Hiring sales reps for your team is a complex endeavor.
However, once you select an experienced and skilled professional with an impressive track record of closed deals and accomplishments, can you expect them to start hitting their quota right away?
The truth is that even the most seasoned sales professionals require time to adjust to a new company, product, and sales process.
This is where a well-structured sales ramp-up program becomes crucial.
Simply put, sales ramp-up time is a sales metric for the onboarding process, which includes training a sales rep about your products, sales processes, company culture, and the tools they will be using until they become fully productive and start consistently meeting their sales targets.
During this time, your new sales rep will learn more about how your product works, what its unique selling points are, how to position the offering, and how to handle the most common objections.
No matter how seasoned the person you hired is, they still need time to learn the sales methodologies you use, familiarize themselves with your ideal customer profile and buyer personas, adopt the language of your target audience, and generally just undergo well-structured sales coaching.
At the end of this process, a new hire will be set up for success and ready to start hitting the assigned quota and, fingers crossed, exceeding it.
Many companies make a mistake by overlooking this crucial phase and pushing their new sales hires directly to the frontlines with unrealistic quotas to hit right away. Such an approach is counter-effective and will only demotivate your hires and lead to poor quota attainment.
A well-structured sales ramp-up program on the other hand provides a supportive environment where new reps can learn at their own pace, gain confidence, and gradually increase their productivity. This translates into a range of benefits for your organization:
As we’ve already discussed, the ramp-up process is equally important for both experienced sales agents and those just starting out their career in sales. But there are other factors that influence the ramp-up time, which is why there are three different ways of calculating sales ramp-up time.
Sales ramp-up time = Length of your sales cycle + 90 days
This formula is favored for its simplicity and effectiveness. It directly ties the ramp-up period to the typical length of your sales cycle, ensuring new hires have enough time to experience and understand the entire sales process before being held fully accountable for meeting their quotas.
So, if your seasoned agent needs six months on average to close a deal, then use this as a starting point and add a 90-day buffer period to allow the new hire to reach their full potential and start closing deals. In this case, your sales ramp-up time is nine months, and for sales reps who are new to the industry or the role itself, this period might even be longer.
Sales ramp-up time = Training period + Sales length cycle + Level of experience
This method acknowledges the varying levels of experience that new sales hires bring to the table. Recognizing that seasoned professionals may need less time to ramp up than those who are new to the field, this calculation offers a personalized approach to onboarding.
First, establish the duration of your standard training program and the average length of your sales cycle. Then, tailor the ramp-up period based on the new hire’s experience level. For instance, you might assign an adjustment factor of 0.5x the sales cycle length for highly experienced individuals, 1x for moderately experienced ones, and 1.5x for entry-level hires. Finally, add the training period, sales cycle length, and experience-level adjustment to determine the total ramp-up time.
This approach ensures new hires receive the right amount of support and training, setting realistic expectations for everyone involved, and ultimately leads to a smoother transition into full productivity.
Sales ramp-up time = Average length of time required to achieve 100% quota
This method focuses on the ultimate goal of any ramp-up program: reaching full productivity. By leveraging historical data, you can identify the average time it typically takes for new hires to consistently hit their sales targets.
Analyze past performance data to determine how long it took previous hires to reach 100% of their quota. This analysis should consider such factors as experience levels, sales cycles, and product complexity. Then, use this average time as the benchmark for your ramp-up period, ensuring realistic expectations aligned with historical performance.
Such a data-driven approach allows for more accurate forecasting and resource planning. When you ground your expectations in actual performance data, you can establish a clear timeline for new hires to reach full productivity. Thanks to this, you can ensure your sales team is adequately staffed to meet its goals.
Once you calculate your ramp-up time, the next step is to start actively working to reduce it. Here are some actionable strategies to accelerate your sales team’s journey to full productivity:
The sales ramp-up process is one of the most important elements of building a successful and high-performing sales team. While speeding the ramp-up time and making your new hires fully productive should be your goal, don’t impose unrealistic expectations. New additions to your team need time to learn the ropes in a new working environment. Successful ramp-up requires a robust onboarding, training, and coaching process that will equip new hires with everything they need to excel in their roles and contribute to the company’s success.