Salespeople in Small Companies are 43% Better at This and Other Salesenomics Insights

Posted by Dave Kurlan on Mon, Jan 06, 2020 @ 20:01 PM

statistics

You seek out the best products, best stores, best websites and best experiences.  Doesn't it make sense to wonder about where you can find the best salespeople?

I asked Objective Management Group's (OMG) COO, John Pattison, to dig into some of our data from the evaluations of 1,932,059 salespeople from  companies and provide me with some scores.

I reviewed the data and have a number of very interesting and surprising Salesenomics conclusions to share.

For this exercise, we looked at large (more than 100 salespeople), mid-market (30-100 salespeople) and small/medium (fewer than 30 salespeople) companies.  Then we gathered average scores for each of the 21 Sales Core Competencies as well as Sales Percentile.

It turns out that you'll find more excuse making at larger companies where salespeople scored 43% worse than in small companies.  Why?  Excuse makers aren't nearly as exposed in large companies as they are in small companies, with more layers of management between themselves and those who might call them out for it.  While salespeople from small companies are the weakest overall, they are much less likely to make excuses.  They'll suck without placing blame!

Large companies are also where you'll find salespeople who are more comfortable talking about money and having the kinds of financial conversations that are so necessary for sales success.  Salespeople in large companies scored 21% better in this competency.  Why?  Large companies often sell high-ticket products and services to other large companies and when salespeople aren't comfortable having those financial conversations they fail.  With high-ticket sales, quotas are quite large and when salespeople are missing quota, they are missing by millions, not thousands!  That makes it difficult to stay under the radar.

Large companies have salespeople who are far less likely to use social selling, scoring 39% worse than salespeople at smaller companies!  Salespeople at large companies have an easier time scheduling meetings than those in smaller and lesser-known companies. Think rolling out the red carpet!  But social selling isn't the only thing they don't use.  They are also the worst at using CRM!  The executives who invested millions on their CRM must be absolutely thrilled over that finding.  It tells them that they aren't the only ones frustrated with CRM adaptation and compliance.

The best salespeople overall can be found in mid-market companies where the average sales quotient is ten points higher than in small or large companies.  This makes sense too because those are the companies that take sales training and coaching most seriously.  Many large companies buy sales training but don't really care if it changes anything because they're just checking off a box.  Many small companies don't want to pay for sales training because they're afraid it won't change anything.  But many mid-market companies need it, want it, pay for it, and care tremendously about the outcomes.

The most rejection proof salespeople can also be found in mid-market companies.  It makes sense because that's where you'll find the best hunters!  Mid-market companies also have salespeople who are better at selling value, taking a consultative approach to selling and qualifying.

Salespeople who have the worst scores in Presentation Approach can be found at small companies.  That's where you'll also find salespeople who are less likely to follow the sales process.  I believe this is because there is far less discipline at small companies.

I didn't stop there.  I also looked at sales percentile by industry.

The best?  Commercial Real Estate with an average Sales Percentile of 54%.  The worst? Transportation and shipping with an average Sales Percentile of only 35%.

That's a 55% difference!  It makes sense though.  Many of the commercial realtors that have called on me have attempted to take a consultative approach even though there were still some that began conversations by asking for my lease expiration date.  That transactional approach can be seen with shippers too.  All of the shippers that have called on us seem to be unaware that there are any buying criteria other than price!

So what does all of this mean?  

It means that no matter where we look, how we look at it, how we slice it and dice it, and how many findings we dissect, most salespeople are still guilty of sucking and most companies are still guilty of allowing them to remain sucky.

Leave your comments on the LinkedIn discussion thread here.

Image Copyright iStock Photos

Topics: Dave Kurlan, sales process, sales competenices, crm, sales statistics, sales analysis, sales data

Insights Revealed in The Ultimate Analysis of the Sales Force

Posted by Dave Kurlan on Wed, Aug 16, 2017 @ 11:08 AM

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Image Copyright iStock Photos

They say that data is king and all this time I thought it was Elvis who was King. Who knew? Unfortunately, it all sounds a bit authoritarian so what if we just say that great data can provide us with great insights so that we can make better decisions?  

Objective Management Group (OMG) has approximately 275 million data points from assessing and evaluating more than salespeople from companies. The exciting thing is that there are some very cool things that OMG does with our data.

For example, when we evaluate a sales force we include analyses that you can't get anywhere else. My favorite is our Comprehensive Pipeline Analysis which I wrote about here.

Another one of my favorites is the Ideal Role Analysis where we identify the best people for a particular sales role and the best sales role for each of your people.

I referenced that along with some of the insights from several other analyses in this must read article.

We provide a Strategy Alignment Analysis, a Sales Core Competency Analysis, a Sales Cycle Analysis, a Pipeline Building Analysis and an Analysis of Under-Performing Salespeople. We have a Messaging Analysis, a Value Selling Analysis and a Consultative Selling Analysis. We have a new Analysis of the Coaching Environment, a Sales Leadership Tendency Analysis, a Sales Selection Analysis and a dozen more. Soon we will be introducing a Sales Culture Analysis.

Analyses are great but they can't be analyses simply for the sake of doing analyses.  In other words, we shouldn't do them simply because we can.  We live by our brand promise which is Actionable or it's Free. You should be able to take some actionable step as a result of every analysis we include in a sales force evaluation.  It doesn't mean that you'll like the data or the conclusion.  Why should you?  The very reason for having your sales force evaluated is because it isn't possible to come up with this kind of information on your own!  So while some of the data will reinforce what you were thinking or hoping, most will confirm that changes need to be made.

Here's an example of the top 5 sales force evaluation conclusions and findings that leaders don't like to hear.

The purpose of today's article is to ask if you were going to have your sales force evaluated and choose which analyses to include, which would be most important to you and what kind of analysis would you want that I didn't list above?  Your comments would be great appreciated!

Topics: Dave Kurlan, sales force evaluation, sales analysis, pipeline analysis, sales role analysis

Ultimate Comparison of Top Salespeople versus Salespeople That Fail

Posted by Dave Kurlan on Mon, Dec 07, 2009 @ 21:12 PM

If you've been following this Blog you know I sometimes refer to the elite 5% of salespeople, the next 20% and the bottom 74%.  After reading Super Freakonomics I was moved to take a new look at our data on the more than 400,000 salespeople we have assessed.  Behavioral scientists would look at our data on the top 5% and report on some common findings.  It might look like this: 

Top Salespeople have the following common characteristics:

They enjoy selling

They prospect consistently

They have a strong Outlook

Of course, there are many more but, the problem I always have with these studies is that they don't look at the characteristics of the salespeople who are failing.  Would you be surprised to know that the bottom 5% have these characteristics too?  Well, they do.  A more interesting comparison would be to look at the characteristics where the biggest differences are:

 Top 5%

 Trait

 Bottom 5%

 99.5%

 Trainable and Coachable

 0%

 100%

 Strong Desire for Sales Success

 0%

 95%

 Strong Commitment to Sales Success

 33%

 94%

 No Excuse Making

 20%

 78%

 Don't Need Approval from Prospects

 6%

 59%

 Don't Get Emotional

 10%

 98%

 Comfortable Talking Personal Finances

 2%

 79%

 Supportive Sales Beliefs

 0%

 76%

 Supportive Buying Habits

 8%

 74 pts.

 Average Severity of 5 Biggest Weaknesses

 251 pts.

 95%

 Rejection Proof

 18%

 100%

 Have Personal Written Goals

 16%

 95%

 High Money Tolerance (choking point)

 35%

 88%

 Make Decisions to Buy without Thinking it Over

 18%

 77%

 % of the Attributes of a Hunter

 31%

 45%

 % of the Attributes of a Closer

 8%

 59%

 % of the Attributes of a Qualifier

 11%

Wow, right?

And you wonder why I make such a big deal out of the difference between personality and behavioral styles assessments as compared with our assessments.  You don't have to look much further than the impact of getting Desire wrong.  If the personality and behavioral styles assessments can't measure Desire for Success in Sales, they can't report on it.  They measure Drive (all the successful people in your company have it but they don't all belong in sales) but market it as a sales finding.

There is a huge difference between the top and bottom performers but any individual finding is meaningless unless it is considered as part of the whole, and in the context of what the salesperson will be selling, who they'll be selling it to, the anticipated resistance, and the expected competition.

Despite the huge gap between the top and bottom groups, even the top group of salespeople falter in these areas:

only 50% are Motivated to earn more money - but that's because most of them have made so much already!

only 29% of them have a sales process they follow - that just reinforces what I've been writing about lately.  The lack of formal sales processes in companies is just astounding!

as you saw from the data above, they only average 45% of the attributes of the closer skill set.  That just places more importance on the earlier stages of the sales process and reinforces what I so often say.  If you slow down between 1st and 2nd base, the sales process will accelerate and closing will take care of itself.

only 34% of them are effective getting high enough in the company.  They aren't a whole lot better in this area than their weak counterparts who get to top decision makers a whopping 20% of the time.

only 43% of them are consistently uncovering the real budget so you know they are wasting some time as a result of that.

here's a shocker - despite the fact that 90% of them prospect consistently (although we don't define what consistent is), only 55% of them have the desire to do it, so they force themselves.  The bottom 5%?  10% more, or 65% have the desire to prospect consistently, but 8% fewer, or 82% actually prospect consistently.

Now that you've seen the data comparing the top and bottom salespeople in the world, what jumps out at you?

(c) Copyright 2009 Dave Kurlan

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Topics: sales assessment, Dave Kurlan, Sales Force, comparison of top salespeople, sales study, sales effectiveness study, sales analysis, sales effectiveness

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Best-Selling Author, Keynote Speaker and Sales Thought Leader.  Dave Kurlan's Understanding the Sales Force Blog has earned medals for the Top Sales & Marketing Blog award for eight 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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