Lead Generation: Avoid The One Mistake That Will Kill Your Sales Productivity
Sales Productivity is a factor of two things: Available time and effective use of time.
To increase a Sales Rep's productivity we can:
Decrease time spent on non-selling activities
Increase time spent on selling activities
Make better use of selling-time
Salespeople like other professionals, have a fixed amount of available hours during the year. Although you may put in far more hours, I'll base this number on 40 hours per week with 52 weeks in a year, and arrive at 2,080 hours total for the year. Your utilization of those 2,080 hours will determine your sales productivity and whether or not you'll hit your revenue targets.
Non-selling Activities
All Salespeople are burdened with activities that don't have a direct impact on revenue.
Sales forecasts, weekly sales meetings, chasing commissions, assisting with account receivables collection, travel and a myriad of other activities all contribute to a reduction in selling time.
Business-performance improvement firm Proudfoot Consulting conducts an annual survey with consistently shocking results. In their 2005 Proudfoot Productivity Report a whopping 79% of a salesperson's time was spent on non-selling activities. Using the 2,080 hour/year figure, only 437 hours remain to be spent on actively selling to or prospecting for customers.
If you're a Sales Rep or a Sales Manager, you won't find this surprising. If you're in marketing, this will give you more insight as to why Salespeople guard their time so judiciously, and chafe at following-up on leads of unknown quality.
Companies should take an inventory of tasks which divert Salespeople from being in front of customers. Then systematically create processes that will return valuable hours to the pool of selling-time. More time to sell is a good thing. However, it's not just the amount of selling time that's important, it's how the time is used.
Selling time
What types of activities would you consider to be selling activities? Of the 21% of selling time found to be available by the 2005 Proudfoot study, only 11% was spent actively-selling while a full 10% was spent prospecting.
Why wouldn't Salespeople spend all of their selling time with qualified prospects rather than prospecting? Why do they spend 10% of their available selling time cold-calling and following up with leads of un-known quality (think trade-show leads)?
Because there aren't enough prospects!
Stuffing the funnel with leads
In an attempt to bolster the amount of time spent actively-selling, we generate leads. Leads are the life-blood of sales. Leads keep our pipelines full. Leads are the source of all revenue. As Martha Stewart might say "leads are a good thing."
But leads aren't necessarily prospects and if they aren't prospects, they won't be buyers anytime soon. Too many non-qualified leads will kill your sales productivity, lower your revenue potential and limit your ability to exceed sales quota.
Leads: The Sales Productivity Killer?
The answer isn't to provide more leads, it's to provide more qualified prospects. Don't stuff the sales funnel with leads. Stuff the marketing funnel with leads. The marketing funnel is where leads should be shaken and sifted, helping qualified prospects fall through to the sales funnel where they can be closed. The more unqualified leads that make their way through to Sales, the less productive salespeople will be.
Lessons from the Gold Rush
I live in one of the historic California towns where the 49er gold rush took place. You couldn't find gold unless you had good techniques either panning for gold in rivers, or blasting through vast layers of earth. Gold seekers were of course, known as "prospectors".
Prospectors couldn't find gold without a laborious search. And like prospecting for gold, finding qualified prospects requires the right techniques. However, a division of labor for executing those techniques is crucial if prospectors are to maximize their return. If assayers were asked to haul and mill the ore as well as inspect for content and quality - investors would receive far fewer gold coins at the end of the day.
Copyright © 2007 Smart About Sales, Inc.
Related Tags: lead generation, prospects, sales funnel, sales productivity, lead management
Nancy Shawver is CEO of Smart About Sales, Inc a How to site for implementing a winning Lead Generation, Lead Management and Lead Conversion system. http://www.smartaboutsales.com Your Article Search Directory : Find in Articles
Recent articles in this category:
- Is SEO Optimisation Important Today?
Those who have tried setting up their own websites know just how competitive the online market reall - How to Shop Fearlessly, Look For Bargains, And Save Time and Money on the Web?
With the advent of online shopping, going to outlets and discount shopping centers may become an act - Roll Up Stand Changing Vendor Booths
Most people have been to trade shows, home shows, state and county fairs and other places where ther - Achieving Your Advertising Goals With a Roll Up Stand
Advertising is a common function of a business. However, it requires creativity and hard work to ens - Trade Show Displays and Expos
Trade Shows and community business Expos provide a captive audience for your business, to get the wo - How to Make Sure Your Newsletters Are Sent Out on Time
There are three key elements to making sure your newsletter is delivered on time: People, planning, - Portable Displays - Trade Show Displays
Portable Displays are the best option for exhibitors when it comes to Trade Shows. Portable Displays - Banner Displays - a Great Portable Display
Banner Displays are considered one of the most portable displays when used for trade shows. They com - Small Business Reputation Management - Your Small Business Information Could be Wrong
Bad information could be out there circulating on the Internet this very minute about your business - Eight Guidelines For Writing Newsletters That Engage Your Readers and Build Your Business
Want to write newsletters that engage your readers and help to build community? Whether you are a sm
Most viewed articles in this category:
- Adsense Is Making Me Rich
I want to talk to you about the power of Google AdSense and how you can use it to generate not hundr - How to Increase Your Business Using the Esoteric Science of Radionics
As a small business owner, there are an amazing number of difficult skills I need to master so my bu - 14 Top Lead Generation Tips
According to former Harvard Business School professor David Maister, typical marketing practices are - More Marketing Dope
Direct marketing can make you very successful, but you’ve got to understand the basics. Here a - The State Of Paid-To-Surf Programs Today
What a difference a year can make. 12 months ago, auto surf programs were at their peak. More an - Should You Open Up An Ebay Store?
Ebay has provided some amazing opportunities for many people to earn online. This widely popular au - Is Adsense A Good Idea?
For many webmasters, Google AdSense has become a great revenue generator. Since the program pays th - The "Coat Of Arms" Revisited
Recently I listened to a interview with Mark Joyner and Gary Halbert about Gary's famous "Coat of Ar - Brand Loyalty
It's a challenge getting consumers to remain loyal to a particular brand. Unlike the good old days w - The Hottest Affiliate Ebooks Out in the Market Today!
Affiliate Project X is a great affiliate marketing ebook. Totaling only 50 pages you could have your