Sales
Productivity
Sales productivity is defined as the cost to
acquire a certain amount of gross profit, with
the lion’s share of expenses directly related
to personnel costs, both fixed (salary, car allowance,
benefits, etc.) and non-fixed (liability costs,
etc.). Building an internal sales organization
takes significant investments in time and money.
The hiring of a lead sales executive can easily
take six months, with additional delays in the
hiring of the sales representatives and sales
support staff, and the creation of operating procedures,
training programs, and sales tools. The natural
sequence of this approach represents a twelve
to thirteen month ramp-up to sales traction from
initiation. And when one considers that the average
direct sales representative costs 2.5 times his
or her pay, it is therefore mission critical that
the sales representatives as well as their sales
support team are managed effectively to ensure
that the “burn rate” does not exceed
sales revenue.
Employing the Sales Accelerator System®,
SalesForce4Hire® has demonstrated a proven,
successful track record in the rapid deployment
of highly trained, focused, and motivated sales
professionals. The initial impact of contracting
with SalesForce4Hire is an eight to nine month
improvement in ramp-up to sales traction with
a correlating savings in investments to generate
first dollar revenue.
According to extensive research conducted by
Erin Anderson, Ph.D. and Bob Trinkle and published
in their 2005 book “Outsourcing the Sales
Function; The Real Cost of Field Sales”
the average direct employee sales professional
is in front of prospects for an average of two
to three hours per day. In addition, they are
actually operating “in the field”
for 132 days in any given year. An analysis of
historical engagements by SalesForce4Hire indicates
that the use of the Sales Accelerator System dramatically
improves both time in front of prospects and overall
time “in the field”. This results
in a minimum 100% improvement in productive engagements.
When you combine the long ramp-up time of traditional
sales organizations with the average face time
in front of prospects, a team of ten sales representatives
will each contribute twelve “Face-to-Face”
sales days (eight hours of sales time in front
of qualified prospects) by the end of the first
twelve months. The cost of deployment results
in a greater than $8,000 per “Face-to-Face”
sales day contributed at the end of the first
year. SalesForce4Hire’s speed of sales deployment
in combination with the increase in real sales
productivity through the Sales Accelerator System
delivers dramatic improvements in tangible sales
activities. At the end of the first twelve months,
this approach elevates “Face-to-Face”
sales days contributed per rep to 61 days; lowering
the real cost of sales to about $2,000 per “Face-to-Face”
sales day. The net effect of SalesForce4Hire is
a 500% improvement in real sales activities within
the first twelve months of go to market initiatives.
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