New Data Shows That Elite Salespeople are 700% Less Likely to Do This

Posted by Dave Kurlan on Mon, Aug 20, 2018 @ 15:08 PM

urgency-image

How effective are salespeople when it comes to creating urgency?  I'm not talking about salespeople who create urgency by telling their prospects that if they don't order today the price will go up or it won't be available.  I'm talking about salespeople who create urgency by asking questions to uncover problems, the consequences and cost of which, create urgency.

You probably know that most aren't great at it.  After all, with so few salespeople having mastered the consultative approach, it's unlikely that one can achieve urgency using a transactional approach.

The latest data below from Objective Management Group (OMG) shows sales effectiveness relative to sales percentile and ability to create urgency. The following 1-minute video explains the difference between a transactional sale and a consultative approach, along with the differing outcomes.

 

The table below is derived from nearly 1.8 million salespeople assessed or evaluated by Objective Management Group, Inc. (OMG).  These findings make up some of the attributes of the Consultative Seller competency.  You can see and interact with data from all 21 sales Core Competencies here.  
urgency-stats

The 1st column in the table above shows the distribution by Sales Percentile, the next 3 columns show the percentage of salespeople in each group and how wide and deep they penetrate to find reasons to buy.  The last 3 columns show the state of buying readiness they achieve and the last column on the right shows the percentage of salespeople who are able to create urgency.

While only half of Elite salespeople are strong at creating urgency, elite salespeople create urgency 326% more often than their weaker counterparts, fail to uncover anything more than interest 700% less often and fail to get beyond "nice to have" 329% less often.

Unfortunately, weak salespeople make up 50% of the sales population and in the US alone, that's 8 million weak salespeople!

Make sure you don't hire any of that group by using OMG's accurate and predictive, sales-specific Sales Candidate Assessments.

Image Copyright iStock Photos

Topics: sales data, Consultative Selling, Dave Kurlan, sales assessements, creating urgency

Applicant Tracking and Sales Candidate Assessments Fit Like Ducks Take to Water

Posted by Dave Kurlan on Mon, Nov 21, 2016 @ 06:11 AM

duck.jpeg

I was reviewing this page which shows the market share for most of the known applicant tracking systems.  I was impressed with the analysis and with how much of the market share is held by Taleo.  I was also disappointed that there isn't a comprarable study available on sales candidate assessments.  But that's a rant for another day.  Back to the Applicant Tracking analysis.  My first takeaway is that it validated what I knew only anecdotally -that just about every mid-market and large company are using cloud-based applicant tracking systems and smaller companies are quickly moving in that direction too.  It makes sense. If companies are using cloud-based job sites to source candidates, then it only makes sense that they would be integrating applicant tracking as well.

My second takeaway is that with all of these companies sourcing from the cloud and tracking from the cloud, why aren't more of them using the best sales candidate assessment in the cloud?  I have 4 possible answers to that question:

(1) Legal groups in some companies warn against using an assessment for selection puproses.  In an effort to protect their company and its CEO from legal action, they fail to recognize that role-specific assessments do not present any vulnerabilities.  While personality assessments present a legal risk when used for selection, role-specific assessments, like Objective Management Group's (OMG) Sales Candidate Assessments, do not present a risk because they assess to determine whether the candidate has the necessary skills for that specific role.  You can't say that about personality assessmenta.

(2) Some Sales Leaders don't utilize sales candidate assessments because they believe their own instincts and experience will outperform an assessment.  And Sales Leaders do get selection right - about half of the time.  Unfortunately, getting it right doesn't mean that they didn't have turnover. Getting it right should mean that the new salespeople met or exceeded quota.  Using that criteria, 50% right would be a generous number. Ironically, sales leaders could get selection right close to 90% of the time if they used OMG's accurate and predictive Sales Candidate Assessments.

(3) Some HR Leaders won't use sales candidate assessments because they have a sense of familiarity with some of the popular personality and behavioral styles assessments.  Ironically, they don't need to stop using those assessments as they do provide some nice information about candidates.  However, those assessments weren't built for or intended for sales and they aren't predictive of sales performance.  Using a predictive sales candidate assessment along side of a familiar personality or behavioral styles assessment will vastly improve sales selection accuracy.

(4) Some CEO's don't use any assessments because they don't belive in them!  I can understand that.  If their only experience with assessments was with a "lighter" assessment - like one of the many versions of the popular DISC behavioral styles assessment, it makes sense that they don't believe that one of those will help improve selection.  But they need to look beyond what they themselves are comfortable with and have experience with and trust their HR and Sales Leaders and do what's best for their company, not what's best for themselves.

Why should a company use applicant tracking and sales candidate assessments to improve their sales selection consistency?  To avoid the cost of a hiring mistake.  For sales hiring mistakes, estimates run from between $100,000 to over $1,000,000. Of course it depends on the role, salary, length of the sales cycle, recruiting, training and development costs, and whether or not a company includes lost opportunities in its calculations.  If you don't know how much a sales hiring mistake costs at your company, you can use this free sales hiring mistake calculatorto figure it out.

Our statistics show that just one hiring mistake will cost between 20 and 50 times the investment you made in a predictive sales assessment.  

For example, let's say that you were going to hire one salesperson.  If you get selection right half of the time, you'll actually hire 2 salespeople to get the 1 that performs.  Your cost to use the assessment was no more than $2,500 and your cost to recruit, hire, train, develop and compensate the salesperson who failed was $65,000 for six months - 26 times the cost of the assessment.

Let's try it with 10 salespeople.  Let's say that you are better than average and only 3 of the 10 didn't make it.  You paid no more than $10,000 to use the assessment and your hard costs for the 3 salespeople who failed totaled $195,000 - 20 times the cost of the assessment.

There really aren't any good reasons to avoid using a proven, accurate, customizable, predictive sales candidate assessment.  What's holding you back?

Topics: Dave Kurlan, sales candidates, hiring mistake, sales selection, sales assessements, personality test

All-Time Top Kurlan Sales Article

Posted by Dave Kurlan on Thu, Dec 20, 2012 @ 10:12 AM

sales force evaluation,sales test,dave kurlan,sales candidate assessments,OMG,sales assessements,sales hiring test,sales hiring assessment,objective managementAs promised for today, I'm revealing the single article, from among my former 999 blog articles which my readers voted "best", to be my 1,000th post.  It's not my personal favorite, it's not the most well-written, it's not the most viewed, it's not the most entertaining, it's not the most insightful or the most linked to.  But from among the 15 for which you could vote, this was your choice:

Exposed - Personality Tests Disguised as Sales Assessments

(originally posted on January 28, 2009) 

Yesterday, I met with a longtime client who, in his previous company, used OMG's assessments to identify what needed to change in order to double revenue from $30 million to $60 million.  In his new company, which is already about twelve times that size, he wants to double revenue again.  He said, "I just wasted two years with the _____ assessment."  The assessment to which he referred was a personality assessment marketed as a sales assessment.  He could have referred to any personality or behavioral styles assessment.

Many people are not going to like this article.  I'm about to expose the findings in personality-based and behavioral-based assessments which assessment companies have been marketing as sales assessments for the last dozen years.

First, you'll need to read this piece, Personality Assessments for Sales - The Definitive Case Study.  Really, you need to read it first!

There isn't a tremendous difference between personality assessments and behavioral styles assessments.  Popular behavioral styles assessments, like the various versions of DISC, produce findings along four dimensions (categories) while some personality assessments, like those using the PF16 as their underlying engine or instrument, can measure traits in as many as sixteen dimensions.

But personality assessments and behavioral  styles assessments are not predictive of sales performance.  They don't conduct predictive validity studies, as we do, because their assessments don't predict.  Instead, they conduct construct validity studies, which only show to what extent an assessment measures a specific trait and not necessarily the traits which you want to know about, but the traits which they can actually measure.

So here's the problem.  Their marketing material usually says something like, "Salespeople must be able to Prospect, Question, Manage Objections and Close.  They must have Product Knowledge.  They must be accountable, have drive, be self-starters and be coachable."  You read those words and say, "Yes, yes.  That is exactly what we need."  And the masquerade is on.

As I wrote in the other article, personality-based sales assessments don't really measure what you need to know.  Instead they report on what they can actually measure.  In the table below, I'll list some of the most common "findings" in personality and behavioral styles tests which are marketed as sales assessments, describe what is really being measured and compare that to what Objective Management Group (OMG) measures and reports.

Finding      
 Measures
 OMG Finding
What OMG Actually Measures
Drive or achievement
General need 
to achieve
Desire 
How important it is to achieve success in sales
Resilience 
General ability 
to cope with
adversity
Bravery 
The sales-specific scenarios which will be problematic and the individual's ability to handle them
Rejection  
How the individual
reacts to
not being accepted or
not having their
ideas accepted 
Difficulty Recovering from Rejection  
The impact that "getting hung up on" or "getting a no" will have when they close and how long it may take to recover
Emotions  
Emotional
steadiness 
Ability to Control Emotions 
The likelihood that, when a salesperson is caught off guard or in an uncomfortable situation, they will panic and lose control of the sales call
Sociable 
How comfortable
they feel and how
appropriately they
behave in social
situations  
Bonding and
Rapport   
How quickly they develop relationships with their prospects
Confidence 
Whether they
are a confident
person  
Record 
Collection 
The sales-specific beliefs which support or sabotage their sales outcomes 
Coachable  
Whether they
are open to new
ideas 
Trainable 
Whether they have the incentive to improve their sales competencies 

These are just some of the most common findings.  Since OMG's assessments are so sales-specific, there are literally dozens of findings covering everything which can possibly happen in sales including, but not limited to, prospecting, closing, qualifying, account management, farming, use of the sales process, ability to handle stalls, put-offs, objections and work remotely, growth potential, development needs and more.  What's most important to understand about assessments is that: 

  • The questions in the personality tests are asked in the context of social settings, not sales settings, so none of the findings are sales-specific.
  • Because the findings in personality assessments are not sales-specific, they're not predictive.
  • Personality assessments are generally one-size-fits-all, without regard to your market, its challenges, your competition, your pricing, the resistance which your salespeople will face, your compensation plan and how specific selling strengths and weaknesses will impact those conditions.
  • Assessments of your existing salespeople should be useful for development.  If you don't have sales-specific findings, you're only developing them as people, not salespeople.
  • How is OMG different?  Assessments are only a minor part of an effective sales force evaluation.  The most important part is to be able to learn:
    • What impact sales management is having on the salespeople.
    • Whether you've been hiring the right people.
    • Whether your sales force can execute your strategies.
    • Whether your systems and processes support the sales force.
    • Whether sales management is effective.
    • If you can develop more of a sales culture.
    • Whether the salespeople can make a transition such as account manager types to hunters and closers; presenters and quoters to consultative sales types; transactional sale to a solution sale; etc.
    • Who can be developed?
    • If you're attempting to downsize or rightsize the sales force, which individuals actually have the ability to help you do more with less?
    • How much better can they get?
    • What it will take?
    • What would be the ROI on development?
    • Why do you get the specific results which you get?
    • What is the quality of your pipeline?
    • Etc.
  • When used for hiring and selection, an assessment must be an accurate predictor of sales success for a particular sales role in your particular company, calling on your particular market, with its particular challenges and competition.  A personality assessment won't consistently identify the people who will succeed, while OMG's assessment, with its 95% Predictive Validity, will.  We can differentiate between Recommended (they meet our criteria and yours); Recommended - Ideal (they are recomended and they will ramp up more quickly than normal); and Recommended - Perfect (they are recommended ideal and they meet additional customized criteria which match up with your most effective producers).

In summary, whether you're using a personality assessment, behavioral styles assessment, psychological assessment, or psychometric (describes all of the above) assessment, it's the marketing that's sales-specific, not the findings.  Use them at your own risk.

Topics: Dave Kurlan, sales force evaluation, omg, objective management, sales assessements, sales hiring test, sales hiring assessment, sales candidate assessments, sales test

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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 and this one for 2017. Read more about Dave.

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