More Sales Reps Vs. More Productive Sales Reps

CEOs, sales leaders, and private equity investors want sales growth. But they don’t want to hire more reps to get that growth.

Many companies don’t need more sales reps either. They need more productive sales reps.

To increase sales reps’ productivity, CEOs, sales leaders, and investors need to ask themselves two questions: (1) Is the sales organization as efficient and effective as it could be? (2) If not, what needs to change?

A sales audit can provide answers. This relatively quick evaluation helps identify a sales organization’s strengths and weaknesses and pinpoints areas for improvement.

How It’s Done

An effective sales audit is conducted by someone who does not work directly with the sales organization. Ideally, it’s done by an independent professional who is not an employee and who has no stake in the outcome of the audit. (Full disclosure: Our firm conducts sales audits.)

A sales audit has three stages:

1. Interviews with:
   
   
   
   • The CEO and the sales leader.
   
   
   • Many, if not all, of the sales reps.
   
   
   • Selected members of the sales support and marketing teams.
   
   
   
   


2. Analysis of the relationships and the processes.


3. Creation of a report with findings and recommendations.

There are four key areas to audit:

1. Sales Strategy—Does the company have a strategy? Is the sales team effectively executing that strategy? Is the team pursuing the best opportunities?


2. Sales Processes—Does each sales rep use a standardized sales methodology or do they each have their own system?


3. Sales Organization—Do the sales reps have the necessary skills? Are the right people in the right jobs?


4. Sales Tools—Do the reps have the right tools (marketing materials, contract forms, etc.) to do their jobs effectively and efficiently?

Sales Strategy

Let’s start with the sales strategy. Is there one? If so, do the sales reps understand it? Are they executing the strategy by calling on the right prospects with the right message and the right offering?

If the answer to any of these questions is “no,” the organization has a big problem.

Lack of a sales strategy, or the failure to implement one, is a huge barrier to sales success. It might even be a fatal barrier, if not corrected. Developing a sales strategy should become Priority #1 ASAP.

Ideally, there is a sales strategy, but a breakdown in communication may be hampering effective execution of that strategy.

This can probably be corrected via better communication between the CEO and the sales team or additional training to make sure the team understands the strategy.

Sales Processes

“Sales Process” refers to how sales reps do their jobs. Does the sales team follow a standardized set of procedures for contacting, following up with, and cultivating prospects? Are reps systematic about this?

Does the company have a CRM system? Do the sales reps use it? Or do they keep their sales information on individual spreadsheets which they keep to themselves?

Do the CEO and sales leader have the information they need to forecast revenue and manage the sales team?

According to a CSO Insights study, sales teams that follow a standardized methodology are far more likely to succeed than those who do not—as evidenced by these two interesting statistics:

• Made quota—73% vs. 56%.


• Closed forecasted deals—59% vs. 43%.

Sales Organization

With respect to the people in your sales organization, there are three areas to consider: roles and responsibilities, skills, and compensation.

• Roles & Responsibilities—Could the sales support team assume some of the reps’ responsibilities and free up the reps to do the strategically important face-to-face selling?Another CSO Insights study shows that reps actually spend only two days a week selling. Imagine the impact of giving them even another half day of selling time.

• Skills—Does the sales team know how to execute the company strategy? Does the team know how to follow the sales processes? If not, training is probably necessary.With a little training, could the sales support team become an inside sales organization capable of generating more revenue for the company?

• Compensation—Does the company reward the right kinds of behavior?

Sales Tools

In many sales organizations, reps create their own PowerPoint presentations and develop their own proposals. This is an enormous waste of time. It can even put the company at risk if a proposal contains incorrect pricing or unfavorable terms.

Does your company have standardized sales materials and proposal templates? Do the sales reps know these exist and where to find them?

Benefits Of A Sales Audit

Make sure you figure out what ails the sales organization before you make any changes. Training people is a whole lot cheaper than replacing them. Changing processes can be more effective (and cheaper) than changing people.

A sales audit can save you a lot of time, money, and heartache. By creating more productive sales reps, you can achieve your sales growth targets without hiring more reps.

More Sales Reps Vs. More Productive Sales Reps