How to Calculate Return on Investment (ROI) for Sales Assessment Tests
Here are some questions that can help your organization quantify the potential impact of sales assessment tests on Revenues, Expenses, and Profits.
- How many of your company's current salespeople are:
What is the difference in annual production (either revenue or profit) between:
- Top performers?
- Middle performers?
- Bottom performers?
What would the impact be to your organization if you:
- A top performer and a bottom performer?
- A top performer and a middle performer?
What does your organization spend annually on:
- Replaced (X) bottom performers with top performers?
- Replaced (Y) middle performers with top performers?
- Added (Z) incremental top performers?
By how much could these expenses be reduced if your company made fewer hiring mistakes?
- Sales recruiting ads?
- Commissions to recruiters?
- Time spent reviewing sales job candidate resumes?
- Time spent conducting telephone screening calls with sales job candidates?
- Time spent interviewing sales job candidates?
- Salesperson salaries/draws?
- Salesperson benefits?
- Sales training?
- Sales management salaries and benefits?
What's the Bottom Line?
On average, our clients tell us that the difference in production between top sales performers and middle performers can be hundreds of thousands of dollars per year PER PERSON. The difference in production between top sales performers and bottom performers can be more than $1 million per year PER PERSON.
When you compare these differences in production to the investment required to implement sales assessment testing, it becomes clear that sales assessment tests provide a cheap solution to a very expensive problem. Factor in the expense reduction from reducing turnover and your sales assessment test ROI becomes even more compelling!
Free ROI Analysis Tool
We offer a complementary Sales Assessment Test ROI Calculator that will help you calculate a customized ROI for your own organization. If you would like our (free) assistance in performing a custom ROI calculation, please contact us.
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