salesperson turnover can cripple sales productivity. Unfortunately, it
sometimes seems that turnover is on the rise.
Turnover results anytime a salesperson
leaves a position, either through termination of employment (both voluntary and
involuntary) or transfer (when the salesperson is promoted or moved to another
position in the same firm).
Some turnover is positive. A healthy
company will promote qualified achievers into higher slots. But most
terminations are due to poor performance. Obviously, sales executives are
struggling to find and keep good salespeople.
is Behind High Termination Rates?
number of factors appear to influence the termination rate. In general,
termination rates are found in companies that use a "one size fits all'
method of setting sales targets; lower rates are found in companies that assign
individual sales targets.
rates are higher when targets are set artificially high to cover more than 100%
of corporate goals. If targets are unattainable, the sales force won't stay
motivated past the initial burst of activity. Salesperson failure becomes more
likely. Production drops and turnover increases as salespeople give up and quit
or are fired. All of this can be avoided when sales
targets more closely match corporate goals.
Target levels should be set where
salespeople can hit them. Driving off salespeople by setting too high targets
makes it difficult to consistently hit any numbers—perhaps impossible.
show that when targets are set so that 70% or more of the sales force can
achieve them, the termination rate is only 18%. But if less than 70% of the
sales force can reach target, one-third of the sales force may be lost through
termination. Not coincidentally, 70% sales force attainment is the number IBM
uses to set its targets. High termination rates can make it even tougher for
firms to hit next year's numbers. When less than 70% of a firm's salespeople
make target, and substantial numbers quit or are terminated, the remaining
sales veterans may feel demoralized. And a greater portion of the sales burden
falls on new, less productive sales people.
The High Cost of Turnover
amount of revenues lost when just one established salesperson is lost through
termination or transfer is staggering.
sales are lost because the territory is open until a new salesperson can be
hired and trained.
2.The new salesperson who fills
the territory goes through a ramp-up period (often lasting two years) during
which he or she is less than 100% effective.
3.For each sale lost while a
territory is open or the replacement salesperson is less than fully productive,
future add-on sales and maintenance revenues are lost.
4.The cost to hire and train a
replacement is an additional expense—especially for companies selling expensive
products or services. For example, one vendor of high-end industrial products
reports that it loses more than $1 million when an experienced salesperson
leaves! Calculate the cost of hiring the Wrong Sales Person
lost sales directly affect the bottom line. Yet sales executives often claim
they don't lose sales while a position is open. They argue that sales managers
or other salespeople pick up the responsibility for any active prospects until
the void is filled. Well, if no sales are lost, why bother to fill the
Even if someone covers the
terminated or transferred salesperson's territory, future sales will suffer
because fewer new prospects are developed during that period. In addition, the
people who are "filling in' neglect some of their own duties to cover the
vacant territory. Either way, current and future revenues and profits are lost.
typical open territory remains vacant for 60 days. That's two full months of
lost productivity that can never be recovered. Add the cost to hire and train
the replacement salesperson, plus the ramp-up time before the new salesperson
begins to make a substantial contribution, and the "we don't lose sales'
argument begins to look a bit thin. Furthermore, lost sales don't just
disappear—they find their way into the coffers of competitors, strengthening
their market shares and their bottom lines.
to Reduce Turnover
Sales executives cannot—and
should not—attempt to prevent all turnover. Companies will always need to
promote some salespeople and dismiss others. But there are three avenues to
pursue in trying to keep your turnover rate down:
1.Better hiring and training.
Although the average cost to hire and train a new salesperson is high, it is
considerably less than the cost of losing an established salesperson.
Money spent to more
effectively screen and recruit new salespeople can yield higher caliber
employees who more closely fit the company's corporate culture and sales
success profile. Better training is a solid investment in getting new
salespeople up to full productivity sooner, thus reducing turnover.
course, it's a good idea to hire the right person in the first place. Refer
back to Section Two for advice on making sure the person you hire will perform
on the job.
your sales compensation plan. Does it provide earnings that are competitive
with other companies and the industry at
3.Achievable targets. Sales
targets should be set at attainable levels. Salespeople like to win. When
targets make winning impossible, success-oriented salespeople will go somewhere
else. Sales targets should also be individualized. Firms that take each salesperson's
forecast into account generally have the lowest levels of turnover.
unrealistic targets always increase turnover. And higher turnover drives down
if sales executives do everything right, sooner or later they'll find
themselves across the table from a good producer who is planning to leave. You
might want to use the opportunity to double-check your system. Ask yourself,
targets reasonable and achievable?
company plan motivating?
person been given every chance to perform, and been rewarded for
an honest examination reveals that your system isn't to blame, the problem may
lie in the restless nature of the salesperson. Sales attracts "movers and
shakers' who are typically looking for a better way to prospect, a better way
to close, a better company to work for—and bigger earnings. Rearranging the
company to placate one "superstar' is not the answer. It might be helpful
to remind the fidgety salesperson about the ramp-up period that every
salesperson experiences in a new position. Because the commissioned salesperson
loses out on a substantial portion of income during this period, changing jobs
may cost the salesperson a lot of money. Pointing to these start-up statistics
may reveal to the potential defector a drought in what he or she perceived to
be green pastures.
You took a
plunge into what you believed is a great choice. You started this business with
a very clear aim to make it the best business you could have. You are a master
of your craft. You have stuck to it for many months which have turned into
years. Your business has survived. It has met your needs-sometimes barely doing
so. Despite many times you have felt weak you have stuck to it. Many times you
are frustrated. Your biggest frustration is that the business is not generating
it not generate enough money? Simple. You don’t sell enough.
have enough customers. You rely on referrals for business but they are not
enough. You try selling but since this is not your area you don’t excel in it.
Other times you decide to sell but shortly you find yourself caught up in the
ongoing inside the business.
mitigate this you have resulted to hiring sales people. Every time you hire you
are excited but shortly after you are back where you were. The early promise
doesn’t actualize and you either fire the sales person or they also give up on
you and move on. You move from despair to being cynical of the sales people.
what you really need to do take to your business where it needs to be. Are
there great sales people out there to help you bring the sales you badly want?
Is there one or two tricks you don’t know about that could make sales come
through? Is there something wrong with you that make your business not to sell?
Are you doing anything wrong? You wonder.
should stop wondering and consider the following:
Are you approaching sales in a strategic way? Ways that
ensure you have a continuous flow of opportunities rather than day to day
pursuit of the opportunity that arises.
Is your business marketing oriented? Is everything you
Is your business designed for effective sales and
Do you engage in soft sales efforts?
How well are you doing as the chief sales officer of
How well are you enabling your customers to give you
Do you know the real value of your customers and how
well are you harvesting this value?
How well equipped are you to manage sales people in
How well are you leveraging all the assets in your
business to acquire and convert leads?
How good is your business in getting customers are make
How have you proofed your business from the seasonality
experienced in your industry?
just a few of the questions you need to answer to have a clarity on what you
need to do to turn around your sales fortunes. In Growth Partners we have over
233 of such questions. By answering them you are half way through addressing
your sales challenges.
answering these questions you need to craft solutions to deficiencies uncovered
as you answered the questions. Some of the solutions are easy and straight
forward. However, there are areas that requires sales expertise to design the
put together a 2 Day Workshop specifically tailored for business owners
designed to help you overcome your sales struggles and put your sales on
autopilot (or something like that). It is for people who run any form of
business ranging from restaurants to software companies, retail business to
medical clinics, clothing shops to cake bakeries, legal firms to manufacturing
ventures, real estate merchants to wholesalers, management consulting to
furniture shops, bars to food processors. Simply it is a workshop for everyone
who is either frustrated by the sales revenues they get from their business or
would love to take their business to hire levels.
workshop we want to show you how to generate continuous flow of business, give
you sales performance strategies that require minimal resources to execute,
answer your hard questions in relation to sales, give you easy to use tools to
manage your sales and sales employees, challenge you to optimize various
aspects of your business so that you can get highest returns from your sales
and marketing efforts and investments, show you hidden opportunities in your
business that you have never thought your business had.
workshop is scheduled for December 1st and 2nd 2016. This
will help you as you leave for the holidays to have a lot of food for thought.
Ideas that you will put in place in the New Year. Tactics that you will refine
as you rest ready to take up the New Year with a band.
offering the workshop for Kshs 18,750.00 as you will be sharing the cost with
other participants. But you can have the workshop facilitated in-house for Kshs
76,750.00 plus you cater for venue costs.
be the best holiday gift you can give yourself because it will make you money.
One client who went through this workshop in-house has generated business worth
3 times of the investment from implementing 2 of the ideas generated from the
course. This is in spite of her being a highly sales averse entrepreneur. If
she could do so I believe you can do the same or even more.
workshop will be facilitated by Sam Kariuki. Sam is the author of the highly
acclaimed business novel ‘The Guy Who Fired His Boss’. In the last 7 Years Sam
has helped tens of businesses become well in sales and sales management. He has
trained thousands of sales people across East Africa. If it is a sales
challenge, Sam has dealt with it.
For a great majority of people
real estate purchases are the biggest purchases they will ever make and hence
most important. They therefore need to be handled by the finest sales
professional so as to get the deal to the line as well as feel satisfied and
happy of the buying process and the purchase decision.
That is why sales people who are
weak in essential selling qualities and competencies consistently lose out on
deals which they were surefire when they started leading to very low closing rates
The Stellar Selling for Real
Estate course is designed to equip the sales people with skills that will help
them to sell more of the properties, to as many qualified customers as often as
they are awake and selling. It converts the sales person from a ‘shower’ of a
house, apartment, office or land to a persuasive and trusted expert seller of
real estate products who gets the customer enthused to make the purchase.
This course is not for those who
are just holding a sales job waiting for the next good opportunity but for
people who want to be the highest performers in the industry.
This is the only sales course designed
specifically to those in the real estate industry. It addresses unique aspects
of the market and real estate products.
After attending this course the sales person
Experience increase in the number and
value of their sales;
Be more persuasive even to the most
Understand the various types of
customers, their buying behavior and how to manage each of the type;
Delight customers by managing their
See deals move faster to positive
Overcome customer objections and fears
that make them hesitate to commit;
Have tools and processes for structured
follow-up and relationship building;
Easily understand customer buying
criteria including the unspoken needs and requirements;
Communicate property values in a way
that match the buyers needs;
Have methods for qualifying leads and
managing them through the various stages of purchase decision.
course the sales people will be highly motivated, equipped with key skills for
selling real estate properties and have methodologies and approaches to effectively engage
many clients to achieve desired sales targets.
The course covers the following subjects
Module 1: The Real Estate Market
The Ideal Customer
Traditional Selling Approach
Module 2: The Property Buyer
What they buy
How they buy
Buying Decision Criteria
Module 3: The Property Sales Star
Body Language of Selling
Module 4:How to Get Clients
Sources of Customers
Targeting Best Buyers
Generating High Potential Leads
Getting Customers to Call You
Leveraging on the internet
Module 5: Art of Property Selling
Persuading like a Pro
Persuading with Stories
Module 6: Essential Property Selling Skills
Understanding Customer Buying Criteria
Module 6:Opportunity Management
Understanding the Business Pipeline
Mastering the Sales Milestones
Speeding Up the Sales Cycle
Improving Prospect Conversion
Increasing Deal Size
Active Learning Delivery Methodology
This is not an academic course. This is a hands on course
that uses over 15 learning methodologies which you ensure you learn by hearing,
seeing, teaching, asking and doing. Lectures don’t last more than 10
minutes. Throughout the course you are 100% engaged in a learning activity.
Sam Kariuki -Author, Sales Expert, Business Strategist
Sam Kariuki is a sales expert who has been delivering
sales training programmes for over 10years first through Marketing Society of
Kenya and in the last 7years through Growth Partners. Sam will be among the top
3 finest sales trainers in the market today. Those who have gone through his
courses have experienced improvement in the sales performance. Sam has trained
sales people and their managers across
tens of industries and types of businesses. He is often sought out to train in
Uganda, Tanzania and Rwanda.
Sam has had his works on sales, marketing and business
strategy published in Selling Power, Business Daily, Marketing Africa among
other publications. He often appears on TV speaking about business growth. He
is the author of the book, The Guy Who Fired His Boss.
Dates & Venue
The Course will be held at the Nairobi Safari Club on the
October 27th-28th 2016.
for this course is Kshs 29,990 per
Are Kenyan runners born or made? This is a question that
intrigues those who follow Kenya’s dominance in long distance running. Kenya
has produced more world champions and Olympic medalists in mid to long distance
running than any other nation on face of earth. Most of these athletes come from
the Rift Valley Province of the country. There has been a raging debate where
the people of Rift Valley are genetically designed to be world beaters or it is
the environment that has made them world beaters or maybe something to do with
But regardless of where you come from in Rift Valley to beat
the world at the biggest stage you need to practice at a place called Iten. It
is a place that athletes spend weeks and months preparing to compete with
Kenyans. Why are they coming here? Altitude? Diet ? What is the secret magic of Iten ?
One of the most important aspects of Iten is its
concentration of world beaters. It is a place where even the Kenya greats who
don’t come from Rift Valley Camp in their pursuit of a dream to beat the world.
Some of the non Kenyan World Stars who have trained here are Mo Farah and Paula
Radcliffe from United Kingdom, Uganda’s Stephen Kiprotich among others.
Iten is the Silicon Valley for mid to long distance runners.
Why would I write about this region in a sales article? Because
there is a lot we can learn about sales from long distance running. The main
reason is that to become a super star in whichever field you need to spend time
with super stars. If you want to fly high then you need to spend time with
eagles not chicken.
1. The first step of winning is spending time with those seeking to be
The reason many foreign athletes come to
Iten is to practice with the Kenyan super stars. They want to do what they see
Kenyans do. But most importantly they want to be consumed by that passion for
winning that burns in the Kenyan runners. When this passion consumes you, you
will want to pursue the goals that champions want to pursue. You will want to
do whatever they do to win.
When you spend time with people aiming to
exceed their quotas, break records and win trophies you are likely to start
desiring the same.
you want to become a sales super star you need to have the passion and drive of
those who consistently win. You need to
care about things they care about; you need to start feeling how enjoyable
winning is. For ordinary runners they won’t be bothered to reduce their time by
a second. For champions a fraction of a second becomes an obsession. They know
records are set and broken not by minutes by fractions of a second.
2.Practicing with Champions Stretches you out
of the Comfort Zone
If you ran with those who have consistently
beaten the world, even if you don’t become a world beater, you are likely to
perform beyond what you thought your physical abilities and skills could allow.
You will be pushed to endure more than what ordinary people would care about.
You will be forced to run longer distances.
Your muscles will be stretched to points they are sore. You will wake up
earlier. You will not be allowed to enjoy pizzas and fries. This ultimately
sets you at a higher level than you were before you started practicing with the
As a sales person you need the same. You
need to spend time with those who put you in a position where you can stretch
yourself beyond what is comfortable.
3.Spending time with world beaters shapes our
Those who have grown seeing champions
practicing and bringing troves of medals year in year out have had beliefs about
what is possible. Those who go to Iten believe that if you can beat Iten you
can beat the world.
In Iten you meet many people who believe
they can set new records, beat the world finest and achieve greatness in the
world athletics. You meet young men and women practicing without shoes with a
belief that they will shine at the world’s biggest stage and pull themselves
out of poverty. They have seen hundreds of others do that and therefore it is
not hard for them to believe the same.
Ordinary people have ordinary beliefs,
champions have beliefs of champions. Sales Super stars have beliefs of super
stars while ordinary sales people have beliefs of ordinary mortals. When you spend
time with super stars your ordinary beliefs are altered sometimes forever.
Being there seeing champions practicing,
feeling pain, being human demystify the champion as a super being. When you
discover that the champions are beings like you then you start believing you
can become like them. If you keep pace with them in the practice then you
believe you can do the same in the real race. That is how many pace setters
from Kenya upstage the stars they were supposed to set pace for.
4.Spending time with champions allows you to
model their behaviors
Sometimes you don’t need to read books on
what the successful people do and the philosophy behind their success, you just
need to watch them go about their journey of success. Watch what they do and do
it exactly as they do it and you are likely to achieve the same results they
As a sales person you need to watch and
model the behaviors of the super stars and you are more likely to get the same
results they get. Wake up the same time they wake up, prepare for a call the
same way they do, plan your route the same way, build rapport as they do, show
care for customer as they do, follow the same steps in making the presentation,
eat the same meal etc and you will get the same results.
Iten is a great place for long distance runners to spend
time and prepare to become champions, but not necessarily a place where sales
super stars are made but form its story we can learn a lot on how to become
sale superstars.But you don’t need to
travel to Iten to be at Iten. Iten can be a place in your organization or city
where you can meet the sales champions. It can be a biography that you read, or
a grouping of super achievers you spend time with.