Eddie Reynolds’ Post

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Strategic RevOps Consulting for B2B SaaS

90% of sales teams have no clue what their capacity is! Some things to think about here... How many opportunities can a rep manage at once? Beyond this number, critical steps will be skipped in the sales process. How many opportunities can a rep manage while prospecting? If your sales reps have to generate pipeline (as I believe all reps should do) then their sales capacity is limited to the hours they don’t have blocked for prospecting. How is capacity mapped to sales targets? - You have your Close Rate and ASP - You have Sales Cycle and Sales Capacity - You can now map our realistic sales targets - You can map our how many deals are needed - You can map how many deals will come from inbound - And how many deals will come from outbound prospecting Your reps block time to prospect and use the rest of their time to close deals. How does this fall apart? 1. You give reps too much inbound and they skip steps. - Close Rates drop - Average Sales Price drops - Opportunities take longer to close - You have enough pipeline but miss target Good problem to have. Hiring more reps should result in more sales. 2. You give reps enough inbound to stay busy - Reps have enough inbound to stay busy - They take all the right steps in the process - Close Rate, ASP, Sales Cycles all remain good - But they don’t have enough pipeline to hit target - And they don’t ever have enough time to prospect - They busy all day every day just managing pipeline Your sales targets are unrealistic for a pure inbound model. You need to lower sales targets and/or hire more reps and get them prospecting. This is a model many subscribe to but IMHO it creates terrible sales practices. Reps can’t replace pipeline so they’re too afraid to ask hard questions or walk away from unqualified opportunities so they just chase everything. 3. Reps don’t have enough inbound or outbound pipeline - Reps don’t have enough inbound to stay busy - They have plenty of time for outbound prospecting - But they can’t generate enough pipeline to hit targets Whatever hours they have for prospecting is not sufficient to hit targets. You need to lower targets and/or find a way to improve outbound conversion or the sales process. When reps miss targets we always blame them for not doing enough. But how do we know if they did enough if we don’t know their capacity? 🤔 In the 📰𝙍𝙚𝙫𝙊𝙥𝙨 𝙒𝙚𝙚𝙠𝙡𝙮 📰 we explained how to do a sales capacity plan. Get it here: 🔗 https://bit.ly/48YVpEP 🔗 ✌️

Alice Heiman

Founder | Strategist | Podcast Host I guide #CEOs to elevate sales to increase their valuation. Skier⛷️ Sailor ⛵️

6mo

Good overview Patrick Meza

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Tyler Miller

Sales Strategy & Revenue Operations | Sales Compensation Expert

6mo

Good stuff here. While the convo around “full cycle AEs” is hot right now, orgs that don’t have a strong grasp of capacity will be flying blind if trying to make the transition. Need to understand what the component parts are before you start building. If you have a large sales org and are significantly revising job roles, it is critical to have a strong understanding of current capacity, and good estimates for what capacity will look like in the future.

Alex Zlotko

CEO @ Forecastio | Advanced sales forecasting for HubSpot

6mo

Great insights and article. Yes, capacity planning is ultimately important. It's one of the key methods to assess the attainability of your sales goals. Do you have enough reps on your team? If not, when do you need to hire more and how many, considering current capacity, ramp-up time, capacity and the annual attrition rate? But I agree that this can be done only if you know your numbers. I bet many organizations are unable to answer your first question: How many deals in a pipeline can one sales rep manage at once?

Paul Kiggen

Founder & CTO at RTL Tech | AI Loan Automation | Revenue Architect

6mo

This is the right way of thinking about it when you’re doing capacity planning for sales reps. I’d also argue that a lot time is wasted on bad data (I.e. spending time with (meetings, proposals, etc) MQLs/Leads who have no intention of buying your product or service (or at least not at this moment)), and inefficient processes (e.g. too many internal meetings, sales spending a lot of times accessing internal resources, etc). Since this can vary for each territory it’s worth taking into consideration when you’re planning overall AE + SDR headcount.

Ryan Beebe

Enablement Director @ SecurityScorecard | Google Project Management Certified | aligned GTM enthusiast | ACE at MIT | revenue and karate diplomat

6mo
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