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The Common Link When Salespeople Are Missing Quota

If we look at the last several years, it’s safe to say that the number has been in the neighbourhood of 50%, with win rates around 45% and turnover at 34%. It’s no wonder that 34% of reps are turning over when their win rates and quota-making ability are so poor. Why, how did it come to this and where to from here?
  1. Salesperson Effectiveness – SG Partners has very consistent statistics on this that show an elite 6%, another 20% that are strong, and 74% that are poor performers. Based on these numbers, it’s surprising that as many as 50% hit their quotas because poor salespeople hitting quotas suggests that quotas are too low, not too high! 
  2. Sales Selection – It should not be surprising to note that much of the quota-hitting issues go away when the right salespeople are hired at the start. A disciplined, sales specific recruiting process, featuring an accurate, predictive, customisable, sales specific assessment, helps companies hire the right salespeople- I’ll save you the hassle and just leave our free sample link here https://goo.gl/FTXf1O.
  3. Ramp-up – When salespeople fail, it’s usually quite fast. Most companies assume that the salespeople they hire should know what to do so instead of preparing them for success they set them up for failure. A candidate’s ability to ramp-up is measured by their Figure-It-Out-Factor (FIOF). A score of 75 or more indicates a quick ramp-up. But only a small percentage of candidates score between 75-100. Organisations run the risk of hiring a new salesperson with strong skills but an FIOF of only 50. Leading to a potentially terrific salesperson failing early on unless they get the help they need. The real shock comes from how long these organisations close their eyes to the problem while the new salespeople fail.
  4. Training – Most small and medium size companies do not provide sales training, and when they do, it’s usually the wrong training, for the wrong reasons, sometimes with the wrong salespeople, and often for the wrong frequency and duration. How can we help the 74% that are poor performers if the training provided doesn't help evaluate their game? 
  5. Selling Has Changed – Today’s salespeople have less influence over buyers than they did 10 years ago. Salespeople are subjected to longer sales cycles, less competitive differentiation and increasing time and budget restraints. These long sales cycles create a clogging effect in the pipeline or a reluctant pause, directly impacting revenue and growth of organisations. Rather than trying to counteract these new buying habits with old selling techniques, salespeople need consistent coaching and to learn updated best practices.
There is a single role in the company that has a direct impact on all five of these reasons, and they can no longer bury their heads.

Sales Managers
Only 18% of sales managers are any good! There is an elite 7%, another 11% that are strong and the remaining 82% - well they need to either get out of sales management or do something drastic to improve.
 
Reviewing the five reasons again you can probably see why. Most of their salespeople are poor performers but instead of coaching them up, providing training, demanding improvements, replacing salespeople and focusing our hiring better salespeople, holding the team accountable and focusing on ramping up new salespeople, they either ignore these issues or are ineffective at addressing them. AND then they provide excuses. Why?
 
The simple facts are they haven’t gotten themselves trained and coached. Many of them don’t have a clue as to what an effective sales manager is supposed to do and the same goes for the VP’s and CEO’s they report to. The one question remaining is, what should a sales manager be doing?
 
Note to sales managers: We don’t hate you - we love you. We don’t criticise you without reason – the statistics support what we say. We don’t want to see you fail – we want to help you succeed.
Just stop being so defensive and pretending to have all the answers, and believing that the way you used to do it is the answer to how selling should be done today. Ask for help and allow others to help, and you’ll succeed beyond your wildest dreams.

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