10 Things That Every Sales Manager Should Know About Sales Performance
It is a common saying that knowledge is power, hence it is necessary to have access to the best information as far as any niche is concerned. Especially in the sales discipline where there is a lot of competition, sales managers need to be equipped with the right knowledge to have an edge over the competition. Here are some very important information which every sales manager should be aware of.
1. It has been discovered that for every 3 sales reps, 2 miss their quota.
• Of all sales professionals, over 60% of them do not achieve their allocated quota.
• Of all companies that took part in the survey, 23% of them were not even aware if the sales department achieved its quota or not.
2. Most sales reps close their sales at about 40% or even less. The following were also discovered that when sales reps go after a potential lead.
• Most sales reps win Less than 17% of potential deals.
• 37% of them are unable to win up to half their deals.
• 46% of sales reps are able to win more than 50% of their deals.
3. With respect to qualifying a lead, the best sales reps are 250% better at doing that.
• For any sales person, it is critical to be able to accurately access and qualify opportunities.
• With respect to qualification, about 60% of sales team are seen as been very effective in this area.
• As compared to the rest of the pack, high performers are 2.5 times more likely to be good at qualifying a lead.
4. It was observed that out of all sales persons, 40% fail to understand the needs and wants of customers.
• In the event that a client has a problem, it could be tempting to the sales person to offer the first solution that comes to mind. This could spell disaster if the solution does not address the problem at hand.
• Of all sales professionals, about 61% say they have a sense of fulfillment whenever they uncover the problems of their clients. These groups are 28% more likely to achieve their quota.
5. As for the accuracy of the sales pipeline, only about 46% of reps feel it is accurate.
• On the average, sales reps spends about 2 ½ hours of the week doing forecast, this issue should be addressed as most of these forecasts is grossly inaccurate.
6. The survey revealed that about 50% of all sales team do not own a play book.
• For 60% of sales reps, the benefits of a well-defined sales process is obvious. It is shocking to discover that about 50% of sales reps do not have this in place.
• As for companies who stick to a well-defined sales process. They are 33% more likely to outperform the competition.
• For companies that have a well-defined sales process in place, two thirds of them records more than 50% win rate.
7. As far as accessing the key players is concerned, just about 52% of sales reps can access them.
• For the success of the entire sales team, it is critical to have unrestricted access to the key players. This skill must be mastered.
• With respect to accessing the key players in the buyer’s organization, just around 52% of sales professionals say they are effective at doing this.
• For those who are high performers, they are said to be able to access key players more than 62% of the time.
• For poor performers, they are able to access key players just around 40% of the time.
8. When sales and marketing is aligned with adverts, it leads to a 25% achievement level and a 15% win rate.
• For companies who have taken advantage of this synergy, they are able to achieve 25% more success.
• For top rated achievers, 57% are more likely to come from companies where sales and marketing are aligned to adverts.
• Win rates can be boosted by 15% when sales and marketing teams are well aligned.
9. For an increased high performance, making the competition a part of your strategy is essential.
• Becoming a top performer in this industry is easy. It requires you to stand up to the competition, developing a workable strategy, developed upon the principles of sales, backed up by a structured mechanism.
10. There is a 15% increase in revenue when an efficient sales strategy is developed.
• The relationship between the earning potential of a company and the contribution of the sales organisation cannot be denied.
• It has been discovered through research that there was an increase of 15% when sales contribution contributes to the strategies of the company.
• The above behavior was noticed in companies that were classified as high performers. They demonstrated this about 53% of the time.
Steps to Take Action
With this information at the back of one’s mind, it is time to take action.
• Quotas should be set as sales teams are properly equipped to achieve their goals.
• Everyone on the team should receive the best training.
• Strategies should be implemented with respect to accessing key players in the organisation.
• Programs should be developed to identify the challenges of clients and offer sustainable solutions.
• When cleaning the pipeline, there should be no sentiments.
• The sales department should be allowed to contribute to the overall strategy of the company.
• There should be a synergy between sales and marketing.
• The competition should form part of your strategy.
• It is important to have a playbook.