CEO @ Wave Growth
CEO @ Wave Growth
5 Actionable Tips on How to Scale Your Sales Team the Right Way
Ultimately, no matter how great your product is, or how much the market may need it, the success of your venture will always depend on the ability of your sales team to sell your products and expand your business.
That said, it can be difficult to gauge the size of the sales team you should have or understand why the one you’ve built isn’t delivering the kind of results you need.
So, how can you scale your sales team the right way?
Set Solid Goals.
Whatever metrics you use to gauge your success, your math needs to be solid.
What is your average contract price?
How many new contracts do you need to bring in each year to achieve your revenue goals?
These are the two most important factors to consider when building your sales team.
Quantify Your Sales Process
Once you have clearly defined your goals, you need to quantify the number of activities that will be required to reach your targets. Let’s say that a salesperson’s target is 1 million dollars, and the average contract price is 25,000. That salesperson will need to bring in 40 customers on a yearly basis, which is 3.3 customers on a monthly basis.
Typically, for every 3-5 meetings that a salesperson has, one will convert into an opportunity. The average corporate consultancy sales conversion rate from opportunity to customer is 33%.
So, to hit that million-dollar goal, your salesperson will need to bring in 3.3 customers per month. Given that (on average) 3-5 meetings will generate 1 opportunity, and 4 opportunities will generate 1 customer, you need to have 20 meetings to get one customer, and that means your salesperson will need to have 800 meetings (3 per day) per year to hit that 1 million dollar mark.
Most salespeople can handle 3-5 meetings per day and balance the rest of their tasks. The key to their success is getting enough leads, and you can read more about that here. As a general rule, you should provide your salespeople with 4x the opportunity they need. This allows them to have a bad quarter and still have enough in the pipeline to close.
Once you know how many leads you will need, and how many salespeople would be required to turn those leads into customers, you can scale your team accordingly.
Factor In Technology
Working with outdated technology, or systems that do not follow workflow will frustrate your sales team, slowing down the processes they rely on and making them less competitive.
It’s important to analyze your technical infrastructure when considering the scale of your team. You don’t want to be spending unnecessary money on IT support when the introduction of an intelligently designed sales system will allow your team to run leaner.
Include Yourself In The Equation
Building an efficient sales team isn’t enough to keep things running smoothly. Salespeople thrive in competitive environments where their achievements are recognized and their hard work is rewarded.
Your time will be required to guarantee that your sales managers are maintaining a highly productive company culture that encourages diligence, persistence, and communication within your sales team.
Finally, Remember That Activity Equals Success
In summary; in order for you to accurately scale your sales team, you need to have a formulaic breakdown of your sales activity.
How many seminars, how many webinars, how many conferences, how many calls, emails, and meetings do you need to achieve your goals?
It’s not guesswork. It’s not a vague process. It’s purely a metric one.To scale your sales team effectively, you just need to do the math.Have a personal experience you would like to add?
Do you think a formulaic approach to sales is the best way to scale your sales team? Let us know in the comments!
“Too often in business, only financial data is gathered – and then it is distributed only to management. Other key indicators that relate to performance areas also need to be tracked. Information on performance has to be made available to those people who can best use it – those doing the work.” – Ken Blanchard