Around this time ten years ago, the US economy was famously tanking. I remember it well as revenue at Objective Management Group dropped by more than 30%, almost overnight. During 2008 and 2009 more than half of all US sales reps were missing quota and considering the circumstances, that didn't seem to shock anyone. But during a slow crawl back to respectability between 2010 and 2016, and soaring revenue during 2017-2018, the percentage of reps making quota has not only remained flat, but the percentage hasn't even returned to pre 2008 rates. This article attempts to explain why.
Here are 12 possible reasons that don't attribute everything to the completely useless 80/20 rule:
- Companies are setting unrealistic quotas, basing increases on nothing other than the belief that "Our revenue should be soaring too"
- The quotas are realistic for the territory but the reps aren't up to the challenge as only 5% are elite, 20% are strong and 25% are serviceable. 50% of all salespeople suck anyway!
- As the market for sales candidates has dried up, companies are lowering their standards and hiring crappy salespeople to keep territories staffed.
- The wealth of Inbound leads, most of them nothing more than contacts, have made salespeople incredibly lazy. Only 24% of the bottom half have the Hunting competency as a strength.
- Only 14% of the bottom half of all salespeople have and/or follow a formal, structured Sales Process. In other words, they wing it.
- The ever-increasing difficulty reaching decision makers has left salespeople with pitiful pipelines.
- Only 10% of the bottom half of salespeople are providing, demonstrating or selling value, resorting to price as they fail to differentiate
- Salespeople are still taking a transactional approach to selling instead of learning and embracing the more desirable consultative approach to differentiate themselves from the competition. Only 3% of this group has the Consultative Seller competency as a strength.
- Salespeople are mistaking "nice to have" for "must have". When they only get their prospects to "nice" they fail to create urgency, making it difficult to get decision makers engaged or money approved, with opportunities stalling in the pipeline. Only 20% of the bottom half of all salespeople have reaching decision makers as a strength, only 9% of that group has the Qualifier Competency as a strength, and only 22% of this group has the CRM Savvy competency as a strength.
- Lack of Commitment - 53% of the bottom half of all salespeople lack the commitment necessary to do what it takes to achieve success. When it becomes difficult, they do what's easiest and most comfortable instead of what is required.
- Excuse Making - Even worse, 66% of the bottom half of all salespeople make excuses, rationalize their outcomes, preventing improvement.
- Sales DNA - In order to execute sales process, methodology, strategy and tactics, salespeople must have strong Sales DNA. The bottom half of all salespeople don't, as only 3% of them have Sales DNA that is strong enough to help them execute.
If the bottom 50% are this bad in all 21 Sales Core Competencies, then what are the bottom 50% good at? They may have tremendous product knowledge, decent presentations skills and some great relationships, but they aren't very good at selling. They are really order takers. If they work for the best-known company, the low price leader, or the incumbent vendor, then it might be enough. But if they work for an underdog it's simply not enough to get the job done.
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