Previously I wrote about Stephen Covey’s success habit #2, Begin With The End In Mind, and how that related to ensuring a successful hire of your next salesperson. Once you get them hired, the question is how do you get them off to a fast start.
To ensure you and your new hire are on the same page, set goals in three areas: revenue, activity, and learning. Reset these objectives as frequently as required to master what they know, do and use to be successful.
Why these three areas?
Let’s start with the easy one.
#1: Revenue Goals
It’s a sales role so they are expected to sell. Easy enough! Just don’t stop there. Hitting a revenue mark is the net result of something. It is not something you can produce. It’s the reward from your efforts.
I suggest you break this goal into two parts. First, how much revenue are they expected to ask for and how frequently are they to be asking for it. Base this on their closing ratio. If you don’t know what that is, pick the standard which is twenty-five percent, one out of four presentations get closed.
For example if your average order size is $100,000 and your closing ratio is 25%, the goal would be: Generate $1 million in revenue within the first year with an average gross margin of 20%. This means they will be getting into position to ask one prospect a week to buy a minimum of $100,000. Here’s the math: When you remove vacation, holidays, sick days, etc., your salespeople work about 48 weeks per year. So, 48 times they will ask someone to buy $100,000 which equals $4.8 million in asks. With a 25% closing ratio, they will generate $1.2 million in revenue.
Your salespeople cannot produce revenue. They can only ask for it. Control the asks. Who they ask, how they ask, when they ask, how often they ask, and how much they ask for. Ask and you get – don’t and you won’t.
#2: Activity Goals
To ask someone to buy, they have to be in position to ask them. What activities on a daily basis get your salespeople in position to do that? Typically, they have to identify a lead. That is a prospect in your targeted marketplace. Then, they have to qualify that lead to see if it is a prospect. That is finding out who the decision makers are, what do they buy, and will they pay you for your value. Then they have to set an appointment and then, make a discovery call. How much of this activity is required on a daily basis in your world to ensure that your salesperson will be in position to ask someone to buy?
#3: Learning Goals
In a world of fast change, the relevant becomes irrelevant sooner.
The challenge is staying abreast of change as well as, improving your salesperson’s skill while they are doing their job.
To address this challenge, establish your learning curriculum. As a new salesperson to the company they’ll have to learn the systems, the processes, the technology, the products, the customers, and the value proposition. Additionally, to remain relevant, they’ll have to stay abreast of industry changes and to stay effective they’ll have to reinforce their skills.
With today’s technology, there is no excuse for not having this organized and available on-demand for your salespeople.
If you want to learn how we address this challenge at Performance Group, download our free e-book on Onboarding Salespeople.
Revenue goals, activity goals, and learning goals are the three-legged stool of being effective in the profession of sales. Keep those in balance and you won’t teeter and fall.