CRO's Tackling Rep and Customer Churn are Struggling
Being believable or worthy of trust is (a valued elusive asset) arising from the interactions and reputation of a business and its relations with its leaders, employees, customers, and vendors - distinct from the value of its stock and other tangible assets. Source: Ron McIntyre
The hardest part of building credibility and trust is the time it takes to achieve it. Not established overnight because the company, service departments and rep must all capture the richness, complexity, and influencers required to create and maintain an responsive dialogue.
Where there is credibility and trust, sales go faster and cost less. Where trust is absent, sales go more slowly and cost more. As you know: Replacing sales rep is expensive. According to the Aberdeen study (2017) the average cost of replacing a sales rep is double their salary with a minimum of $30,420.
It's no secret repeat business goes up with trust as the relationship bolden's, and that drives down cost of sales (less churn). Clients in a relationship are more willing to accept statements by the seller, thus reducing the need for greater detail and time. Nurturing client relationships after closing the sale is a must - the contract signing is not the end of the sales process, just the start! According to Glassdoor and the 2021 Bureau of Labor Statics report, the annual total separations rate/turnover rate in 2020 was 57.3 percent. Increased recruiting costs are 25-30% of salaries minimum cost $10-$15K.
Churn of Any Kind is Not a Pretty Picture.
Deciding what constitutes a good churn rate is difficult. Studies on the subject have reported average annual churn rates of anything from under five per cent to over sixty per cent. Because of this, what defines a good churn rate for your business will depend on several different factors.
Business owners know, some degree of churn is unavoidable - there will always be customers that drop or cancel their customership. Reps churn rates are somewhat controllable despite voluntarily and involuntarily departures spread across varied and sundry practices, (pandemic) markets, economies, lifestyle changes, personal crises or plain unhappiness.
Glassdoor By Stacy Pollack April 15, 2019 Reported ...
Metrics can be a powerful tool, delivering the hard truth about company results, discovering important trends, and revealing unknown pain points. Historically speaking, trying to tie metrics around people management practices can present big challenges for many traditional HR departments. Measuring the “fuzzier” components of a business is something most organizations are still spinning their wheels trying to understand. Despite the widespread knowledge that a robust people analytics investment is now a business must, most organizations are not playing to win with their HR analytics. According to the Deloitte 2017 Global Human Capital Trends Report, and a Bersin by Deloitte study, 71% of organizations recognize people analytics as a high priority, while only 9% understand which of those KPIs drive performance, and only 15% of organizations rate their reporting of data as highly accurate.
While analytics are used to solve a wide range of business challenges, the area that data is currently influencing the most is Talent Acquisition.
Consider the Context of Your Industry
Make sure you are considering your turnover and retention rates within the context of your industry. After all, different industries maintain different standards for turnover because they face unique challenges associated with attracting and recruiting talent with the skills needed to perform the job. Only 38% of new sales reps meet their first year quotas, compared with 45% of overall sales reps.
For example, the retail and restaurant industries are notorious for poor turnover rates, running as high as 65 percent for retail and 73 percent in restaurants in the past few years (adjusted for the recent crises). IT startup's compared churn rates to those numbers might make you less worried about your turnover rate, but it will not give you an accurate idea of whether your company is performing with its industry standards. Use resources from the Bureau of Labor Statistics and consulting leaders like Deloitte and PwC to monitor your industry's average retention and turnover rates.
Brands, reps and businesses can deliver a best-in-class customer experience. But this unintended Covid-19 event shattered all business churn data (albeit temporarily). Nevertheless, companies surveyed by Aberdeen Group reported an average time to re-hire of 2.7 months, and an average time-to-productivity of 7.8 months, for each new sales rep.
You cannot build resilience at any cost. The smart money in today’s highly disrupted environment will flow to businesses include corresponding and composable (combinations) — made up of interchangeable building blocks that can scale up or down or swap out, according to the context. The purpose of Pairing - Prospects, Business and Talent Acquisition strategies is to align the three and boost corporate revenues, while reducing churn.
Better onboarding and coaching prospect engagement leads to lower turnover costs: Among the top-performing firms in the Aberdeen study, 64% had a formal onboarding process for hiring and training new sales reps, compared to only 48% of the overall firms surveyed. Better onboarding is one of the best tactics to boost productivity among new reps and bring them up to speed faster. It sounds simple, but less than half of all the sales organizations surveyed are doing it.
Today's buyers expect personalized offerings based on their industry sector, buyer funnel position and product/service knowledge - delivered when and where on their terms. Pampering & pairing prospects with personal insight that engages their better-buyer-judgement. The B2B buying process has always been complicated, but the past year has brought additional challenges with nearly every buying interaction being turned upside down, with remote/virtual exchanges versus face-to-face.
The move to virtual selling, as illustrated in a study by RAIN Group, which found 7 in 10 (71%) of salespeople reporting that they are now doing at least half of their sales virtually. This means that marketers have an increased potential to use technology
to influence and assist sales processes when compared to face-to-face selling.
Buyers have been consuming far more content. Figures from NetLine show that the total demand for B2B content rose by 49.8% year-over- ear in May 2020 — but this may represent an increase in the number of touches that now happen in the research stage, rather than a rise in total purchases.
Similarly, ON24’s COVID Benchmarks Report shows that in April 2020, webinar consumption has risen by 293% compared to the 2019 monthly average. It is therefore important to both adapt the weighting given to content touchpoints during qualification and to inbound/outbound messaging to the changing environment.
More on The Pairing Scope Series in Part 5 of 5