Sales Capability Best Practices


Provide information about the following practices: one, how Consumer Packed Goods businesses (CPGs) recruit, build, and retain top talent within sales organizations; two, how CPGs empower sales leaders to make a broader range of decisions; three, how CPGs that employ a direct store delivery model (DSD) maximize profits through assortment and pricing optimization; and four, how CPGs ensure the organization shares common direction, goals, and definition of winning, including functional contributions towards those common goals. Also, identify case studies of CPGs succeeding in each of these practices and provide metrics pertaining to that success.

Early Findings

Recruiting, Building, and Retaining Sales Talent

  • The average turnover cost per sales rep is $97,690 due to recruiting costs, training costs, and lost sales, and only 19% of sales reps have no immediate plans to leave their companies.
  • Limited career growth opportunities and job boredom are leading causes of sales employee turnover.
  • According to the Garner Group, the top five CPGs for employee happiness are Johnson & Johnson, General Mills, Proctor & Gamble, Kellogg's, and Coca-Cola.
  • Smaller companies are attracting CPG talent because they offer the opportunity to get in on the ground level, create a larger impact, have more fun, build processes, and enjoy a level playing field.
  • Nutshell provides the following best practices to reduce sales rep turnover: one, provide new challenges and opportunities; two, increase employee engagement; three, create a varied system of incentives; and four, build camaraderie among sales reps.
  • Xactly offers these best practices for attracting and retaining top sales talent: one, understand the time it takes for a sales rep to get ramped up to productivity; two, create benchmarks for competitive compensation; and three, drive the right sales behaviors.

Empowering Sales Leaders to Make a Broader Range of Decisions

  • According to a report by McKinsey, successful CPGs in China tend to distribute revenue-growth management (RGM) initiatives across marketing sales teams and they are more likely to have the head of sales in joint business planning with other leaders with key accounts.

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