IT Staffing Sales Effectiveness
Sales best practices for improving sales win rates, shortening the sales cycle and increasing overall quota attainment. Sales strategies to make revenue growth repeatable, and scalable
The time lapse between your new hire's start date and the date in which they track to meet or exceed quota represents your opportunity cost to on-board a new hire (sales rep or recruiter). A shorter ramp up time means reduced risk in (missed) opportunity cost. With the cost of a failed new hire ramp up at 6 times the base salary (Topgrading for Sales), it is imperative that your new hires ramp up to productivity as quickly as possible.
As a business owner or sales and recruiter leader, the first hurdle you must overcome with your new hire on-boarding and training program is to capture and keep your learners attention. If you bore them, you will lose them. According to Xerox, 87% of sales training is forgotten after just one month of the training.
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From my years of facilitating sales, recruiting and management training I have concluded that there are two schools of thought when it comes to tracking and measuring training success. The first school of thought that I have heard from a subset of customers is that tracking success is really easy. "Either reps get more job orders and closed more deals post training or they didn't." Pretty straight forward for some. The second school of thought from another subset of customers have shared with me that they find it difficult to measure training success because identifying and understanding the attributes is a challenge. Me, I tend to agree with both.
Seems like a silly question, right? But seriously, do your new hires (sales reps) know how to engage prospects in an intelligent and meaningful conversation? Most likely you’re chasing an aggressive annual goal and the only way to hit that goal is to get strong contributions from your new hires. Your concern of course is, how long will it take before they “get it,” before your new reps are prepared to hit the phones and engage prospects and customers in an intelligent conversation? The most common reason why sales leaders and CEO’s miss their number is because their new hires take too long “ramping up.” What happens is your sales reps are literally learning about their customers on-the-fly, through live sales calls. And you don't need me to tell you how hard it is to get today's sales rep to pick up the phone let alone engage in meaningful dialog! To hit your revenue and gross profit targets you must eliminate this “learn on the fly” approach and start teaching your sales reps who your customers are and how to speak with them from DAY ONE.
Understanding the difference between sales process and sales methodology can be confusing as they often get mixed up. In order to maximize the effectiveness of your sales team it is important that you not only understand the difference between the two, but how each improve sales performance in different ways.
Chances are you're adding new sales reps and recruiters to your staff this year. Chances are that you also expect those new hires to help you hit your 2017 revenue and profitability goals. As you look over your current team you know which reps and recruiters you can count on to meet and even exceed quota but it's your new hires that make you anxious. Your new hires are the "X Factor" because they're the unknown, the unproven. The reality is you have no idea what kind of performance you're going to get from your new hires once they start. So the question is, what can you do to increase new hire productivity including the likelihood for success? Better yet, what-if anything-can you do to make new new hire performance predicable after just the first thirty days? In this post I'm going to share with you just that, how to make new hire sales performance predictable in just 30 days. Before I get started I want to make a quick disclaimer. You should never, EVER think of new hire on-boarding as a sprint. On-boarding is not a one time event but a process for enabling long term success. Companies who treat new hire on-boarding as an event by providing "crash course" training experience high failure rates which equates to high turnover. According to Topgrading, the cost of a bad hire is 15X their base salary. Depending on your market a new hire base salary can run anywhere from $40K-$75K or more and that doesn't even include your recruiting costs, travel or benefits costs. New hire on-boarding requires thoughtful planning. Without an on-boarding plan you're essentially asking your new hires to run a race without a map, blindfolded.
When your new employee walks through the door on day one you should have two objectives, to make them feel welcome and a part of the team and second, to ramp them up to quota attainment as quickly as possible. The shorter the ramp up the quicker they build confidence and start adding value to the business.
In this day and age it’s unfathomable to shop without using the internet. We research and buy products, pay our bills, book vacations, register for classes, file our taxes and download music all from the internet. Just the other night I was with two buddies after work for happy hour when one started sharing with us how he bought a new car. He shared with us how he started off by researching different makes and models on the internet. After narrowing it down to a couple of different cars he did additional online research on each specific model to gain insight on the performance and safety features of each model and to see what current owners had to say about their experience owning those cars. From there he started looking at different dealerships-all online-to compare prices and financing options and figure out who was offering the best deals. In essence my friend had walked us through his buying journey and how he arrived at the car he purchased. Keep in mind that about 80% of this was all done on his own, before he even picked up the phone and spoke with a sales person.
Learning doesn’t end when you graduate from college and enter the workforce and it certainly doesn’t (or shouldn’t) end with the completion of your new hire on-boarding experience. No matter what industry or sector you’re in, learning new skills, understanding the latest trends and innovations in your industry and gaining a deeper understanding of your field is essential to professional success.
Chances are you've heard some variation of the following statisticss: 85-90% of sales training has no lasting impact after 120 days. Sales Performance International reports that new reps lose 84 percent of what they learn in sales training within 90 days. Trainingindustry.com says U.S. companies spend an average of $5,000 per sales rep on training annually and the average time it takes to get new hires to the same performance level as tenured sales reps is 381 days.