4 Ways People Financial Intelligence Helps Growing Sales Teams
Growing a sales team is hard and comes with many unknowns. Not only do you need to have a great product, but you need to be able to hire, retain and optimize every part of your sales team to ensure that as you grow your team from 20 to 100 or more, you have great results.
As your sales team grows, you are going to collect more and more data. The problem is a lot of the data you collect will not be tied directly to financials. For example, take your MRR. What are the factors that lead up to your current MRR? It’s probably a combination of 10-15 things like hiring great talent, onboarding more effectively, converting a high % of prospects, opportunity to close rates and more. But without knowing the financial impact of your data for each of these factors on your revenue, it makes it harder to figure out where and what you should be optimizing so you can generate the most revenue possible as you grow.
Below we share 4 ways that explain how people financial intelligence helps growing sales teams and provide several examples of it in action.
1. Eliminate Financial Pitfalls Quicker
One of the biggest challenges when building your sales team is the financial pitfalls that can occur when you grow your team too quickly. Unless you have financial metrics in every single part of your team, you run the risk of losing money in areas without realizing it. As an example, most organizations do not know the cost of turnover for their sales reps and its impact on ARR. The problem is without knowing this number, you could miss your revenue target just because you don’t know the cost of turnover and how it impacts revenue. Financial intelligence provides additional metrics and analysis for each part of your sales team so you can eliminate financial risks more easily.
2. New Financial Metrics For Strategic Decision Making
You have metrics and data like revenue that is financial by nature, but over 60% of the data that you collect contributes to your revenue even though they do not have financial metrics attached to them. The problem with this is it makes it harder for you to optimize areas without knowing it’s true financial value around the decisions you make for your team. As an example, if you know that if you cut down your sales reps’ deal closing by 2 hours per/deal would lead to an extra $30k in revenue per/rep, per/year, you would implement a solution to make it happen. But if you didn’t know the financial value of this efficiency, you wouldn’t make the change at all. The more financial indicators you have around every part of your sales metrics, the more knowledge you are going to have to make better decisions for your team.
3. Better Prioritization of Resources
Another way financial intelligence helps build world-class sales teams is by helping you prioritize your resources. With financial insight, you will know what to prioritize because you will know the exact financial implications of every single part of your team. As an example, you could have a situation where your fill rate for each sales rep is 90 days, but where you didn’t prioritize lowering this because you did not know the financial value of what a 10% decrease in a fill rate for your team would be. If you knew that it would lead to an extra $50,000 in revenue per/sales rep by speeding up the process, you would invest resources to decrease your fill rate.
4. Stronger Understanding of Sales Rep ROI
The last way financial intelligence helps you is it puts into focus the importance of Sales Rep ROI. The more you know about what contributes to a higher ROI of each sales reps you hire, the more likely you will be to optimize your team and grow quickly and sustainably. As an example, if you knew that by increasing the efficiency of each of your sales reps by 20%, and that this would mean you could make as much money with 4 sales reps as you would with 5, you would do it. Financial intelligence makes it easier for you to optimize your Sales Rep ROI so you can build a more profitable and sustainable sales team.
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