iPad Power Selling Series – We’ve recruited an all-star team of top sales experts to get you excited about selling with the amazing iPad. This is a great post by Nancy Nardin, President of Smart Selling Tools. We’ve always admired Nancy’s no-nonsense approach to hitting the numbers on her Smart Selling Site.
This article quantifies the amount of money iPads could actually make your company, purely in terms of “time saved”. So, if you need some hard numbers to show your CFO or you are a CFO and need to build the case for the iPad investment, here they are in plain English and simple math.
Nancy Nardin is the foremost expert in sales productivity tools. As President of Smart Selling Tools, she consults with many of the top sales productivity software vendors as well as end-user organizations looking to select the right tools.
30 Seconds Matters: How the iPad Delivers Revenue Growth
The first real sales tool I ever use was the GRiD Systems laptop computer (if you don’t count the rolodex). GRiD was the first Silicon Valley start-up I ever sold for and it produced the world’s very first laptop computer. This was in the early ‘80s and it signified the birth of the mobile-age. It’s where my love for sales tools began.
1980’s Sales Tools-of-the-Trade
Sales tools have changed quite a bit since then. Technological advancements that occurred between then and now: the Internet, fiber optics, battery technology, and LCD/Plasma screens to name a few, have paved the way for today’s devices. With the launch of the iPad, we finally have a revolutionary platform for getting, using, and sharing vast amounts of information quickly and easily.
Why the iPad matters for Sales — time is money
In a word, the iPad matters because of speed. Reps cannot afford to lose valuable time—even just 30 seconds of time. Instant-on applications, together with ‘always-on’ wireless access, make a difference. In sales, speed is of the essence. In sales, there is a direct correlation between money (revenue) and (the productive use of) time. And so you’re about to see why 30 seconds, and the iPad matter.
According to our ‘215 Principle’, there are just 215 days in any given calendar year for reps to accomplish all of the daily tasks required to develop opportunities and close business. With that in mind, we can quantify the ‘value’ of that time.
Let’s start by determining how much your reps earn per minute. You can calculate that by dividing your average per rep/per year revenue by 103,200 minutes (215 days times 480 – the number of minutes in an 8 hour work-day). If your reps generate an average of $1,000,000 of revenue each year, then your calculations will show they earn an average of $9.70 per minute.
How much revenue growth does time represent?
This is where it gets interesting.
If the use of iPads saves your reps 30 minutes of time each selling day – time that can now be spent on other more productive tasks – you will free up a total of 6450 minutes per year (30 * 215) per rep. Can you see where I’m going? Now multiply the total saved minutes, by your average revenue per minute calculated above and you’ll arrive at the substantial figure of $64,500.
By determining your over-all sales capacity (215 days) and your average revenue per minute, you can determine the value of every minute of the day. In this example, 30 minutes of time each day is valued at nearly $65,000 in revenue over 12 months. You would still need to multiply that figure by the number of reps in your organization to arrive at the over-all impact the adoption of iPads could have on your revenue.
If you have twenty reps, your potential revenue impact is a staggering $1,290,000.
So yes, 30 seconds do matter. They matter because seconds add up to minutes and, as I have demonstrated, have extraordinary value particularly within the time-sensitive, ultra-competitive, market-driven customer-savvy, shot-clock environment called selling. Need I say more?
What To Do?
The iPad can be the platform that allows your reps to maximize revenue growth above and beyond what’s possible with a laptop. Think through how much time is lost by continuing to use a laptop instead of an iPad for the following activities, and whether you can afford to take the hit on productivity and revenue.
• Launching presentations
• Accessing client records
• Logging calls in CRM
• Looking up key pricing and catalog data
• Following up with information requests
• Compiling and sending sales call follow-up materials
The mobility-age has arrived. And while the iPad is revolutionary in its ability to get, use, and share information, it is perhaps even more revolutionary in its ability to drive revenue growth. The iPad can have a monumental effect on revenue because it helps sales reps get better use of their time. Time really is money – and now we know how much.
Author, Nancy Nardin is the foremost expert in sales productivity tools. As President of Smart Selling Tools, she consults with many of the top sales productivity software vendors as well as end-user organizations looking to select the right tools. Click to get Nancy’s What & When weekly digest with invitations to complimentary webinars and informative publications. Follow Nancy on Twitter @sellingtools or subscribe to her Tool Talk blog. Nancy can be reached at 916-596-3035. To schedule a free 30 minute consultation click here..
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