How Much Time Do You Really Spend Selling?
If you could spend more time talking to your customers and prospects each week how much additional sales revenue would result each year?
Or, to put it another way, how much time do you spend on tasks that don’t contribute towards your sales goals?
In many cases organisations implement CRM systems to liberate sales teams from the burden of administration tasks and increase sales mobility by freeing individuals to better focus their efforts on winning sales.
If you are planning to implement CRM, or are reviewing your existing CRM strategy it’s useful to firstly identify what changes in behaviour and processes are needed in order to achieve your sales goals. A useful starting point is to calculate how much your sales time is worth, and the hidden cost of inefficient sales processes.
For this calculation I’ll work on the basis of 260 working days in a year.
From this I'll deduct 8 public holidays and 23 personal holiday / vacations and I’ll also deduct 4 other days for other absences which leaves 225 working days. Assuming 8 working hours each day this totals 1800 sales hours per year.
For an individual with an annual sales goal of £250,000 revenue it means 1 hour is worth £138.88.
With 225 working days every year, 1 hour each day for an entire working year will be worth £31,200.
But what activities really contribute to this revenue, and how much of your sales time is spent on tasks that contribute little or no value towards sales goals?
Here’s a sample of typical activities in a sales role and the hours these may consume each week:
|Common Sales Activities||Hours Per Week|
|Breaks / Personal Business||4.5|
|Sales Meetings with Prospects||4.0|
|Sales Calls to Customers||3.0|
|Internal Phone Calls||3.0|
|Sales Calls to Prospects||2.5|
|Preparing for Sales Meetings & Calls||2.0|
|Running or Attending Sales Events||2.0|
|Time Planning / Strategizing||1.5|
|Reading & Research||1.0|
Three activities highlighted above often consume considerable time, in this example well over 1 day each week, but they contribute proportionally far less towards achieving sales targets compared to high value activities such as speaking to customers and prospects.
For organisations that don’t have an efficient sales process supported by CRM these tasks often include:
- Compiling sales forecasts
- Calling the office to find information which isn’t available remotely
- Preparing quotes and checking product pricing
- Chasing colleagues to understand the current status of an account or service issue
- Manually sending a series of repetitive emails and attachments to prospects
- Chasing finance teams for customer order information
- Searching for any other detail that isn't easily accessible in a single interface
By leveraging Microsoft Dynamics CRM sales teams are able to boost productivity with easy to use tools that streamline these and other processes.
Going back to the previous calculation, if just one hour each week could be saved by reducing time spent on these lower value activities it will release additional sales capacity for actions that are sure to impact revenues.
For just one sales person that could yield an additional £31,000 sales each year and across an entire team considerably more!
This is just one example to illustrate some of the sales activities which hold teams back. Your own sales activities and the time spent on these each week will likely differ from the above chart but by implementing a new CRM system, or improving the efficiency of your existing system, you should expect to save at the very least 1 sales hour each week, per person.
How much is that hour worth to your business?