8 Proven Strategies to Coach Underperforming Sales Reps Before Resorting to Termination

As a sales leader, you know that the performance of your reps has a direct impact on the success of your business. According to a study by DePaul University, the average sales rep turnover rate is nearly 35% – and the cost of replacing a rep can be up to 200% of their annual salary.

Considering those stats, it‘s no wonder that knowing when to fire an underperformer is one of the toughest decisions sales managers face. Terminating someone‘s employment should always be a last resort after you‘ve made every effort to coach them to success. Before you have that tough conversation, try employing these eight strategies to diagnose the root cause of poor performance and give reps the tools and support they need to turn things around.

Diagnose the Real Reason for Underperformance

Often, what appears to be an uncoachable rep is actually the result of a mismatch between their current skill set and the requirements of the role. Before jumping to the conclusion that someone is a bad fit, consider these three common causes of poor sales performance:

1. Lack of Capability – The rep doesn‘t yet have the knowledge or skills to succeed. This is especially common with new hires who are still getting up to speed. With training and coaching, most reps can rise to expected performance levels.

2. Low Activity – In sales, results directly reflect the amount of effort put in. If key activity metrics like calls, emails, and meetings are low, dig into why. Is it a lack of motivation, poor time management, or something else altogether? You can‘t coach effort, but you can help reps build better habits.

3. Lack of Direction – When reps don‘t have a clear understanding of job expectations, target customers, and what an ideal sales process looks like, they flounder. Consistent coaching helps provide the direction they need to focus their efforts for maximum results.

Once you‘ve contemplated possible reasons for subpar performance, implement these eight techniques before throwing in the towel:

1. Give Feedback Focused on Desired Behaviors

Constructive criticism is a necessary part of coaching, but the way you deliver it makes all the difference. When you focus feedback on what a rep did wrong, it puts them on the defensive and erodes their confidence. A more effective approach is emphasizing the specific actions you want to see instead.

For example:

❌ "You talked through the whole demo and hardly let the prospect say a word. Don‘t dominate the conversation like that."

✅ "Aim to spend at least half of the demo asking questions and listening to the prospect. Prepare 3-4 questions to draw out their challenges beforehand."

Positive, future-focused feedback guides the rep to make smarter choices next time while making them feel supported and coached – not criticized.

2. Implement a Systematic Sales Training Program

SiriusDecisions found that the average ramp time for a new sales hire is between 9-10 months. And according to RAIN Group, without effective sales training, more than 50% of salespeople fail to meet their quotas. Don‘t assume your reps will just figure it out as they go – invest in their long-term success with a structured onboarding and ongoing enablement program.

Tips for building an impactful sales training curriculum include:

• Focus on the skills and knowledge reps need most in their specific selling environment
• Provide training in a variety of formats (in-person, online courses, role plays, etc.)
• Reinforce concepts through coaching, quizzes, and real-deal application
• Keep content up-to-date as things change in your market and offerings
• Get feedback from the team on what training they find most valuable

Continuously equipping your reps with the information and abilities they need to excel lays the foundation for a team of top performers.

3. Make 1-on-1 Coaching a Weekly Priority

Regular individual coaching time with each of your reps is essential for proactively identifying and troubleshooting performance gaps. But don‘t just use these meetings for pipeline reviews and deal strategizing.

Kick off every 1-on-1 by asking some open-ended questions to get your rep reflecting on their performance:

• What went well for you this week? What was challenging?
• How are you tracking to your activity goals and quota?
• Tell me about a sales call that didn‘t go as planned. What would you do differently next time?
• How can I better support you in hitting your numbers?

Really listen to your rep‘s responses. Collaboratively identify 1-2 specific skills to focus on in the coming week and define concrete action steps for improvement. The following week, hold them accountable to report back on their commitments.

These consistent coaching conversations build trust, create opportunities for bite-sized training, and show struggling reps you‘re invested in their success before getting to the point of considering termination.

4. Conduct Skill-Specific Coaching and Role Play

Skill deficits in two areas – objection handling and questioning – are common culprits of poor sales performance. If these are stumbling blocks for a rep, targeted coaching can make a big impact.

When it comes to objection handling, many reps fall into the trap of attempting to overcome the concern immediately instead of taking time to understand the real issue behind it.

Say a prospect objects by saying they don‘t have money left in the budget right now. An unskilled rep might instantly offer a discount. But with some probing, they may discover the prospect‘s real hesitation is uncertainty around their return on investment.

Teach your reps an objection handling framework like LAER:

• Listen fully to the objection
• Acknowledge the other person‘s perspective
• Explore the underlying concern
• Respond based on the new information

A few simple questions to dig deeper can be the key to unlocking a prospect‘s true reservations.

Questioning ability is equally important. Gong‘s analysis of over 519,000 discovery calls found that asking 11-14 questions correlates with the highest success rates. Teach reps to go beyond basic yes/no queries and ask more provocative, insight-seeking questions. A few examples:

• "What challenges are preventing you from achieving [goal]?"
• "How would achieving [goal] impact you/your business?"
• "If you could overcome [challenge], what would that mean for you personally?"

Encourage reps to come to coaching sessions with recordings of their calls and collaboratively identify missed opportunities to ask better questions. Then, role play the scenario for practice in a low-stakes setting.

5. Set and Gamify Activity Targets

When low activity is dragging down results, implement a systematic approach to measuring sales behaviors. Work with your rep to establish weekly targets for key metrics such as:

• Number of outbound calls
• Emails/LinkedIn messages sent
• New meetings booked
• Proposals delivered
• Networking events attended

Track their progress and celebrate wins when they hit goals. If they miss the mark, unpack what prevented them from achieving it. Was it poor planning, ineffective outreach messaging, or lack of discipline?

Introduce an element of friendly competition by keeping a scoreboard for the team and offering incentives to the rep with the top activity numbers or the most improved activity week-over-week. Knowing others are paying attention to their output taps into reps‘ natural drive to win and helps create habits that lead to long-term success.

6. Help Reps Learn Through Failure

Fear of failure keeps many reps from stepping outside their comfort zones and trying new things that could improve their results. As their manager, normalize failure as part of the learning process.

In a study conducted by Boehringer Ingelheim, a pharmaceutical company, sales reps who were encouraged to share their mistakes without consequences showed a 74% increase in "adaptiveness to change" and generated an estimated $2 million in additional revenue.

When a rep tries a new approach on a sales call, ask "What worked well? What would you change next time?" instead of berating them for not succeeding on the first try. Share your own stories of losing important deals and the lessons you learned from the experience. Knowing they won‘t be penalized for striking out gives reps greater confidence to pursue ambitious targets.

7. Make Coaching Collaborative

Struggling reps often feel powerless, frustrated, and anxious about their ability to meet expectations and keep their jobs. Build psychological safety by positioning yourself as a collaborative partner in their development.

When discussing performance, use "we" language to emphasize that you‘re a team:

• "What can we do differently to get better results?"
• "Let‘s figure this out together."
• "How can we adjust our approach to turn things around?"

Ask questions to understand their perspective:

• "What challenges are you facing that I may not be aware of?"
• "What additional training or resources would help you be more successful?"
• "Where do you see your areas of greatest strength and opportunity?"

Demonstrating that you‘re in it together shifts the rep‘s view of you from critic to advocate, making them more receptive to your guidance.

8. Know When You‘ve Done Enough

Coaching should always be your first line of defense when a rep isn‘t meeting expectations – but there may come a time when you need to make a tough call for the good of your business.

Before deciding to terminate an underperformer, honestly assess:

• Have I given clear, specific feedback on areas for improvement?
• Have I equipped the rep with the training and resources they need to do their job?
• Have I been consistent in holding regular 1-on-1 coaching conversations?
• Has the rep demonstrated effort to implement feedback and improve, even if results aren‘t there yet?

If the answer to all of the above is yes, and you‘ve allowed ample time for course correction – typically at least 2-3 months – it could be time to explore other options. Prolonging a bad fit drags down team morale and sets a dangerous precedent that mediocrity is tolerated.

If you‘ve made the decision to let a rep go, communicate the news clearly, directly and with empathy. Focus the conversation on why it‘s not working (lack of necessary skills, misalignment on expectations, etc.) versus making it personal. Thank them for their contributions and offer to be a reference if appropriate.

Firing someone is never easy, but in some cases, it‘s a necessary part of being an effective sales leader. By putting in the work to proactively address performance issues head-on, you‘ll minimize regrettable turnover and build a healthier, more productive team.