Back in the 1960's it made sense for gasoline prices to be discounted down to the nearest 9/10 of a cent because gas prices ranged between 17.9 to 18.9 cents. But when gas prices are around $3.00 per gallon, how does 9/10 cent continue to make sense? Some habits die really hard.
I don't know about you but some things just don't make sense to me. I loved the Leavitt/Dubner series of books on Freakonomics and thought I could share some interesting sales and sales management data that make little sense.
Nearly 50% of salespeople are willing to work on straight commission but only 7% of companies offer such a compensation plan.
Two of the sales metrics tracked most often are margin at 65% and profitability at 51%. Yet only 6% of companies track cost of a sales call. Why do companies who care about margin and profitability not care about the cost of a sales call?
Only 34% of companies track win rates, 32% track account retention, and 9% track the percentage of meetings that close; yet 57% track the percentage of salespeople under/over goal and 47% track their top opportunities. Why would they track their top opportunities but not care about meetings that close or win rates?
49% of companies track the number of opportunities in their pipeline yet only 27% track the quality of those opportunities. That leads to the low win rates that companies are not really tracking! Could it be by design?
Salespeople reporting to a manager with strong Coaching skills have 26% more closable opportunities in their sales pipelines while salespeople reporting to a manager with strong Accountability skills have 18% more closable opportunities in their pipelines. On the other side of the fence, salespeople with sales managers who have weak coaching and/or accountability skills saw 77% of their late stage opportunities moved to one of the first two stages of the pipeline!
Sales managers with strong coaching skills are 230% more likely to have elite salespeople working for them! If that doesn't make a case for developing coaching skills, I don't know what does.
Although they should be spending half their time on coaching, Sales Managers spend around half their time split between coaching, accountability and motivation. How do they spend the other half of their time? Does it really matter? Whether it's spent on personal sales, closing reps' deals, putting out fires, or administrative crap, all of it distracts from being able to coach.
New salespeople with no sales experience – born to sell – have a sales percentile score of 32 with an average Sales DNA score of 61 and an average Will to Sell score of 60. They fall into the very weak category! Compare that to salespeople with 5-10 years of experience – trained to sell – who have a sales percentile score of 58 (182% higher) with an average Sales DNA score of 67 (110% higher) and an average Will to Sell score of 66 (110% higher). Trained to sell beats born to sell.
All of the salesenomics statistics referenced above are from Objective Management Group's (OMG) data warehouse. OMG has evaluated or assessed 1,862,897 salespeople from companies in countries.
Would you like to see how salespeople score in each of the 21 sales core competencies? Click here.
Would you like to check out the most accurate and predictive sales candidate assessment? Click here.
Would you like to discover some more salesenomics? Check out these articles: