Recent developments in technology have seen the introduction of tools that can improve the performance of sales teams.
The pressure to meet (or exceed) increasing revenue targets may make you and your team struggle with sales productivity. This is the case for most organizations.
Instead of focusing on improving the sales process of their teams, they increasingly chase more aggressive methods to achieve their goals.
The purpose of this guide is to enlighten you on:
- What is sales productivity?
- The importance of sales productivity
- Main factors of inefficiency
- How to increase sales team performance
But first… what is Sales Productivity?
This refers to the process of maximizing sales returns while minimizing the resources, such as cost, time, and effort, used to achieve these returns.
Sales productivity is the ratio of effectiveness (output) to efficiency (input). Organizational sales productivity is a measure of the amount of revenue you expect to generate from each individual sales rep, over a certain period of time. This enables you to know the average productivity of your sales force.
At the individual level, it is the amount of revenue generated by a single sales rep per each hour of work.
Let’s say for example a sales rep brought in $50,000 in the second quarter of the year.
She works 40 hours a week, and there are 13 weeks in the 2nd quarter.
That’s about 520 hours worked! Divide the total revenue by the total number of hours worked.
This brings her revenue figure to $96.15 per hour.
At the end of the day, improving the efficiency and productivity of each member of your sales team boils down to how efficient they are with their time. The exciting news for you is that if you keep a schedule and structure to their day, the end goal will become clearer to them and they’ll work towards this.
Why Is Sales Productivity Important for Any Kind of Business?
Your sales team will impact every aspect of your business! Here are just some of the ways that a productive sales team will help your overall business!
- It’s an excellent method for businesses to determine bonuses or employee retention within different departments
- It helps businesses set targets that are sensible and achievable. This makes sure a business doesn’t overestimate its capabilities
- It gives the manager a chance to give personalized training and coaching to team members of different departments. It’s quite possible to measure departmental outputs using sales productivity
- It shows better the ability of a salesforce to sell, having the highest margins with the lowest amount of sales expense
- It enables a business to calculate how much resources to allocate and to which departments
- It enables employees to better utilize their time toward achieving the businesses’ targets to maximize profits
What Are the Main Factors in Sales Inefficiency?
It’s important to understand the factors that stand in the way of improving your sales team’s performance. They are as many as the stars in the sky and at times it may seem like the odds are against you.
Not to worry, we’ve listed many of them below so you can know how to combat them!
Some of these factors include:
- Lack of proper coaching and training sessions
- Inconsistent sales methods and processes
- Lack of communication between you and your sales team
- Distractions from outside and irrelevant sources
- Excessive pressure to exceed targets and perform better
- Resistance to modern innovative sales tools and technologies
- Sales cultures that breed negative sales approaches
- Large amounts of turnover and constant change
These factors hinder productivity. But you can combat them and enable your team to get the most out of each workday!
5 Tips to Increase the Sales Team’s Performance
1. Create an Effective Onboarding, Training, and Coaching Plan
Most organizations have training for new employees. What they lack is a steady system for the ongoing training of these newcomers. Training can be costly and time-consuming. This is especially true if the skills being taught are hard to grasp. Onboarding means introducing and integrating new employees into the organization.
To improve your team’s performance, present information to them in a way that is simple to remember. Don’t complicate their training. Effective onboarding and training is a sure way to increase the net sales of each of the team members, so don’t be scared to invest in this.
Tools like ClickUp can help ease the pain of onboarding: instead of creating a brand new training program for each new sales rep, create a template of the onboarding tasks that they will need to accomplish!
2. Update Sales Tools
Organizations analyze their best customers in order to target them more accurately. A lot of businesses use tools like reverse email search to get background information about a current customer.
This tool gathers information about someone based on their email address alone. It searches databases and online sources and establishes a link between an email address and the user.
This gives your team the power to personalize the customers’ experience and make them feel exclusive or special. This increases the chances of them doing business with you. Having this information also makes it easier for your sales team to know exactly what to say to each customer to get them hooked.
So if your sales team utilizes this information effectively, it will lead to a marked improvement in their performance.
3. Create Daily Goals and Celebrate Wins
Goals create a sense of direction and a work plan toward achieving set targets. Having every team member aware of these goals will ensure that they take the necessary steps to attain the set sales goals.
Take time out of your schedule and celebrate the team’s wins and hard work. This will build their morale and keep them motivated. Their days will become more exciting, and their performance will improve.
4. Communicate with Your Team
Communication is an essential tool for sales managers. You should try as much as possible to check in with your team. This will help you analyze their individual performance and how they’re feeling.
Conduct face to face sessions and engage new employees as well. This will help you come up with the best training for them. Ask your team for opinions on what you can do to improve their productivity.
5. Track and Measure Sales Activities
You can gain insights into each team member’s activity-based metrics. To measure activity-based metrics, consistency is required. Make sure your sales team doesn’t slack at logging their sales activities. You will then have a benchmark to measure their productivity gains.
Some of the methods to measure sales activities include conversion rates, average sales, and Mean Percentage Error. Using these tools will help you monitor your team’s activity and give you insight into what policies to implement to empower your sales team to be productive!
It’s important to monitor your team’s performance, and insist on methods like reverse email search processes. However, it’s also essential to keep them happy and engaged. Consider rewarding their efforts with bonuses, pay raises, and free days. This will go a long way in motivating them to stay focused and give the job everything.
If you want the best chance of increasing sales performance, find the balance between technicality and humanity. That’s a win-win for everyone!
Looking for a tool to help you increase your sales team’s productivity? ClickUp is here to help! Sign up free today!