Research Reveals Sales Coaching ROI and Performance Benchmarks

Highlights

  • Sales coaching applies insights, dialogue, collaboration, feedback and practice to improve salesperson performance.
  • Managers apply coaching to pinpoint process areas for seller improvement and deliver the biggest financial upside from the salesforce.
  • Research shows that active coaching delivers significant and sustained performance improvements in the areas of sales conversions, quota attainment, year over year revenue growth and salesperson tenure. No other productivity investment delivers a bigger financial impact than effective sales coaching.
Johnny Grow Revenue Growth Consulting

The Indisputable Link Between Sales Coaching and Revenue Results

Effective sales coaching is a closed loop process that assesses staff performance, identifies gaps or areas for improvement, and engages in combination of questioning, collaboration and feedback. It then measures performance improvements and revenue results, and repeats the cycle.

The goals are to develop each reps potential and grow the cumulative revenue impact of the salesforce.

Good coaching programs are well-defined, committed to, personalized, progressive and measurable. The best programs empower and motivate sellers to take responsibility for their performance improvements and career growth.

Research Findings

Research published in The Sales Excellence Report found that coaching effectiveness and ROI were closely linked to program maturity. The research surfaced two overarching findings.

First, sales coaching ROI skyrocketed for participants that applied formal and regular coaching. Only 23 percent of participants with informal and irregular coaching reported a positive ROI at the end of 12 months. However, that figure more than tripled for participants that brought structure and regular cadence to the program.

Sales Coaching ROI

The second finding was discovered by correlating coaching maturity levels with revenue performance measures. The data illustrated that more mature coaching programs highly correlated with higher sales win rates, quota attainment, year over year revenue growth and seller tenure.

Sales Coaching Maturity Model

To put this in perspective, while only the top 15 percent of participants were designated in the Best-in-Class archetype, this segment achieved some remarkable results in several of the most important sales performance measures.

Sales Coaching Benefits

Research shows that formal and regularly delivered sales coaching programs delivered double digit improvements to the opportunity win rate, quota attainment and revenue growth.

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From Insights to Action

Consider three things when you think about these research findings.

First, when any sales method or program can deliver revenue performance improvements such as the above, the program warrants serious consideration.

Second, recognize that coaching is a journey. That's why we developed the maturity model shown above.

And third, if the research results compel you to consider how you can implement a sales coaching program, recognize that advancing along a maturity model requires integration with a sale methodology, sales process and sales coaching software to bring information reporting, process automation and scale to the program.

Sales improvement programs delivered in isolation may deliver temporary improvements but do not achieve sustained success. To make a coaching program sustainable it must be integrated with sales strategy, sales management and sales technologies.