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Answer Upon - Does Your Sales Training Program Address Your Sales Performance Issues? Part 1
Leaders can dramatically increase the likelihood that developmental activities will help them become better leaders, by taking the time to focus their efforts each year. This involves two simple steps, determining potential developmental needs and setting developmental goals. The effectiveness of leadership development can be increased when leaders undertake a series of both on and off the job experiences, all with a common focus. This should be done over a prolonged yet finite period. An annual cycle may be quite suitable.Effective leadership development starts by looking inwards and gaining a heightened sense of yourself as a leader. Most leaders have risen to their current positions because they have succeeded in previous roles. Yet, in new roles and different situations, what worked before may not be app
Then they needed to plug their sales prospecting ‘system’ into their current sales training program and work to a weekly sales appointment activity goal to assure a monthly revenue result by month 6.
Step 4: Set the Goal and ‘Train to It’
A sales training ROI goal of $12,276,000 or $79,200 per rep is for sure a worthy one. And the diagnostic system showed us they would meet this goal just by setting 3 additional sales appointment per week per rep; 6 appointments versus 3.
Actually, I lied. The X2 Evaluator system showed an even brighter picture if the sales appointment activity standard of 6 new appointments per week was met. If they could support their new-hires with a sales prospecting system that could help them achieve 6 new sales appointments per week, they would actually cut their new-hire Ramp-to-Quota by 4 months; from the current 7 months down to 3 months.
And that sales training ROI would be $316,800 per rep or a whopping $49,104,000.
One of the reasons why sales training fails is a failure to define a useful objective. In this case, our diagnostic method has defined a single useful objective for them to train to. And this same diagnostic method can be uti
Although job outsourcing is a sensitive issue, social and political; it is unavoidable. It’s been said that it is the effect of globalists. Companies are in the business of making money and will move to places where production costs are cheaper.Britain are now selling its companies as its difficult to maintain as production costs rise at home while it lowers elsewhere. Britain will now be a place for services where British expertise and experience counts, such as specialized management consultancies and advisory services oil exploration, training and engineering services, design and technology, and development services. Another industry will be the “education sector” such as hundreds of international students comes here for studies. Take Cardiff University’s “Business School” of instance, hundreds of student
But when I ask Sales executives and Sales trainers how their current sales training program is aligned with their sales performance issues I get the look of “No speak English’.
Let’s first categorize ‘Sales performance issues’. There are (4) distinct sales performance silos that will effect the overall outcome of any sales team, year in and year out. They are:
• % of Sales reps to Quota
• Average New-hire Ramp-to-Quota in months
• Sales Employee Turnover rate
• Time spent versus Result achieved
This is a good place to start in determining what sales skill training to implement to achieve a measurable return on investment. But here’s what will set you apart when you walk the request up to the front office. Start out with the NUMBERS. That’s right. Take a diagnostic view of your current sales performance silos, one by one.
Let’s look at a real sales performance issue example of ‘Average New-hire Ramp-to-Quota’. I recently conducted a ‘Sales Performance Improvement Blueprint’ web-cast for this sales organization. The company was hiring 155 sales reps per year. The ultimate objective of any new-hire sales training program is to ramp the new sales rep to Quota. Simply, give them everything they need to effectively reach their monthly sales goal.
So how was this company doing? They were obtaining this ultimate sales training program objective in 7 months. So how does one determine if that training outcome is a ‘Sales Performance Issue’? Let’s take a look.
Step 1: ‘Run the Numbers’ for any realistic ROI opportunity
• Each new-hire rep had an ultimate quota of $3500
• Sales Cycle was 17 days
• Average customer term agreement of 36 months
• Average 'Sub-Quota' revenue per month during ramp of $1300 (This number reflects the average monthly revenue a new-hire achieves before they achieve quota attainment)
Step 2: ‘Run the Numbers’ hypothetically for a ‘Specific’ improvement
In this case, I showed the sales management team what return on investment they would get by helping just 1 sales rep achieve full sales quota in 6 months versus 7 months. Based on their numbers my diagnostic X2 Evaluator™ system showed them a ROI of $79,200 just by trimming off 30 days. If they did that for all 155 of their annual new-hires, they could realize $12,276,000. And that got their attention. So, is it now a worthy sales performance issue to attach pin-point sales training to? Not quite yet.
Step 3: ‘Run the Numbers’ for a ‘Reality Check’
The most successful businesses — and certainly, sales departments — have identified their Key Performance Indicators (KPI); individual gateways that directly effect the outcome of a particular process. Then they measure the competency ratios in line with them.
A good KPI example in the sales process might be how many times you advance the first sales appointment to the next phase, whether that’s a demonstration, a site visit, a survey or a proposal. Another KPI is how many times you gain a new customer once the first gateway is passed. And when you do gain a new customer, what’s the average revenue you achieve? And how long does it take to gain a new customer on average; i.e. sales cycle?
How about how long it takes you to gain 1 new sales appointment, defined by sales prospect ‘conversation’? And as a by-product of all this, how many new appointments are needed each week?
We ran these numbers in the X2 Evaluator™ system to see ‘if and where’ there were some leaks in the ‘KPI ship’. And here’s what we discovered; not a leak, but a big ‘ole fire hose.
Two ‘KPI issues’ were apparent. First, why does the ramp-to-quota for a new-hire take 7 months when the average sales cycle is 17 days? Second, they were only setting 3 new appointments per week when they needed to set 6, based on their other KPIs. So their sales appointment ‘activity barometer’ was only running at 50%. And that will dictate a longer ramp-to-quota.
Dig a bit deeper in the X2 Evaluator™ system and out popped a 6% conversation-to-appointment ratio; they had to conduct 15 prospect conversations to get 1 new appointment.
OK, back to the ‘Reality Check’. Is it realistic to focus on reducing the new-hire ramp-to-quota from 7 months to 6 months for a sales training ROI of $12,276,000 or $79,200 per rep?
You bet it is. These folks needed to address the front-end of their sales process; setting targeted sales appointments. To do that, they needed (1) establish an activity standard to reach quota by month six and (2) develop a sales prospecting methodology and supporting X2 Evaluator™ system to spend less time in achieving it.
Then they needed to plug their sales prospecting ‘system’ into their current sales training program and work to a weekly sales appointment activity goal to assure a monthly revenue result by month 6.
Step 4: Set the Goal and ‘Train to It’
A sales training ROI goal of $12,276,000 or $79,200 per rep is for sure a worthy one. And the diagnostic system showed us they would meet this goal just by setting 3 additional sales appointment per week per rep; 6 appointments versus 3.
Actually, I lied. The X2 Evaluator system showed an even brighter picture if the sales appointment activity standard of 6 new appointments per week was met. If they could support their new-hires with a sales prospecting system that could help them achieve 6 new sales appointments per week, they would actually cut their new-hire Ramp-to-Quota by 4 months; from the current 7 months down to 3 months.
And that sales training ROI would be $316,800 per rep or a whopping $49,104,000.
One of the reasons why sales training fails is a failure to define a useful objective. In this case, our diagnostic method has defined a single useful objective for them to train to. And this same diagnostic method can be util
Back in my retail days, we called it "the upsell". In direct sales and internet marketing, it falls under the heading of "follow-up", although in many guises it can be very similar to the retail "upsell". It's really an effective technique for increasing your income from almost any marketing effort.Most of us run into it in very common questions such as: Do you want cheese on that? Would you like to supersize your order? Would you like an apple pie with that? The last one has the extra appeal of having another upsell built in. If you agree to order an apple pie, they'll then let you know that you can get two for only a dollar. How many people across the world buy two apple pies when they originally had no intention of even buying one?Now, this seems a little sneaky to
So how was this company doing? They were obtaining this ultimate sales training program objective in 7 months. So how does one determine if that training outcome is a ‘Sales Performance Issue’? Let’s take a look.
Step 1: ‘Run the Numbers’ for any realistic ROI opportunity
• Each new-hire rep had an ultimate quota of $3500
• Sales Cycle was 17 days
• Average customer term agreement of 36 months
• Average 'Sub-Quota' revenue per month during ramp of $1300 (This number reflects the average monthly revenue a new-hire achieves before they achieve quota attainment)
Step 2: ‘Run the Numbers’ hypothetically for a ‘Specific’ improvement
In this case, I showed the sales management team what return on investment they would get by helping just 1 sales rep achieve full sales quota in 6 months versus 7 months. Based on their numbers my diagnostic X2 Evaluator™ system showed them a ROI of $79,200 just by trimming off 30 days. If they did that for all 155 of their annual new-hires, they could realize $12,276,000. And that got their attention. So, is it now a worthy sales performance issue to attach pin-point sales training to? Not quite yet.
Step 3: ‘Run the Numbers’ for a ‘Reality Check’
The most successful businesses — and certainly, sales departments — have identified their Key Performance Indicators (KPI); individual gateways that directly effect the outcome of a particular process. Then they measure the competency ratios in line with them.
A good KPI example in the sales process might be how many times you advance the first sales appointment to the next phase, whether that’s a demonstration, a site visit, a survey or a proposal. Another KPI is how many times you gain a new customer once the first gateway is passed. And when you do gain a new customer, what’s the average revenue you achieve? And how long does it take to gain a new customer on average; i.e. sales cycle?
How about how long it takes you to gain 1 new sales appointment, defined by sales prospect ‘conversation’? And as a by-product of all this, how many new appointments are needed each week?
We ran these numbers in the X2 Evaluator™ system to see ‘if and where’ there were some leaks in the ‘KPI ship’. And here’s what we discovered; not a leak, but a big ‘ole fire hose.
Two ‘KPI issues’ were apparent. First, why does the ramp-to-quota for a new-hire take 7 months when the average sales cycle is 17 days? Second, they were only setting 3 new appointments per week when they needed to set 6, based on their other KPIs. So their sales appointment ‘activity barometer’ was only running at 50%. And that will dictate a longer ramp-to-quota.
Dig a bit deeper in the X2 Evaluator™ system and out popped a 6% conversation-to-appointment ratio; they had to conduct 15 prospect conversations to get 1 new appointment.
OK, back to the ‘Reality Check’. Is it realistic to focus on reducing the new-hire ramp-to-quota from 7 months to 6 months for a sales training ROI of $12,276,000 or $79,200 per rep?
You bet it is. These folks needed to address the front-end of their sales process; setting targeted sales appointments. To do that, they needed (1) establish an activity standard to reach quota by month six and (2) develop a sales prospecting methodology and supporting X2 Evaluator™ system to spend less time in achieving it.
Then they needed to plug their sales prospecting ‘system’ into their current sales training program and work to a weekly sales appointment activity goal to assure a monthly revenue result by month 6.
Step 4: Set the Goal and ‘Train to It’
A sales training ROI goal of $12,276,000 or $79,200 per rep is for sure a worthy one. And the diagnostic system showed us they would meet this goal just by setting 3 additional sales appointment per week per rep; 6 appointments versus 3.
Actually, I lied. The X2 Evaluator system showed an even brighter picture if the sales appointment activity standard of 6 new appointments per week was met. If they could support their new-hires with a sales prospecting system that could help them achieve 6 new sales appointments per week, they would actually cut their new-hire Ramp-to-Quota by 4 months; from the current 7 months down to 3 months.
And that sales training ROI would be $316,800 per rep or a whopping $49,104,000.
One of the reasons why sales training fails is a failure to define a useful objective. In this case, our diagnostic method has defined a single useful objective for them to train to. And this same diagnostic method can be uti
Sick companies have waited, hoping that their nightmare would be over soon. But things often get worse before they get better.It is normal that when a person falls sick, the first thing you do is to see a doctor. Many seriously sick people will have no hesitation to go to the emergency unit of the hospital to get treatment. In companies, the owners and management normally do not seek help till it is too late. But why allow this situation to explode into a financial crisis? The company needs to go into intensive care, otherwise, it will go under and the owners will become a bankrupt or lawsuits could be filed against them.What has just described happens to thousand of companies every day in Asia. Many of us just do not seek help early enough for our corporate woes due to unfounded fears and reasons - w
Step 3: ‘Run the Numbers’ for a ‘Reality Check’
The most successful businesses — and certainly, sales departments — have identified their Key Performance Indicators (KPI); individual gateways that directly effect the outcome of a particular process. Then they measure the competency ratios in line with them.
A good KPI example in the sales process might be how many times you advance the first sales appointment to the next phase, whether that’s a demonstration, a site visit, a survey or a proposal. Another KPI is how many times you gain a new customer once the first gateway is passed. And when you do gain a new customer, what’s the average revenue you achieve? And how long does it take to gain a new customer on average; i.e. sales cycle?
How about how long it takes you to gain 1 new sales appointment, defined by sales prospect ‘conversation’? And as a by-product of all this, how many new appointments are needed each week?
We ran these numbers in the X2 Evaluator™ system to see ‘if and where’ there were some leaks in the ‘KPI ship’. And here’s what we discovered; not a leak, but a big ‘ole fire hose.
Two ‘KPI issues’ were apparent. First, why does the ramp-to-quota for a new-hire take 7 months when the average sales cycle is 17 days? Second, they were only setting 3 new appointments per week when they needed to set 6, based on their other KPIs. So their sales appointment ‘activity barometer’ was only running at 50%. And that will dictate a longer ramp-to-quota.
Dig a bit deeper in the X2 Evaluator™ system and out popped a 6% conversation-to-appointment ratio; they had to conduct 15 prospect conversations to get 1 new appointment.
OK, back to the ‘Reality Check’. Is it realistic to focus on reducing the new-hire ramp-to-quota from 7 months to 6 months for a sales training ROI of $12,276,000 or $79,200 per rep?
You bet it is. These folks needed to address the front-end of their sales process; setting targeted sales appointments. To do that, they needed (1) establish an activity standard to reach quota by month six and (2) develop a sales prospecting methodology and supporting X2 Evaluator™ system to spend less time in achieving it.
Then they needed to plug their sales prospecting ‘system’ into their current sales training program and work to a weekly sales appointment activity goal to assure a monthly revenue result by month 6.
Step 4: Set the Goal and ‘Train to It’
A sales training ROI goal of $12,276,000 or $79,200 per rep is for sure a worthy one. And the diagnostic system showed us they would meet this goal just by setting 3 additional sales appointment per week per rep; 6 appointments versus 3.
Actually, I lied. The X2 Evaluator system showed an even brighter picture if the sales appointment activity standard of 6 new appointments per week was met. If they could support their new-hires with a sales prospecting system that could help them achieve 6 new sales appointments per week, they would actually cut their new-hire Ramp-to-Quota by 4 months; from the current 7 months down to 3 months.
And that sales training ROI would be $316,800 per rep or a whopping $49,104,000.
One of the reasons why sales training fails is a failure to define a useful objective. In this case, our diagnostic method has defined a single useful objective for them to train to. And this same diagnostic method can be uti
Meetings can be like mythical vampires – sucking the life out of intelligent and creative people. And sucking the funds out of businesses. Unfortunately, there are too many of these meetings in business today.A UCLA study said the “typical” meeting includes nine people. If you have nine people in a meeting room for one hour, you have consumed one entire workday – plus some.What about the dollars associated with this? Say the average salary of meeting attendees is $40,000. Their hourly pay is about $20.00. Nine people for one hour costs $180.00. Not bad, right?But consider the implications. People don’t spend just one hour a year in meetings. In a 3-M online survey in 1998, people reported spending between one and 1.5 days per week in meetings. They also said 25%
Two ‘KPI issues’ were apparent. First, why does the ramp-to-quota for a new-hire take 7 months when the average sales cycle is 17 days? Second, they were only setting 3 new appointments per week when they needed to set 6, based on their other KPIs. So their sales appointment ‘activity barometer’ was only running at 50%. And that will dictate a longer ramp-to-quota.
Dig a bit deeper in the X2 Evaluator™ system and out popped a 6% conversation-to-appointment ratio; they had to conduct 15 prospect conversations to get 1 new appointment.
OK, back to the ‘Reality Check’. Is it realistic to focus on reducing the new-hire ramp-to-quota from 7 months to 6 months for a sales training ROI of $12,276,000 or $79,200 per rep?
You bet it is. These folks needed to address the front-end of their sales process; setting targeted sales appointments. To do that, they needed (1) establish an activity standard to reach quota by month six and (2) develop a sales prospecting methodology and supporting X2 Evaluator™ system to spend less time in achieving it.
Then they needed to plug their sales prospecting ‘system’ into their current sales training program and work to a weekly sales appointment activity goal to assure a monthly revenue result by month 6.
Step 4: Set the Goal and ‘Train to It’
A sales training ROI goal of $12,276,000 or $79,200 per rep is for sure a worthy one. And the diagnostic system showed us they would meet this goal just by setting 3 additional sales appointment per week per rep; 6 appointments versus 3.
Actually, I lied. The X2 Evaluator system showed an even brighter picture if the sales appointment activity standard of 6 new appointments per week was met. If they could support their new-hires with a sales prospecting system that could help them achieve 6 new sales appointments per week, they would actually cut their new-hire Ramp-to-Quota by 4 months; from the current 7 months down to 3 months.
And that sales training ROI would be $316,800 per rep or a whopping $49,104,000.
One of the reasons why sales training fails is a failure to define a useful objective. In this case, our diagnostic method has defined a single useful objective for them to train to. And this same diagnostic method can be uti
Are you wracking your brains trying to come up with some fundraising ideas for your charitable organization? Here are four food-related fundraising ideas to whet your appetite:Sell candy bars. Who doesn't love to open the door to kids selling chocolate bars, even if they are over-priced? Most people have a weakness for chocolate and for the sweet-faced kids selling them, so this type of fundraiser works great for schools and sports teams.Hold a food concession and sell hot dogs, soda pop, coffee, hot chocolate and other confectionary foods. This can be held at church social events, sporting events or even outside of a retail store. This does take some planning as well as preparation to organize volunteers and purchase food items.Hold a bottle drive. This one not only b
Then they needed to plug their sales prospecting ‘system’ into their current sales training program and work to a weekly sales appointment activity goal to assure a monthly revenue result by month 6.
Step 4: Set the Goal and ‘Train to It’
A sales training ROI goal of $12,276,000 or $79,200 per rep is for sure a worthy one. And the diagnostic system showed us they would meet this goal just by setting 3 additional sales appointment per week per rep; 6 appointments versus 3.
Actually, I lied. The X2 Evaluator system showed an even brighter picture if the sales appointment activity standard of 6 new appointments per week was met. If they could support their new-hires with a sales prospecting system that could help them achieve 6 new sales appointments per week, they would actually cut their new-hire Ramp-to-Quota by 4 months; from the current 7 months down to 3 months.
And that sales training ROI would be $316,800 per rep or a whopping $49,104,000.
One of the reasons why sales training fails is a failure to define a useful objective. In this case, our diagnostic method has defined a single useful objective for them to train to. And this same diagnostic method can be utilized if you have a ‘Sales Performance Issue’ of an unacceptable percentage of Sales reps reaching Quota each month.
In Part 2, we will take a look at (2) other sales performance issues, ‘Sales Employee Turnover rate’ and ‘Time spent versus Result achieved’ with this same sales management team and see what our diagnostic method to sales performance improvement and ROI turns up.
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