You hired Rachel two months ago. She still hasn’t closed a deal, but that’s to be expected. It’s a new product, a different sales process, and an unfamiliar client base. As a sales leader, you know Rachel will bring in at least a little business next month and should be on track to meet her goals by the end of the year. A ramp up period is to be expected, and you feel it’s best to let her learn and find her groove. Your patience will cost the company tens of thousands in potential revenue.
ROI Analysis of Sales Ramp-up Times
An ROI analysis from Gong.io shows decreasing ramp up time significantly impacts revenue. Let’s say Rachel’s goal is $600k in annual revenue, so $50k a month. If Rachel takes 7 months to gradually ramp up to her monthly target, she will bring in $381,250 that year. However, if that ramp up time decreases just two months, she will bring in $462,500! Just a two months difference can increase the rep’s revenue by nearly 20% (see fully breakdown here). When this is applied to entire teams of new reps, the combined results are substantial.
How Sales Leaders Can Reduce Ramp Up Times
So how does a sales leader reduce this ramp up time? Ramping up takes time not because reps are just lazy when they start; learning the ropes in a new sales position takes time and even the most talented rep won’t be closing deals in their second week. Our sales experts have found the two most important factors in quickly onboarding reps:
1. Effective Sales Playbook
When a rep first joins your team, they have little knowledge about what you sell, how you sell it, and who you sell it to. A well written sales playbook will include digestible information about your company, product/service, and customer, as well as customized tools enabling your reps to start selling immediately. Resources such as elevator pitches, sales value messaging, and objection handling will all save your rep time from learning this on their own in the field. In our experience, reps utilizing effective playbooks can start closing deals in 6 weeks.
2. Sales Leader Equipped to Coach
Equally important is that new reps are coached correctly by a well-equipped sales leader. New hires often complain about a lack of guidance or mentorship from their sales leader. In our practice, what we often see is sales managers that were former top-performing reps who were promoted to a leadership position. But were never trained on how to enable success in others. With proper coaching, these leaders can learn the leadership skills to empower their new reps to start bringing in business.