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Useful Advices - Does Your Sales Training Program Address Your Sales Performance Issues? Part 2
In Part 1, we went over the steps to uncover sales performance issues and decide which are applicable at a high priority for pin-point sales skill training. We first documented the main sales performance issues. There are (4) distinct sales performance silos that will effect the overall outcome of any sales team, year in and year out. They are:
• % of Sales reps to Quota
• Average New-hire Ramp-to-Quota in months
• Sales Employee Turn
• % of Sales reps to Quota
• Average New-hire Ramp-to-Quota in months
• Sales Employee Turn
According to USFDA, a combination product is one composed of any combination of a drug and device; biological product and device; drug and biological product
over rate
• Time spent versus Result achieved
Next we, listed (4) steps to find out if you have any sales performance issues in each individual sales performance silo and if so to what degree. They were:
Step 1: ‘Run the Numbers’ for any realistic ROI opportunity
Step 2: ‘Run the Numbers’ hypothetically for a ‘Specific’ improvement
Step 3: ‘Run the Numbers’ for a ‘Reality Check’
Step 4: Set the Goal and ‘Train to It’
I
• Time spent versus Result achieved
Next we, listed (4) steps to find out if you have any sales performance issues in each individual sales performance silo and if so to what degree. They were:
Step 1: ‘Run the Numbers’ for any realistic ROI opportunity
Step 2: ‘Run the Numbers’ hypothetically for a ‘Specific’ improvement
Step 3: ‘Run the Numbers’ for a ‘Reality Check’
Step 4: Set the Goal and ‘Train to It’
I
; or drug, device, and biological product and fixed dose combination would include two or more combinations of drug.
Examples of combination products may in
Examples of combination products may in
n our first example, we looked at a sales organization’s performance silo of ‘New-hire Ramp-to-Quota and determined (1) a sales performance issue and (2) a worthy sales training objective and (3) a realistic sales training return on investment.
Let’s take that same sales force and utilizing our (4) step process look at the remaining two Sales performance issues; ‘Sales Employee Turnover rate’ and ‘Time spent versus Result achieved’ to see what the
Let’s take that same sales force and utilizing our (4) step process look at the remaining two Sales performance issues; ‘Sales Employee Turnover rate’ and ‘Time spent versus Result achieved’ to see what the
lude drug-coated devices, drugs packaged with delivery devices in medical kits, and drugs and devices packaged separately but intended to be used together.
X2 Evaluator™ system turns up.
Step 1: ‘Run the Numbers’ for any realistic ROI opportunity
Our example sales force has 350 sales reps that are responsible for securing new business each month. They currently have a sales employee turnover rate of 45%, or 155 reps per year. I’ve found in the sales industries I partner with, my clients average between 30%-70% sales employee turnover per year, so these folks are right in norm. But the ‘norm’ doe
Step 1: ‘Run the Numbers’ for any realistic ROI opportunity
Our example sales force has 350 sales reps that are responsible for securing new business each month. They currently have a sales employee turnover rate of 45%, or 155 reps per year. I’ve found in the sales industries I partner with, my clients average between 30%-70% sales employee turnover per year, so these folks are right in norm. But the ‘norm’ doe
here is enormous increase in the number of combination products entering the market in the recent years. Combination products have proven advantages but fixe
sn’t have to be the ‘Future’.
Here’s another important point. In the sales arena, 95% of sales employee turnover is due to Low 1st appointment activity. And in our example sales force, it was nearly 100%. Simply, if you’re not creating enough sales appointments each month, you either go out the door or you are ‘Shown the door’. Now let’s run the numbers to see exactly what this sales employee turnover is costing them and attach a weight of pri
Here’s another important point. In the sales arena, 95% of sales employee turnover is due to Low 1st appointment activity. And in our example sales force, it was nearly 100%. Simply, if you’re not creating enough sales appointments each month, you either go out the door or you are ‘Shown the door’. Now let’s run the numbers to see exactly what this sales employee turnover is costing them and attach a weight of pri
d dose combinations are still in the process of convincing regulatory authority on their advantages over the single ingredient formulations.
Combination pro
Combination pro
rity to consider ‘pin-point’ sales performance training.
Here are the numbers relevant to costs:
• Average Salary: $30,000
• Recruiting Costs: $ 2,000
• Training Costs: $ 3,500
• Monthly Sales Quota: $ 3,500
In sum, this sales management team is looking eye to eye to a total of $4,512,200 going out the door each year, a combination of revenue ramp up costs on the front end, revenue production loss on
Here are the numbers relevant to costs:
• Average Salary: $30,000
• Recruiting Costs: $ 2,000
• Training Costs: $ 3,500
• Monthly Sales Quota: $ 3,500
In sum, this sales management team is looking eye to eye to a total of $4,512,200 going out the door each year, a combination of revenue ramp up costs on the front end, revenue production loss on
ucts have become life saving products for the pharmaceutical companies who doesn’t have many innovative molecules in their product pipeline and have been inc
the back end, salaries and benefits, then again revenue ramp up costs and salary for the replacement new hire. It’s a vicious circle.
And once again that total ‘Penalty cost’ number is an attention getter.
Simply put, each sales rep going out the door, due to low sales appointment activity, is costing the company $29,300 of lost revenue.
Does that portray a legitimate sales training Return on investment opportunity? Well, in less you need to i
Does that portray a legitimate sales training Return on investment opportunity? Well, in less you need to i
easingly used in the product life cycle management. Even the companies having product patents are trying to extend their product life cycle through the combi
vest $29,300 per sales rep in the training of choice to remedy the sales performance issue… it certainly does.
Step 2: ‘Run the Numbers’ hypothetically for a 50% improvement
In this case, I showed the sales management team what return on investment they would get by retaining just half of the sales reps going out the door due to low sales appointment activity.
Using their numbers my diagnostic system showed them a ROI of $2,256,100 just by redu
Step 2: ‘Run the Numbers’ hypothetically for a 50% improvement
In this case, I showed the sales management team what return on investment they would get by retaining just half of the sales reps going out the door due to low sales appointment activity.
Using their numbers my diagnostic system showed them a ROI of $2,256,100 just by redu
nation products and maximize the revenues. But the companies involved in this practice are overlooking that they are burdening the patients both economically
cing their sales employee turnover due to low sales appointment activity from 44% down to 22%. That’s keeping 77 sales reps from going out the door and adding to the sales productivity pool.
Step 3: ‘Run the Numbers’ for a Reality Check
Remember in Part 1 of ‘Does Your Sales Training Program Address Your Sales Performance Issues?’ we ran this sales force team’s key sales performance indicator numbers in the X2 system to see ‘if and where’ there
Step 3: ‘Run the Numbers’ for a Reality Check
Remember in Part 1 of ‘Does Your Sales Training Program Address Your Sales Performance Issues?’ we ran this sales force team’s key sales performance indicator numbers in the X2 system to see ‘if and where’ there
and physically. They need to rightly judge the benefits of the combination products and they have to even look at the risks involved when combining the produ
were leaks in the ‘KPI ship’. And we discovered not a leak, but a big ‘ole fire hose.
Two ‘KPI issues’ were apparent. First, their ramp-to-quota for a new-hire took 7 months when the average sales cycle is 17 days? Second, they were only setting 3 new appointments per week when they needed to set 6, based on their other KPIs and a subsequent sales appointment activity number. Thus, their sales appointment ‘activity barometer’ was only runnin
Two ‘KPI issues’ were apparent. First, their ramp-to-quota for a new-hire took 7 months when the average sales cycle is 17 days? Second, they were only setting 3 new appointments per week when they needed to set 6, based on their other KPIs and a subsequent sales appointment activity number. Thus, their sales appointment ‘activity barometer’ was only runnin
ts. Some of the combination products were well accepted by physicians while others suffered. Companies involved in development of combination products are fi
g at 50%. And that we determined dictates a longer ramp-to-quota.
Then we dug a bit deeper in the X2 system and out popped a 6% conversation-to-appointment ratio; they had to conduct 15 prospect conversations to get 1 new appointment.
We then asked the ‘Reality Check’ question. Is it realistic to focus on reducing the sales rep turnover due to low sales appointment activity in half, from 44% to 22% for a sales training ROI of $2,256,100 or $29,
Then we dug a bit deeper in the X2 system and out popped a 6% conversation-to-appointment ratio; they had to conduct 15 prospect conversations to get 1 new appointment.
We then asked the ‘Reality Check’ question. Is it realistic to focus on reducing the sales rep turnover due to low sales appointment activity in half, from 44% to 22% for a sales training ROI of $2,256,100 or $29,
ding difficulty in defining their combination products and facing various challenges from selecting a combination to marketing it.
Following aspects would a
Following aspects would a
300 per rep?
And we answered ‘yes’ if they addressed the front-end of their sales process; setting targeted sales appointments. Again as before, they needed to (1) establish an activity standard to reach quota based off of individual KPIs and (2) develop a sales prospecting methodology and supporting system to spend less time in achieving it.
Because most sales employee turnover happens in the new hire ramp-to-quota issue silo, the same pin-poin
And we answered ‘yes’ if they addressed the front-end of their sales process; setting targeted sales appointments. Again as before, they needed to (1) establish an activity standard to reach quota based off of individual KPIs and (2) develop a sales prospecting methodology and supporting system to spend less time in achieving it.
Because most sales employee turnover happens in the new hire ramp-to-quota issue silo, the same pin-poin
dd to the challenges in developing combination products:
Which markets to tap where the combination products can do fairly well?
Which combination prod
Which markets to tap where the combination products can do fairly well?
Which combination prod
sales skill training initiative kills two birds with one stone.
And if you add those (2) ‘sales training initiatives birds’ up, it points to $14,532,100 of realistic revenue recovery.
Step 4: Set the Goal and ‘Train to It’
Reducing sales employee turnover due to low sales appointment activity now appears to be a worthy one. It makes good business sense for this sales organization. And if we measure our results, we will probably add some more
And if you add those (2) ‘sales training initiatives birds’ up, it points to $14,532,100 of realistic revenue recovery.
Step 4: Set the Goal and ‘Train to It’
Reducing sales employee turnover due to low sales appointment activity now appears to be a worthy one. It makes good business sense for this sales organization. And if we measure our results, we will probably add some more
cts are meaningful and rational?
Which therapeutic categories to select?
Which Combinations can address unmet needs of the patients?
Do combin
Which therapeutic categories to select?
Which Combinations can address unmet needs of the patients?
Do combin
revenue back on the table with additional reps not going out the door… to the tune of $29,300 per rep.
As in Part 1, our sales training goal in this case is to spend the least amount of time to get the desired number of sales appointments each week to assure our monthly success. Now as a side bonus, let’s take a look at our last sales performance issue silo, ‘Time spent versus Result achieved’, and see what, if anything, we can address related t
As in Part 1, our sales training goal in this case is to spend the least amount of time to get the desired number of sales appointments each week to assure our monthly success. Now as a side bonus, let’s take a look at our last sales performance issue silo, ‘Time spent versus Result achieved’, and see what, if anything, we can address related t
tions increase the patient compliance?
What would be the developing cost?
How to tackle the risks encountered during combination product developmen
What would be the developing cost?
How to tackle the risks encountered during combination product developmen
our pin-point sales training initiative.
“Time is money”. What’s your ‘Hourly rate’? If you’re a sales rep with a W-2 goal of $100,000 your hourly rate is approximately $51 dollars an hour. Here’s an interesting statistic. My clients spend an average of 50% of their time on the very front-end of their sales process; sales prospecting for new opportunities to initiate their sales process. This sales management team gave me an average prospect
“Time is money”. What’s your ‘Hourly rate’? If you’re a sales rep with a W-2 goal of $100,000 your hourly rate is approximately $51 dollars an hour. Here’s an interesting statistic. My clients spend an average of 50% of their time on the very front-end of their sales process; sales prospecting for new opportunities to initiate their sales process. This sales management team gave me an average prospect
t?
As combination products don't fit into the traditional categories of drugs, medical devices, or biological products, the USFDA is in the process of devel
As combination products don't fit into the traditional categories of drugs, medical devices, or biological products, the USFDA is in the process of devel
ing time of 45% to plug into the Evaluator™ system.
And here’s what it showed...
The sales reps were spending an average of 20 hours per week on sales prospecting and sales appointment generation. But they were only running at 50% on their ‘Activity Barometer’ and needed to generate 50% more sales appointment activity; going from 3 new appointments per week to 6. At their current sales prospecting efficiency rate of 6% (15 Prospect conversation
And here’s what it showed...
The sales reps were spending an average of 20 hours per week on sales prospecting and sales appointment generation. But they were only running at 50% on their ‘Activity Barometer’ and needed to generate 50% more sales appointment activity; going from 3 new appointments per week to 6. At their current sales prospecting efficiency rate of 6% (15 Prospect conversation
ping new procedures for reviewing their safety, efficacy and quality.
Professional from academic institutions, pharmaceutical industries, health care indust
Professional from academic institutions, pharmaceutical industries, health care indust
to get 1 appointment) they would need to dedicate 33 hours per week to sales prospecting and sales appointment generation. And we know that’s not realistic.
But if they set a sales training objective of moving that appointment conversion ratio to 50%, they would not only meet their sales appointment activity number but save 26 hours per week, for a time recovery of 79%, from 33 hours per week to 7. And 26 hours times $51 per hour recovers $1326
But if they set a sales training objective of moving that appointment conversion ratio to 50%, they would not only meet their sales appointment activity number but save 26 hours per week, for a time recovery of 79%, from 33 hours per week to 7. And 26 hours times $51 per hour recovers $1326
y and representatives from various regulatory agencies are working out to design the regulatory requirements for manufacture and sale of combination products
‘Hourly Rate’ money, allowing sales reps to increase capacity and pursue higher-value, solutions-based selling opportunities.
Once again with our last (2) sales performance issue silos we determined (1) a sales performance issue and (2) a worthy sales training objective and (3) a realistic sales training return on investment.
Ask any CFO what their first impression is when they hear the words ‘Sales Training’ and they might communicate back thei
Once again with our last (2) sales performance issue silos we determined (1) a sales performance issue and (2) a worthy sales training objective and (3) a realistic sales training return on investment.
Ask any CFO what their first impression is when they hear the words ‘Sales Training’ and they might communicate back thei
.
As there is an increasing trend of the combination products companies manufacturing such products should be able to tackle the problems involved in the de
As there is an increasing trend of the combination products companies manufacturing such products should be able to tackle the problems involved in the de
‘Real world’ vocabulary of ‘un-accountable’ and ‘un-measurable’. Simply put, they know they’re wasting at least half their sales training budget dollars; the problem is they don’t know which half.
As a sales management leader, methodically discovering sales issues first and then running ‘Quantitative’ sales performance numbers to check for feasibility, worthiness, and return on sales training investment will differentiate you from the pack. And
As a sales management leader, methodically discovering sales issues first and then running ‘Quantitative’ sales performance numbers to check for feasibility, worthiness, and return on sales training investment will differentiate you from the pack. And
elopment. They need to be wiser in analyzing the market trends and the regulatory requirements.
Companies that provide selfless information through particip
Companies that provide selfless information through particip
you’ll stand an excellent chance of getting the result you want.
In this case, giving sales reps a skill-set to set 1 ‘Top-down’ business appointment in 2 conversations will allow participants to set the required amount of targeted business appointments to assure their monthly revenue goals. So less people will leave, they’ll make more money and spend less time and you will recover measurable dollars; something you can actually put your finger on
In this case, giving sales reps a skill-set to set 1 ‘Top-down’ business appointment in 2 conversations will allow participants to set the required amount of targeted business appointments to assure their monthly revenue goals. So less people will leave, they’ll make more money and spend less time and you will recover measurable dollars; something you can actually put your finger on
tion in industry events and feedback to regulatory authorities would be able to face the challenges and will be successful in developing combination products
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