I recently learned that one of OMG's clients in Europe purchased two goldfish. In keeping with their tradition, the client named the two fish, Recommended and Not Recommended. Surprisingly, recruiting salespeople was not one of the topics addressed in this year's 2017 Selling Challenges Study. Meghan Steiner, from Richardson, was nice enough to send me an advanced copy of the results. There were a number of interesting findings and to learn what was covered and see my insights from the report, continue reading.
Consider the findings below that I pulled from the much larger report. Respondents said the following issues are challenges for their companies:
- 24% said gaining higher prices
- 20% said closing win/win deals
- 17% said maintaining profitability
- 24% said competing against a low cost provider
- 16% said creating a compelling case for change
- 19% said customers who continue to reopen the negotiation
- 15% said positioning a competing value proposition
The 7 findings I listed above came from two different chapters of the report. Higher prices, win/win deals and profitability came from the chapter on Negotiation. Positioning, reopening negotiations, competing against low cost providers and the case for change came from the chapter on closing.
"When I combined the 7 challenges, together they suggest that the
problem these companies really have is an inablity to sell value!"
The findings from the report came from a survey where most of the 300+ respondents were from companies larger than $500 million, with sales quotas generally running more than $1 million each.
How do the findings compare with OMG's scientific data from the evaluation of 1,100,000 salespeople from 12,000 companies? Let's compare!
The average score for the Selling Value competency is 56 which means that the salespeople in the 370,000 rows of data in this query have, on average, 56% of the attributes in the Selling Value competency. You can see that the top 10% are significantly more effective and the bottom 10% are significantly worse!
"68% of the salespeople we looked at had Selling Value as a weakness.
Our data shows that selling value is a much greater issue than the survey suggests. The likely reason for this is that respondents from large companies may not understand why they are having the issues listed by the bullets above. They only recongize the symptoms.
The Selling Value Competency is 1 of the 7 Tactical Selling Competencies that OMG measures, and 1 of the 21 Sales Core Competencies measured in all. You can see the attributes for this competency in the screen shot from a sales force evaluation below.
When companies continue to believe that their problems lie in negotiating and closing, they seek training on negotiating and closing! When the real problem is selling value, you need to provide training on consultative selling, change your pricing strategy and provide training on selling value.
Here are four other things you should do:
1. See how your salespeople compare to others in your industry and to salespeople in general in any or all of the 21 Sales Core Competencies with OMG's complimentary stat finder tool.
2. Select only strong (16%) and elite (7%) salespeople with OMG's accurate and predictive sales candidate assessment.
3. Become more effective coaching your salespeople in all 21 Sales Core Competencies by attending my annual Sales Leadership Intensive where coaching for impact is the focus during the two day training. There were only 6 seats left for the May 17-18 event outside of Boston.
4. Download the 2017 Sales Challenges Study from Richardson.