Recent opinions in leadership articles and blogs have made the statement that you can't necessarily motivate sales people - but you certainly can demotivate them by setting them up for failure. Leaner teams and tighter budgets require sales leaders to deploy coaching and motivation tactics that go beyond basic incentive plans. To stay competitive, best-in-class sales organizations are rolling out data-driven coaching plans paired with gamification. In this webinar, we will cover five areas to ensure your sales reps are set up for success - not failure.
Hear about best practices in:
- On-boarding
- Effective territory & quota planning
- Coaching and appraisals
- Compensation and rewards
- Gamification techniques
9. What are bad sales hires costing you?
•Interview Costs
•Training
•Compensation
•Lost business Opportunity
•Negative Impact on Customers
•Negative Effects on Morale
15
times base salary
Reference: Dr. Bradford Smart, PHD; Publication Avoid Costly Mis-Hires
>500k
Cost of a bad hire
10. Do you hire your problems?
•Do you hire when you need new reps?
•Do you hire who you “like”? -The sales “halo” effect!.
•Do you hire the bottom 20% that most companies are just recycling. (Someone else's non-performer)
•Do you hire someone who can sell you product vs. just themselves?
•‘Poor fit to the job’ – one of the top five reasons for high sales turnover
•Do you verify performance or Income? Verifying income is easy, but verifying performance is tricky.
Reference: 2012 Sales Rep Hiring/Compensation Analysis
47%
Companies that say their sales hiring needs improvements
11. The Secret Recruiting Formula
1.Begin with the end in mind
2.Use quantitative tests
3.Cast a wide net
4.Share and collaborate
5.Timing is everything
12. SalesSelector Solution
18%
shorter time-to-hire
52%
Shorter time-to-productivity
•Quantitative Sales Test
•Powerful Videos Interviews
•Collaborate with Distributed Stakeholders
13. 42%
CSO Insights, Sales Management Optimization Study 2014
Time is Money.
>10months
Time to become productive for new sales hire
% Reps don’t make quota
14. 1. Pre-Boot Camp Training
•Self-Service Product & Solution Training
•Certification Testing
2. Boot Camp
•1 Week Sales & Solution Training
•Builds on Initial Training
3. Mentor Program
•AE Assigned Sr. AE Mentor
•Mentor Includes in Meetings/Calls
4. Performance Tracking
•KPI’s Tracked & Monitored
•Proactive Coaching in Weak Areas
Accelerating the Time to Revenue for New Hires
18. POLL:
Do you have a good idea of what each territory’s potential value is?
❏Yes
❏For some
❏No
19. Typical Quota Process
•Forecast science
•Technology limitations
•Inadequate governance and process
•Over and under assignment policies
•Reliance on historical performance
•Intuition stacking
•Static hierarchies
•Rigid / forced interlock
•Opportunity disconnect from forecast
•Gaming & agent influence in goal negotiation
•Quota frequency
FORECAST & GOAL LAYERS
INPUTS
QUOTA QUALITY INFLUENCERS
Source: Accenture
20. How to Improve the Process
1.Understand your current process
2.Understand territory previous performance
3.Understand territory values
4.Create territories based on value
5.Reconcile territory plan against overall corporate goals
21. How Technology Can Help
•Standardization & Automation
•Data Analysis for Decision Making
•Enablement
•Tracking & Monitoring Through Data Analysis
22. Standardization and Automation
•Systems Can Define & Support Standards
•Must be Flexible
•Support, Not Inhibit, Change
•Automation
•Workflow Processes
•Communications
•Supports Rapid Change
#SalesTerritory
23. Data Analysis for Decision Support
Data Supported Decisions: Bring different sets of data together to support the decision making process.
•Historical data to support recurring revenue, account retention targets
•Market data – market share, addressable market, product penetration – to support new business and growth targets
•Pipeline data from CRMs to support both
•Training and coaching to match capabilities
#SalesTerritory
27. Challenge
•Companies lack of visibility into detailed sales performance metrics to support the sales management process
•Without complete view into performance, sales managers are unable to understand individual and team strengths and weaknesses
•Inefficient sales coaching and limited tools has led coaching to be the weakest competency of all front line sales managers
28. Why Coach Sales Reps?
Sales people who receive fewer
than two hours of coaching
per month achieve 90% of quota.
Sales people who receive at least
three hours of coaching per
month achieve 107% of quota.
Sales people who receive 2-3
hours of coaching per
month achieve 92% of quota.
29. POLL:
Does your company follow a formal sales coaching process?
❏Yes
❏No
❏Every manager has their own process
32. A recipe for successful coaching and performance management
Ingredients:
•Sales Manager
•Sales Rep
•Process
•Metrics
Directions:
•Align results with activities and skills
•Evaluate existing team
•Develop plan
•Socialize
Tips for meaningful coaching:
•Timely
•Objective
•Accurate
•Relevant
•Individualized
35. Challenge
•Companies spend on average 11% of revenue on incentives and commissions
•Gartner estimates that organizations that use spreadsheets and homegrown tools to pay out commissions, overpay by 5-12% annually
•Low to no visibility to over-payments
•Complex, opaque plans lead to lost time due to disputes and shadow accounting
36. #1 Desired Improvement to Compensation Program
Source: World at Work & OpenSymmetry Sales performance and Technology Survey
37. Things to Consider
•Simplify incentives structure
•Remove layers and clauses that cause confusion
•Saves time and money
38. POLL:
How confident are your sales reps in the accuracy of their commission payouts?
❏Very confident, no issues
❏Somewhat confident
❏Not at all confident
39. Opportunity to Modernize: Commissions
Modernize with Compensation Management:
•Commissions calculation automated
•No need for separate tracking – track via mobile device
•Minimal need for review and corrections
•Eliminate over-payments