Regardless of the economic environment we are operating in, it is critical to find a way to increase sales. In many cases, management will try to achieve this by throwing more resources at the challenge. This can work if they hire the right people and train them well, and then the people hired perform as expected. If this works, the return on investment is high with strong sales growth. If it does not work, the costs can be high as sales people can be expensive to higher, train, and keep on payroll.
Unfortunately, when you hire new employees, you never know how they are going to turn out and how they will perform day in and day out. One way to decrease the risk and uncertainty with staffing new sales people is to utilize a process of sales coaching. Sales coaching is effective at increasing sales and improving performance by working directly with the sales staff on a one-on-one basis to keep them focused, motivated, and on track.
The impact of being able to increase sales through something like sales coaching can be very advantageous. From a top line perspective, by improving the probability and amount of success for each sales person, the cumulative revenue increase can drive very significant revenue growth and improvements in profitability. This could be the determining factor in succeeding in a competitive marketplace and gaining market share.
Increase Sales to Increase Company Valuation
A bigger picture benefit is that this could improve the valuation of the company as a whole. By posting better growth and profitability figures, a public company could see an increase in its stock price. For private companies, this could make the company more attractive from an acquisition standpoint and enable it to be purchased at a higher price.
Increase Sales to Increase Employee Valuation
Utilizing sales coaching to increase sales, will also deliver strong benefits to the individual contributors as well. For the sales staff and sales management, this means an increase in quota attainment providing more commissions and money in their pockets. In the long-term, the benefits could be job security, job satisfaction, and being better positioned for any potential promotions.
Decrease Hard-dollar Costs
By effectively increasing sales, the company will not only see top line improvement, but can also stand to see strong improvements in the bottom line by controlling and decreasing costs. This is achieved by decreasing turnover through creating a happier and more successful staff. By decreasing turnover, the company will see hard-dollar savings in the area of hiring, training, and replacing sales staff.
Decrease Opportunity Cost
By improving the success of the sales staff and decreasing turnover, the company also stands to decrease opportunity cost. Consider the business that is lost or missed while a sales person is under-performing. Add to that any business that is lost or missed while a position is open from a resignation or termination. Finally, add to that any business that is lost or missed while a new hire is being trained and getting ramped up. All of this adds up to a tremendous amount of opportunity cost and that can be decreased by improving performance and tenure for the sales staff.
Michael Halper has a passion for coaching individuals toward personal and professional development. For more information about coaching and development visit Compass Coaching you can read more about Using Sales Coaching to Increase Sales or Sales Coaching.
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