SEARCH FIRM & Recruiters
Engaged Search For Sales, Emerging Leaders, and Executive Talent for Building Product Manufacturers and Distributors Across the US.
How To Set Your Sales Reps' Activity Expectations From Performance Goals
Managing a sales rep or a team of sales reps can be a very different animal than managing almost any other employee. After all a sales rep’s position by its very nature is fluid and ever changing. Having said that it is important to provide a certain level of structure for your sales reps that will enable them to be much more likely to achieve the goals you have for them. How do you determine how much your sales reps should be accomplishing in terms of leads and project quotes though is always the question?
The good news is though that the building product industry is filled with data that can be used to help you answer this question. Before we get into the specifics though it should be noted that setting daily activity goals is perhaps not the best method. Weekly or monthly goals are a much better option when you consider the fact that day to day a sales rep’s routine may vary greatly.
Let’s get down to business though, for the sake of this example we are going to assume your sales rep sells vinyl windows and doors. This is a common building product and it is easily tracked. So last year your rep sold $1.5 million in windows and doors. You have determined that you want to see a 15% increase in sales from this rep this year.
$1,500,000 x 15% increase = $1,725,000 so, you are expecting them to generate $225,000 in new sales this year.
The first thing you need to determine is how may quotes and orders your salesman produced to achieve the $1.5 million in sales. Let’s say they did 400 quotes and that they closed 100 of them (or 25%) for nice easy numbers.
So $1,500,000/100 (sales) = $15,000 per window and door package. So, we know now that your sales rep closes 25% of their job quotes, and each sale is an average of $15,000.00, with this information we can determine how many quotes your sales rep needs to produce in the coming year.
$1,725,000/$15,000 (average sale) = 115 sales. So, we know how many sales your sales rep needs to close. Now assuming that they are going to continue closing at a 25% rate we can use this number to determine how many quotes they need to produce (with an average of $15,000) in order to achieve this goal.
115 x 4 (25%) = 460 quotes this year. So, your sales rep needs to generate 60 more quotes than they did last year. If we divide the total quotes by 49 weeks (allowing for 3 weeks’ vacation) in a year we get, 460 (quotes) / 49 (weeks) = 9.38 (lets round to 10). So, we now know that to achieve your 15% sales increase for the coming year your sales rep needs to quote on average 10 window and door packages per week.
This is just one example of how you can use established data to provide activity targets for your sales reps. The same types of calculation could be used to determine any of a wide variety of activities needed, such as phone calls or meetings needed to produce this number of quotes and subsequent sales. Remember though that to produce the data needed to do these types of calculations you need to have an accurate tracking system. Remember also that it is important to always be transparent with your sales teams about the goals you have set for them and what you feel they need to do to achieve those goals.
The Leading Building Products SEARCH FIRM & Recruiters Engaged Search For Sales, Emerging Leaders, and Executive Talent for Building Product Manufacturers and Distributors Across the US.Is Your Recruiting Process a Joke? Let’s start by asking a hard question, do...read more
The Leading Building Products SEARCH FIRM & Recruiters Engaged Search For Sales, Emerging Leaders, and Executive Talent for Building Product Manufacturers and Distributors Across the US.The Full Cost of a Bad Hire, It's More Than You Might Think Understanding the...read more
The Leading Building Products SEARCH FIRM & Recruiters Engaged Search For Sales, Emerging Leaders, and Executive Talent for Building Product Manufacturers and Distributors Across the US.The Ugly Truth of the Cost of a Bad Sales Hire When you ask a CEO or sales...read more
The Building Gurus Difference
You’re probably wondering how we can deliver candidates that your in-house or current recruiting partner hasn’t been able to. Hiring great talent is a key part of your business, but it’s the reason we’re in business. We invest in tools, technology, and resources to ensure we’ve always got the best “inventory” of talent at our fingertips. Building world-class best practices and an employer brand that gets and keeps the attention of A-players is key to our success. When you hire us, you immediately benefit from the years we’ve spent building our brand and relationships with sales, managers, and leaders in the building products industry.
Here are just a few strategies we use to ensure we can deliver best-in-class building products sales, manager, and executive level talent fast:
Rikka’s articles appear in trade magazines like LBM Journal, ProSales, Remodeling, and more.
NATIONAL NEWS + MEDIA
Rikka’s advice has been featured on Fast Company, NFIB, AmEx Open Forum, CBS Small Business Pulse, Huffington Post, and more.
ASSOCIATIONS + CONFERENCES
Rikka is selected to speak at local, regional, and national conferences like KBIS and ProDealer Summit.
We share helpful articles, videos, and audios about how to hire, how to get hired, and how to get better results to over 100,000 building product professionals every month.
VALUE FIRST APPROACH
We reach out to targeted building products leaders every single day to introduce our company and see how we can help their career. This value first approach means when we reach out about your opportunity they are much more likely to respond positively.
LONGEVITY + INTEGRITY
We’ve been building relationships with building products professionals since 2001. We believe being real and communicating frequently is the key to powerful partnership. Our clients agree, which is why we have an over 96% client retention rate.
Learn How Building Gurus Can Help Solve Your Hiring Challenges
Stop letting scarcity make you settle. Less than 1% of 1% of the professionals and executives on LinkedIn have the building products experience you need – learn how we go beyond posting and praying and LinkedIn to find and connect with best-in-class building products sales reps, managers, emerging leaders and executives.
Be confident and in control. Learn how our 4-stage Recruiting Blueprint search process can help you feel confident that we will find, engage, and qualify the talent you need. You'll feel in control and in the know with our frequent communication and updates. Best of all, you'll be interviewing qualified candidates in just weeks.
Not quite ready for a Discovery Session?
Call Us: +1 701-361-4239
Email Us: Info@BuildingGurus.com
+1 (701) 361-4239