Building a successful sales team involves more than just finding talented salespeople—retaining them over the long term can be even more critical. In a competitive job market, holding on to your in-demand sales team should be a top priority, especially given the high costs associated with sales staff turnover. Research estimates that replacing a highly skilled employee can amount to 6-9 months of the employee’s salary. For sales teams at ICT Value-Added Reseller (VAR) organizations, the stakes are even higher.
The Problem of Sales Staff Churn at ICT VARS
In the VAR industry, sales reps tend to stay with one company for years, becoming valuable assets. These seasoned salespeople understand the industry, the customers, and how to navigate organizational complexities. They are often the key point of contact for senior management. When an experienced salesperson churns, they take their knowledge with them.
But that’s not all they take. They’ve built strong relationships with customers over the years. If a sales representative leaves, he or she will likely leave with some accounts. To mitigate this risk, ICT VARs need to implement effective retention strategies that can help keep their sales staff engaged, motivated, and committed to their roles.
5 Ways to Retain Sales Representatives in ICT VARs
1. Reduce Administrative Burden
Sales reps thrive on selling, but research shows they spend only 33% of their time on actual sales activities. The rest of their time is spent on non-revenue-producing activities, which, of course, affects earning potential. Giving salespeople the right systems that minimize admin work helps them become more efficient so they can stay in front of customers in revenue-generating activities.
2. Implement knowledge systems
Put systems in place to help Account Executives (AEs) work seamlessly across accounts. This ensures that if a salesperson leaves, the organization can quickly fill the gap. Create multiple layers within the sales cycle, with account managers overseeing AEs but AEs reporting to different account managers. This approach blurs the lines for the customer, making sure that no single individual is indispensable.
3. Provide support with sales tools
Automation is driving sales in today’s digital era. Equip sales reps with the necessary sales tools to enhance their performance and give them a competitive edge. A company can make the sales rep feel valued when they invest in tools that are going to assist them in achieving their numbers. For example, an automated quoting or renewals tool allows reps to respond faster than competitors. Sales tools that automate communication, personalization, and prospecting empower not only the sales rep, but also allows management to be able to better manage that individual and help them close. According to McKinsey, sales outperformers are 62% more effective in using digital tools to support sales.
4. Enhance compensation plans
Understand that sales reps want to consistently earn more. Design compensation plans that balance base salary and commission, ensuring reps are well-compensated according to their experience Lowering their base and raising their commissions while giving them the support needed to spend more time with customers is a proven way to drive satisfaction and loyalty. In fact, a recent study by the Bridge Group found that sales teams with performance-based compensation structures saw a 30% increase in productivity and a 25% decrease in turnover.
5. Offer growth opportunities
Aside from monetary rewards, top talent expects growth opportunities at regular intervals. Invest in coaching and training programs that support career advancement and help sales reps stay updated on the latest developments in their field. Regular opportunities for growth and development can significantly enhance job satisfaction and retention. According to LinkedIn’s 2023 Workplace Learning Report, 94% of employees say they would stay at a company longer if it invested in their learning and development.
Success Through Effective Sales Team Retention
Retaining talented salespeople is essential for the success of ICT VAR organizations. By implementing strategies to reduce administrative tasks, establish robust knowledge systems, provide automated sales tools, enhance compensation plans, and offer growth opportunities, organizations can keep their sales teams engaged, motivated, and committed for the long term. This proactive approach not only reduces turnover costs but also ensures sustained sales performance and customer satisfaction.
