The Best Salespeople are 791% Better at This Than Weak Salespeople

Posted by Dave Kurlan on Wed, Jul 17, 2019 @ 18:07 PM

criteria

The first contractor got a proposal to us within a few days, the second contractor got a proposal to us later the same day and the third contractor gave us a price on the spot.  On the responsive scale, the third contractor was the best. 

Certainly, responsiveness is not the only criteria that prospects weigh as part of their decision-making process.    They may also consider:

  • Trustworthiness
  • Timeline of the deliverable(s)
  • Referrals
  • Expertise
  • Credibility
  • Personality
  • Understanding of your needs
  • Fit
  • Price
  • Chemistry
  • Ease of working with
  • Capabilities
  • Your comfort level
  • Reputation
  • Proximity
  • Flexibility

The list isn't complete as I'm sure there are more.  

Although price is only one of 18 criteria listed, it's the only objection salespeople ask for help with.  Salespeople don't ask if we can help with the reputation objection, chemistry objection or personality objection.  With salespeople it's always about price.

The thing is, if you have a reputation problem, or any of the others on the list that aren't price, they may be difficult or impossible to overcome.  Price, the criteria salespeople obsess about, can be eliminated when salespeople sell value.  That's not accomplished by talking about value, saying there's value, or adding value.  It occurs when salespeople bringing the actual value to the customer.  Salespeople must be the value.  When customers perceive that you provide a value that others don't, your higher price won't matter.

Objective Management Group (OMG), which has evaluated and assessed 1,879,518 salespeople, has some data on selling value, one of the 21 sales core competencies we measure.  41% of all salespeople are strong at value selling, but that's deceiving because only 11% of the bottom half of all salespeople have selling value as a strength and that group's average score is just 46%.  On the other hand, 97% of the top 5% of all salespeople have selling value as a strength and their average score is 87%.  Top salespeople are 791% more effective at selling value!

Why is there such a difference?

72% of all salespeople have non-supportive buying habits and understand it when their prospects shop for the lowest price, comparison shop or think it over.  Yet, if you break it down by performance, it's quite a different story.

Only 23% of elite (top 5%) salespeople have non-supportive buying habits but it gets a lot worse from there and quickly.

46% of strong (next 15%) salespeople have it, 72% of serviceable (the next 30%) salespeople have it and 89% of weak (the bottom 50%) salespeople have non-supportive buying habits.

You might be thinking, "It can't be that big of a deal if almost a quarter of the best salespeople in the world have this weakness and they're doing fine," and you couldn't be more wrong.  Understand that if the best salespeople have this weakness, it's likely the only weakness they have and their considerable strengths, grit and tactical selling competencies make up for it.  On the other hand, most of the weak salespeople have many more weaknesses and too few strengths to compensate.

Almost ALL of the bottom 50% buy in such a way that their habits don't support ideal sales outcomes.  And sales training won't fix that.

What does?

You have to change the way you buy things!

Join the discussion for this article on LinkedIn.

Image copyright iStock Photos

Topics: Dave Kurlan, OMG Assessment, self-talk, buying criteria

Why Coaching Causes Some Sales Managers to Hold On for Dear Life

Posted by Dave Kurlan on Mon, Mar 04, 2019 @ 05:03 AM

holding-on

Over the past few months I've been coaching 30 sales leaders from 3 companies and while most are trying their hardest to do everything I recommend, apply everything they learn, and coach as instructed, there are several that don't follow through and fail to move the needle for their teams.  A few don't want to be coached.  A few don't think they need to be coached.  A few are too proud to be coached.  A couple are too mentally challenged to be coached.

Avoidance aside, there are six scientifically proven reasons for their struggles and I'll share them with you here.In the table below, you'll see data from Objective Management Group, which has evaluated 1,838,327salespeople and sales managers.  The first three Sales Management Competencies shown in the table are from the category of Sales Management DNA. They are shown below  as weaknesses.

Sales Management Competency

Percentage with Competency as
a Weakness 

Controls Their Emotions 55%
Supportive Beliefs 100%
Supportive Buy-Cycle 65%

100% of sales managers have Self-Limiting Sales Management Beliefs. Let's say that their beliefs include, "coaching won't work" or "my salespeople won't follow a sales process" or "If I hold my salespeople accountable they'll quit" or "If I debrief their calls the way you instruct they'll hate me" or "I could never learn to role-play the way you teach it."  If they have any of those beliefs, what are the chances that they can apply what they're learning from me or anyone else?

65% of sales managers have Non-Supportive Buy-Cycles.  This means that they make their major purchases in a way that will not support ideal sales outcomes.  It could be that they look for the lowest price, comparison shop, think things over, think a relatively small amount of money is a lot of money, they do research, or some combination of those things.  If that's the case, and a salesperson comes back with a put-off, objection or excuse, the sales manager won't be any more effective coaching the salesperson than the salesperson was dealing with it with the prospect.

55% of sales managers become emotional. They're talking to themselves or thinking too much and as a result, their listening skills won't be optimal.  If they attempt a role-play to demonstrate the coaching strategy, they might jump ahead instead of doing a slow, consultative role-play, following up answers with appropriate new questions to ask.

Those aren't the only factors.  Two more come from the category Will to Manage Sales.

Sales Management Competency

Percentage with Competency as
a Weakness 

Commitment 23%
Takes Responsibility 55%
Coaching 90%

23% of sales managers lack Commitment, suggesting that they won't do what it takes when that is outside of their comfort zone.

55% of sales managers are Excuse Makers and when they rationalize why coaching won't change anything, why some salespeople can't be coached, why coaching them the way I recommend won't work, nothing will change.  Excuse making must be snuffed out from the top down.

The five competencies we discussed above don't even take into consideration the actual Coaching Competency shown above.  Unfortunately, 90% of sales managers are weak in the coaching competency.

When you put all of this together, it's easy to understand why some sales managers struggle so much when it comes to coaching.

I can help!  Each year I host the top-rated Sales Leadership Intensive where, for two long days, we help sales managers develop their ability to consistently and effectively coach up their salespeople.  As of this writing we had around 5 seats left for March 19-20 so if you can make it I promise it will be life-changing. This is the best coaching-specific training you will get anywhere!  You can learn more here

Image Copyright iStock Photos

Topics: Dave Kurlan, Sales Coaching, sales management competencies, OMG Assessment

Elite Salespeople are 26 Times More Effective at This Competency Than Weak Salespeople

Posted by Dave Kurlan on Tue, Aug 14, 2018 @ 11:08 AM

pitcher

As you know, I'm a baseball guy.  I wrote the best-selling book that merged baseball and selling, my son is a ranked high school catcher and I use baseball analogies in many of my articles.  With apologies to soccer, hockey, football, basketball and golf fans, no sport is more analogous to selling than baseball.

Before we get to sales and the data, let's take a quick dive into the most important skill position in baseball, pitching.  Even that's a sales word!  Pitchers don't have to throw hard if they have great control and effectively and consistently locate their pitches.  Hard throwers don't need to be as precise as long as they have a second and third pitch to keep the hitters off balance.  Pitchers who throw hard, locate their pitches and have a 4-pitch mix are elite.

One group of special pitchers are the closers.  They typically enter games in the 9th inning, throw hard and close out the game.  For example, Craig Kimbrel, the Boston Red Sox closer, has been such a guy.  Entering play on August 14, 2018, he has appeared in 49 games, pitched 49 innings, has amassed an amazing 75 strikeouts and has saved 35 games in 39 chances.  At the other end of the spectrum, less effective pitchers usually fail in the closer role because they don't dominate the hitters.

Pivot to sales.  Elite salespeople don't need to close and weak salespeople suck at closing.  Want proof?  Let's review some data from 1831605 evaluations and assessments of salespeople conducted by Objective Management Group (OMG).  You can see and play with the data here.

closer-competency-1

Only 108,000 out of 1,800,000 salespeople are strong at the closer competency and 63,000 of them are from the elite top 5% and the next group of 20% who are strong.  This proves that salespeople who are strong at the 7 Sales Core Competencies that precede closing don't need to be strong closers.  Those 7 competencies are:

  • Hunter Competency
  • Sales Process Competency
  • Relationship Builder Competency
  • Consultative Seller Competency
  • Value Seller Competency
  • Qualifier Competency
  • Presentation Approach Competency

The data also proves that the remaining 75% of salespeople who are serviceable or weak and also ineffective at most of the 7 Sales Core Competencies that precede closing, can't close even when they try!  Closing is so overrated!

Join the discussion of this data on LinkedIn.

Image Copyright iStock Photos

Topics: Dave Kurlan, sales core competencies, objective management, closing deals, OMG Assessment, delayed closings

Eliminate Delayed Closings Once and for All

Posted by Dave Kurlan on Mon, May 14, 2018 @ 06:05 AM

leavesA long time ago I realized that in the suburbs outside of Boston, new leaves reach full size each Spring on May 11.  This year, with the cold April we endured, May 11 came and went and the leaves were delayed.

That said, spring leaves on May 11 are exponentially more predictable than pipeline opportunities.  Why might an opportunity not close when it was forecast to?

Technically, there are seven possibilities:

  1. Closes as forecast and you win.
  2. Closes when forecast and you lose.
  3. A short delay that you will close
  4. A short delay that someone else will close
  5. A long delay that you will close
  6. A long delay that someone else will close
  7. A delay of any duration that results in no decision.

And why might those conditions apply?

  • Your CRM application wasn't configured to properly calculate the projected close date
  • Your sales process/CRM application does not include a scorecard that scores and predicts a win
  • The opportunity was not thoroughly qualified because the salesperson:
    • didn't know how
    • wasn't aware of the need
    • fear or discomfort
    • ignored what the prospect said
  • The salesperson had happy ears

The statistics on salespeople evaluated and assessed by Objective Management Group (OMG) show us that only 27% of all salespeople have the Qualifier Competency as a strength.  The top 10% of all salespeople only have an average of 77% of the attributes of a Qualifier and all salespeople average 53%.

The same statistics show us that only 30% of all salespeople have the CRM Savvy as a strength.  And the top 10% of all salespeople only have an average of 64% of the attributes of CRM Savvy and all salespeople average 43%.

And 27% of all salespeople have the Milestone Centric Sales Process as a strength while the top 10% of all salespeople only have an average of 66% of the attributes of the Sales Process Competency and all salespeople average 49%.

Of the nearly 6,000 candidates that were assessed in the past 4 weeks for sales positions, 38% of them "think it over" when making major purchases.  That makes them vulnerable to prospects who wish to think it over at closing time, extending the sales cycle, and causing a delay. because they "understand."

See OMG's statistics in all 21 Sales Core Competencies and filter by industry as well as your company.

Preventing delays can't always be avoided but more thorough qualifying makes a huge difference.  The key is asking more questions.  When you think you have asked enough, there are always a few more you can ask.  For example, in this article, the difference between "nice to have" and "must have" are often the difference between delays and closes.  This article shows that the when salespeople meet with the actual decision makers they are 56% more likely to close the business.

Image Copyright iStock Photos

Topics: Dave Kurlan, sales CRM, qualifying, OMG Assessment, steps in a sales process, delayed closings

Discovered - Data Reveals the Second Biggest Obstacle to Closing More Sales

Posted by Dave Kurlan on Mon, May 07, 2018 @ 06:05 AM

compelling

Whichever way you turn, wherever you look, and whatever you listen to there is data.  Polls, surveys, metrics, analytics, analyses, white papers, graphs, charts, infographics, tables, spreadsheets and more.  There is data everywhere.  5 of my last 10 articles were based on data and I know that my regular readers love the articles that are based on data so I am writing about data again today.

Objective Management Group (OMG) recently expanded the Consultative Seller competency which represents 1 of the 21 Sales Core Competencies.

I took a look at the first thousand rows of data that came through and made some more cool discoveries that I will share below.

Let's start with the Consultative Seller Competency.  As you can see in the image below, the average score for all salespeople is 44%, which means that the average salesperson possesses fewer than half of the necessary attributes of the Consultative Seller.  As you can see from the green slice of the pie chart below, only 22% of all salespeople have this competency as a strength.  Even the top 10% of all salespeople only score an average of 65%.  This is the competency where most salespeople are the crappiest.

cons-comp

The question is why are most salespeople so ineffective at this competency?  If they aren't being professionally trained and coached, that would explain a lot of the bad scores because only around 7% of all sales managers are capable of providing the kind of coaching that would help their salespeople become effective consultative sellers.  I'm guessing that even some outside trainers and coaches aren't effective enough to move the needle on this competency.  But there is more to this than meets the eye.  Let's look at what happens when salespeople are being effective versus ineffective at consultative selling.

Please look at the next image below.

issues-1

These 3 pie charts show how effective these 1,000 salespeople are at uncovering issues by looking at 3 specific sales process milestones:

  1. Whether reasons to buy are uncovered or not
  2. Whether those reasons are actually compelling enough to buy or they only created interest
  3. Whether the salesperson created enough urgency so that the prospect must buy or it was simply nice to have.

This tells us A LOT!

While 84% of these B2B salespeople are able to uncover business issues or reasons, only 33% are able to continue asking questions long enough to uncover compelling reasons to buy as shown in the second pie chart.  There is an enormous difference between a business issue and a compelling reason to buy something to solve it.  As you can see from the third pie chart, uncovering business issues leads to a condition where 73% of prospects find the offering is simply nice to have, while 12% of these salespeople leverage those compelling reasons to a condition where prospects must have the solution.  There is a huge difference between nice to have and must have.

Consider this recent article on reaching decision makers where the data showed that only the opportunities where salespeople met with the actual decision makers reach the proposal ready and closable stages.  We have a similar scenario here where the salespeople who uncover compelling reasons to buy are 56% more likely to move their opportunities to the proposal ready and closable stages.

This huge selling gap can be fixed but it isn't one of the easy ones.  Uncovering compelling reasons to cause prospects to believe they must have your solution requires advanced active listening and questioning skills, as well as Sales DNA to support its use.  The best trainers, coaches and consultants who offer their expertise in this area agree that it will usually take 8-12 months for a sales team to make the transition from where they are today to the kind of selling I described above.  However, the return on that investment of time and money is amazing!  When salespeople are finally able to sell in this manner, sales always sky rocket!

Topics: Dave Kurlan, Consultative Selling, sales excellence, listening and questioning, closing more sales, OMG Assessment

New Data Reveals Why Veteran Salespeople Are Not Better Than New Salespeople

Posted by Dave Kurlan on Mon, Apr 16, 2018 @ 21:04 PM

I mined Objective Management Group (OMG) data and compared salespeople who have been with their company for 10 years or more, with salespeople who have been with their company for five years or less.  Theoretically, the veteran salespeople should be better and stronger in every way.  But are they?  Let's take a look and then let's discuss exactly what we are seeing and why.

The first dashboard shows the average scores for all salespeople who have been at their companies for more than ten years.

 

10-yrs

 

The second dashboard shows the average scores for all salespeople who have been at their companies for between one and five years.

 

5-yrs

 

If you look closely, there is almost no difference in Sales Quotient, Sales DNA or Selling Competencies; the scores are extremely close.  The clear difference is in the category of Will to Sell.  The salespeople who have been at their companies for ten years or more have lower scores for Desire, Commitment, Motivation and Responsibility.  The only Will to Sell finding where the veterans scored higher is in Outlook - how they feel about themselves.  

How do you interpret these differences?

It seems to me that the vets are more comfortable and complacent then those who haven't been there as long.  It also proves what I have intuitively known for years.  On their own, salespeople don't usually improve unless they are receiving quality sales training and effective coaching.  Wouldn't you think that salespeople who have at least five more years of experience selling at their company and into their market would be at least a little better than those with five years or less of the same experience?

Unfortunately, that simply isn't the case.

We can blame the salespeople for not investing in their careers; we can blame their companies for not investing in their salespeople.  There certainly isn't a shortage of sales experts, trainers, coaches and gurus to go around.

Check out the professions listed for high school career days.

Check out the the majors that colleges and universities make available.

Check out my White Paper on Trust that shows that people, including salespeople, generally distrust salespeople.

The overwhelming majority of salespeople did not choose sales as a profession and the mainstream views sales as a dishonorable profession. I wouldn't be surprised if some in sales still believe that their current role is temporary.

We should be angry with some of the negativity that undermines sales at its core. Until we can change some of this thinking, it may continue to be difficult to help salespeople improve.

You can check out OMG's data in all 21 Sales Core Competencies here.

Topics: Dave Kurlan, OMG Assessment, 21 sales core competencies, grit

B2B Salespeople Send 16,000+ Unqualified Proposals Each Day!

Posted by Dave Kurlan on Wed, Nov 29, 2017 @ 21:11 PM

unqualified.jpg

If you have a role in sales or sales leadership then what could be better than knowing exactly how you and/or your salespeople REALLY compare with the other salespeople in your industry or in the world?  Could anything be more fascinating than a visual or infographic depicting how effective your sales force is at various aspects of selling?  And what if these visuals could demonstrate that B2B salespeople create and send more than 16,000 inappropriately timed proposals each day?  Cool, huh?  More on that data in a minute.

Earlier this year we introduced a free public site where you could actually see how your salespeople compared in each of the 21 Sales Core Competencies.  Recently, we improved the site so that in addition to average scores and comparisons in each competency, you can see the percentage of salespeople that have each competency as a strength.  Check it out here!

I love some of the new infographics we have developed to show clients the capabilities of their sales force.  For example, check out this slide that visually tells the story of how their sales force sells.  The number in each pie chart is the average score in each competency and the colors indicate the percentage of salespeople that have that competency as a strength, weakness or in between.  For example, the highest average score for this sales force is for the value seller competency but only 1/3 of the sales force has value seller as a strength.

sales-story.png

This is a cool slide.  It shows the 8 sales leadership competencies that we measure in the outer ring and his tendency by rank outside the ring. When a tendency is not aligned with a strength we have a problem.  For example, in this slide, strategic thinking is green - a strength - but strategy is ranked 6th out of 8 as a tendency and recruiting - a weakness - is ranked 1st out of 8 in his tendencies.  Those are both problems!  Gene should be spending much more time on strategy and much less time on recruiting.

leadership-slide.png

We reevaluate a sales team after a year or so and this is how we show the change in a particular competency.  In this slide the average score increased from 39 to 47 in the Consultative Competency and there were improvements in most of the attributes and half of the salespeople now had this competency as a strength.

checkpoint-slide.png

My favorite slide is the one where we restage the company's pipeline according to what's real.  In the slide below,  we looked at 717 late stage proposal ready opportunities.  If they were all truly late stage, the visual would have looked like the umbrella stand in the middle image.  However, our analysis caused 36% of the opportunities to move back to the suspect stage and 33% of the opportunities back to the prospect stage.  Only 27% were actually closable and another 4% were qualified.  This company prematurely sent 494 unqualified proposals!

pipeline2.png

This company is not unusual.  If their 239 salespeople produced 494 unqualified proposals, then how many inappropriately timed proposals do 4.5 million B2B salespeople produce?  A little more half are in inside sales roles that handle the top of the funnel.  That leaves around 2 million B2B salespeople who are making 4,133,891 premature unqualified proposals per year or 16,535 per day!

We have around 50 more infographics like these that help to visually show how well equipped a sales force is to compete, win more business and grow revenue.  We identify all of the gaps and issues to be addressed and recommend a plan of action to accelerate sales effectiveness. 

 Most importantly, we provide answers to the questions that companies cannot answer on their own.  If this interests you, excites you or is something you want us to do at your company, just email me and I'll forward it to the appropriate person.

Image Copyright iStock

Topics: Dave Kurlan, Consultative Selling, sales force evaluation, sales leadership, sales core competencies, OMG Assessment, sales proposal

5 Sales Hiring Mistakes and Fake Resume Claims

Posted by Dave Kurlan on Tue, Oct 10, 2017 @ 06:10 AM

hiring-mistakes-1.jpg
I always enjoy reading articles that expose things I don't know about topics I enjoy, like 7 Unsung Built-in Gems in Mac OS X. I had the opportunity to provide that kind of training to a dozen or so sales leaders on some of the less obvious findings and relationships in Objective Management Group's (OMG) Sales Candidate Assessments and how to use them. We also discussed which of the 21 Sales Core Competencies that we measure were pertinent to their different sales roles and why.  One of the regional sales managers asked, "What are the 5 Biggest Mistakes that Sales Managers Make When Recruiting Salespeople?"

While that question is quite easy to answer, most companies, including their recruiters, HR professionals, sales leaders and executives are guilty of some or all of the following 5 mistakes:

  1. Their job posting fails.  Most sales job postings all read the same.  Great job, great company, great opportunity, great benefits, blah, blah, blah.  And even if you are using the most accurate and predictive sales candidate assessment on the planet, it won't help at all if your job posting lures the wrong candidates into the pool.  Describe the candidate along with the experiences you hope they had and the capabilities they must have to succeed in your role.
  2. They wait too long to assess their candidates.  If you wait to assess until after you have interviewed, you won't embrace the findings and recommendation on the assessment unless they support how you feel about the candidate.  If you already fell in love with the candidate and the assessment says "Not Recommended" and you ignore the recommendation it will lead to a hiring mistake.  Assess every candidate immediately after you receive their online application or resume and then you won't  accidentally ignore a candidate whose resume suggests a bad fit but whose assessment scores suggest a very capable salesperson for the role.
  3. They don't properly on board.  They say, "We're using the best assessment and the salesperson was recommended so she should know what to do."  Wrong.  Every new salesperson deserves proper on boarding so that you can prepare them for success instead of setting them up for failure.
  4. They don't thoroughly interview the candidate.  It doesn't have to be a long interview but it needs to be thorough.  You need to dig deep behind every resume claim to separate fact from fiction.  Here are the top 5 examples of claims that sound great but actually turn out to be bogus when you learn about the all important context (in parentheses) for the claim:
    1. Top salesperson  (out of 2)
    2. President's Club (for all salespeople who hit 75% of quota)
    3. Grew annual sales in territory by 200% (from $40,000 to $120,000)
    4. Doubled size of the territory in the first year (closed one big deal that was in the pipeline when he arrived)
    5. Uses words like developed, initiated, led, created, or built in reference to sales programs (did not actually sell anything).
  5. They don't set expectations, coach to those expectations and hold the salesperson accountable for achieving those expectations in the first 90 days.

These five mistakes are easy to correct and then companies will experience far greater success and consistency with their new sales hires.  In most cases, the only thing preventing companies from making these changes is the self-limiting belief that "we've always done it this way."

Topics: Dave Kurlan, sales management, sales candidates, sales selection, sales assessments, OMG Assessment

Closing and Negotiating Challenges - Symptoms of Another Selling Problem

Posted by Dave Kurlan on Tue, Apr 25, 2017 @ 14:04 PM

report.jpg Image Copyright Shironosov

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!

value2.jpgAnother way of looking at this competency is to determine the percentage of salespeople who have selling value as a weakness.  

"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.

value-1.jpg

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.

Topics: Dave Kurlan, Consultative Selling, close more sales, negotiating, objective management group, selling value, Richardson, OMG Assessment

The Future of Selling - Understanding This Crucial Sales Competency is More Important Than Ever

Posted by Dave Kurlan on Wed, Apr 12, 2017 @ 13:04 PM

motivation-1.jpg
Image Copyright donskarpo

While much about selling has changed in the past 10 years, most of the science behind sales excellence has not changed at all.  While there have been a few changes to the 21 Sales Core Competencies, most of them have remained the same as well.  Most of the average scores in those 21 Sales Core Competencies, as well as the percentage of salespeople with gaps in those Core Competencies, don't change much either.  However, Sales Motivation is one competency where the changes have been dramatic over a very short period of time and today I want to share those changes, as well as how the changes impact salespeople, sales leaders and sales organizations.

Definitions - Let's clarify the difference between Desire for Success in Sales and Sales Motivation. Desire is how badly a salesperson wants to achieve greater success in sales.  Motivation is the "what" behind that Desire.  What is driving that Desire?  Desire and Motivation are part of a triad of sorts, with the third, and most important piece being Commitment to achieve greater success in sales.  It doesn't matter how strong the Desire is if the Commitment isn't there.  And it's with that triad where some of the changes are occurring.  Many companies are hiring recent college graduates to fill inbound and outbound lead generation roles or, in other words, appointment setting roles.  Many of these kids haven't chosen sales and they tend to score low on both Desire and Commitment.  And that's where Motivation comes in.  At least there's that.  But there have been dramatic changes with Motivation.

Changes - During the time that Objective Management Group (OMG) has been measuring both intrinsic and extrinsic motivation in salespeople, we have seen a tremendous shift over a relatively short number of years.  For example, in 2007, 54% of the sales population was extrinsically motivated.  Four years later, in April of 2011, I reported that 50% fewer salespeople were money (extrinsically) motivated, bringing the percentage to just 27%.  Fast forward another 6 years to April of 2017 and when we look at the most recent 350,000 salespeople to have been assessed, the percentage is down an additional 70% to just 8%!

Would you like to see the data and the average scores in all 21 Sales Core Competencies?  You can!  Our brand new site shows you the average scores for all salespeople, the top 10%, the bottom 10%, salespeople in your industry, and salespeople at your company.  The scores are very interesting! See OMG's data here.
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Impact on Companies - Most compensation plans are designed to provide incentives to salespeople that are motivated to earn commissions.  But if most salespeople are now intrinsically motivated, then most compensation plans don't work the way in which they were intended. There are exceptions but generally speaking, most companies must get some help from sales experts who understand the new trend, understand accounting, and have the ability to help you develop a new plan.

Impact on Sales Leaders - Most sales leaders have learned to motivate using the carrot - read commission - but that's not really in play to the same degree as it once was.  Intrinsically motivated salespeople respond to coaching.  Yesterday I wrote about how great sales coaching lets you off the hook on motivation, accountability and recruiting!  Intrinsically motivated salespeople also want to master their craft, love what they do, and be part of something bigger than themselves.  Sales Leaders must learn to become great sales coaches and motivate in all new ways.  OMG measures 7 additional ways in which salespeople are motivated, including whether they love to win or hate to lose, spend to perform or perform to reward, want recognition or self-satisfaction, want to be closely managed or self-manage, want to be pressured or apply self-pressure, have something to prove to others or to themselves, and whether they prefer competition with others or to compete with themselves.

Impact on Salespeople - Surprisingly, these changes have little impact on salespeople as long as they have strong sales motivation.  It doesn't really matter whether they are intrinsically, extrinsically or even altruistically motivated, as long as the motivation is there.  However, if sales leaders aren't motivating them accordingly, and companies don't modify their comp plans accordingly, then the impact on salespeople can be quite negative and limiting.  And you wonder why there is so much turnover in sales!

Topics: Dave Kurlan, sales motivation, sales commissions, sales incentives, OMG Assessment, motivated salespeople

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Best-Selling Author, Keynote Speaker and Sales Thought Leader.  Dave Kurlan's Understanding the Sales Force Blog earned a medal for the Top Sales & Marketing Blog award for six consecutive years. This article earned a Bronze Medal for Top Sales Blog post in 2016, this one earned a Silver medal for 2017, and this article earned Silver for 2018. Read more about Dave.

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