January 7, 2007
Poor performing salespeople have a huge impact on an organization’s profits.
Why are a small percentage of your salespeople generating most of your organization’s sales?
Does the 80/20, 75/25 or even the 90/10 rule live in your sales organization?
There are valid reasons why sales performance can vary so much.
If anyone can learn to be competent in any role, then you would have to assume that anyone should be able to sell. Sadly, that is what is being espoused by many sales books, CD’s and training programs. The idea is that if someone will invest the time to read the books, listen to the CD’s and attends training programs he/she will succeed in the business of sales.
This is simply not the case, is it?
Consider all the salespeople you know personally. How many of them are struggling to make their quota or are missing it by a mile?
1. Is their lack of sales due to the economy? (With other salespeople making or exceeding their quotas using the economy isn’t much of an excuse.)
2. Is it because they don’t work hard enough?
3. Is it because they are not as knowledgeable?
4. Is it because they need to improve their selling skills?
5. Or do they need more coaching from their sales manager?
Here’s an interesting piece of information from the authors of How to Hire and Develop Your Next Top Performer. “55% of the people earning their living in sales should be doing something else.”
Over 50% of the people in sales are not going to make it in the business of selling.
What is the cause of all these people failing in sales?
The biggest reason is that sales managers make their hiring decisions based on subjective information only. Consider the resume and the interview in the hiring process; they almost totally consist of subjective information.
I call the resume the second greatest story ever told. It is written to impress the reader, with lots of fluff and many times with less than truthful information.
A candidate’s goal during the interview is to put his/her best foot forward, to make the best impression possible. The day of the interview is probably the best the candidate will ever look.
hat do poor hiring decisions really cost your organization in terms of recruiting and training costs, benefits that include healthcare, salaries and expense accounts paid to poor performers for few sales and lost sales due to poor performance?. This lost money is not “monopoly money,” it is money to grow your business and increase your profits. If you have P&L responsibility for your organization, the imbedded line item costs when added up will scare even the seasoned corporate officer.
Our sales assessment is a predictive and well validated sales selection assessment. It indicates a candidate’s probability of performing in the top half of the sales organization based on earned compensation.
I don’t know of a sales manager who would not want to increase his/her organization’s sales.
Want to increase sales in 2011 in your organization? Our sales assessment can help!
Below is one typical example of studies done across several different business models that demonstrate that our sales assessment identifies sales candidates with the potential to be in an organization’s top 50% based on earned compensation.
A validation study conducted for a major insurance company demonstrated that top scorers had sales that were double ($409,189) or nearly double ($340,423) the sales of bottom performers ($228,776).
Over the course of my career in sales management, I have made hiring decisions involving sales and management personnel. I have hired without good information and with good information. My best hiring decisions were always made because I had good information.
You can begin to make more informed hiring decisions, resulting in hiring more top performers for your organization by simply getting more objective information using a well validated and predictive sales assessment.