How Do You Know if Your Hunting Salesperson is On Track?
Further to our blog on helping new salespeople survive, here we expand on how we know if a hunting salesperson - i.e. a salesperson who needs to source their own leads - is on the right track. It goes without saying that we all want to succeed, and a salesperson's success translates into company success too.
In short - useful insight into sales activity is essential as you need to know each salesperson's activity and skills, as well as quantitative information on their leads. This data translates into how many leads are available to sell to, how many leads it takes to get an appointment, and how many appointments to sign a deal.
First up - do they have enough leads to contact?
Sales are fueled by a continuous supply of leads, and the sales fire will go out if leads don’t continue to come through.
Hunting insurance salespeople for example, usually start by working through their contacts i.e. people known to them. This often results in sales to family and friends before they branch out into less familiar or less friendly potential customers. However, this source runs dry very quickly and unless they are able to ask for referrals or have other ways of prospecting, they will certainly run out of leads.
For example, if a sales person’s stats are 25 : 5 : 1
i.e. working backwards - to get one deal, on average you need to go on 5 appointments and to get one deal, on average you need to make 25 calls, then if per month - it means you need to contact 100 leads to close 4 deals, and you need to know where your next 100 names for next month’s sales are going to come from? And the next, and the next etc.
By being able to measure how many leads your salesperson has in their pool and how often they add more, will help you see if they are on track. If falling behind you will be able to help them with ways in which to get referrals or other prospecting or lead source options.
Next up - what is their sales activity?
Low quantity - if the salesperson is not doing enough to survive, they may have given up or are not focused enough on the job. You need to be able to see this in their sales activity numbers so that you can step in with coaching and or training.
Low quality - if they are working furiously but burning through a lot of leads - you need to see if they lack skills making appointments, as well as the success they have converting appointments to deals. If they haven’t got to the appointment stage yet, then work on helping them get appointments and address closing skills if necessary when insight into closing has been delivered by the numbers.
Here are some example stats to illustrate this further. Please note that the difference between a good salesperson and a struggling salesperson can vary greatly from needing 20 leads a month to 100.
e.g. 40 : 5 : 1
(poor telephone skills - 1 deal requires 5 appointments, but it takes 8 calls before an appointment is made)
e.g. 90: 10: 1
(poor telephone and closing skills - 1 deal requires 10 appointments and 9 calls need to be made to get 1 appointment)
As seen above, poor skills require more leads, which puts more prospecting pressure on the salesperson, making it even harder to survive.
These principals also apply to non-hunting salespeople where leads are given to them. However, lead source quality comes into play here too.
In summary, having insight into the number of leads a hunting salesperson has in their pool; their activity; the number of calls it takes to get an appointment; as well as the number of appointments to get a deal; will help you know how a hunting salesperson is doing, and where help may be required to ensure their survival.
Value-Ad helps you to provide detailed insight into all stages of the sales process so you can take action to optimise each step, resulting in improved salespeople productivity and increased sales.
Interested to explore this in more detail? Schedule a quick 15 minute chat with Andrew, and let's find out if Value-Ad can help your business.