Increase sales by 24% by re allocating salesperson time between retention and acquisition!
Research and experience have both shown that strategies aiming to populate an account portfolio with only the highest worth relationships will eventually limit firm wide value by restricting customer base size, failing to sustain an evolving portfolio over time and increasing exposure to risk. In short, current key accounts have a diminishing growth potential over time leading to the ever present need to acquire new accounts. Supporting this thought is a recent survey that found that 73% of sales and marketing managers said that customer acquisition and lead generation are their primary goal.
So acquiring new accounts is a must. But how much time should your sales reps spend on acquisition versus retention?
Research Summary
In a March 2014 study published in the Journal of Personal Selling and Sales Management titled “ Effect of Sales Peoples’s Acquisition-Retention Trade off on Performance”, four academics share the results of their research to try to answer this question.
The authors suggest an inverted U shaped curve to describe their findings on time allocation, that there is a diminishing return to sales people in spending too much time on either retention or acquisition. They suggest a solution to this dilemma and identify the key factors in determining the optimal mix.
The Problem Defined
Current thinking proposed by a number of sales consultants recommends a firm wide optimal allocation between retention and acquisition, requiring sales reps to spend a specific amount of their time on acquisition activities. They do this to combat salespeople’s preference to discuss future business with existing clients rather than to venture out into a new territory to face rejection. Other companies are satisfied with a supervisor setting these time allocations.
But are either of these optimal? The authors of this research study say no. Instead they recommend that the decision on time allocation be made at the sales rep level. Why? Because in their study, it increased sales results by 24%!!
The research showed that 67% of the salespeople are misallocating their time by more than 10% with 49% over allocating their time and 18% under allocating their time to acquisition activities.
Results
They compared 4 separate alternatives to this problem of time allocation which produced the following results:
- Base case: No strategy, existing acquisition allocation. The average was 54% allocation to acquisition and this resulted in the baseline sales results.
- Firm wide allocation target of 45.2%. Sales increased 10.6% from the base.
- Sales managers set the allocations for their own teams. Targets ranged from 25% to 75% with the average set at 45.1%. Sales rose 18.2% from the base line.
- Salespeople have unique allocations set jointly with their manager which again ranged from 25% to 75% with an average of 45.4%. Sales rose 24%…more than 2x the gain of a firm wide target.
Why? Though the average target varied only slightly, from 45.1% to 45.4% the sales results are driven by allocating the right resources to the right task with the right customers, something that can be best done at the sales rep level with a disciplined review of the portfolio and taking into account the skills and experience of the sales person as well as the manager.
Success factors
The authors identified 3 success factors, the Supervisor, the Sales person and the Prospect Portfolio. Seven moderators further define the success factors.
Supervisor: Experience, Job Commitment
Sales person: Experience, Training, Knowledge Breadth
Prospect Portfolio: Quality, Quantity
Sales person acquisition ability refers to the knowledge and skills that allow them to convert prospects into new customers. These include the expertise needed to accurately qualify prospects, target the best opportunities, gather and integrate the most market information, develop a value proposition, manage the members of the internal team, and deliver and adapt the value proposition to satisfy the prospects needs.
With greater knowledge breadth, extensive awareness , and understanding of a diverse array of products and matching solutions experienced sales people are better suited to analyze each prospects unique situation and deliver a customized solution.
These factors increase their aptitude and help them to build confidence that perseverance and experimentation in acquisition attempts will pay off in the long run despite short term risks and some f allures.
A supervisor’s guidance and wisdom can ether enhance or diminish a salespersons performance. Experienced managers draw from proof in practice and are more willing to teach and mentor the salespeople explorative and acquisition efforts .
Acquisition requires persistence as well and this relates to job commitment. The study shows that the higher the job commitment of both sales person and supervisor the higher likelihood of an optimally balanced time allocation.
Finally, as you might imagine, the quality and quantity of opportunities within a portfolio are also strongly biased factors in allocation success.
How to Apply
- Plan:
- How do you currently allocate time between retention and allocation? Is there opportunity for improvement?
- Shine a light on the opportunity. This is brand new research and is probably not well understood by your teams. Inform them of the opportunity to improve results
- Develop a disciplined process for territory and account assignments.
- Set a timetable and allocate proper resources to ensure the program’s success.
- Execute:
- Perform a disciplined review of the portfolio, taking into account the skills and experience of the sales person as well as the manager.
- Provide facilitators and a template to assist sales managers and reps in developing an optimal allocation.
- Pair your best sales reps with your best sales managers in a given market . Assign the best prospects to your best teams.
- Run a pilot program with some of the best and most innovative sales teams.
- Give them the freedom to determine their own time allocation based on joint planning between individual sales managers and reps.
- Evaluate
- Measure the acquisition and retention results as well as overall sales versus the baseline. What was the average allocation? What were the ranges? What processes worked best? Why?
- Tweak your program based on the results of the pilot.
- Roll out to the next level of sales teams.
Remember that not all sales teams are created equal. Take this plan to your best first and then roll it on to the next best. You will gain diminishing results the lower you go in your organization. Focus on the top opportunities and the top sales people and managers.
Good luck!
Steve
If you would like a copy of the research article please let me know and I will send it to you. Unfortunately, due to copyright laws, I cannot post the article on line.
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Introduction to Azerbaijan Online Visa
Azerbaijan introduced the eVisa system to streamline the visa application process for foreign visitors. The online visa (eVisa) is available for citizens of over 90 countries and is a great option for those looking to save time and avoid long queues.
The Azerbaijan eVisa is an electronic travel authorization that allows you to enter Azerbaijan for a specific period for tourism, business, or other purposes. It is available for single-entry purposes, meaning you can only use it to enter the country once. If you plan to visit Azerbaijan multiple times, you will need to apply for a new visa each time.
The online visa application process is simple and efficient, with minimal paperwork and a quick approval system, typically taking only three working days to process.
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Tourist Visa (Single Entry): This is the most common type of visa issued to travelers visiting Azerbaijan for tourism. It allows a short stay (usually up to 30 days) for sightseeing, leisure, or visiting family.
Business Visa (Single Entry): If you are traveling to Azerbaijan for business-related purposes, such as meetings, conferences, or trade fairs, this visa is suitable for you. The business visa typically allows a stay of up to 30 days.
Transit Visa: This visa is for travelers passing through Azerbaijan en route to another destination. It allows you to stay in Azerbaijan for a short duration (usually up to 3 days) while you wait for your connecting flight or train.
Medical Visa: If you need to visit Azerbaijan for medical treatment, you can apply for a medical visa. You will need to provide proof of your treatment or appointment at an Azerbaijani medical facility.
Other Visas: There are also other specialized visa categories available for diplomats, government officials, or people with special status. However, the online visa system mainly covers tourist, business, and transit visas.
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Before applying for the Azerbaijan eVisa, you should ensure that you meet the eligibility criteria. Here’s who is eligible to apply for an online visa:
Citizens of eligible countries: The Azerbaijan online visa system is available to citizens of over 90 countries, including the United States, the United Kingdom, Canada, India, and many European countries. You can check the official Azerbaijan visa to see if your country is included.
Valid passport: Applicants must hold a passport that is valid for at least 3 months beyond the intended date of arrival in Azerbaijan.
Purpose of travel: Your reason for visiting Azerbaijan should align with the categories allowed for online visa applications, such as tourism, business, or transit.
Documents Required for an Online Visa
The application process for an Azerbaijan eVisa is straightforward, and you don’t need to submit many documents. Below is a list of what you will need:
Passport: A scanned copy of your passport’s biographical page is required. Make sure your passport is valid for at least three months beyond your intended stay in Azerbaijan.
Photograph: A recent passport-sized photo is typically needed for your visa application. The photo should be clear and meet the specific requirements outlined on the application.
Travel Itinerary: You may need to provide a travel itinerary showing your planned dates of entry and exit, as well as your accommodations while in Azerbaijan.
Proof of financial means: In some cases, you might be asked to provide proof that you have sufficient funds to cover your stay in Azerbaijan.
Email address: An active email address is necessary as the visa approval will be sent to your email in PDF format.
Visa fee: You will be required to pay the visa fee during the application process.
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Contact details (email and phone number)
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Ensure that all information is accurate and matches what is on your passport.
Step 2: Upload Documents
You will be asked to upload a scanned copy of your passport and a passport-sized photograph. Make sure the scanned documents are clear and legible.
Step 3: Review and Confirm
Once you have completed the application form and uploaded the necessary documents, review all the information to ensure it is correct. Any errors could result in a delay or rejection of your visa.
Step 4: Make Payment
Proceed to pay the visa fee via the available online payment methods. The Azerbaijan Visa Fee varies depending on the visa type but is usually around
Step 5: Submit the Application
After making the payment, submit your application. You will receive an email confirmation that your application has been received and is being processed.
Processing Time and Cost of Azerbaijan Online Visa
The processing time for an Azerbaijan eVisa is usually 3 business days, but it’s advisable to apply at least 7 days in advance to avoid any unforeseen delays. You can also expedite the process for an additional fee.
The cost of the eVisa depends on the type of visa you are applying for. Typically, a tourist visa costs around, while a business visa may be slightly more expensive. The fee is non-refundable, even if your visa application is denied.
Common Mistakes to Avoid When Applying for an Online Visa
Here are some common mistakes to avoid when applying for your Azerbaijan eVisa:
Incorrect passport details: Double-check your passport details before submitting the form. Even small errors can lead to delays or rejection.
Missing documents: Ensure that you upload all required documents, including your passport and photo.
Inaccurate travel dates: Make sure your intended dates of entry and exit align with your travel plans.
Payment issues: Verify that your payment was processed successfully before submitting your application.
Tips for a Smooth Azerbaijan Visa Application
To ensure a smooth and successful visa application, follow these tips:
Apply early: Apply for your eVisa well in advance to avoid last-minute stress or complications.
Double-check your information: Mistakes can cause delays, so carefully review the information before submitting your application.
Check visa requirements: Make sure you are applying for the correct type of visa based on your travel purpose.
Have all documents ready: Ensure you have all the necessary documents (passport copy, photo, etc.) before starting your application.
What to Do After Receiving Your Azerbaijan Online Visa
Once your Azerbaijan eVisa is approved, you will receive it via email in PDF format. Here’s what you should do next:
Print your eVisa: Make sure to print a copy of your eVisa and keep it with your travel documents.
Show it upon arrival: Present your printed eVisa at the border control upon entering Azerbaijan.
Check for errors: If you spot any errors in your eVisa, contact the authorities immediately to have them corrected.
Conclusion
Applying for an Azerbaijan online visa is a simple and convenient process that saves time and eliminates the need for a physical. By following this comprehensive guide, you can easily navigate the application process and enjoy a smooth trip to Azerbaijan.
Whether you’re traveling for tourism, business, or to transit, Azerbaijan’s eVisa system is designed to make your travel experience hassle-free. Just remember to apply early, check your information carefully, and keep an eye on your email for the approval notice.
Safe travels, and we hope you enjoy your visit to Azerbaijan!
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