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Understanding the Sales Force

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Surprising Statistics from the Sales Force Grader

  
  
  

Dave Kurlan is a top-rated speaker, best-selling author, sales thought leader and highly regarded sales development expert.

The actual results are even more surprising than the number of people (several hundred) that have already visited the FREE Sales Force Grader.

To date, the worst score is 0 - definitely a surprise.  While we would expect there to be some sales culturally challenged companies, we didn't expect any to be that bad....

To date, the best score is 81 (out of 100) - a surprise there too since I would have expected at least a few companies to score closer to 100.  This tells me there is still work to be done to improve sales effectiveness at even the most effective companies.

To date, the typical score is only 30 -a surprise...while I know that most companies need a tremendous amount of help, I didn't realize that so many companies needed so much help - even the companies (maybe yours) who tell us that everything is OK...

In a related finding, we have also found similar statistics on the sister page, Free Sales Hiring Mistake Calculator.  The cost of a typical company's sales hiring mistakes is $1,367,250.00!  Yes, that's the typical company; the average company is even higher - $5,659,032.00 And the highest cost recorded so far? $32,583,450.00

What can you learn from all of this?

If your sales force scores below 80 and you need to positively impact 2009 sales, then passively waiting to see if things improve (hope) is not a strategy. While there are always some things you can do by yourself, most of the things that need to be done to make a sales force significantly more effective require outside help.  After all, you are already doing some of the things that need to be done - you simply aren't doing them effectively enough!

(c) Copyright 2008 Dave Kurlan

 



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Posted by Dave Kurlan on Mon, Dec 22, 2008 @ 08:56 AM

COMMENTS

Dave: 
 
 
 
Very interesting information on the cost of turnover document and sales grader. This is confirming much of what we witness out here in the field everyday. Most people will not admit to such a big gap in performance. Could you post one sample or two of the actual numbers from the cost of turnover. I think others would be interested to determine where the specifc numbers are coming from.

posted on Monday, December 22, 2008 at 11:23 AM by Ted Gulas


I am not surprised by a typical score of 30, most sales organizations should fall between 30-40. Very good org. will only come in between 50-60 and anyone over 60 is probably lying to you.Most sales org. do not have the tools to know what is wrong and to what dgree. If you cannot identify the root cause you cannot fix it. Most tend to address symptoms and then cannot understand why their initatives fail.

posted on Monday, December 22, 2008 at 12:04 PM by Michael Roughton


The typical score of 30 did not suprise me given that I took the Grader and answered the questions based upon what I see consistently when I go over Management Overviews. I scored a 28. 
 
Yes there is a need for a lot of work with sales organizations and I do hope the Grader helps companies recognize that fact and do something about it. The information is right on.

posted on Monday, December 22, 2008 at 1:20 PM by Ed Kleinman


@ Ted - good suggestion... 
On the Cost of Turnover, here is one that came in this morning - just copying and pasting: 
 
Their Cost to Recruit Ghosts (salespeople who are no longer there but still come back to haunt them) is: $12,000 
 
Their Turnover Percentage is : 86% 
 
Their Cost of Ghosts and Under Achievers is : $32,550,000 
 
Their Development Costs for Ghosts and Under Achievers is : $9,450 
 
Their Cost of Lost Accounts from Ghosts and Under Achievers is: $12,000 
 
 
Their Total Cost of Sales Hiring Mistakes is: $32,583,450 
 
In this case, they don't spend much money to recruit or develop and as a result, they have huge turnover and their big compensation is translating into an astronomical cost. While this seems to be an extreme number, it's a theme we're seeing in a number of submissions. 

posted on Monday, December 22, 2008 at 2:45 PM by Dave Kurlan


Still cheaper than a CEO running a Company into the ground.

posted on Monday, December 22, 2008 at 11:37 PM by Chubby Davis


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