Companies on the comeback from the affects of Covid, on their business and the looming impact an economic recession will have questions that need answering. The main question for many companies is how to minimize the losses, they have already sustained.
Options are that sales can be outsourced to an external provider either entirely or partially. Making use of this service has a lot of advantages for companies, for example cutting costs.
The average time for a rep to be product conversant and making consistent sales is 3 months and the tenure 1.5 years. About 15% of sales representatives leave, in less than a year after joining a company, or fail at their new position and are fired.
As mentioned, the hiring and ramping time are high in sales. So is the churn rate. For a business that has survived through the past 3 years this only adds to the lack of sales needed by your company. Sick leave and vacation time also needs to be included in the costs of hiring a sales representative.
With sales outsourcing they come onboard more quickly in being productive. In the case of illness, vacation, they can be immediately replaced by another teammate, causing very little ripple in representation of your product or service.
Example –
A company wanted to penetrate a niche market quickly with their new product. They contracted with an outsourcing sales company to get new potential clients.
In a month their sales team got so many leads they had to stop the campaign for the company to service the demand they generated.
The company returned to the outsourcer for a further 2 months within a year of initially using them. If the company had employed a sales representative, they would’ve had to keep them employed all of the time.
Risk reduction –
Choosing an outsourcing team will remove many risks that are associated with building and managing a sales team. One of the main risks is employing the wrong person.
How do you define results and KPI’s?
From the very start both parties need to make sure they are on the same page.
We make sure that before any campaign commencing, we have spoken to the company and all parties have a very clear knowledge of what is expected from the campaign.
Reports are produced by us weekly so that the company can monitor progress and alert us to any red flags, should there be any.
Any expected performance from the company to the outsourcing company is always validated so that there are no unrealistic expectations – ie performance is dependent on the industry being represented and the time frame of a sale. This information to be researched from industry related data.