participate in the conversation and be part of the continued elevation of the profession.

EPISODE TRANSCRIPT:

Intro 00:02  

Welcome to the inside sales enablement podcast. Where has the profession been? Where is it now? And where is it heading? What does it mean to you, your company, other functions? The market? Find out here. Join the founding father of the sales enablement profession Scott Santucci and Trailblazer Brian Lambert, as they take you behind the scenes of the birth of an industry, the inside sales enablement podcast starts now.

Scott Santucci 00:33  

I'm Scott Santucci.

Brian Lambert 00:35  

I'm Brian Lambert and we are the sales enablement insiders. Our podcast is for sales enablement, leaders looking to elevate their function, expand their sphere of influence, and increase the span of control within their companies.

Scott Santucci 00:48  

Together, Brian and I have worked on over 100 different kinds of sales enablement, issues as analysts, consultants or practitioners, we've learned the hard way, what works, and maybe what's even more important, what doesn't.

Brian Lambert 01:01  

And our focus on this podcast is we are in season two is on sales enablement, leaders and orchestrators. And as you know, companies are often structured in hierarchical silos. And the topics that we're covering affect not only sales enablement, leaders in talent or pipeline or Message Enablement, but also in commercial enablement. And that's what we're going to talk about today. Because when you look at operating in the space between strategy and execution, and having to bring those together, and that's a big challenge that you're facing, because it involves the concept and the discussion with the executive leaders around, Hey, you know what, give me give me more, give me more remit, I'm going to give you more impact. You're going to spend less money and get more from it. And that's a tough concept to land as an Orchestrator. So Scott, why don't you set us up here on the podcast and share who our special guest is?

Scott Santucci 01:55  

Sure. Look forward to a Brian and insider nation. Let me just sort of summarize a couple things of where we've been. We've done probably the most research about post COVID, around sales enablement, then anybody, whether it be Gartner Forrest or anybody else. And we've been expressing that in terms of a series of webinars that we're doing through my company growth enablement. So the first one that we had was about sales and a was at a crossroads, where