What is sales productivity? Why is it important? How can you improve yours?
What is sales productivity?
Sales productivity is described as the measurement of how your organisation uses tools, resources, and processes to achieve key business goals while reducing the time and costs associated with gaining new business. Sales productivity can be measured across your entire company. The best way to calculate your company’s sales productivity is by dividing the total number of sales revenue by the total number of salespersons you have in your business. This will then round up the total average value of sales.
Tracking your business’ sales productivity is important in many different ways. For instance, when you track your sales productivity this will help your company to make changes to the sales process and strategy. This will lead to your sales team being more effective in their jobs and subsequently close more deals. Another reason why tracking sales productivity is important is that it can help your business increase sales and revenue. The more effective and efficient the sales department is, the more successful your business will be.
If your sales are staying at the same level or declining, it might be time to start thinking about different ways to boost your sales productivity. Below, we give you some different ways to help boost your sales productivity:
One way to boost your sales productivity is to invest in sales training. Due to the constant changes that the sales environment goes through, it is very important to be able to offer your sales team training to help them achieve the best sales results. Research suggests that if a company offers ongoing sales training, their sales team produces 50% higher net sales per salesperson.
It's important to ensure you understand your ideal customer to help you boost your sales productivity. The best way to do this is to create your ideal customer profile and then target these customers. If you focus on the specific customers that generate the most value for your business, you are more likely to increase sales productivity.
Tracking your sales activities is another way you can boost your sales productivity. After all, you can only increase your sales productivity if you actually know where your business currently stands and what is going well and not so well. Once you begin tracking your sales activities, ensure that you continue to evaluate your sales process and make changes where needed to improve even further. As the sales environment changes, your sales methods will also need to adapt.
Lastly, a final way to help boost your sales productivity is to create daily goals for your sales team to target. This helps to keep your sales team focused and will boost productivity all round. Don’t forget to introduce incentives for your sales team when they reach a certain goal.