There is one thing that delivers a double-whammy: It prevents them from reaching their revenue projections and it drives their sales-related expenses through the roof... impacting cash flow hard, twice. And, that expense is NEVER included in anyone’s formal plans.
Annual turnover rates among salespeople and sales managers are shockingly high, they’re largely untracked and unknown by top management, and they stand between you and the performance you seek. While companies spend countless hours developing finely-crafted strategic plans and often complex formulas based on a wide range of variables for projecting revenue, they pay scant attention to the one thing that has the greatest impact on their top-line revenue and bottom-line profits.
There are obvious costs of b2b sales department turnover that you have probably seen in turnover calculators like:
But, there are less obvious costs as well:
There are more, but I know you can feel this pain. By the way, we see that when sales managers turn over, you can multiply the damage by ten. Personnel turnover is expensive wherever it occurs in the organization, but when it happens in sales, it’s twice as expensive—especially if you plan to do business again with those customers.
The good news is there are things you can do to avoid this problem –five specific recommendations that can change your life as a manager. They are outlined in some detail in our white paper, Sales Staff Turnover: More Expensive and Destructive than You Think. You can also read a case study from one of our clients that saved nearly $2 million dollars a year by reducing sales department turnover by half.
Get the white paper now - Sales Staff Turnover: More Expensive and Destructive than You Think.
Jim Hopes is the Chief Executive Officer at The Center for Sales Strategy