There is one factor that causes sales leaders to miss revenue targets…and it is not the sales pipeline. In this episode of the Sales Management Minute, learn what this factor is and how to avoid its peril.
There is a common belief that the primary cause of a sales team missing its revenue goal is a dry sales pipeline. There is no argument that if a sales team doesn’t have a healthy prospect pipeline that trouble lies ahead. Yet, there is a pipeline that is more impactful to the financial health of the business than even the sales one. That pipeline is the sales candidate pipeline.
Executives plot out the pathway for revenue goals to be achieved and correlate those with headcount on the sales team. If there are open seats, the math doesn’t work. Each member of the sales team may meet their annual revenue goal, but if you are 20% short on headcount, the department number is in jeopardy.
When sales people get busy, the first thing thrown off their plate is prospecting. However, we all know that when sales people stop prospecting, the pipeline eventually runs dry. The same principle holds true for sales leaders. When they stop prospecting for sales talent, they run with empty seats on their teams which means they have little chance of hitting the revenue goals.
Panicked, they rush to hire sales people to fill seats instead of making smart choices. Further compounding the issue, once they hire the sales people, they don’t have a plan in place to quickly get these new hires up to speed so they generate revenue fast. Some of the sales people make it, and others fail, leaving the cycle to repeat itself once again.
Not having a healthy sales candidate pipeline has a major impact on both the top and bottom-line of your business. Hold yourself accountable for maintaining a healthy sales talent pipeline just as you hold your sales people accountable for keeping a strong prospect pipeline.
See you next time on the Sales Management Minute!