Made Up Sales Statistics and Their Contrast to Real Data

Posted by Dave Kurlan on Thu, Feb 02, 2023 @ 07:02 AM

made-up-stats

A sales consultant who knows that I geek out on sales data read that 84% of salespeople suck because they don't enjoy what they do.  A huge percentage of salespeople do actually suck but the actual number is closer to 75%.  Is it really because they don't enjoy selling?

Most of the data I write about comes from Objective Management Group which has assessed more than 2.3 million salespeople.  OMG has around 250 data points on each salesperson so there is a lot of data to work with.  My plan was to mine OMG's data to see what might support the claim that 84% don't enjoy selling and to conduct a Google search to find the source of that claim.

I began with Google and searched for "84% of salespeople."  While I couldn't find a reference to unfulfilled salespeople, I did observe that 84% must be the favorite made up statistic by all of the people (those who will benefit from selling you a service) who make up statistics!  

  • 84% of B2B Buyers start the buying process with a referral (nope.  They start with who they usually buy from)
  • 84% of salespeople are active on LinkedIn (not a chance in hell - it's more like 5%)
  • 84% of top salespeople crush their sales goals because they are smarter (sorry - it's because they reach decision makers, thoroughly Qualify, have strong Sales DNA, and take a consultative approach to selling)
  • 84% of salespeople have invested in CRM (nope - their companies are investing in CRM and based on OMG's data, only 42% of salespeople use it)
  • 84% of salespeople at businesses that have adopted professional sales enablement strategies are reaching their goals (No company anywhere has 84% of their salespeople reaching their goals unless the goals were lowered so that everyone could receive a participation trophy)
  • 84% of salespeople think their 3-month onboarding training was ineffective (not completely surprising but not nearly that high)
  • 84% of salespeople will miss their performance targets for the year (Not. This varies from 47%-57% every year)
  • 84% of sales teams are more productive selling from home (if it's from not driving around all day the number should be 100%)
  • 84% of salespeople like being recognized for their performance (not even close.  OMG's data says it is 21%)
  • 84% of top performers ask for commitments (This is so far off.  OMG's data shows this number to be 27% for the top 20% of all salespeople)
  • 84% of top salespeople rank high in achievement orientation/goal setting (OMG's data has it as 72% for the top 20%)
  • 84% of sales training is forgotten within 2 years (it's a made up number and probably closer to 50%)

The references to 84% continue but let's go back to the claim that 84% of all salespeople are not fulfilled in their sales roles.

OMG measures 21 Sales Core Competencies with an average of 10 attributes for each. Some directly and/or loosely correlate to fulfillment.  If 84% are not fulfilled we would convert that to a positive and say that 16% are fulfilled.  Here is the real data:

  • 55% of all salespeople Enjoy Selling and this goes up to 78% for the top 10% and down to 23% for the bottom 10% but their number is supposed to represent all salespeople and that isn't close to 16%.
  • 62% of all salespeople have a strong Outlook and feel good about themselves and what they do.  This goes up to 75% for the top 10% and down to 40% for the bottom 10%.
  • 61% of all salespeople are highly Motivated.  This goes up to 89% for the top 10% and down to 12% for the bottom 10%
  • 3.5% of all salespeople feel that selling isn't fun.  This goes down to .5% for the top 10% and up to 38% for the bottom 10%.

In conclusion, the majority of salespeople feel good about selling, enjoy it, and are motivated to do it. There is a direct correlation between fulfillment and the percentile in which a salespeople find themselves.  Better and more successful salespeople find more fulfillment in sales than weaker and less successful salespeople.  While that shouldn't surprise anyone, 84% of salespeople lacking fulfillment is not to be believed.

Image copyright 123RF

Topics: Dave Kurlan, Motivation, assessment, sales enablement, omg, sales data

The Top 10 Sales and Sales Leadership Articles of 2022

Posted by Dave Kurlan on Mon, Dec 12, 2022 @ 07:12 AM

Top 10 of 2022

Each week we can read multiple lists of the top new movies and TV shows to stream at home.  Lists of the Top SUV's, Sedans, and Coupes are also prevalent right now.  And of course, as we move ever closer to the holidays, there are lists aplenty on the Top Gadgets, Luxury Items, Gifts for Her, Gifts for Him and Gifts for Kids to peruse.  But it's also the time of year when I publish my list of the Top 10 Sales and Sales Leadership Articles of the year.

Criteria: Popularity (views) is nice but quality of content is nicer.  Likes are cool but engagement is cooler. Entertainment value counts and my opinion matters because I'm judging the articles.  In the end, I'm applying popularity, quality of the content, likes, entertainment, comments, engagement and my opinion to create this list of the top 10 articles.

Enjoy!

10. The Bob Chronicles Part 7 - Salespeople Who Can't Close Closable Business 

9. Why You Can't Lose Customers or Salespeople Right Now

8. How to Use This Jeep Versus Infiniti Analogy to Hire the Right Salespeople

7. How You Can Double Your Revenue in a Recession (most comments)

6. Hiring Salespeople the Right Way Yields 62% Less Turnover and 80% Higher Quotas

5. The 10 Unwritten Rules of Prospects and Tips for How to Break Them

4. How to Identify the Real Reason When a Salesperson is Under Performing (best content)

3.  The Top 10% of All Salespeople are 4,000 Percent Better at This Than the Bottom 10%

2. How to prepare your sales team to thrive in a recession

1. The Irony of Free Passes for Under Performing Salespeople   (most engagement)

Top Article - Dave Kurlan's Top Videos and Rants (most views, comments and engagement)

Image Copyright 123RF

Topics: Dave Kurlan, Consultative Selling, sales training, human resources, Sales Coaching, closing, effective sales leadership, sales enablement, top sales articles, tips for hiring salespeople, sales management effectiveness, Top 10 Sales Tips

5 Reasons Sales Teams Underperform Like My Old Wiper Blades

Posted by Dave Kurlan on Thu, Nov 17, 2022 @ 07:11 AM

The 6 Best Windshield Wipers and Glass Treatments for Your Car of 2022 |  Reviews by Wirecutter

My windshield wipers were no longer getting the job done.  They were underperforming (leaving streaks and smudges), not clearing water from the windshield (failing to meet expectations) and I couldn't see the road properly when it was raining.  It presented a threat to our safety and an upgrade was required.  

I ordered Bosch Icon replacement blades, rated #1 by the NY Times, and after 30 minutes of unintentionally trying to put them on backwards, I finally got them installed. They were freaking awesome.  They exceeded my expectations in the rain, and last night they over performed in the snow.

The wiper blade adventure got me thinking about a few things. My car has 37,000 miles on it but the blades should have been replaced 17,000 miles ago so why did I wait so long? How is this similar to what companies go through when their sales team is underperforming?

I speak with a lot of CEOs and Sales Leaders from companies whose sales teams are underperforming.  One thing they seem to have in common is the mileage problem.  When I ask how long the sales team has been underperforming, it is usually the equivalent of 60,000 miles.  It's not a new problem, the signs have been there for YEARS but something recently changed to the extent that they couldn't tolerate it any longer.  The sales team's performance was finally presenting a threat (safety) whereby one or more of revenue, earnings, sustainability, personal income, stock prices, turnover, market share, morale and more were at risk.

What causes executives to wait so long?  Here are five potential reasons:

Hope - They hope this is the month or quarter that turns things around.  As everyone has heard by now, hope is not a strategy.

Misinformation - Their sales managers/sales leaders provide an overly optimistic narrative about how things are going.  "We have a great pipeline."  "We have some great opportunities." "Our salespeople are having some great meetings."  The keyword is great.  What makes the pipeline, opportunities, and meetings great compared to past months or quarters?

Fear - Sales are not very good right now, but what if we ask for outside help and we swing and miss?  Won't that be even worse?

Patience - They don't want to be guilty of a knee-jerk reaction so they wait a little longer.  After all, cash flow is still positive, so what's the harm in waiting?  Just another day.  Sure, another week.  Maybe another month.  Could we kick it down the road for another year?

Ego - They mistakenly believe that if they ask for help they will appear weak.  Executives don't think twice or worry about bruised egos when they need the advice of attorneys, accountants, bankers, commercial insurance agents, property managers, asset managers, wealth managers, etc.  Why does their ego start trouble when it comes to sales experts and their advice?

For every CEO and Sales Leader that do reach out, a third of them will remain in wait-and-see mode, failing to take action  commensurate with their underperforming sales team. They think that one big sale will solve their problem, but the reality is that one big sale will only further mask the problem.

A Sales Team evaluation helps executives - those who are ready and those who are hesitant - to understand why their teams are underperforming and what can be done about it.  You can learn more about a sales team evaluation here.

Topics: Dave Kurlan, sales training, sales performance, evaluation, sales enablement, sales assessments, sales team, OMG Assessment

The Irony of Free Passes for Under Performing Salespeople

Posted by Dave Kurlan on Fri, Oct 21, 2022 @ 08:10 AM

criminal

If you aren't aware of the crime taking place in most of America's big cities, you have either been living in a cave or experiencing willful ignorance. Most of the alleged criminals are repeat offenders and those who are arrested are usually back on the street committing additional crimes later that day due to cashless bail and the presumption of innocence.  

If you think about it, and you don't have to think very long or hard, cashless bail mirrors how companies deal with under-performing salespeople who are also repeat offenders.  Let me explain.

A typical US sales team consists of 15 people, including a Sales VP, 2 Regional Sales Managers, and 12 salespeople.  Of course, there are exponentially larger and smaller sales teams, but this is the version that we most frequently encounter.  This team will have no more than 3 performing salespeople, another 3 who sometimes hit their numbers, and 6 who chronically under-perform.

Let's assume that the salespeople who are ranked 10-12 are not just under-performers, but pathetically ineffective salespeople.  At the end of the year, they receive their annual review - the equivalent of an arrest and release - and are back on the street to underperform for another year, making the company both both the victim and the enabler.  This is insanity!

While some could argue that this is happening because it is so difficult to find sales candidates and harder still to find good ones.  The argument doesn't hold up because while the current labor market is consistent with the lack of quality sales candidates, the practice of rewarding sucky salespeople with continued employment has been around as long as I have!

Three contributing factors to this practice are relationships, ego and hope.

Most sales leaders aren't comfortable terminating salespeople with whom they have developed a strong relationship.  Their ego doesn't allow them to terminate ineffective salespeople because it would be an admission of a hiring mistake and ineffective coaching.  And they hope that this will be a breakout year for these salespeople.

OMG's (Objective Management Group) Sales Team Evaluation provides leaders with science-backed data to know which under-performers can be trained and coached up, how much better they can become, what kind of help they will need to achieve those improvements, and how long it will take.  Isn't that better than hope?

While it helps to train and coach up those who can improve and identify those who can't, the other way to address this issue is to fix the sales hiring problem.  It's time to stop using gut instinct, personality assessments that weren't designed for sales, faulty sales recruiting processes, and resumes as a basis for hiring salespeople.  These practices are at best hit or miss with an emphasis on miss, and examples of ego getting in the way of methodically making good sales hiring decisions.  OMG's legendary sales candidate assessments are customizable, accurate and most importantly, predictive of sales success in the specific sales role for which the company is hiring.

Several White Papers on these topics are available as a free download here.

You can request samples here.

You can see the 21 Sales Core Competencies OMG measures here.  Each core competency has an average of 10 attributes for a total of around 200 scores/findings per salesperson.

You can request more information here.

After an OMG evaluation of his sales team, one of the regional sales managers pushed back and said the OMG evaluations were wrong. The scores were not very good for his top salesperson despite the fact that he sold the company's biggest deal last year and just made president's club.  I asked some questions and learned that this salesperson's big deal was his only decent sale in 6 years and his sales manager actually closed the heavily discounted deal.  I asked the sales manager which was more indicative of who his salesperson really was - the 6 years of under-performance or the one deal that his salesperson received the credit for?  After a minute of hemming and hawing, he admitted it was the 6 years.  Then I asked which was a more accurate evaluation of that salesperson - the OMG evaluation or his own evaluation.  After another round of hems and haws and he admitted it was the OMG evaluation. 

The best investment you can make to improve sales performance is to use OMG's suite of sales team evaluations and candidate assessments.  They are the Gold Standard.

Image copyright 123RF

Topics: Dave Kurlan, sales hiring, sales performance, sales excellence, sales enablement, underachieving, sales assessments, sales success

Not The Top 20 Attributes of Successful Salespeople

Posted by Dave Kurlan on Mon, Aug 01, 2022 @ 07:08 AM

bad-science

Several OMG Partners reached out to ask if I had seen the email that was circulating with the Top 20 Attributes of Successful Salespeople.

"I have," was my response and, "Look for a blistering article on Monday."

The article was 100% junk science and to use the word science would be a disservice to the word junk. Below, you'll find five reasons why this article was so wrong, so bad, so misleading, so pitiful, and just plain stupid:

 

  1. The article listed the top 20 attributes of successful salespeople and the vast majority of those attributes might have something to do with success in general but have very little to do with sales success.  The email says that, "The results revealed the top five attributes are confidence (44%); ambition (33%); adaptability (25%) self-motivation (17%); and honesty (16%)."  None of those are sales-specific! Respondents didn't come up with these attributes on their own, but were given 30 to choose from.  They were asked to select their top 5 responses and the "report" listed the 20 most frequently chosen responses.  Unfortunately, most of these attributes have more to do with personality and behavior and are not even slightly related to OMG's widely accepted 21 Sales Core Competencies and related attributes.
  2. Only 207 people participated in the survey and it came from "conversational intelligence."  Whaaaat?  207 isn't a meaningful sample size and certainly not one to brag about.  Compare that to the more than 2.2 million salespeople that OMG has assessed and a sample size on which I base all of my articles.  And what the F is conversational intelligence?  I searched Google for Conversational Intelligence and found a book by that title.  The description said, "The key to success in life and business is to become a master at Conversational Intelligence. It's not about how smart you are, but how open you are to learn new and effective powerful conversational rituals that prime the brain for trust, partnership, and mutual success."  Maybe.  But what does that have to do with the topic of this article?  I searched some more and found CallTrackingMetrics.com.  They defined Conversational Intelligence as, "The ability to identify and react to signals in verbal communications."  In summary, someone who is smarter than me will have to explain how conversational intelligence can identify the attributes of successful salespeople.
  3. Jiminny, the company behind this survey, claimed to have researched millions of articles and couldn't find a single article that was not opinion based except for a 2011 article in Harvard Business Review.  Not a single one over eleven years?  Wow.  I have published more than 100 scientific articles on the attributes, competencies, and differences between successful salespeople and unsuccessful salespeople during that time period.  It's kind of difficult to miss 100 of them unless of course my articles don't support their narrative! 
  4. It was a survey!  That's not science. In the case of this survey, it was merely 207 opinions from a limited and skewed list of options.
  5. If the author (was there an author?) knew half of what I know about successful salespeople, they would know that the unsuccessful salespeople surveyed possess most of those same attributes.  They aren't differentiators!  And how do we know that unsuccessful salespeople weren't included in the survey?  Geez!

What are the actual top attributes of successful salespeople?  We should begin with the 21 Sales Core Competencies in which top salespeople score exponentially better than weak salespeople. Over the years, I have written many articles that articulate these differences but there have been a few which, from my perspective, stand-out .  If you're interested in how things have evolved over the past 11 years:

This article was from 2009.

This article was from 2015.

This article was from 2015.

These two articles were both written in 2016.   Also 2016 (HBR v OMG)

This article was written in 2018.

Junk science, limited data, tunnel vision, and in this case, a stupid-as-a-bowl-of-jelly analysis continue to appear although not as frequently as the fake news in politics.  But why do we continue to see them?

Today, it's easier than ever to write whatever you can imagine and that's where a lot of the fake news originates.  Someone writes or tweets something, somebody else shares it, an individual with a platform sees it and spreads it more widely and it eventually becomes a headline.

I've had enough - have you?

Image copyright 123RF

Topics: Dave Kurlan, harvard business review, sales core competencies, sales enablement, omg

Why Do Salespeople Forget What They Learn?

Posted by Dave Kurlan on Wed, Aug 21, 2013 @ 11:08 AM

sellingandgolfI was on the golf course 3 times in the past 7 days.  That's 3 more times than I played in the last 2 years combined!  As you might expect, I was very inconsistent and the resulting score was not surprising.  I was never a good golfer, taking it up just 8 years ago when I turned 50.  However, during the first 3 years, I took weekly lessons, went to the driving range each day, and played quite often in an attempt to become good enough to enjoy it.

Perhaps you can relate to this, not necessarily with golf, but perhaps with something else you may have taken up.

I think there is some commonality with selling, as well as a discrepency.

Some salespeople are fortunate enough to get trained and/or coached.  Maybe it's an all-day seminar, not really training as much as exposure to some different thinking or approach.  We don't expect anything to change from a single day, so why should you?  I went to a short game golf school for a day.  It was awesome while I was there, but 4 years later, I can't do any of the things I learned there.  Comprehensive sales training (8-16 months) leads us to expect dramatic change and a significant increase in sales.

Years later, why would you expect salespeople to have remembered, mastered, and continued to use what they learned?  The fact is that without consistent reinforcement and practice, most salespeople will revert back to what is most comfortable and easy for them.  That's  telling, showing, demonstrating, proposing, quoting and following-up.  They gradually get away from questioning, quantifying, justifying, building value, building a case, qualifying and closing.  They revert to rushing and taking shortcuts.

This is similar to forgetting the essence of the golf swing.  My posture was wrong, my backswing was horrible, my follow-through lacked extension, my feet were moving.  I was in such a hurry to hit it great that I hit it awful.  And salespeople are in such a hurry to close the business that they neglect to sell first!

Training is not an event or a one-year commitment.  It's a never-ending process of gradual improvement with the goal of developing mastery.  Unfortunately, for most companies, it's a much shorter term than that and then they believe that sales improvement has been achieved.

Here are links to a few other articles that I have posted about the similarities between selling and golf:

Putting for Eagle - Going for the Unlikely Close 

Teaching Sales in School is Like Learning to Golf on the Wii

Hit More Fairways and Close More Sales  

Sales Effectiveness by Borrowing From Best Ball Golf Tournaments

 

 

 

 

Topics: Dave Kurlan, sales training, sales improvement, sales enablement, sales effectiveness

Sales Leadership Challenges to Having a World Class Sales Force

Posted by Dave Kurlan on Tue, Jun 18, 2013 @ 06:06 AM

World-Class Sales Organization.

We hear those words a lot.  Some companies aspire to it.  Others claim to be there already.  You are more likely to hear claims like those from a large enterprise, but you have better odds of actually finding it in a small-to-midsize company.

World-Class Sales Organization.

Some would say it's a description of a company's people.  Others would suggest it has more to do with results.  Many would say it's about the size of the sales force.  And a few would point to sales leadership and discipline.

World-Class Sales Organization.

At a large company, there could be one or more individuals responsible for each category in the model.  In a small business, one person (and sometimes fewer than that) may be responsible for all categories.  And in many companies, some of those categories are placed under the direction of people who aren't qualified  to lead them.  In other companies, there are huge gaps where some (or all) of one or more categories are missing.

Let's discuss the challenges of this model in a smaller company where there may be a half dozen salespeople reporting to one sales manager.  How is one person supposed to handle:

  • Sales Leadership 
  • Sales Architecture
  • Sales Infrastructure
  • Sales Talent Management
  • Sales Enablement
  • Sales Human Capital
At some companies, some (or all) of these pieces are missing altogether, or have been undefined or improperly executed.
 
This is a good time to determine where the gaps exist in your sales organization and then deal with them.  It's not as important that you get it right, as it is that you have the above in place.  You can get them right over time.
 
Here are some articles on the subject of sales leadership that you might find helpful:
 

Help is Here for Salespeople Who Find Themselves as the Underdogs

How Coyotes are at the Heart of Sales Motivation

What Percentage of Sales Managers Have the Necessary Coaching Skills?

Quadruple Dittos Motivate Your Sales Team to Achieve

Latest Debate Had Some Great Sales Leadership Examples

The Secret to Coaching Salespeople and Why It's So Scary 

The Conversation Sales Leaders Must Have with Salespeople

Connecting the Dots on Sales Management

Verne Harnish's Rant and 3 Sales Leadership Issues

The Most Important Sales Issues Heading into 2015

Keys to Improved Sales Performance - Part 4 of 4

The Real Problem with the Sales Profession and Sales Leadership

Why Sales Leaders and Salespeople Get Frustrated

Top 10 Sales Leadership Tips From 2013 - So Far

Top 5 Sales Leadership Articles of 2013 - So Far

How Much Sales Development Can Leadership Do In-House?

Sales Leadership Challenges to Having a World Class Sales Force

Sales Leadership Observations about Pipeline and Terminations

Sabermetrics for Sales Leadership - Projecting Sales Revenue

Disagreement Over Sales Leadership Best Practices?

The Sales Leadership Landscape - A Different Perspective

Are Sales Leaders More Receptive to Training Than Salespeople?

Sales Leaders Got These Issues All Wrong

Sales Strategy and Tactics - Thoughts from the Super Bowl

What Sales Leaders Don't Know About Ego and Empathy

Sales Leadership - a Balancing Act to Achieve Compliance and Quotas

Sales Leadership - It's Not About the Title

Sales Leadership - 6th of the 10 Kurlan Sales Management Functions

Sales and Sales Leadership Lessons from Lou Piniella and the Umpire

 

Topics: Dave Kurlan, sales leadership, Sales Force, sales enablement, sales architecture, world class sales organization, sales talent, top sales books, sales infrastructure, sales strategy

This is How Sales Managers Should Coach Their Salespeople

Posted by Dave Kurlan on Wed, Mar 13, 2013 @ 06:03 AM

HallOfFameLast week I posted an article that linked to two additional articles I wrote for EcSELL Institute and Top Sales World.  [Speaking of Top Sales World, they just published a page showing all of the greats (I'm honored to be included) that have been inducted into their Sales & Marketing Hall of Fame in the past 3 years.]  Apparently there were issues with those links from last week because I got dozens of emails letting me know that you couldn't get to those two articles.  I will share the article I wrote for EcSell below.  Sales Management must spend 50% of their time coaching salespeople like this: 

An enormous part of developing salespeople these days is helping them to differentiate themselves from your competitors.  Effectively applying a consultative sales process helps to accomplish this.  Executed correctly, the salesperson has a conversation with a decision maker that is unlike any conversation the competition has had.  It uncovers the compelling reasons for spending money, changing vendors, buying a product or service and, as important, buying it from you.  That creates urgency, and an incentive for a prospect to self-qualify.  The end-result should be a prospect that is willing to spend more to do business with you, and a sales cycle that is not based on winning the price war.

A salesperson told me he met with a customer that had taken their business to a competitor because of price.  It sounded like they were getting what they were paying for: 

    • Paying more for freight,
    • Finding variations in the product,
    • Stocking more inventory than necessary because of availability problems

The salesperson accomplished enough to uncover some issues and while these aren’t compelling reasons, additional questions would lead us there.  To keep the story short and get to my point, let’s assume that the salesperson did enough correctly to continue moving the opportunity forward.   

The Salesperson Comes to You Having Said This to the Former Customer 

“If you had access to local delivery, through a distributor, and the price was competitive, would you consider looking into this?” 

Step 1 – Can you identify what’s wrong with his outdated trial close?

Step 2 – Can you articulate why it’s wrong?

Step 3-  Can you explain the root cause of why it happened?

Step 4 – Can you role play the solution?

Step 5 – Can you get to lessons learned? 

Coaching – Step 1

Forget for a minute that the call to action was horrible; “Look into this” instead of “Pay a little more for my help solving this problem”.  

That wasn’t the worst of it.  

The horror of the salesperson’s question was that he introduced an unnecessary criterion - competitive pricing - for doing business with him.  

Coaching Step 2 - What’s wrong with that? 

Two things: 

    1. Even if you wanted to be the low priced seller, and you don’t, after that question, if you don’t come back with a competitive price you don’t get the business!
    2. He didn’t need to offer competitive pricing because he sold value!  He identified the problem and has a solution for the problem.  That is the value someone will pay for and he undermined it by bringing the customer’s attention back to price! 

Coaching Step 3 – What’s the Root Cause? 

The salesperson was afraid to ask the customer to pay more so there are 4 potential weaknesses at play, as well as the possibility that he hadn’t remembered the correct way to ask the question.

    • Discomfort talking about money prevented him from addressing it
    • Understanding of Price Sensitivity because that’s the way he buys
    • Need for Approval caused him to believe the customer may not like him anymore if he asks a tough question.
    • Self-Limiting Belief that he needs a competitive price in order to get the business 

Coaching Step 4 – Can You Role Play the Solution? 

Salesperson: “How important is it to have continued availability of quality, local inventory?”

Customer: “Extremely important”. 

Salesperson: “Tell me how that would affect your business. 

Customer: “I’ll have control over costs and availability.” 

Salesperson: “Peace of Mind?” 

Customer: “Exactly.” 

Salesperson:  “And, in order to solve this problem, get local, as needed, quality inventory, eliminate your enormous freight costs, and restore peace of mind, are you willing to pay a little more for my help and solve this problem once and for all?” 

Coaching  Step 5 – Lessons Learned

I hear an awful lot of salespeople complaining that they can’t sell in their business unless they have the best price.  The reality is that there are only four reasons why price becomes an issue:

    • The salesperson made it an issue (experience)
    • The salesperson accepted that it was an issue (non-supportive beliefs)
    • The salesperson didn’t know how to prevent it from being an issue (tactics)
    • The salesperson was foolishly calling on purchasing instead of an actual decision maker who owned a problem or an opportunity. (strategy)

What did you learn?

Topics: Dave Kurlan, sales skills, sales management, Sales Coaching, EcSELL Institute, sales weaknesses, sales enablement, sales effectiveness, Top Sales World

Harvard Business Review Blog Off Target on Sales Greatness

Posted by Dave Kurlan on Mon, Mar 04, 2013 @ 23:03 PM

This recent article in the Harvard Business Review Blog was as far off target as any I have ever debunked.  Steve Martin lists 7 characteristics that he says differentiate great sales forces from good ones.  His seven are:

  1. Strong Centralized Command and Control with Local Authority, 
  2. Darwinian Sales Culture, 
  3. United Against a Common Enemy, 
  4. Competitive but Cohesive Team, 
  5. DIY Attitude, 
  6. They Suspend Negative Belief Systems, and 
  7. There is Energy and Esprit de Corps!

Compare that with the six I wrote about in this article:

  1. Effective Sales Selection for Appropriate Sales DNA,
  2. Effective Sales Coaching,
  3. Effective Sales Accountability,
  4. Formal, Structured Consultative Sales Process,
  5. Sales and Sales Leadership Training, and
  6. Coaching and Development and Hunting for New Business.
 
By the way, I'll be leading our top-rated Sales Leadership Intensive in Boston, May 14-15, 2013, and we'll be doing justice to all six of my competencies.
 
Steve's seven characteristics may be common among the 200 companies he worked with, but common is not the same as cause.  Whether these seven characteristics are adopted or not is dependent on personnel.  As noted on my list, if the #1 priority of a sales organization is the selection of top talent, most of Steve's seven characteristics are unnecessary.  If the #1 priority of a sales organization is to protect the status quo, and/or retain underperforming veteran salespeople, Steve's seven characteristics may be more necessary.  Objective Management Group (OMG) has studied salespeople and 100,000 sales managers from around 10,000 companies and if we looked only at common findings, we would be completely misled about the top sales management core competencies.
 
Whether you call them competencies or characteristics, which ones will actually cause a sales force to perform to their greatest potential?  

Topics: Dave Kurlan, sales management, sales management functions, harvard business review, sales enablement, sales management competencies

Why Salespeople Won't Abandon the Early Demo and Presentation

Posted by Dave Kurlan on Mon, Mar 04, 2013 @ 05:03 AM

changeTwo weeks ago, I wrote this article about how demos and presentations are like snack foods.  One of the comments, by Jason Kanigan, said:

"Traditional selling revolves around the demo/presentation. The result is we end up giving many presentations to unqualified prospects. Hit a lot of rejection. Spin our wheels.  
  
Move the demo/presentation phase to the END of the process. Only show how you do what you do to fully qualified prospects. Otherwise, you are merely giving a free education to someone who will thank you, but buy from another person who can give it to them at the lowest price. And you'll be sitting there, wondering what the heck happened."

Jason is right, but it's more complicated than that.  He nailed the location/timing of the demo/presentation as well as the likely outcome. But, he didn't explain what must happen instead or why it is failing to happen more than 75% of the time.  To be fair to Jason, I covered what must happen instead in that article, so I'd like to discuss why selling effectively isn't happening more frequently and with more salespeople.

Consider some of the major innovations that have been introduced in the past century:

  • Personal computers replaced typewriters, calculators, journals and even people.
  • Email replaced fax machines and is significantly reducing the demand for mail.
  • The internet is replacing the library as a source for research.
  • Cars replaced horse-drawn carriages.
  • Satellites and cable television have replaced roof-top antennas.
  • Cell phones replaced pay phones and are reducing the demand for home land lines.
  • Indoor plumbing replaced outhouses.
  • Electric lights reduced the demand for candles.
  • Television reduced the demand for and changed the programming on radio.
And to come full circle, smart phones are reducing the demand for personal computers and 3D high-definition home theaters are replacing the television.

People WANT these advances in technology; they wait in line for new products at Apple stores! Conversely, salespeople STILL WANT TO PRESENT.  For most salespeople, the presentation and demo are what they do best, what they have the most confidence in, and how they define selling.  They don't see anything wrong with it in much the same way that a young child doesn't realize that it's wrong to act out in a public indoor gathering.

Until salespeople can be shown just how ineffective it is to demo and present early in the sales process, and until they realize that presenting is not selling, they will not demand or even embrace change.  Until they realize that a sales cycle consisting of nothing more than presenting, explaining, demoing, proposing and chasing is inefficient and ineffective, they will not change.  Until they understand that to differentiate, decommoditize, and build a case for their offering, they will need to sell consutatively and follow a structured sales process they will not change.

I know from first-hand experience how long it takes for this series of events to unfold.  We can get a sales force to recognize the error in their ways, understand the benefits, and buy-in to a new sales process and corresponding methodology on the very first day of training.  However, getting them from buy-in to mastery is another story all together.  Consultative Selling requires a reliance on effective use of advanced listening and questioning and lots of it.  It usually takes 3 months before salespeople can begin to have quality conversations and resist presenting, and another 3 months for them to become comfortable.  It can take 8-12 months before they become consistently effective.  While salespeople typically don't realize just how much work and practice is required on the first day of training, they certainly figure it out by the third month of training.  By then, they not only want to improve, they have tremendous urgency to outsell everyone else on the team.  After all, at this point they finally recognize that what they used to do wasn't really selling.

If you want your sales force to strive for sales excellence, the bottom line is that your salespeople won't drive this transition and neither will a sales manager.  You have to drive it.  You must commit to it and it must be a sustained commitment.  It's not a do-it-yourself project, so you must also be prepared to do it correctly, get help from a results-oriented firm, and lead by example.

Demos and presentations are powerful, but not until you have an interested, motivated, qualified buyer.

Topics: Dave Kurlan, Consultative Selling, sales training, sales enablement, sales effectiveness, sales assessments

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Best-Selling Author, Keynote Speaker and Sales Thought Leader,  Dave Kurlan's Understanding the Sales Force Blog earned awards for the Top Sales & Marketing Blog for eleven consecutive years and of the more than 2,000 articles Dave has published, many of the articles have also earned awards.

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