Jiminny

The True Impact Rep Ramp Times Have on Business Growth

Jiminny

Organisations with strong employee onboarding practices enjoy 82% greater employee retention and 70% better productivity. Sales rep ramp time (the time it takes for a newly hired salesperson to reach full productivity) is driven by your onboarding processes.

The effectiveness and efficiency with which you get your new reps up to speed can significantly impact your business growth by influencing productivity, employee retention, and customer churn. And ultimately affect revenue and your bottom line.

According to the Bridge Group, average SDR rep ramp time sits at 3.1 months and 4.9 months for AEs. With the average rep tenure of 1.8 years for SDRs and 2.6 years for AEs, this means that full productivity is 1.5 and 2.2 years respectively. So, it makes sense to want to shorten ramp time to maximise the time reps are most productive. But is that wise?

Ramp time and productivity

Productivity plays an obvious part in bolstering business growth since it directly impacts your bottom line. The sooner a rep ramps, the more business they will close, and the greater amount of revenue will result. But it’s not just about the speed at which a rep is ramped.

If onboarding isn’t effective enough, ramp time is longer, and productivity is reduced. A study found that onboarding which met or exceeded rep needs resulted in 4.1% above average quota attainment. And when onboarding fell short of rep needs, quota attainment fell by as much as 14.5%. So, it’s important to provide sufficient information, support, and coaching during onboarding and not leave reps on their own too soon.

Onboarding influences employee retention

Sacrificing quality onboarding to shorten ramp time can lead to rep turnover. According to Gallup, only 12% of employees feel their organisation does a great job onboarding new hires. This failure prevents the formation of an emotional bond between the new hire and the company and can greatly influence rep retention.

According to an older DePaul University report on sales rep turnover, it costs $115,000 to hire a new sales rep. That’s a modest estimate in comparison to what it costs today when you consider recruiting, onboarding, training, lost sales and rep salary. So, quality onboarding is more important than shorter onboarding when considering the importance and costs related to rep retention. And supporting reps keeps them happy and boosts their productivity.

Ramp time impacts customer churn

Pushing reps to ramp too quickly or ineffectively onboarding can impact customer churn. If reps are rushed through onboarding, they may not properly represent your company’s product or service. Inaccurate promises or information may be conveyed, or they could be insufficiently prepared to respond to buyer inquiries as quickly as the potential customer desires. This can lead to lost opportunities, deals closed with the wrong types of prospects, or customer dissatisfaction, increasing customer churn.  

New rep onboarding shouldn’t necessarily be rushed to shorten ramp time. But the process can be completed effectively and efficiently to minimise ramp time for new hires. Providing continuous support, training, and coaching can keep reps happy, increasing productivity and retention to support business growth.

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