| One of the most significant costs to a company can | | | | help as it can improve sales performance and that |
| often be the employee turnover in the sales | | | | alone can decrease employee turnover. |
| department. This is can be costly because the | | | | Sales coaching will decrease employee turnover by |
| success and quality of the sales organization has a | | | | working with sales resources on an ongoing basis to |
| direct impact on top line revenue. There is always | | | | help them to perform at their optimum level. Coaching |
| going to be some level of turnover, but if there is | | | | will help bring clarity to sales resources with where |
| something that a company can do to decrease | | | | they are in terms of attainment, identifying what they |
| employee turnover, there can be strong financial | | | | need to do to be successful, and then help them with |
| benefits. | | | | dealing with challenges and hurdles as they occur. |
| Employee turnover in the sales department creates | | | | Sales coaching will help the sales person to be more |
| two different types of costs for a company: direct | | | | successful than they would be if they were completely |
| costs and indirect costs. The direct costs are the | | | | operating on their own. |
| hard-dollar expenses that are incurred when sales | | | | By being able to decrease employee turnover, the |
| resources are recruited, hired, trained, and terminated. | | | | company will stand to retain a tremendous amount of |
| These costs can be tracked and will typically show up | | | | knowledge. This includes knowledge on company |
| in financial reports. | | | | information, processes, products, customers, etc. By |
| The indirect costs that a company will see are in the | | | | being able to retain this knowledge, the company will |
| form of opportunity cost. This cost is all of the | | | | stand to perform better in the area of sales |
| business that is lost or missed while sales positions are | | | | effectiveness, which will decrease the amount of |
| open due to turnover and then while new sales | | | | business lost or missed driving down opportunity cost. |
| resources are being trained and ramped up. This cost | | | | In addition, the cost to replace this knowledge can be |
| can be a tremendous amount, especially when you | | | | tremendous in terms of both time and money. This is a |
| factor in recurring revenues that are missed for future | | | | hard-dollar cost and to decrease employee turnover |
| years. Unfortunately, opportunity cost can be difficult to | | | | will yield immediate savings. |
| truly measure and will not show up in financial reports. | | | | Sales coaching can be provided by a company's |
| The main cause for employee turnover in the sales | | | | internal sales management team or it can be provided |
| department is poor sales performance. Either sales | | | | by outside coaching professionals. The benefit of |
| resources are not performing at a high level and not | | | | outsourcing the coaching responsibility is that outside |
| making the money they want to be so they chose to | | | | resources will likely be trained in the area of coaching |
| go somewhere else where they feel they will be more | | | | and will have experience that can be leveraged. In |
| successful. Or the sales resources are not performing | | | | addition, if the internal management focuses on more |
| at a high level and management determines that a | | | | strategic activities, there can be a better return on |
| permanent change is necessary in order to drive | | | | investment for the way their time and attention is |
| better sales results. This is how sales coaching can | | | | spent. |