The True Cost Components of Sales Talent Attrition, Tim Hughes

SBI Research recently revealed that most sales professionals (56%) were actively searching for a new job, posing significant challenges for CEOs and sales leaders.

In terms of lost revenues and costs for recruiting replacements, onboarding etc.

SBI Research benchmarking at the end of 2021 reported B2B companies had a 10-15% open sales headcount, but the real “sales capacity at risk” figure is closer to 50–60%.

Companies are urgently addressing their hiring strategies determining if building a bench or hiring external resources best serves their needs.

So what can a business do in terms of:-

Expenses saved: Employee salary, commission, and benefits
Expenses incurred: Resources, time, and money on recruiting
Opportunity Cost: Lost revenue

I recently wrote this article, How to navigate the sales headcount gap but let's look at each of these points.

1. Expenses saved: Employee salary, commission, and benefits

While being down on head count means you are saving money, you are also missing out on the revenue and contribution at a full time headcount could be making.

In my experience, having no activity by salespeople in accounts gives your competition an opportunity to start filling the vacuum.

2. Expenses Incurred: Resources, time, and money on recruiting

Recruiting takes time and money. It takes management time and there is also the cost of recruitment ads and recruitment consultants.

It's worth stating that our clients that have gone on to build a digital organisation have been able to remove the cost of recruitment ads and recruitment consultants. How? By externalising your culture and empowering your employees to post insightful, educational and authentic posts, gives your potential recruits the opportunity to evaluate your business.

More importantly you are able to get the attention of those difficult to find potential employees, those that are currently happy and don't want to move. This is how you recruit a-players, those that will stay the longest and over achieve their number.

3. Opportunity Cost: Lost Revenue

Without your sales team, your business can get hit by competitive companies hitting your accounts. Of course, those business that have implemented our "social selling and influence" course backed by Institute of Sales Professionals (ISP) will soon be able to infiltrate, surround and cut off communication with your business.

We call it "the pulling the rug out from under the competition" sales methodology.

Now Imagine .....

Imagine, I pick you up tomorrow in my car and drive you to a place which is full of your prospects and customers. All you have to do is go up and have a conversations with them.

Remember, social media is, social media. In the past you interrupted somebody with a cold call or an email and pitched your services. As social media is being social on media, interrupting and pitching does not work.

If I walked up to you at a social event and pitched, you would make your excuses and go and talk to somebody else.

So how about tomorrow, I pick you up in my car and we go to a place where all your prospects are hanging out. You can stay as long as you want. All you have to do is have a conversation with them. It's that simple, if you are interested, read on.

What is social selling?

Here at DLA Ignite, we define social selling as

"Using your presence and behavior on Social Media to build influence,
make connections, grow relationships and trust, which leads to
conversation and commercial interaction."

It's not witchcraft, it's enabling your salespeople to work from home, (or the office) and create conversations with prospects and customers. Conversations on social media and conversations that convert.

The problem with the name "social selling" is that people think that this is selling on social. All these pitches that you get on social are not social selling, they are spam.

The other thing you need to know about social selling is that this isn't about "putting out some videos" or "putting flowers on your profile" or "going viral". Here at DLA Ignite, engagement is important but we are about driving revenue, EBITDA, for your business using social media. This is about you winning business from the competition and having a competitive advantage.

Social is about having a strategy and there are two key drivers

With anything you do on social there are two questions you need to ask

1. How many leads / meetings / conversations will I get from this post / blog / activity?

2. How much revenue / EBITDA am I getting as a business?

Posting and hoping or posting random stuff is not a strategy, in fact I doubt it's driving anything for your business.

So who's social selling?

In case you missed it, the Bank of America’s Merrill Lynch have banned cold calling and have moved all their people to social selling. This isn't some trendy tech company that might have decided to do this on a whim, this is a very conservative financial services company that has made a decision based on data.

But surely cold calling has a better ROI than social selling? Not according to Merrill Lynch.

"They will also be encouraged to contact prospects over LinkedIn, which has a higher hit rate than cold calling"

The CRO (chief revenue officer), Richard Eltham of Namos Solutions, of one of clients posted a comment on LinkedIn about social selling. See here.

“Social selling is not an option now it is the way of the world and you either learn and execute it or fear getting left behind”

Kevin Murray who is the Head of Sales at MacArtney Underwater Technology recently posted about his success with social selling here and wrote an article about the transformation that has happened in sales here.

Andrew Ferrier who is the CEO of Display Technology Ltd and in this article it talks about why Display Technology have adopted social selling. His team have also created a social media strategy with help from our partner, Crux.

Their social media mission statement is

“We want to position ourselves as a forward-thinking, knowledgeable team of individuals who are all experts in our own right, therefore, collectively awesome!”

Andrew also says in that post

"Adopting this (social selling) strategy has taken all of us well outside of our comfort zones but the rewards we have seen in a short period of time have created an excitement within the business development team (new term for sales team).

Because of the nature of social media, quite often you can get instant results. Even if that is just a comment left on your post, or a like, or someone taking the time to want to connect with you.

The excitement around the sales team is infectious, it’s no longer a chore to reach out to the market place because the results can be instant and are there, right in front of you."

What sort of results can you expect?

If you check out this video of Chris Mason CEO at Oracle reseller Namos, and DLA Ignite customer, fast forward to 19 minutes 55 seconds. Chris talks about a $2.6 million win from being on social, after completing the DLA Ignite social selling and influence course.

What happened? They buyer was on social media looking for a solution to their problem, spotted one of the Namos salespeople, who had a buyer-centric profile and asked if the salesperson could help them. That turned into a $2.6 million deal.

Contact any of the DLA Ignite team, Eric, Adam, Nick, Vanessa, Lorena, Priscilla, Lenwood, Alex and they will be more than happy to help.

Go and look at their LinkedIn profiles .... look how they can have digital conversations, create insightful content. This could be your company!

We are the only social selling and influence company in the world to offer a certificate in social selling sponsored by the Institute of Sales Professionals (ISP).

Other articles you might be interested in ....

Would you buy social selling training course from somebody that doesn't use social selling?

How to create budget and build a business case for your social selling project