Cost of Sales Call Reluctance in Your Organization

Practice shows that in almost every business salespeople must sell new business to achieve their targets, and in roughly every case they must sell to new customers.

At Confident Approach, we rely on thirty years of empirical research in prospecting which shows that hesitation to initiate first contact with prospective buyers on a consistent daily basis can cost an average of 15 new units of business per month per sales person.

This means, in terms of money, that your organisation is potentially losing by avoiding to face the problem. If we assume that your department has 20 sales representatives. Your organization is losing 300 (20x15) sales opportunities per month or 3,600 (300x12) annually.

Again, if we assume that average cost of your products or services is €100, it can be estimated that your organization is losing €30,000 (300 x €100) per month or €360,000 (€30,000 x 12) per year in sales.

Is this something you should bother about?    

Below you will find the parameters to consider when calculating cost of Sales Call Reluctance in your company.

  • Average Cost of your product/service:
  • Business Opportunities Lost per year – per representative (Ax15x12):
  • Number of Sales Representatives:
  • Total Business Cost (BxC):

You will find the story about our project in DHL Sweden here.

You will find a case study about Sales Call Reluctance and Sales Productivity in Insurance Industry here.

It is important to also emphasis recruitment cost. The most critical hiring mistake occurs when a company hires a sales candidate who will not sell enough to meet the company's set targets. Many sales managers and consultants have estimated the financial cost of hiring an employee as a mistake is in the range of 200% and 300% of the salesperson annual earnings. 

You will find a case study about the Sales Selection Process here.

Apart from financial cost there is also an intangible cost that is related to sales culture contamination. Sales Call Reluctance can be contagious and many companies have discovered during the Sales Team Audit process the real cause of their contamination. 

This is a potentially hazardous condition for a company as limiting sales and training policies can be repeatedly reinforced and affect, not just individuals, but an entire sales department.

Contact us if you want to know how you can cure Sales Call Reluctance in your organization.