Some of this should be a no brainer. For instance, if you don’t work you can’t make any money! Likewise, the fewer productive sales conversations you have per day, the fewer sales you can make overall. Successful companies invest a lot of capital in sales development and outbound sales to find their solution to increasing sales productivity and scale up. To find your growth curve, you need to understand just how limiting low sales productivity is to your growth goals.
Four consequences of low sales productivity that affect your long term growth
1) Constant Burn
If your team’s sales productivity is low, that means you’re spending more precious capital on a drawn out, costly sales process that likely culminates in a lower ROI. Whatever reasons your team is struggling; if you have it, your organization will probably end up spending more money and getting unsuitable outputs.
2) Lower Motivation
Lower productivity equals more pressure and fewer targets achieved during your sales cycle. When one employee or team is unmotivated, the feeling can spread like a virus to the rest of the sales floor. From a sales rep to the sales VP, chances are that negative energy materializes as a by-product of a lower sales productivity.
3) Intense Investor Pressure
Hey company leaders, this one’s for you:
Facing the investors when you have a productivity issue is one of the least pleasant occasions. Investors are always interested in one key metric: growth. With low sales productivity, and low sales, is your team really going to make figures that satisfy your investors? If Investor pressure keeps on building up, you might end up spending more time in dealing with the fund providers instead of taking care of the sales issues at hand.
4) Occasional Downsizing
Once your startup or a company faces low sales productivity, your burn rate, even if it stays low, can become the death knell of the company. Burn won’t go away, even with more investor money, and it will become difficult to maintain a decent number of employees. To control the burn, downsizing might become necessary, and while the productivity issues remain, suddenly more will be asked of a sales team already struggling to cope with their current tasks.
Scared yet? Don’t worry. If anything, these four consequences are cautionary tales to keep sales managers aware of each and every salesperson’s motivation and productivity. Low sales productivity can be easily avoided, just take care of your team, and they’ll take care of your company!