Most Companies Can Boost Sales From 30-100% in Just One to Two Years

Posted by Dave Kurlan on Thu, Sep 10, 2020 @ 18:09 PM

maserati

Your teenage daughter, growing 4-6 inches per year, asks for two new pairs of sneakers.  She's already outgrowing 3 pairs each year and these two, which are completely unnecessary, would keep her in fashionable footwear for only a few months.  It would make total sense for you to say, "Let's wait a few months until you've stopped growing so fast."

An employee asks for a new car, believing that an SUV crossover (not the Maserati in the picture!) would be more practical than a mid-size sedan.  There are 8 months left on the lease so it would be completely reasonable for you to say, "Sounds good.  Let's make that change when the lease comes to an end in 8 months."

In both 2012 and 2016, companies everywhere were telling salespeople, "We're going to wait until after the election."  There was tremendous uncertainty surrounding those two elections and companies didn't want to commit to anything until they were sure who the next President of the USA would be.

Surprisingly, in the year of the pandemic, salespeople are not hearing the dreaded, "We're going to wait until after the election."   Despite the polling, pandemic, and incredible divisiveness, companies are not pushing the pause button.  But why?

It's not because salespeople have become so strong that they have obliterated that put-off!  89% of all salespeople accept stalls and put-offs and that's changed by only a quarter of a percent since before the start of the pandemic.  That's right.  There has barely been a change in salespeople's ability to overcome stalls and put-offs since before the pandemic.  Ugh.

Biden has promised to raise both the corporate income tax and the capital gains tax if he gets elected so it can't be fear of that.  

It's not because there's a vaccine on the way which will help stop the spread of the virus because when it comes to Covid-19, nothing is certain.

So what is it?

Many companies already experienced at least 3 to 6 months of uncertainty and they can not withstand even 2 more months of that.   As a result, companies are investing, streamlining, expanding, hiring and going all in to save their 2020s, and position their companies for historical growth in 2021.

As I review what our clients are hearing, what OMG's partners are sharing, and adding my own anecdotal experience, there has never been a better time to sell!

But seller beware. Favorable conditions do not equate to easy selling.  There is tremendous pressure on margins, competition is fierce, and the selling challenges are more difficult than ever before.

Current conditions require resistance proof sellers however only 54% of all salespeople fit that description and that's improved by only 1% since the start of the Pandemic.  Current conditions require salespeople to take a much more consultative approach and sell value.  Unfortunately, only 12% of all salespeople have the Consultative Seller competency as a strength and only 30% have the Value Seller competency as a strength.  Among the weakest of all salespeople - that's half the sales population - the percentages drop to 2% and 7% respectively.  As we begin to purge the virus, how can companies surge when half of their salespeople suck at selling?

Companies don't really look as I just described them.  We don't see many companies where half the people in the sales organization suck.  In many of the companies whose sales organizations we evaluate, most of the salespeople suck!

You don't think that applies to your company but you aren't really sure whether a quarter, a third, half, or all of your sales force sucks because some of your people sell more than others.  Don't be misled by distribution of revenue.  Keep in mind that distribution of revenue usually has more to do with quality of the territory, number of established accounts, size of the established accounts, length of time in the industry, repeat business and call-in business than sales capabilities.  There are only two ways to compare the relative sales capabilities of your salespeople:

  1. Have every salesperson look for new customers under the exact same conditions (calling on the same size accounts in the same vertical against the same competition in the same territory)
  2. Have us evaluate your sales force and from the more than 180 findings and 21 Sales Core Competencies, compare Sales Percentile scores.

The ability to compare the sales percentile scores of your salespeople is not the ideal reason to evaluate your sales force.  But identifying where your challenges lie and learning what it will take to significantly increase sales is. Large and small companies alike that evaluate their sales teams learn that with targeted training and coaching in the areas identified, sales increases of between 30-50% within one to two years are very achievable. Some companies are able to double sales in the same period of time.

This is not the time to purposefully do nothing, wait and see, or worse, hope for the best.  Improving sales effectiveness has a greater impact on your top and bottom lines than any other thing you can do, including cost-cutting, operational efficiencies and lay-offs.

When it comes to sales transformation, you don't say, "let's wait until things get better" because sales transformation is the very thing that makes things better.

Topics: Dave Kurlan, Consultative Selling, sales process, objections, sales statistics, election, selling value

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

New Data Shows Sales Weaknesses Cause Powerful Chain Reactions in Salespeople

Posted by Dave Kurlan on Wed, May 30, 2018 @ 06:05 AM

 chain-reaction

I have written extensively about Sales DNA over the years and today we will view Sales DNA from the perspective of sitting inside of a chemistry lab.

Sales DNA is the combination of strengths (or weaknesses) that support (or sabotage) the execution of sales process, sales strategy and sales tactics.  Objective Management Group (OMG) measures and includes the 6 most powerful of those strands of Sales DNA in its 21 Sales Core Competencies.  While I usually discuss the impact of these weaknesses, we have never conducted a lab experiment like this before! 

John Pattison, the COO at OMG, built a new tool for us to play with.  It allows us to slice and dice the data in ways never before possible (for us).  I feel like a kid with a new train set but that analogy ages me.  I feel like a kid with a new PlayStation!

The image below shows the average scores for all salespeople in the 6 Sales Core Competencies of Sales DNA.

DNA-pct-strengths-2

 

The average scores for all salespeople are not very good!  The next image shows the percentage of all salespeople who have those 6 Competencies as strengths.  This isn't very good either.

DNA-pct-strengths-1-1

 

You can see all of our data in all 21 Sales Core Competencies and filter it by industry and company here.

Most experiments begin with a theory or a question. My theory is that Sales DNA is similar to a chemical reaction whereby if a salesperson has 2 or more of the 6 above as weaknesses, and #2 is the tendency to become emotional, then weakness #1 will trigger weakness #2. 

A weakness is triggered when salespeople are aware of the need to execute a step, strategy or tactic, like asking a specific question, but are worried that the prospect will dislike them for doing so. As a result, they avoid executing and thereby sabotage themselves.  

DOESN'T NEED APPROVAL:  As a weakness, it causes salespeople to avoid an action when they worry that their prospects won't like them.  Prevents salespeople from asking tough questions, pushing back and challenging their prospects, the core skills to selling like a Challenger.

CONTROLS EMOTIONS: As a weakness, it occurs when salespeople worry, strategize, panic or get excited.  This causes them to get in their own heads, and prevents them from being able to actively listen and ask good questions, the core skills of a consultative approach to selling.

COMFORTABLE DISCUSSING MONEY: As a weakness, salespeople aren't comfortable asking a prospect where their money is coming from, how they might find money they don't have, how they might find more money than what was budgeted, or how to prioritize expenditures to solve their problems.

Let the experiment begin!

The first Competency I tested was Doesn't Need Approval or, whether or not a salesperson NEEDS to be liked.

58% of all salespeople Need to be Liked (a weakness) and their average score is 76 (weak).

When I sliced the data with Controls Emotions you can see what I found in the table below:

Emotions

66% of salespeople who need their prospects to like them become emotional when the weakness is triggered.  2/3 of them!

I wondered how much that percentage might change based on our Sales PercentileTM score so I dug deeper and learned that:

The bottom 25% of all salespeople, almost all of them at 85% - become emotional when the need to be liked is triggered.

For those in the percentiles between 26 and 50, 72% become emotional when the need to be liked is triggered.

Salespeople in the percentiles between 51 and 75 were less likely to become emotional when the need to be liked is triggered.  It happens with 60% of them.

Only 41% of the salespeople in the percentiles between 76-94 (strong) have the need to be liked but when it is triggered, 46% of that group become emotional.

Only 18% of elite salespeople (the top 5%) have the need to be liked but when it is triggered, 24% of them become emotional. 

* * * * 

I ran the same experiment on Comfortable Discussing Money.  As with the need to be liked, 60% of all salespeople have this as a weakness.  

67% of those who are not comfortable discussing finances become emotional at the moment the money weakness is triggered.  Again, it's two thirds of them!

As with the need to be liked, the percentage changed according to Sales PercentileTM so here is what happens:

78% of the salespeople in the bottom 50% become emotional when the money weakness is triggered.

59% of the salespeople in the percentiles between 51 and 75 become emotional when the money weakness is triggered.

Only 34% of salespeople in the percentiles between 75-95 are uncomfortable discussing money but when the weakness is triggered, 41% of that group become emotional.

Only 8% of elite salespeople (the top 5%) are uncomfortable talking about money, but when the weakness is triggered, 17% of them become emotional. 

Upon the triggering of the first weakness, these findings show that for most salespeople with more than 1 major weakness along with the tendency to become emotional, the emotions weakness is triggered as part of a chain reaction.

The data also confirms that nearly all of the weakest salespeople (Sales Percentile below 25) have these weaknesses (and more) and the 1st weakness almost always triggers the 2nd weakness.

Finally, the data confirms that very few of the salespeople in the elite top 5% have these weaknesses and when they do it is far less likely for the 2nd weakness to be triggered with the 1st.

When everyone on the sales force receives the exact same sales training and coaching, these findings explain why top salespeople continue to succeed while poor salespeople fail to show measurable improvement

Image Copyright iStock Photos

Topics: Dave Kurlan, Need for Approval, Sales DNA, sales statistics, emotional, need to be liked, talking about money, sales data

The Official 2017 List of 21 Sales Core Competencies

Posted by Dave Kurlan on Wed, Mar 15, 2017 @ 18:03 PM

21.jpg
Image Copyright Bluberries

These days, changes happen faster than ever and the same can be said about professional selling.  Selling is evolving, the rules of business are changing, there is more information available on line than there was last week and sales organizations must evolve accordingly.

Back in 2014, I introduced what was then the most current version of Objective Management Group's 21 Sales Core Competencies.  But just 3 years later, we have again found it important to modify the makeup of the 21 Sales Core Competencies and I want to share the changes below, along with the data that makes up each competency.

new-dashboard-21-comps.jpg

Sales Posturing has been removed from the Tactical Selling Competencies and over the next several months it will receive a makeover.  In its place, Selling Value, always an important OMG finding, has received a promotion and is now one of the 21 Sales Core Competencies.

Likewise, the Sales Motivation competency has received a promotion and is part of the Will to Sell category, while Goal Oriented has been downgraded to an attribute of the Sales Motivation competency.

But the real news is not a couple of changes to the 21 Sales Core Competencies.  I've written more than 1,600 articles for my Blog since 2006 and most of them reference important data points from the salespeople that OMG has assessed.

Drum roll.  Now, for the first time, you can access the same data
that we use to find interesting statistics about salespeople!

That's right.  We have gone from private to public and you can see some of the same amazing findings that I write about.  Not only that, you can slice and dice the data by geography, industry, experience, Sales Quotient, and more.  You can even see how your own salespeople compare to the entire sales population and sales organizations in your industry.  We are very excited to finally share this with you!

Welcome to our free Stat-Finder tool, your ticket to actual sales statistics that are backed by science.  No fake news, no personal opinions, no popularity lists, no personal observations, nothing anecdotal and nothing to be misinterpreted.  Instead, you can see the average scores in 21 Sales Core Competencies for salespeople in more than 200 different industries, who sell everything to everybody, with every possible experience level and skill set, from companies of all sizes, selling to every possible vertical, and decision-making title.  Give it a spin!

Topics: Dave Kurlan, sales core competencies, accurate sales assessment, sales statistics, OMG Assessment

Misleading Statistics and Hiring the Wrong Sales Candidates

Posted by Dave Kurlan on Sun, Nov 02, 2008 @ 20:11 PM

The November issue of Fortune Small Business has an article called Entrepreneurial Myth Busters. FSB has Ken Blanchard (consultant )and Scott Shane (academic) go head to head answering questions about small businesses and entrepreneurship.  While Blanchard provides insightful answers based on his years of experience working in, consulting to and writing about business, Shane provides surprising answers based on data.  I'm sure that if you read the article you'll agree that Shane's data lead to some very misleading conclusions. Academics who haven't been "out there" can fall in love with their data!

I "browsed" more than 400 articles that I have written for this Blog in the past three years and found only 22 articles where I reference Objective Management Group's data on the 400,000 salespeople that we have assessed. I've been researching, consulting to, evaluating, training, devloping and coaching CEO's, sales VP's, and their sales forces for more than 20 years.  Like Blanchard, I know what's going on out there from being out there but I also have the benefit of having data to back up my first-hand knowledge and resulting claims.

Data has its place.  For example, when Tom Peters said women make better salespeople than men, I knew that to be true - to a point - and then explained it with data.  I believe that the researchers with data should use it responsibly rather than to promote counter intuitive yet irrelevant findings to draw attention to themselves.

I'll illustrate my point by using some of our sales selection data. Take the following statistic for example:

70% of the very strongest salespeople take their assessments prior to 7 AM.

Wouldn't that fact cause you to select salespeople that take their assessments early in the morning? 

Not really. 

Additional Statistic #1 - We assess salespeople from around the world, so most of the European assessments and all of the Asian and Pacific Rim assessments are processed before 7 AM ET. 

Additional Statistic #2 - The very strongest salespeople make up only 6% of the sales population, 70% of that group would yield only 4.2 strong candidates out of 100. 

Without the additional statistics I could have led you to believe that the 7 AM statistic would be valuable!

Look at another statistic on sales selection:

80% of the strongest salespeople do not have Need for Approval.

Wouldn't this cause you to look for people who did not have need for approval?

As with the case above, no.

Additional Statistic - 38% of all salespeople do not have need for approval so you would select the right salesperson only 15% of the time!

This is one of the things that amuses me.  After developing familiarity and confidence with the assessment, a small percentage of clients will simply key in on one finding or another and believe that they can suddenly identify successful salespeople without having to use the assessment. 

Selection is never about one or two findings - it is always about a combination of findings and how that combination will impact the candidate in your business, where there is a unique set of findings that will identify a salesperson that will succeed for you.

Statistics are awesome when they're used in a way that benefits everyone.  When they're used to fool people it makes me angry.

(c) Copyright 2008 Dave Kurlan

 

Topics: sales competencies, sales assessment, sales hiring, sales recruiting, sales management, selling, Salesforce, Sales Candidate, sales evaluation, sales personality, sales statistics, Fortune, Ken Blanchard, Scott Shane, hiring assessments

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About Dave

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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