In Part 1, we reviewed the steps of detecting performance problems for sales and decide which apply to high priority to pin-point sales training. We have documented for the first time the key issues of sales performance. It (4) the outstanding performance of sales that would bring the proceeds of elevators any team, year in and year out. Namely:
•% quota for commercial
• Average New Hire Ramp to Quota in months
• The sales turnover of staff
• the time required to achieve the result
Following list (4) steps to see if you have problems with sales performance in each individual sales performance silo and if so to what extent. They were:
Step 1: Run the numbers "for any realistic chance ROI
Step 2: run the numbers "to probably improve the" specific "
Step 3: run the numbers "to face reality"
Select the target and training "because it Step 4:
In our first example, we examine the performance of the sales organization Silo »New quota ramp rental identify a problem (1) sales performance and (2) a target value of sales training and (3 ) the formation of a turnover of realistic return on investment.
Take the same sales force and enjoy the process step (4) Look at the rest of the representation of both sales, "sales rate of staff turnover" and "the time it takes to achieve the result" to know that resident X2 ™ system is set up.
Step 1: Run the numbers "for any realistic chance ROI
Our sales force, for example, has 350 sales representatives who are responsible for securing new business each month. They currently turnover of sales of 45%, or 155 representatives in the year. I found in the sales industry, I partner with my clients on average between 30% -70% sales clerk in the year, so that these people are right at the base.
But the "norm" is not necessary to be a "future".
The other important point here. In the field of sales, 95% of sales staff turnover due to low appointment activity 1. And the example of the sales force, and was close to 100%. In other words, if you do not create enough sales appointments each month, whether to go out the door or "door Zahir" for you.
Now, we will launch the numbers to see exactly what they cost them sales and prioritize consider weight training in "pin-point sales performance.
The following cost figures:
• Average Salary: $ 30,000
• recruitment costs: $ 2,000
• Tuition: $ 3,500
• The monthly sales quota: $ 3,500
Ultimately, this team of sales management and face to face looking at a total of $ 4512200 at the door every year, a combination of income cost slope on the front, and the loss of revenues production in the rear end, and wages and benefits, then again the ramp revenue and salary costs of hiring new replacement. It is a vicious circle.
Again this "overhead" number is the sum of the attention getter.
In other words, every seller of the door due to lower setpoint business, costing the company $ 29.300 in lost revenues.
Is the representation of the sales training return legitimate investment opportunity? Well, less need to invest $ 29.300 each vendor training option for addressing the problem of sales performance ... It certainly is not.
Step 2: run the numbers "probably 50% improvement
In this case, I showed the management team return on investment sales they would get through to keep only half of the sales representatives out of the door because of the low game sales activity.
Numbers using my system diagnostics showed their return on investment only $ 2256100 Sales reducing staff turnover due to lower sales activity set 44% to 22%. 77 which prevents sales representatives out of the door, and add to the pool of productivity sale.
Step 3: run the numbers "to examine the reality
Mentioned in Part 1 of "Is your sales training programs solve your sales performance? Ran team sales force performance indicator key sales figures in the X2 system to see 'if and when' there was a leak in the "ship KPIs. discovered and no leaks, but a large outbreak of fire hose."
Two "issues KPI clear. Firstly, on the side took to share new lease seven months when the average sales cycle 17 days? Second, they represented only 3 made new appointments in the week when you need to 6, based on key performance indicators and their further define the number of sales for the next activity.
Thus, it was "a measure of sales activity" set to run at only 50%. And we are determined to impose a longer ramp to quotas.
Then dig a little deeper and we are in the X2 system and emerged a conversation from 6% to the appointment, but he was to hold talks likely to get one of 15 on a new date.
Then we asked the question, "reality." Is it realistic to focus on reducing turnover sales representative due to low business appointment in half, from 44% to 22% of sales training ROI $ 2,256,100 or $ 29.300 per delegate?
We answered "yes" if they are oriented front of their sales process, develop targeted sales appointments. Again, before they should (1) create a standard activity for up to share the list of the various key performance indicators and (2) develop a methodology for prospecting and sales support to spend less time to achieve.
Because most of the sales staff rotation occurs in a new ramp to the silo issue from rent, which is the same pin-point sales training initiative kills two birds with one stone.
And if you add it all (2) "sale training initiatives birds arrive, it refers to the $ 14,532,100 of revenue collection and realistic.
Select the target and training "because it Step 4:
Reduce the turnover of sales due to low sales activity now seems ready deserves. It is a good deal for the sales organization. If we were to measure the results, we will add more revenue may be back to the negotiating table with additional representatives will not go out the door ... At up to $ 29.300 per delegate.
As in Part 1, and our sales and training in this case is to spend less time to get the desired number of sales appointments each week to ensure our success Avg.
Now for the bonus, we'll take a look at our sales performance issue post a silo, "time spent in relation to achieve the result, and see what, if anything, we can be addressed related to our pin-point sales training initiative.
"Time is money." What is your "hourly wage"? If you're a seller W-2 from your rate of $ 100,000 every hour $ 51 per hour. Here's an interesting statistic. My clients spend on average 50% of their time at the end of the process to their own sales, sales prospecting new opportunities to start the sales process. This group introduced me time average sales management 45% of the resident exploration ™ integration.
Here's what he showed.
Sales representatives spend on average 20 hours per week on business development and sales appointment generation. But they are only works 50% of "business barometer" and needed to generate 50% of sales activity together from three new appointments in week 6.
In the course of sales effectiveness exploration rate of 6% (15 to Prospect talks get 1 set), they must spend 33 hours per week for sales prospecting and appointment generation sales. We know that this is not realistic.
But if they set a goal of sales training for the transfer of the conversion ratio is 50%, and it will not only meet the activity set the number of sales, but they provide and 26 hours per week to recover 79% of the time, 33 hours per week 7. And 26 hours multiplied by $ 51 per hour to recover the money $ 1326 "hourly wage", which allows visitors to sales to increase capacity and monitoring of high-value sales opportunities based solutions.
Again with our partners in past sales silos (2) performance problems are determined (1) the problem of sales performance and (2) the goal of sales training worthy and (3) of the training Sales and realistic return on investment.
Ask any CFO what is the first impression when they hear the words "sales training" and can keep coming back "real world" from their vocabulary of "United Nations responsible" and "Nations United measurable. " In other words, they know they lose at least half of the budget dollar sales training, and the problem is that they do not know the half of it.
As a leading sales management, and sales to systematically explore the questions, then run "quantitative" sales performance figures verify the feasibility and merit of return, investing in sales training that differentiates you from the pack. And stand an excellent chance of getting the result you want.
In this case, and give sales reps skills to an appointment one business "up and down" in two interviews allow participants to determine the required amount of appointments to ensure targeted business their monthly income goals. So you will not leave people less, they will make more money and spend less time and recover $ measurable, something that you can put your finger on the ground.
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