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Enhancing Sales Effectiveness with the Activity-Based Sales Model

by | Aug 12, 2025 | Blog

A healthcare technology provider adopted the Activity-Based Sales (ABS) model to boost growth in a competitive replacement market. Previously, new product launches showed promise, but were limited by lack of account engagement, market perception, and inconsistent sales execution. ABS standardized sales activities to improve the quality and quantity of interactions in the market and align goals of individual sellers with the full business strategy. A three-month pilot generated a strong pipeline by significantly improving lead generation and sales effectiveness. Scaling the model is projected to deliver $7.5M in incremental annual recurring revenue, transforming the organization’s growth trajectory.

THE OPPORTUNITY

Reimaging growth in a saturated market

Faced with ambitious growth targets, a US-based healthcare technology provider struggled to expand its footprint in a saturated market with its core product. For the most part, sales teams were selling into a replacement market, where all potential buyers had already adopted some form of solution. The landscape was further complicated by a dominant competitor holding greater market share, alongside several smaller, upcoming players posing a threat in select market sub-segments.

The organization initially responded by investing heavily in product innovation. They launched bolt-on software modules to enhance their legacy platform, hoping to create additional value for existing customers and make their core products more attractive to new buyers. At the same time, they developed entirely new, platform-agnostic products designed to gain entry into organizations using competitive platforms. These innovations represented a bold step forward, designed to differentiate the organization in a crowded field.

Despite these efforts, the new products were not delivering the desired growth as projected. The leadership team recognized that innovation without the right go-to-market strategy was not sufficient. The organization needed to fundamentally rethink how it engaged the market, shifting focus from reacting to existing demand to truly creating demand.

Even with differentiated products, the organization faced several hurdles to achieving their growth targets, including:

  • Limited Account Engagement: Minimal relationships across the existing account-base, with many accounts receiving little to no regular interaction.
  • Strategic Misalignment: Difficulty driving long-term, strategic goals due to fragmented focus and approach.
  • Lack of Cohesion: Excessive independence within the sales organization, leading to inconsistencies in strategy and execution.
  • Market Perception: Being seen primarily as a vendor rather than a trusted solutions provider.

Recognizing the need for transformation, the organization embarked on a journey to redefine its sales strategy, create stronger customer relationships, and position itself as a leader in proactive demand creation to unlock the full potential of its innovative product portfolio.

THE SOLUTION

Adopting a new Sales Operating Model

To address these challenges, the organization partnered with McMann & Ransford to adopt a new sales operating model, Activity-Based Sales. This model is used to empower organizations to scale their sales efforts efficiently, reducing the risks associated with inconsistent execution and enabling long-term, more reliable revenue growth.

Activity-Based Sales (ABS) includes a structured, process-driven approach that focuses on standardizing the sales team on high-value activities. In an ABS model, the organization takes ownership of defining where and how to focus sales efforts, rather than individual sales reps being left to their own devices By standardizing processes, providing clear guidance, and emphasizing data-driven decision-making, ABS offers a consistent approach that supports long-term growth initiatives.

ABS provided a structured framework to overcome key barriers by:

  • Enhancing Organizational Ownership: Establishing greater control over where the sales team directs its efforts, ensuring alignment with strategic priorities.
  • Increasing Market Engagement: Boosting the number and quality of interactions with both new prospects and existing accounts.
  • Maximizing Product Potential: Ensuring that each product achieves its full market potential through targeted, high-value activities.

Adopting this model shifts the sales team’s mindset from “I Make My Number” to “We Make Our Number”, requiring the individual sales reps to trust that the organization is pointing them in the right direction. Because of the significant change management effort, the organization piloted the new model in select areas, prior to a complete roll-out.

Piloting the Model

The organization launched a three-month ABS pilot to test, tailor, and refine the model to prove out its effectiveness in driving results, for the organization and the individual sales reps. It was designed to secure a handful of short-term wins, while setting the organization up for more lasting impact.

The pilot targeted a specific sub-segment of existing accounts and focused on two key product lines. Sales efforts were segmented across three account sizes (small, medium, and large facilities) and involved a multi-disciplinary team, including account managers, customer success managers, sales operations, and marketing.

Key pilot elements included:

  • Structured Process, leveraging the Idea Selling methodology: A repeatable framework guiding reps through stage, starting with a targeted outreach campaign, conducted by a separate Appointment Setter role. Each step was supported by strict role definitions and sales content.
  • New Targeting Criteria for each of the product lines: Identification of ideal accounts to targets for each of the products based on factors such as size and level of digitization, supported by unique process for individual buyer personas.
  • New Product Positioning, focused on “Ideas”: Product Positioning that emphasizes the broader impact of the solution rather than any individual features. The type of messaging that engages prospects by addressing their pain points, highlighting industry trends, and positioning products as a solution to key challenges.

THE IMPACT

Demonstrating results and gaining momentum

The pilot achieved its primary objectives: validating the effectiveness of the Activity-Based Sales model, enabling the sales team with a structured process, and building internal champions to drive adoption and change management. It successfully demonstrated how a standardized, proactive approach could deliver measurable results while setting the foundation for scaling the model across the organization.

In just three months, the pilot generated a significant number of leads compared to existing, as well as drove more efficiency and effectiveness in converting leads to revenue. 

Scaling success across the business

The Activity-Based Sales (ABS) model demonstrated remarkable potential during its initial pilot, not only driving significant results within the targeted accounts but also laying the foundation for scalable success across the broader organization. When extrapolated to the company’s entire product portfolio and deployed across the entire sales team, the ABS model is projected to generate an annual $7.5M in incremental annual recurring revenue (ARR)—a transformational impact on the organization’s growth trajectory.

This scalability is rooted in several key factors:

  • Standardization of High-Value Activities: The ABS model establishes a repeatable framework for identifying and executing the most impactful sales activities. By applying this approach across all products and market segments, the organization can ensure consistency and efficiency in driving demand and building pipelines.
  • Cross-Team Alignment: The model’s structured processes promote alignment across sales, marketing, and operations, ensuring that every team works cohesively toward shared strategic goals. This alignment enables the organization to replicate the success seen in the pilot across a wider range of accounts and regions.
  • Enhanced Market Penetration: ABS equips the sales team with additional support, allowing them to effectively engage more broadly across their existing account-base and prospective market. By extending these practices across the portfolio, the organization can reach more untapped potential.
  • Culture of Accountability and Collaboration: Shifting the mindset from “I Make My Number” to “We Make Our Number” fosters a culture of shared responsibility. This collective approach strengthens the sales team’s ability to achieve results at scale while maintaining focus on long-term strategic goals.

By leveraging the proven results of the ABS pilot, the organization is positioned to scale this success across all products, accounts, and regions, transforming its salesforce into a unified engine for sustainable growth.