Sales Development: Necessities of Selling in the Cloud
Reducing Sales Rep Turnover
1. Reducing Sales Rep Turnover Fred Berger President Document Technology Solutions Consulting www.documenttechnologysolutions.com “Partnering with Dealers to Reach the Next Level”
2. Agenda DTS Consulting Introduction Key Industry Trends Cost of Sales Rep Turnover Reasons for Sales Rep Leaving Common Turnover Reduction Actions Circle of Success Summary Next Steps Questions
3. DTS Consulting An Independent Industry Consulting Firm Dedicated to “Partnering with Dealers to Reach the Next Level” 35 years experience helping companies grow and improve overall performance through change and innovation Access to Alliance Partners representing some of the best expertise in the industry President of the 4th largest Sharp Dealership in the US COO of a $20 million Dealership Vice President Danka Acquisitions Vice President of Ricoh Business Systems - Ricoh’s Direct Channel
5. Cost of Sales Rep Turnover The average turnover for copier sales reps in the US is 60 % 30% of all sales reps have been with their current company less than 1 year The average tenure for a new hire is between 3 and 6 months The average cost of a sales reps turnover after 5 months is: Salary @ $24,000 year $10,000 Fringe Benefits @ 25% $ 2,500 Car Allowance @ $400 mo. $ 2,000 Recruiting $ 3,000 Training $ 2,000 Total $19,500 This excludes any lost Gross Profit that a sales rep would produce from sales and aftermarket
7. Time spent to hire a Sales Rep Recruiting time 1 hour Preparation for interview ¾ hour Interview by 3 managers 1 ½ hours Post interview review ¾ hour Total 4 hours Number of interviews per hire 6 interviews Number of hours spent interviewing per hire 24 hours If you have 20 reps at 60% turnover that consumes 288 hours or 36 days per year
10. Circle of Success Circle of Success Sales Rep Opportunity In the center of all of this are the people responsible for effectively executing each element Success Factors/ Programs Hiring SM GSM VPS Activity Management/ Account Reviews Compensation 1st Day/10 Day Orientation Training
11. Sales Rep Opportunity Why are you hiring a sales rep? Replacement? Addition? Have you evaluated the territory/opportunity? Territory make-up What type of Sales Rep are you hiring? Why? Geo Vertical Major Account MPS Software/Solutions Specialist Team concept Can the territory support the Sales Rep? MIF? Customers?
12. Hiring Based on the type of Sales Rep Have you developed a general profile? Have you developed a specific profile? Skill set of candidate must align with the opportunity Geo rep Vertical market rep Major account rep Solutions rep Specialist Interview process Behaviors Skill sets Experience level Testing Pre-set questions Interviewers, manager, general manager, vice president, owner, etc Develop/ Maintain candidate pool Do Not Settle
13. Compensation One size does not fit all Compensation plan must align with company strategy, sales rep opportunity, sales rep profile, etc Base compensation versus variable compensation Align with company strategy, sales rep opportunity, sales rep profile Ranges, competitive, drivers, internal alignment, experience Sales Manager compensation should be geared toward sales rep success
14. 1st Day/10 Day Orientation 1st Day – The most important day!!!!!! Welcoming Tools ready Phone Laptop Computer access Desk, chair, clean Business cards Company documentation Organization chart Hiring paperwork Introduction Company management Key personnel Meeting Game plan
15. 1st Day/10 Day Orientation 10 Day Orientation Create a 10 day orientation Should be day by day, hour by hour Include : meetings with key individuals Training on tool utilization Training on company sales/marketing materials Training on products/programs Training with key sales reps Training with manufactures sales reps if possible Review meetings after each session with manager/employee Home work assignments Etc Keep them involved at all times Have 1st management review with employee after this 10 day program
16. Training Management’s commitment to training is critical to success and retention of sales reps Continuous training throughout their career is a MUST Ensure the training process is managed Create a multi level training plan, include time frames and reviews Should include: Manufacturer's training Web based training Hands on training Self paced training Etc. Manager reviews after each course, evaluation Manager MUST reinforce training programs Manager MUST make sure training program is adhered to. Showroom must include hardware and software to support training program Sales manager should have weekly team training meetings
17. Activity Management Sales Managers need to drive sufficient activity levels to achieve success Activity levels need to be sales rep type driven Sales Managers need to review and monitor activity and levels Sales Force Automation tool should be used to monitor activity and pipeline
18. Account Reviews Account reviews should be on a set schedule Sales Manager should conduct thorough account reviews Account reviews should be solution driven not just sales close driven Team account reviews should be the norm Next level manager should sit in on many account reviews Remote monitoring and SFA tools should be used for account reviews
19. Success Factors/Programs All Sales Reps should be aware of internal/external marketing/sales programs Sales managers should make sure these programs are used appropriately Internal programs should be geared toward strategic plans Internal programs should be geared to make new hired sales reps “Ring the Bell” Sales manager should be tied to the success of these programs
