Team Happay
By: Team Happay
Published on: May 3, 2017

happay the-pressure-of-chasing-not-just-targets

In sales – it’s all about numbers.

The number of calls you make, the number of follow-ups you do, the number of meetings you go for, the number of companies you close; the list never ends!

With so much to deal with already, there is one more weight your sales team has to carry – the heaps of expense receipts and reports that pile up at the end of every month due to inefficient processes. This adds up to a good number.

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1 sales meeting means 2 bills, 8 minutes for expense filing & 5%-10% of loss in bill amount

Sales managers are often unaware of the amount of money that their team spends and loses on business expenses and claims.

These numbers matter- here’s the proof

To show you how much these numbers matter and what they amount to, we interviewed 500+ Sales Professionals. Our objective was to understand the struggles they face with receipts and expense reports.

The survey is quite an eye opener for sales managers (here is a link to how the survey looks). In case you want to implement the survey in your team we can help you. Just enter your email address (here) and we will do the rest on your behalf.

The amount of monthly salary locked on sales

According to our research on an average, a sales rep spends 1/5th of his fixed pay in the process to achieve targets, which means that 20% of the salary is rotational.

This money is typically spent on air tickets, hotel accommodation, meals, mobile bills, taxi fares, etc. as your team sets out every single day to meet their numbers.

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Out of 500, 283 are spending somewhere between 5 to 8 thousand monthly on business development. That is over 80 thousand in an year!

Average monthly expenditure (amount of monthly salary locked) amounts to anywhere between Rs.5000 to Rs.8000.

Surprisingly, the sales reps don’t mind spending this or more amount from their own pocket.

I don’t mind the expense, sometimes I spend over Rs.500 just to meet the prospect.The cost of losing the prospect is way more than the money I spend in the process to convert him.

– Pranjal, LVG Insurance

This revelation made us delve deeper into the problem.

If the money spent on doing sales is so high, could this be a conscious reason to drop a lead?

Surprisingly, NOT! More than 80% of the respondents said they would not forego a meeting just because it was too costly on their pockets.

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This is a proof of the rock solid commitment they have towards their work; expenses don’t even matter when it comes to sales.

It also demonstrates that your sales team is highly invested in their job. They will leave no stone unturned to make the deal happen.

But this also doesn’t mean that they don’t get de-motivated because of heavy expenses.

Conclusion 1: A part of a sales rep’s salary is always locked on sales expenses. This amount which remains due for reimbursement thus becomes an additional variable component of the salary.

The amount of money lost due to mismanagement of bills

We discovered that on an average a sales executive loses 5%-10% of his salary due to mismanagement of bills.

Pranjal from LVG insurance says, “If I don’t submit my bills on time then my salary for the next month gets affected. Our head office is in Kolkata so reports have to reach there from Bangalore before the 3rd of every month.”

Deepak, a senior sales person from Genworks says, “I have lost a lot of money in the past, and managing bills was an unwanted responsibility.”

I have lost over Rs. 25,000 in the last 6 months.

-Sunil, Capricoast

Harish from the same company says, “I lose Rs.800 to Rs.1000 every month due to misplaced/uncollected bills”.

Conclusion 2: Losing one’s own money due to mismanagement of bills has been accepted as a part of the process.

The problem is not the money spent but how much of it are they able to claim back and recover.

It is only fair for business heads to eliminate such losses for their prime bread earners.

To Summarize…

These two issues have always existed and sales heads have known about them in the back of their minds but most have not taken any action due to lack of proof/motivation.

We have helped a couple of ‘not-so-sure’ sales heads to implement our survey in their team. The results have helped them identify the key issues with their sales expense reporting process.

We request you to float this survey within your sales team and see how much money your team is losing. (We can do that on your behalf, just click on this link and we will reach out to execute it for you.)

Your sales team has to juggle so many responsibilities at a time. Here is an e-book that will help them spend less time on expenses and bring their focus back on sales.


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Please let us know if you want any consultation on improving your sales expense management and reimbursement process. We are here to help.

Comment to leave your views.



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Team Happay
The editorial team at Happay puts together curated content that helps Indian SMEs and Enterprises take control of business payments. We create content on a wide array of topics from B2B payment trends and spend management best- practices to real-life case studies of how CXOs of different organizations use automation and mobility to manage business spends more effectively.

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