If you've been following for a while, you know that I love growing and working 1:1 with sales rock stars and as you know, I've had some success. Last month, I had a couple of conversations with my son, Mark that resulted in this article. That's blossomed into a whole new program.
Here's how it happened...
I've always been fascinated by the Pareto Principle, a/k/a the 80/20 rule and I've spent most of my time helping my rock star clients apply it to their customers. Weeding out and avoiding the 80% underbuyers and focusing on getting more evangelistic super customers, i.e. - selling more to fewer.
However, if you look at your organization, you'll probably notice that 80% of your sales come from 20% of your salespeople. You may notice that 80% of your customer service issues and churn come from 20% of your customers and those customers come from the same salespeople. Dave Kurlan wrote about his 100/0 rule, but the truth is that if you've got 100+ salespeople, it's hard not to have some mediocrity in there, but if you've got 5-10 salespeople, I'm talking to you.
If you look at this table, I've filled in the blanks for an example company that did 1 Million last year with 5 salespeople. It's not unusual for the RainMaker to generate 80% of the sales because of their talent, network, etc. Here's the question. In this example, the RainMaker did 800K and the other 4 salespeople split the other 200K. (50K each) What would sales be if each of the 4 50K producers could do as well as the RainMaker?
4 x 750K = 3 Million?
Now, forget my example. Fill in the numbers for your salespeople. BTW, if you have 10 salespeople, use the top 2 vs. the other 8. If you have 100 salespeople, separate the teams by sales manager.
What did you come up with for Potential Growth? Is it worth looking at? If you could attain half of the potential growth, is it still worth talking about?
- What needs to be done?
- Are any of your salespeople motivated to grow?
- Can you shorten your sales cycle?
- What impact is management having?
- Do your systems and processes support a high performance sales organization?
- What are your short term priorities for growth?
- How long will it take?