How are you adjusting headcount of your front line sales team to adapt to todays buyer preferences?
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Chief Revenue Officer (CRO)6 months ago
One of the biggest inputs in a headcount capacity model is quotas. Instead of adjusting the headcount model, we're adjusting the capacity model. In a more efficient sales process, you're freeing up more of your reps' time, which ideally means they have more capacity for more opportunities and therefore you can increase quotas. The traditional quota to OTE ratios are around three to six. With a more efficient sales process, you might be able to get closer to a tighter ratio. So, before adjusting headcount, start looking at how you can increase your quotas to get to a more efficient headcount model.CSO in Software6 months ago
Good point, Dustin. If you are a manager of managers and you have people who want to add headcount, one of the ways you can offer that up is they have to buy it. They have to build a business case that justifies the investment in headcount. If the headcount costs X and they think that they can yield $300,000 over that period of time that's acceptable to your business, allow that manager or business leader in that region to make those investments because it'll pay for itself. This is another philosophy as opposed to someone asking for something. If you're the sales leader, think of it that way as well. Can I afford this headcount and what is the expectation of yield? This will drive all the other behaviors.
You also need to consider the types of accounts and industries that are spending and where you're successful. This will help you redeploy not only your sellers but also target your headcount.
The cost involved is another factor to consider. Field sellers are more expensive, but what's the yield? We also consider the productivity of business development or sales development roles. It's not straightforward. I would have to look at your current go-to-market model and break it down. There's not a one-size-fits-all recipe, it would be very specific to your business.