Top 5 Insights From the Latest Studies on Sales Organizations

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The folks over at IKO Systems were nice enough to send me a collection of infographics that they call 66 Crazy Sales Figures. I finally had a chance to read through it and found 5 sales figures which, after I combined them, are quite interesting:

  1. Only 63% of Salespeople Made Quota last year
  2. Only 6% of New Reps Exceeded Expectations and 48% Failed
  3. 75% of Salespeople Believe Their Approach Differentiates Them but Only 3% of Their Customers Agree
  4. Top Performing Companies Invest 63% More on Sales Training
  5. The Top Two Sales Initiatives for Companies were Access to More Information (42%) and CRM (40%)

Do you see what I see?

Is it any wonder that only 63% of reps made quota (#1) when companies are focused on better access to information (think customer research) and CRM instead of hiring the best salespeople (see insight #2), when they aren’t investing in sales training (see insight #4) and they don’t providie their salespeople with the required skills to differentiate and sell consultatively (see insight #3)?

Objective Management Group (OMG), has evaluated nearly 10,000 sales forces and 650,000 salespeople and sales managers. Its data shows that the average score on the Sales Posturing Index, a collection of attributes that suggest how effectively salespeople differentiate themselves, is only 34 out of 100. One of those attributes is the ability to sell Consultatively, the primary skill required for differentiating, building and selling value. The average salesperson possesses only 21% of the Consultative seller skills. Is it any wonder that only 3% of salespeople are able to differentiate?

When companies use OMG’s legendary, accurate, predictive, customizable sales candidate assessment, they realize the following results:

  • 75% of the sales candidates not recommended by OMG’s assessments, yet hired by the client anyway, failed within 6 months;
  • 92% of the sales candidates recommended by our assessments and hired by the client rose to the top half of their sales force within 12 months;
  • OMG’s clients achieve this hiring consistency in just 25% of the time it takes using traditional methods.
You can request a sample here. You can register for my live Webinar on March 12 here. And you can get a 72-hour free trial here.

That all leads us to this question; Salespeople aren’t making quota partly because they aren’t differentiating, partly because they should not have been hired and partly because they aren’t getting the required sales training. So why are companies focused on CRM and research information instead?

The fact is that most CEO’s, Presidents, Owners, Sales VP’s and Directors don’t know the real contributing factors as to why their salespeople fail to perform and meet quotas. They guess, attempt trial and error, and hope that CRM initiatives will solve the problem. But it’s always something else. Don’t get me wrong. CRM is very important. But it’s not a stand alone solution as much as it’s a tool that must be tightly integrated with sales process, sales pipeline, sales strategies, sales methodology, sales training and sales coaching.

It’s not really that hard to get to the root of most sales performance problems. OMG’s Sales Force Evaluation can get you there very quickly. You can learn more about a sales force evaluation here.

(c) Copyright 2013 Dave Kurlan

Republished with author's permission from original post.

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