Sales Efficiency, Effort, and Effectiveness
Sales is the backbone of your business’ profits — but do you really understand the ROI on your sales team?
Let’s say that your investment in a salesperson is $80,000 per year (about $41 per hour, based on 250 eight-hour work days per year). Let’s also say that this sales rep produces approximately $1 million in gross revenue. That means your rep is producing $500 per hour for you — not bad for a $41 per hour investment!
Now it gets interesting: What if you could grow your ROI by 30-40% or more?
The book The Weekly Coaching Conversation by Brian Souza contains a simple math equation:
Employee Productivity = Efficiency x Effort x Effectiveness
Let’s look at how to improve these three areas.
Increase the efficiency of your sales team by providing tools and systems to help them see more customers and sell more products. Coach them to implement more efficient sales call practices and on the value of pre-call planning based on notes from past sales calls. Taking the time to prepare for each sales call is more efficient than shooting from the hip or hoping to walk into a deal.
Look for methods to decrease the effort required by your team to complete mundane and time-consuming tasks. Make it easy for them to have more time with customers and prospects. Minimize reports, outsource time-wasting tasks and allow your reps to focus on selling. Coach your team to find ways to increase their efforts on revenue producing (selling) activities.
Increase the effectiveness of sales calls by leading your team as a coach, not forcing them like a manager. Provide training and incentives to keep everyone performing at peak levels of effectiveness when they are with your clients or prospects.
Even adding one additional sales call per day can equate to about a 35% increase in selling activity — or 250 additional sales calls per year. And that will lead to increased revenue and growth for your business.
How can you improve each of these three areas today?
On The Bus can offer even more ideas on maximizing your sales investment. Find out if On The Bus Membership is right for you!