McKinsey & Company did a study and documented that 75% of solution selling efforts were considered failures after only three years. I read this statistic in a book about sales conversations and was struck by it, but perhaps not why you might think. The authors went on to make a bold leap of logic. It’s the “messaging behind the methodology” that’s the problem, they concluded.
Why did this statistic jump off the page? It wasn’t because solution selling isn’t working. We know about its limitations. It wasn’t because they said “the right messages” are the key. I am sure that a good message is important. It wasn’t because I was shocked that most sales initiatives fail. That’s why I’m in this business.
It struck me because it’s almost exactly the same statistic as the number of salespeople who suck, 74%. Maybe they were rounding; I’m not. After assessing over 800 thousand salespeople, that’s the resulting number, and has remained consistent for the last three decades. It makes sense that the weaknesses at the salesperson level would scale up to organizations more generally. Without understanding why that happens and without understanding the impact of management, most sales process implementations will be doomed to failure.
Let’s take a look at what might be going on under the hood, but I’d like to start with two quick definitions:
What is a sales process? These are the specific steps you follow on your way from a lead to a closed piece of business. What are the stages along the way? What are your milestones within each stage? How do you know you completed a stage? How does that inform your pipeline and allow you to forecast?
What is a methodology? This is how you go about executing certain steps within your process. Solution selling, for example, is a methodology that suggests that you find out what your prospect needs and present a solution from your basket of goods or services. There are many others, including some that work well depending on the specific stage of the sales process.
We know there are lots of sales processes and methodologies. It could be that your “messaging behind the methodology” is not good enough, as the book suggested, or it could be that the messaging is only an important component of the execution of the whole process. Messaging, as described, is really a methodology itself. In a sales process, messaging is most important at the beginning, when you are getting the attention of your prospect, and at the close, when you are confirming your value differential.
In both cases, you are talking about whom you help and how you help them. At the beginning, your message refers to a hypothetical person, but presumably one just like your prospect with the same kinds of problems. At the end of the sales process, we’re talking about exactly your prospect, because now we have enough knowledge to do so, and furthermore, you identify the manner in which you help that highlights what your competition doesn’t have or doesn’t do well, but that your prospect needs. I believe that was the key message of the book I was reading.
Most salespeople don’t follow a process. To be precise, 90% of salespeople don’t follow a process. We know that because we asked 800,000 salespeople if they had one and 90% said they didn’t. Could that be indicative of the problem with your team? Just having a process, of course, won’t solve the problem, as the opening statistic from McKinsey pointed out. But without one, you’re wandering in a darkened Fun House at Coney Island hoping you bump into the exit door.
Most salespeople don’t use a methodology either. In my view, a good methodology should tap into what is already fundamental about selling and make it easier to follow so that everyone can use it. Dave Kurlan’s Baseline Selling, for example, accomplishes that. Since Baseline Selling has a sales process built into it, the methodology component is comprehensive because it covers the entire process. When salespeople learn a methodology, sometimes it only covers a portion of the process.
To make matters worse, even when salespeople memorize a process and learn a methodology, they won’t necessarily execute it unless they have the skills and the underlying DNA. They might have to remove psychological barriers and other hidden weaknesses to clear the path. To learn more about this phenomenon, read this excellent article by Dave Kurlan.
So if most salespeople don’t have a sales process and don’t use a methodology, or if they do, it’s incomplete, and if most salespeople are missing important skills or have hidden weaknesses that prevent success, the fact that 74% of salespeople suck should be believable. As you might have guessed, that number isn’t a guess; it comes from those same 800,000 salespeople assessed by Objective Management Group, covering some 140 million data points.
It’s not enough to point out the failure of an incomplete and probably poorly executed launch of a methodology like “solution selling” and declare that messaging is the answer. There could be lots of other reasons for the failure rate.
Here are my Top 12 Reasons that Sales Methodologies Fail
- Leadership’s ability to create change
- Management’s impact on the sales force
- Inappropriate or incomplete methodologies
- Incomplete sales process
- Not following a sales process
- Too many skill gaps
- Hidden weaknesses
- Not enough training
- No reinforcement
- Ineffective coaching or simply not enough coaching
- No follow-through
- Lack of accountability
An evaluation of your sales team would reveal why your sales aren’t improving as much as you believe they could be. It might be, after all, how you are messaging. It’s more likely, however, that it’s not that simple.
The first step is gaining an understanding of what is required to get your desired outcome. The next step is finding out what is standing in the way. We don’t have to guess, and we don't necessarily have to add a complicated message that only the elite 6% can execute. It’s best to measure precisely what is needed and construct a plan that results in a team that, regardless of your message, knows how to find a way to close more deals, faster.By improving your sales force so that the bottom 74% are trained up or out; and by improving management to effectively recruit, coach, motivate, and hold people accountable; and by selecting the right processes and methodologies for your business, it’s much more likely that you won’t find yourself among the 75% in the graveyard of failed initiatives.