Here’s how the calculation worked on Julie’s case study by Natalie Ashdown, co-author of Bring Out Their Best.
According to her, “I coached a young sales person, Julie, with the purpose of increasing her sales results. The key coaching issue was around time management, because her manager wanted her out on the road the whole time, not in the office. She was basically driving around to different potential client sites and ‘cold calling’ to see if they were interested in her products. If they were available and interested in talking to her, she had a fairly high success rate. If they were not available, which was the majority of the time, she tried to make appointments to come back at a later time or date.
It may seem simple, but we worked on alternatives to driving around and cold calling, and Julie adopted an approach of spending time in the office setting up the appointments, and then going out and visiting those people who where keen to see her
and had agreed to the appointments. We also worked on her having the courage to tell the general manager that this was the best approach for her.
The classic thing was that the general manager wasn’t confident in coaching; he was worried about the ‘expense’ or ‘cost’ because that’s what he deemed the investment to be. He signed off two coaching sessions, which at the time were valued at $900!
After two coaching sessions she started calling and planning her time and appointments. Within two weeks, Julie had made five more sales than she had averaged over the past year! We were confident that Julie’s implementation of her commitments were the key thing that she did differently to get her sales results.
Let’s look at the ROI calculation.
One sale is worth $8,000 and Julie made five more sales = $40,000. Let’s suppose that she was due for some luck and that the entire $40,000 cannot be attributed to the coaching. Let’s claim, say, only 50%.
A massive discount of the benefit: $40,000 × 50% = $20,000
And let’s say we are 75% confident with our estimate of the percentage that is attributed to coaching. This applies a further discount to the benefit above: $20,000 × 75% = $15,000
It’s a pretty substantial return and the best thing was that by adopting her new style of time management, Julie was able to start maintaining the increase in sales to prove that it wasn’t just beginner’s luck.
For the more Coaching stories, check out our latest book, “Bring Out Their Best – Inspiring a Coaching Culture in Your Workplace”. You can get a copy of the book here clicking here!
Or simply contact Coach Mel and the APIC Team at firstname.lastname@example.org to discover the Power of Coaching for you and your workplace.