As per Aberdeen Group, two-thirds (66 percent) of the companies surveyed believe that their sales growth is not enough to achieve their corporate goals. The companies that were surveyed Aberdeen Group assigned them to three distinct groups: Best In-Class Average, Laggards and Best-In-Class. The best-in-class were distinguished by exceeding quotas 6 percent, which translates into a 5.3 percentage increase annually in deal sizeand 3.5 per cent annual reduction in the time to sell. The industry averages were 76% of quota accomplishments, 0.2% increase in deal size, and 2.2 percent experienced an increase rather than a decrease in the time it takes to cycle. In the area of quota achievement in particular there was a 32 percent gap between the top and average. In terms of money, it’s too big to overlook. Bottom Line? Best-in-Class performed better in directing the sales team.
Performance Management, whether speaking of operations or sales it is about accountability. The most important accountability in sales can be found in the query: did you reach your goal?
The ability to achieve superior sales results isn’t always dependent on sales training. Other elements play a significant role in the success of an organization. Perhaps the most significant or even the most significant, is that it’s among the top three methods that lead to better sales results.
We believe the following: Sales Performance Management should have three-pronged approach. Three areas of focus include:
– Sales Management Training
– Quota Accountability
Sales Management Training
Most often, the issue in sales is due to the incompetence from the Sales Management team. Many times, Sales Managers are not even managers they are simply competent salespeople. Most of them don’t have any idea of being competent in sales management. They did not have it in their previous positions in sales and never had any formal training or direction prior to their transition into the management position. They might be lacking, but they don’t have the right management abilities.
The problem is typically trying to be liked. Sales manager’s work is typically a lonely position. It is particularly lonely for top salespeople appointed Sales Manager. One of the main characteristics of a highly-performing salesperson is their need to have frequent interactions with others positively.
Requiring people to be accountable for their actions doesn’t always “win friends or influence people.” It’s about the accountability of people and most of the time it requires assertiveness. The ability to assert yourself can, at times often viewed as an aggressive or bossy behavior. However, it’s an essential aspect of the job but is not always suited to a selling style.
All too often, compensation gets involved in the ideas and efforts towards motivation. The majority of the successful salespeople I know which is many, aren’t motivated externally. The motivation is internal.
I’m not saying that compensation is important, and the majority of high-performing sales people are driven by money however not all than that. Fair compensation is usually more important to highly-performing salespeople than any other aspect. One of the items at on the “things most disdainful list” of sales professionals who are highly effective is the sight of “slackers” receiving any rewards not even the same rewards as theirs.
A form of compensation for an individual that differentiates top performers from the rest is important, but the top salespeople are usually team players who can appreciate the advantages of working as part of a team. They also like to see rewards for team members and rewards for team members, too.
If you’re looking to start building an efficient sales team, first concentrate on the following three areas such as Sales Management Training and Quota Accomplishment and fair Compensation.
Build a World Class Sales Management Team. Do not waste money here. know what makes a good Sales Manager and recruit individuals who possess the skills required.
Set realistic, but challenging goals and insist on their achievement. Give them the tools needed to succeed, but remain aback and encourage them. Choose the ones who succeed and let go of those who do not.
Reward your people fairly. Don’t give rewards to those who are not worthy of it.
“Don’t try to impress someone with something that isn’t there. It’s difficult enough to remove the things that are already there.” Marcus Buckingham, First Break All The Rules.