“employees don’t leave companies, they leave managers”

Great coaching obviously has measurable impact on individual’s performance and results. What is rarely understood however, is the impact of lost revenue and margin when sales reps walk out the door – voluntarily or otherwise.

It’s pretty easy to get excited by multiplying revenue by say a 5% improvement in revenue. But do you know what revenue you might be losing during the time it takes to get a new rep fully productive. The number may well shock you. And this doesn’t include the lost revenue when there is no rep in place nor the costs associated with recruitment and on-boarding (e.g. training costs).

Effective coaching plays a very significant part in reducing rep turn-over. Not just because it improves reps contribution (both under-performing & performing). Our observation and experience tells us that sales reps will stay much longer when they have real & meaningful conversations with their Managers.

We will cover coaching in depth in a separate post but suffice to say good coaching is NOT telling sales reps what to do. It is helping them understand, develop and practice HOW to do it well.

Use our attrition calculator and find out what it’s costing your organization in lost revenue & margin. If you want to find out how to recover this – talk to us about our Sales Management coaching program & system f.a.c.t.

Current sales population
FY increase in sales head count (%)
Forecasted sales head count
Annual attrition rate (%)
Total new hires required
Average quota per sales maker ($)
Average time to ramp (mths)
Average attainment during ramp (%)
Average deal margin (%)
Potential lost Revenue
Margin impact
Gain by 25% lower attrition rate:
Margin impact
Gain by reducing ramp 1 mth:
Margin impact
*ramp = Number of months a rep takes to achieve quota.