Do you want to get a better handle of how much each sales hour costs you?
Who doesn’t? This single detail can help you track your sales productivity and show you how you can prioritize for improvement.
Sales hours refers to the time your sales reps spend making actual sales calls or talking to actual clients. But, is that all your sales team does? Consider all of the other activities your sales team may perform:
You don’t expect your sales rep to go into a meeting unprepared. Let’s assume for every hour-long meeting, there’s at least an hour of preparation time involved.
Are you sending your reps to in-person meetings? If so, the time spent traveling adds to the cost of each hour spent in actual sales.
Does your sales team also look for leads? Prospecting and searching for new clients is necessary, but is also time-consuming. Whether it’s your sales team or another department that takes care of this, it should be accounted for when calculating the true cost of one sales hour.
Are any other teams such as marketing or subject matter experts involved in supporting your sales team? These supports are closely related to each sales hour. Take them into account when calculating.
So, sales hours costs are much more complex than dividing your sales representative’s salary by the number of working hours. To make one sales hour count, prep time, travel time, lead generation and even other departments must make investments. With this in mind, ensure that you prioritize your sales team’s tasks so that you get more sales hours out of your sales team, keeping your costs low.