Every company loves to have a great sales organization as that is the backbone of any company. Consistently hitting the numbers is very important for the organization to plan for future growth and also plan the hiring of the support organization.
Science can be applied to hiring and forming the right sales organization.
The questions that CEOs or Heads of Sales constantly ask themselves are:
- How many people should I hire?
- What sort of skill sets I should be looking out for?
The number of people you should hire should be directly proportional to the number of customers available for you to sell into. The parameters to decide the team size are:
- Based on the territory or the account coverage, you should define a timeline before which you should touch all these accounts and create awareness as a base metric.
- The absolute number of customers a salesperson can get in touch with to have a decent conversation in a month is the next metric.
- The third aspect is the revenue, which a salesperson can achieve compared to a revenue goal of the organization. The total number of the sales team can be determined based on these three metrics of a few more.
[bctt tweet=”Hiring the team is based on the ratio of the total number of targeted accounts to the total efforts that need to be taken to cover the same. #salesteam, https://bit.ly/2Zpv4MG ” username=”csbalaji”]
There are multiple activities that need to be done in order to move a prospect to be a customer. This can be prospecting, initial conversations, needs analysis, proposal writing, and closing deals. A sales organization needs to have a healthy mix of skilled people all through the cycle.
Also, read the blog I had written on Building an effective Sales team
There will be huge leakage in the sales funnel if the organization has a gap in that stage. Hence, the immediate mandate should be to fill up the skill set that the organization lacks at that point in time. Then go into filling up the openings based on the goal –a skill set mapping of resources in the respective stages of the sales cycle
Measuring team effectiveness is important. Lots of logical thinking has gone into hiring the right sales guys and putting them on the job. However, monitoring them as often as possible is important because you should know if your thoughts are coming into action.
When things go well, you can even look at adding people in the team to perform better because your sales cost will only be a % of the revenue. In case, it is not going well, you can understand if the problem is with the person, with the process, with the systems you have in place or finally – with you to make the changes to hit your numbers with the team you have with you.
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