5 Steps to Grow Sales by 33% in 12 Months

Posted by Dave Kurlan on Wed, May 11, 2022 @ 08:05 AM

I'm a baseball guy and a die hard Boston Red Sox fan but I can't bear to watch them right now.  They are playing the worst baseball since I was 10 years old so that's going back 55 years!  It's not hard to understand why they are so bad because the data tells the story.  Their stats show that as of May 9, 2022 their bullpen has 9 blown saves.  Bullpens rarely blow 9 saves over a full season never mind over five weeks but if you look deeper, they wouldn't be in so many close games if their offense was producing.  Only three guys (JD Martinez, Xander Boegarts and Rafael Devers), are hitting!   Coaches will review game video and hitters will take extra batting practice to work on their mechanics and timing.

Sales teams go through periods like this too but sales leaders rarely seek out the data that would immediately point to the real problem.  They tend to hope things will improve and go from there. However, there are several levels of data to be reviewed so let's take a look.

As the article title suggests, there are five steps you must take to grow sales by 33% in 12 months.  You can't pick and choose as all five are required.

1. IDENTIFY BOTTLENECKS - A quality CRM application, like Membrain, will show your win rates, age in stage, conversion ratios, pipeline velocity, pipeline volume and pipeline quantity and more.  Dig into that data to determine year over year changes and identify where your bottlenecks have been and where they are today.  Be mindful that this is lagging data and are merely symptoms of the real problems!  (My personal favorite is the Baseline Selling edition of Membrain)

2. IDENTIFY THE REAL REASONS - An OMG Sales Team evaluation will explain why you have those bottlenecks and why your team gets the results it gets.  Note which of the 21 Sales Core Competencies are to blame - by team and individual - and more importantly, how much revenue is being left on the table and who is capable of upping their game.  For example, are deals getting stuck because salespeople aren't capable of reaching decision makers?  We know that salespeople who can begin with the decision maker are 341% more likely to close the business!  A training curriculum can be designed from these conclusions. Learn MoreRequest Samples (Request Sample Sales Force Eval)

3. PROFESSIONAL OUTSIDE SALES TRAINING - Provide your sales team with appropriate training to close the competency gaps, improve skills, and achieve better execution.  This should not be a one or two-day event.  Change requires on-going, long-term training to change beliefs, approaches, strategies, tactics and develop skills!

4. DAILY COACHING - Sales managers must provide daily, one-on-one coaching to their salespeople to help them with their individual gaps and improve their Sales DNA.  Only 7% of all sales managers come equipped with effective coaching skills so they will need to be trained and coached in order for them to provide effective coaching.

5. ACCOUNTABILITY - Sales Leaders must hold sales managers accountable for coaching as sales managers hold their salespeople accountable for change.

Once you have the data and take action, there is absolutely no good reason why you can't bump sales by at least 25%!  That's right, AT LEAST 25%.  If everyone improves by just 10% you will grow sales by 33%!

  • 10% more opportunities
  • 10% higher average sale
  • 10% greater win rate

That comes out to 33%!  Don't believe me?

Start with monthly goals of 20 opportunities, a 20% closing rate, and a $20,000 average sale. That translates to 4 sales for $80,000 or $960,000 annually.  10% more equates to:

  • 22 opportunities
  • 22% closing rate
  • $22,000 average sale

That's 4.84 sales at $22,000 which totals $106,480 per month or $1,277,760. A 33% increase in revenue!

What are you waiting for?

Topics: Dave Kurlan, sales training, Sales Coaching, crm, omg, how to increase revenue, sales increase, membrain, sales team evaluation

Do You Know the Accurate Reason Why a Salesperson Is Not Performing?

Posted by Dave Kurlan on Wed, Apr 20, 2022 @ 13:04 PM

failing

How quickly can you determine why a salesperson is failing? 

Dinger loves to play catch with his ball.  He has seven of them but loves his white ball the most.  When we're out playing catch and I point to a ball and say, "there it is" or "right there" or "get it" he just can't seem to find it!  Dinger has good listening skills but his ability to see the obvious isn't very good.

Such was the case earlier this week when a surprised client wanted an explanation for why one of their salespeople, who does not perform very well, scored well on his evaluation.  "How can someone who is not my top performer score better than someone who is my top performer?"

That sounded like a challenge so I said, "Let's go!"

Objective Management Group's (OMG's) evaluations are very accurate so I always assume the evaluation is correct and simply ask questions to determine whether something needs explaining, or they might not be looking at the best data to determine whether a salesperson is truly a top producer or an under performer.  The most common pushback occurs when someone they have inappropriately labeled as a top performer does not evaluate very well.  In almost every case, it's because the salesperson manages more revenue than anyone else, but isn't the one who sold those accounts.  A good account manager, but not a producer. 

In the case of this evaluation, the salesperson was simply not performing as well as his peers so I assumed there was a good explanation.

I'll share what I found.

First I looked at his 5 Will to Sell competencies which include Desire, Commitment, Outlook, Motivation and Responsibility - all specific to sales - and while I expected to find an issue with commitment, I did not find the issue there. 

Next I looked at the 6 Sales DNA competencies, expecting to find an explanation there and while his Sales DNA is only fair at best, at 67 it was certainly not the primary source of the problem.

Next I looked at the 10 Tactical Selling Competencies and found what I was looking for.

He scored an 8 on Relationship Building!  If you look at these 10 scores in the proper sequence, he's a hunter who can reach decision makers and when he schedules a call or face to face meeting, and they talk with him, he isn't able to connect with with his prospects. 

He scored 84 in the Hunting competency but that's deceiving!  What prevented him from scoring 100? If you look at the attributes in the Hunting competency below, there are two important attributes he's missing. The first is Likable!  If a salesperson isn't likable it's very difficult to get beyond that!! They simply won't perform!  The second is Maintains Full Pipeline. Clearly, he struggles to convert the scheduled calls and meetings into opportunities.

The answer is always in the OMG evaluation but you need to look at more than a single score!  At a bare minimum, read the dashboard where these scores come from.  You don't have to read 30 pages but at least read the first 2 pages!

Going back to my opening paragraph, "Right there!"  "There it is!"

Clients use OMG's Sales Team evaluations as a development tool to uncover sales skill gaps, opportunity for growth, and most importantly for answers to age-old questions like, why aren't we selling more?  Why is our win-rate so low?  Why aren't we generating more new business?  Why do so many opportunities come down to price?  Are our salespeople in the best roles for them?  How much more business could we be generating if we coached and trained on these gaps?  Are we hiring the right salespeople?  Are our sales managers coaching effectively? 
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Clients use OMG's Sales Candidate Assessments to hire the ideal salespeople for the selling roles they wish to fill.  
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Sales consulting and training firms choose OMG for their clients because it is sales specific, and is more comprehensive, more accurate and more predictive than any other assessment you can find.  Sales consultants and trainers can learn more here.

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Topics: Dave Kurlan, accurate sales assessment, sales results, preditive of sales performance, listening skills, sales team evaluation, failing salesperson

The Philosophy of a Pitching Coach Will Improve Your Sales Team

Posted by Dave Kurlan on Mon, Apr 04, 2022 @ 07:04 AM

pitching

I find ideas and material for this Blog everywhere, especially when I'm not looking for them. Yesterday I received a daily email from a Paul Reddick, a baseball coach who was drumming up some business for his baseball institute. It resonated - not for its baseball coaching - but as sales coaching.  Here's what it said:

If your coach is talking about any of the pitching flaws that you see listed above…

Run… Run Fast!

That Coach is working on “flaws” that will have no impact on your pitching.  He is working on symptoms… not the illness!  He is trying to fix things that are happening as a byproduct of incorrect movement early in your delivery. If you get the first second of your delivery right, almost all of these flaws get fixed instantly. 

Do you know how this applies to sales? 

I'll explain exactly how it applies and I promise you will be surprised!  Click here to read last year's fun article comparing pitcher's fielding practice (PFP) to role-playing in sales.

If a CEO, Sales Leader, Sales Manager, Sales Coach or Sales Expert suggests that closing or negotiating is a selling flaw, then that individual does not really understand what salespeople must do in order to win business.

Closing is over-rated. 

Always has been.

Except for the concept of when to close, closing shouldn't even be taught!

If a salesperson is effective adding opportunities to the pipeline, reaching decision makers, building relationships, taking a consultative approach and uncovering compelling reasons to buy, selling value, qualifying, and doing that in the context of a effective and efficient sales process, they will earn the business and it will close at the appropriate time.

If they suck at any or all of the nine competencies referenced above, then the lack of wins will appear to be a closing issue, when it is actually symptomatic of something that wasn't properly executed earlier in the process.

Same goes for negotiating.  If an opportunity is properly qualified at the appropriate time, there should not be anything to negotiate.  However, if qualifying lacks thoroughness and is completed too early, it invites a negotiation at closing time.

Training and coaching should be targeted towards the competency in the sales process that has the lowest conversion ratio.  In other words, if salespeople struggle to get opportunities into the pipeline, focus on prospecting.  If salespeople are booking meetings but opportunities stagnate in the pipeline, the issue is with the consultative approach and/or value selling.  If opportunities get as far as qualified but fail to close, then the issue is probably with qualifying and/or consultative selling/value selling.

The most important thing to identify is where ALL of the skill gaps are.  How can salespeople leverage their strengths, sharpen existing skills, learn new skills and improve their conversion ratios?

The best way to do that is to know exactly what they are capable of, where their bottlenecks are, what their blindspots are, and what they need to do in order to improve.  This should never be a guess because most sales managers, sales leaders and CEOs guess wrong!  It sounds like most of the calls and emails I receive where the potential client says, "Yes, we're looking for someone to provide some sales training on closing and negotiating."

There are a couple of ways to find out what your team is really capable of and how much better they can become:

An OMG Sales Team Evaluation is the best solution and provides answers to every possible question you might have about your team.  In addition to the comprehensive Sales Effectiveness and Improvement Analysis (SEIA), Executive Summary, and Visualizer (interactive tool to play with the data), you and your sales team will learn how everyone measures up in all 21 Sales Core Competencies.

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OMG has a free self-serve solution as well.  You can see how your team collectively compares to other teams in your industry and to companies overall in all 21 Sales Core Competencies.  You won't get any reports or individual results but you'll see where the team-wide gaps are.

Check out the Free solution (or first step)

Companies that have their sales teams evaluated experience faster, quicker and greater growth than those who don't.

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Topics: Dave Kurlan, Consultative Selling, sales process, Closing Sales, sales assessments, sales team evaluation

Salesenomics - Many Sales Organizations Are Stuck in the 1980's

Posted by Dave Kurlan on Mon, Nov 22, 2021 @ 07:11 AM

1980s

Today is moving day for Objective Management Group.  When we first toured our new space, John Pattison, OMG's COO said, "It looks like something the 1980's barfed up!"  I'm happy to report that thanks to big-time help from PENTA Marketing CEO Deborah Penta, our new space is bright, cheery, modern, energetic, open and functional! 

Thinking about the 80's got me thinking...

When was the last time you saw a black and white television or even a console color TV?

How about an electric typewriter?

Or a car that didn't have anti-lock brakes?

You would have to return to the 1980's to see those things and when it comes to their operations, some sales organizations are still in the 1980's.

For example, check out these statistics from OMG's evaluations of 30,000 sales teams and more than two million salespeople.

31% of companies don't use CRM.

44% do not have a way to track the opportunities in their pipelines.

89% do not qualify their proposals.

39% do not track whether their salespeople are under/over quota.  

54% do not track win rates

51% do not know their average order size

74% do not track the length of their sales cycle

40% do not track the number of opportunities in the pipeline

65% do not track the quality of the opportunities in the pipeline

35% do not track margins!

90% do not track the number of meetings required to close

96% do not track the cost of a sale

Unfortunately, there is more, but these are the head turners and it makes me wonder...

It's been widely reported for years now, that fewer than 50% of salespeople are hitting quota.  From the data shown above, we know that 39% of companies don't even track that.  What percentage of their reps do you think are hitting quota?  My guess is less than 20% (think 80/20 rule) so how much worse would it be if those companies were included in the data?  I'm guessing we would learn that fewer than 33% of all salespeople are hitting quota.  That's much closer to what I hear from companies every day.

We are no longer in the early stages of the information era.  Data is king so how can companies operate without this crucial information?  Even prior to the dawn of the information age, companies found ways to track this information, so why would some choose to ignore this today?

I'm guessing that most of the companies in question are small with less than $20 Million in revenue and fewer than 8 salespeople.  I assume that they are not tech companies and probably come from older industries, like building materials, small manufacturers and small industrial distributors.  But I'm just guessing.

You can easily track everything you should be tracking with the right CRM application.  OMG has an integration with what we believe is the best sales-specific CRM application in the world, Membrain.  It's user-friendly, ideal for complex sales, easy to customize, produces the most important data and reporting out of the box, and you won't have to nag your salespeople to use it. And for fans of Baseline Selling, there is a BLS specific edition of Membrain too.

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Topics: Dave Kurlan, sales pipeline, crm, omg, KPI's, objective management group, sales team evaluation

How To Stop Sucking by Understanding and Changing Your Sales Metrics

Posted by Dave Kurlan on Mon, Aug 30, 2021 @ 09:08 AM

metrics

The CDC is back to focusing on COVID case numbers.  Earlier this summer, Massachusetts was reporting fewer than 100 new cases each day but more 1,000 new cases per day have been reported for the past two weeks.  That particular metric supports the narrative that the Delta variant is spreading but it does not tell the real story that allows us to assess our risk.  

 

 

For the real story to materialize, we should know how many of those 1,000 cases occurred in vaccinated people, how many vaccinated people with COVID have symptoms, and how many of those cases required hospitalization.  Case numbers support that there is new spread, but a detailed breakdown would help us to understand our reality.

The exact same thing is happening with the sales numbers reported by most companies.

Suppose a company reports that its win rate is 24%.  Does that tell you anything other than they suck?  It doesn't tell us how badly they suck, why they suck, how long they've sucked, who sucks, or whether there is any hope for them to stop sucking.  And even if their win rate is double the 24%, the same questions apply. Let me explain.

How badly they suck depends entirely on the stage in the sales process from which the conversion is being measured.  Win rates are not calculated consistently so a 24% win rate could mean five different things:

  • Proposals to closed - if they are only closing 24% of their proposals they are demonstrating the highest possible degree of suck.
  • Qualified to closed - if they are closing 24% of their qualified opportunities they suck at qualifying!
  • Prospects to closed - if they are closing 24% of the opportunities that move past a first meeting, that could be an acceptable rate.
  • Suspects to closed - if they are closing 24% of the prospects they get first meetings with that is something to brag about.
  • Leads to closed - if they are closing 24% of their leads they are freaking awesome!

Every company handles this conversion differently but in my opinion, proposals to closed provides incomplete information because we don't know how many companies they were competing against.  Prospects to closed, suspects to closed and leads to closed are inferior because we don't yet know if the opportunities are thoroughly qualified. Therefore, only qualified to closed provides us the intelligence to determine how badly they suck.

Knowing why they suck requires that a sales process includes all of the required milestones and the milestones have also been integrated into their CRM.  We need to know how many qualified opportunities failed to meet all of the company's milestones for qualified.  If you want to know which milestones should be included, watch this ten-minute video on the most popular sales processes and methodologies.


In order to know how long they've sucked, look at win rates over time using the exact same criteria that is being used today for comparison.  What was the win rate last quarter, and each quarter before that?  Are we trending up or down or is it the same as it was earlier in the timeline?

Who sucks? Unless your reporting includes win rates by salesperson, you won't have the ability to see how you arrived at 24%.  You probably have someone who is closing closer to 50% and there is probably someone closing closer to 10%.  Why is that?  What are they each doing that is so different?  

Is there any hope that they can improve?  This is the most important question of all.  The other metrics we were discussing report lagging data and won't be of much help.  Improvement must be forward looking and the best forward looking metrics have nothing to do with win rate and everything to do with the pipeline.  Is it larger than last quarter, prior quarters and prior years?  Do the opportunities in the pipeline have a larger value than over the same period of time last year?  Is the quality of opportunities in the pipeline higher than it was over the same period of time last year? 24% of 200 opportunities is better than 24% of 100 opportunities.  24% of $2 million is better than 24% of $1 million.  And if the quality is better that would suggest that the win rate will be better than 24%.  That is one way to answer the hope question. 

The other way to measure hope is to conduct an OMG (Objective Management Group) evaluation of your sales team. OMG's evaluation is unique in that it will very clearly show why salespeople aren't selling more, the specific sales competencies where the gaps are, who could be selling more, how much more, the required coaching and training to get them there, how long it will take to get them there, and so much more. Most companies feel that the money spent on an OMG Sales Force Evaluation is the best money they ever invested in sales.

You can get a sample of an OMG Sales Team Evaluation here (checkmark next to sales force eval).

You can see data on the 21 Sales Core Competencies here.

You can learn more about a sales team evaluation here.

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Topics: Dave Kurlan, sales process, sales pipeline, sales backed by science, sales metrics, sales milestones, sales team evaluation

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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 nine 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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