Companies often struggle with failing growth strategies when they look to expand the sales force. What expectations do companies have with an increased sales headcount strategy?
When companies have some success with their sales force, they often consider the next step is to hire more people. This will increase the top-line revenue and grow the business, which will become increased bottom-line results.
Right? Unfortunately, we see this approach repeated over and over again, and it leads to disappointment. A larger sales force does not always mean increased revenue. It certainly does not always mean an increased bottom-line either. Salespeople are expensive and require management. They are not always the right growth strategy for your company. Let’s look at the reasons why.
The strategy of new salespeople usually means a strategy for the acquisition of new customers or greater revenue from existing accounts. The new personnel will be focused on new geography or customer groups with the intent of broadening the companies footprint. They may be sent to new markets away from the primary selling fields currently being serviced.
Some companies increase headcount with the intent of reducing the number of accounts each person will manage, therefore increasing the time with those customers and the expectation of growth. There may be an emphasis on new products, cross-selling, or increasing the overall penetration of existing products. The intention is sound so why does it not work out for so many companies?
There are four primary reasons for failure:
- Unrealistic timelines associated with the expected results
- Unanticipated expenses with adding and supporting increased headcount
- Unanticipated risks
- Failure to define and measure sales strategy implementation.
In this eBook we look at those points and what actions you need to be taken. Please complete the form and you can immediately download your copy now.