April 14th, 2010
Have you ever sat down to calculate what your annual salary equates to per hour? I have! Let’s say you have a salary of $50,000 a year. That equates to $24.80/hour if you work an 8 hour day! (50,000/12 months/4.2 weeks/40 hours)
Now let’s say you are a sales manager and have 10 sales people under you. You are looking to increase sales monthly but feel your team is maxed out in time spent during a typical day between sales calls, meetings, administrative items, travel time, and networking.
All of a sudden, someone hands you a magic wand and gives you one hour of time a day PER SALES PERSON!! So now, what does an hour mean to you? In this scenario, it means 50 hours a week for your team to be devoting to additional sales activities. It also equates to $1,240 of freed up resources in salary per week (if each sales person is making $50,000 per year).
Not to get too mathematical here, but continuing with this scenario, if your sales team averages 100 calls an hour (10 calls each), and can now make 100 additional calls a day, or 500 more a week, and your team averages a closing ratio of 5%, you now have 25 more sales in a week. If each sale is worth $1,000 to your company, you just increased your monthly sales quota by $105,000!
You’re probably saying to yourself, “these are great numbers in theory, but I don’t have an extra hour of time in each of my team members to hit such numbers!” And you’re right – if you don’t make any changes to the way you are currently doing business. BUT, if you make some simple changes, you too can achieve such remarkable increases to your bottom line. Below are four steps that will move you in the right direction.
Step #1: If you are currently working as a team but managing information individually, consolidate! Take all of your sales team’s lead/prospect information and manage it in one location with all team members having access to the list.
Step #2: Hold your team accountable for properly tracking all pertinent lead/prospect information – notes, appointments, calls made, to-do’s, issues, products/services interested in, etc. The more information that is tracked, the better chance of closing the sale and following up. But if your team is not held accountable, they will most likely not begin to track this kind of information.
Step #3: Report on all key sales statistics (# calls made per sales rep, # meetings set/completed, # days between follow-ups, etc.). Share the gains/losses with your team so they feel like part of the process and accountable for the change.
Step #4: Start counting up the number of additional sales opportunities your team discovers in the first month of applying these changes. You should begin to see an upward trend in sales activities, which should then convert into an increase in closed business and revenue.
If you are not already taking such measures in your day-to-day sales efforts, I urge you to begin doing so. What have you got to lose but time? The benefit is a gain of time tenfold to the time it takes to set up a system within your team.
If you want to achieve maximum results, invest in a database system that can handle tracking all of this information, like a Customer Relationship Management (CRM) system.
Kendra Von Achen is President of DB Pros, a database & business consulting company based in NJ. For more information on this and other CRM-related topics, contact her at firstname.lastname@example.org or visit their website at www.dbprosconsulting.com.
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