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January 11, 2017
Optimizing Rep Assignment and Quantity – Straight-forward Analysis
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Perhaps the most straightforward, yet often overlooked method of validating sales force sizing questions is through the tried and true activity-based method.
Definition of the Activity Method – Calculate the number of reps needed to perform the necessary selling activities against the prospect/customer universe the company wants to pursue.
Steps to calculate the Activity Based Method:
Below is an example Activity Based Method to provide you a scenario to visualize the method. In addition, you can download a PDF of this example.
Insights by Segment
A key insight to the activity model is when you have included account segments and you can see clearly how your expectations for account calls match up with resource allocation. The value of the activity method is to give you the insights to prioritized assignments of existing sales reps by segment and/or make the case for adding additional reps.
In Summary
The Activity Method embraces common sense and allows financial views of sales force sizing to be vetted against conventional facts of what it takes logistically in man power to provide proper coverage. When combined with the financial test that includes contribution rates and break-even points, you have both a robust financial and logistical view of your sales force that serve as bookends for answering sales force sizing questions.
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