Reducing Sales Rep Turnover


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Reducing Sales Rep Turnover

  1. 1. Reducing Sales Rep Turnover<br />Fred Berger<br />President<br />Document Technology Solutions Consulting<br /> <br />  “Partnering with Dealers to Reach the Next Level”<br />
  2. 2. Agenda<br />DTS Consulting Introduction<br />Key Industry Trends<br />Cost of Sales Rep Turnover<br />Reasons for Sales Rep Leaving<br />Common Turnover Reduction Actions<br />Circle of Success<br />Summary <br /> Next Steps<br />Questions<br />
  3. 3. DTS Consulting <br />An Independent Industry Consulting Firm Dedicated to <br />“Partnering with Dealers to Reach the Next Level”<br />35 years experience helping companies grow and improve overall performance through change and innovation<br />Access to Alliance Partners representing some of the best expertise in the industry<br />President of the 4th largest Sharp Dealership in the US<br />COO of a $20 million Dealership<br />Vice President Danka Acquisitions<br />Vice President of Ricoh Business Systems - Ricoh’s Direct Channel<br />
  4. 4. Key Industry Trends <br />
  5. 5. Cost of Sales Rep Turnover<br />The average turnover for copier sales reps in the US is 60 %<br />30% of all sales reps have been with their current company less than 1 year<br />The average tenure for a new hire is between 3 and 6 months<br />The average cost of a sales reps turnover after 5 months is:<br />Salary @ $24,000 year $10,000<br />Fringe Benefits @ 25% $ 2,500<br />Car Allowance @ $400 mo. $ 2,000<br />Recruiting $ 3,000<br />Training $ 2,000<br />Total $19,500<br /> <br />This excludes any lost Gross Profit that a sales rep would produce from sales and aftermarket<br /> <br />
  6. 6.  Reasons given for Sales Rep leaving<br />
  7. 7. Time spent to hire a Sales Rep<br />Recruiting time 1 hour<br />Preparation for interview ¾ hour<br />Interview by 3 managers 1 ½ hours<br />Post interview review ¾ hour<br />Total 4 hours<br /> <br /> <br />Number of interviews per hire 6 interviews<br />Number of hours spent interviewing per hire 24 hours<br /> <br />If you have 20 reps at 60% turnover that consumes <br />288 hours or 36 days per year <br />
  8. 8. Typical things companies do to reduce turnover<br />
  9. 9. Results of all these actions<br />
  10. 10. Circle of Success<br />Circle of Success<br />Sales Rep <br />Opportunity<br />In the center of all of this are the people responsible for effectively executing each element<br />Success <br />Factors/<br />Programs<br />Hiring<br />SM<br />GSM<br />VPS<br />Activity <br />Management/<br />Account Reviews<br />Compensation<br />1st Day/10 Day <br />Orientation<br />Training<br />
  11. 11. Sales Rep Opportunity<br />Why are you hiring a sales rep?<br />Replacement?<br />Addition?<br />Have you evaluated the territory/opportunity?<br />Territory make-up<br />What type of Sales Rep are you hiring? Why?<br />Geo<br />Vertical<br />Major Account<br />MPS<br />Software/Solutions<br />Specialist<br />Team concept<br />Can the territory support the Sales Rep?<br />MIF?<br />Customers?<br />
  12. 12. Hiring<br />Based on the type of Sales Rep<br />Have you developed a general profile?<br />Have you developed a specific profile?<br />Skill set of candidate must align with the opportunity<br />Geo rep<br />Vertical market rep<br />Major account rep<br />Solutions rep<br />Specialist <br />Interview process<br />Behaviors<br />Skill sets<br />Experience level<br />Testing<br />Pre-set questions<br />Interviewers, manager, general manager, vice president, owner, etc<br />Develop/ Maintain candidate pool<br />Do Not Settle<br />
  13. 13. Compensation<br />One size does not fit all<br />Compensation plan must align with company strategy, sales rep opportunity, sales rep profile, etc<br />Base compensation versus variable compensation<br />Align with company strategy, sales rep opportunity, sales rep profile <br />Ranges, competitive, drivers, internal alignment, experience<br />Sales Manager compensation should be geared toward sales rep success<br />
  14. 14. 1st Day/10 Day Orientation<br />1st Day – The most important day!!!!!!<br />Welcoming<br />Tools ready<br />Phone<br />Laptop<br />Computer access<br />Desk, chair, clean<br />Business cards<br />Company documentation<br />Organization chart<br />Hiring paperwork<br />Introduction<br />Company management<br />Key personnel<br />Meeting<br />Game plan<br />
  15. 15. 1st Day/10 Day Orientation<br />10 Day Orientation<br />Create a 10 day orientation<br />Should be day by day, hour by hour<br />Include :<br />meetings with key individuals<br />Training on tool utilization<br />Training on company sales/marketing materials<br />Training on products/programs<br />Training with key sales reps<br />Training with manufactures sales reps if possible<br />Review meetings after each session with manager/employee<br />Home work assignments<br />Etc<br />Keep them involved at all times<br />Have 1st management review with employee after this 10 day program<br />
  16. 16. Training<br />Management’s commitment to training is critical to success and retention of sales reps<br />Continuous training throughout their career is a MUST<br />Ensure the training process is managed<br />Create a multi level training plan, include time frames and reviews<br />Should include:<br />Manufacturer's training<br />Web based training<br />Hands on training<br />Self paced training<br />Etc.<br />Manager reviews after each course, evaluation<br />Manager MUST reinforce training programs<br />Manager MUST make sure training program is adhered to.<br />Showroom must include hardware and software to support training program<br />Sales manager should have weekly team training meetings<br />
  17. 17. Activity Management<br />Sales Managers need to drive sufficient activity levels to achieve success<br />Activity levels need to be sales rep type driven<br />Sales Managers need to review and monitor activity and levels<br />Sales Force Automation tool should be used to monitor activity and pipeline<br />
  18. 18. Account Reviews<br />Account reviews should be on a set schedule<br />Sales Manager should conduct thorough account reviews<br />Account reviews should be solution driven not just sales close driven<br />Team account reviews should be the norm<br />Next level manager should sit in on many account reviews<br />Remote monitoring and SFA tools should be used for account reviews<br />
  19. 19. Success Factors/Programs<br />All Sales Reps should be aware of internal/external marketing/sales programs<br />Sales managers should make sure these programs are used appropriately<br />Internal programs should be geared toward strategic plans<br />Internal programs should be geared to make new hired sales reps “Ring the Bell”<br />Sales manager should be tied to the success of these programs<br />
  20. 20. Summary<br />
  21. 21. Next Step<br />Key Area Assessment Grades<br />Sales Rep Opportunity 1-10 <br />Hiring 1-10 <br />Compensation 1-10 <br />1st Day / 10 Day Orientation 1-10<br />Training 1-10<br />Activity Management/ Account Reviews 1-10<br />Success Factors / Programs 1-10<br />
  22. 22. Questions?<br />For More Information Contact:<br />Fred Berger<br />President<br />Document Technology Solutions Consulting, Inc.<br />727-403-3936 ©<br /><br />Document Technology Solutions Consulting<br /><br />“Partnering with Dealers to Reach the Next Level”<br />