Sales Coaching = Your Best Business Investment for 2021
Updated: Dec 14, 2020
Have you previously thought about sales coaching for your company, and brushed the idea off as another expense not worth reading into? Think again!
2021 is approaching, and businesses all over the globe have experienced the negative effects of the pandemic in 2020. Companies are forced to re-evaluate costs and plan ahead carefully in an attempt to recover. In every organization, sales professionals play a critical role in the success of a company. Ensuring that they are on the right track could be the difference in your business recovering or continuing to decline.
Bill Gates began his TED Talk by stating that “Everyone needs a coach ”, and “we all need people who give us feedback, that’s how we improve ”, emphasizing the importance of coaching, and how it drives success.
The point that Bill Gates was trying to make is that something which all successful people share, from athletes to billionaire CEO’s – is that they have all been coached! Even the highest achievers need coaches.
Many companies still underestimate the value of investing in sales coaching, viewing it as an unnecessary expense. Norman Behar points out the most common responses he receives when questioning companies on their reasons for not wanting to provide coaching to sales representatives.
Popular reasons for companies choosing against coaching include:
1. Failure to understand the advantages of coaching.
2. Lack of time, not viewing it as a priority.
3. Feeling like it will damage the confidence of employees.
4. Not enough knowledge on how to coach, or no desire to provide an external coach.
The International Coaching Federation defines coaching as
“An interactive process to help individuals and organizations develop more rapidly and produce more satisfying results; improving other’s ability to set goals, take action, make better decisions and make full use of their natural strengths.”
Sales coaching is far from being another expense that your business should carry. It is an essential investment that almost every driven company and organization should look into in order to ensure that they meet their goals. Coaching should be considered for both SME’s and companies with larger sales teams.
Reports have shown that 67% of companies who provide formal sales coaching to their employees for at least three years have reaped the rewards, seeing high revenue growth. In addition, sales coaching has been noted as the most vital role that managers play, according to 74% of leading companies.
Here are some of the many benefits of providing a solid sales coaching structure...
Increased Performance – Markets are continuously becoming more competitive, meaning your salesforce needs to be kept consistently up to date with the new market knowledge and have the self-motivation necessary to succeed against competitors. Part of the sales coaching process is to inspire teams to be motivated to reach high targets and be the best at what they do. Companies who provide teams with a good sales coach reach 7% greater annual revenue growth.
Profit/Close More Deals– Sales coaching is an investment, not an expense. Companies spend between $10,000 to $15,000 hiring a new team member and only $2,000 a year on training/coaching programs. A good coaching program will pay for itself. After employees attend regular coaching, the results will be reflected in an increase in sales figures. The motivation, sales techniques, and thinking skills all combined will ensure that your team has the knowledge and confidence to chase and acquire bigger deals.
Employee Retention – More than 60% of salespeople are likely to quit their jobs due to poor coaching. Acknowledgement of hard work and regular coaching will keep talented employees interested in the company. Remember, employees can always seek a better opportunity. Investing in your team is mandatory for success, and they will be more likely to invest their effort in return.
Company Reputation – Your salespeople are the first point of contact for customers, and unprofessional staff will set a bad image for the company. Word of mouth travels quick, therefore you need to ensure that every customer has a positive experience. Without customers, there is no company!
Better Company Culture – Coaching will help employees to come together and share ideas and techniques. By aligning the team regularly, people will build relationships and learn from one another. Studies have reported a 63% increase in peer-to-peer relationships as a result of coaching.
“I never cease to be amazed at the power of the coaching process to draw out the skills or talent that was previously hidden within an individual, and which invariably finds a way to solve a problem previously thought unsolvable.” – John Russell