Determining the right number of sales leads for reps and vice versa

Einstein inspired formula
Velocify shares its formula for optimizing the sales leads-to-rep ratio.

Einstein’s definition of insanity is doing the same thing over and over but expecting different results – most sales organizations are reluctant to make big changes in their sales strategy, yet have an unrealistic expectation that results will improve significantly. We get it, making big changes isn’t always easy, especially when there is a lot on the line. So we put our resident sales scientists to the test, mining millions of sales calls to build out a formula for one of the most common questions we get asked from sales managers. How many leads should I be assigning to my sales reps each day and when do I need to hire more sales reps based on my lead flow?

With our newly released Guide to Optimizing your Leads-to-Rep Ratio, you don’t have to be as smart as Einstein to find the optimal number of leads to assign to each of your sales reps. Velocfiy sales scientists (OK, they’re really analysts) have been busy in the lab office, analyzing the relationship between number of sales leads, number of reps, and conversion rates across hundreds of sales teams. The result —  a formula for calculating the optimal number of leads to assign to each sales rep to put them in what we call the ‘peak performance zone.’  Identifying this peak performance zone, where utilization and conversion rate are at their optimal level, is an important factor underlying a sales organization’s efforts to meet its sales targets and support topline revenue and profit growth.

By understanding the optimal lead-to-rep ratio, sales managers can more easily staff against lead flow or scale up or down the number of leads per rep with a clear understanding of the impact on conversion rates, and ultimately top-line revenue and profit growth.

This calculation, coupled with a standard profit formula, can also be used to find the optimal lead volume necessary to break even, maximize profits, or maximize revenues, depending on an organization’s ultimate goal. And the best news? The inputs to the formula can be specifically defined for each sales organization that wants to identify their own reps’ peak performance zones. Velocfiy’s guide includes formulas and tables that take into account lifetime value, cost per lead and commission per sale for a more accurate lead assignment recommendation per rep, per day relative to these key factors. With these tools, sales managers can quickly identify the optimal balance of sales leads and reps based on their unique set of variables.

Sales organizations interested in learning how to identify the peak performance zone for their own teams can download the full Velocfiy report, Guide to Optimizing Your Leads-to-Rep Ratio, free of charge.

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