 |
How to Beat the 80/20 Rule in Sales Performance -- Part 2
Another key reason why companies suffer from 80/20 performance is their processes for hiring, training and managing salespeople rely almost entirely upon subjective information. Think about it:
- What are resumes? They are an individual's subjective portrayal of their capabilities and experiences.
- What occurs during an interview? Interviewees attempt to package their responses to questions in a manner that will make the best impression. Meanwhile, interviewers are forming personal opinions about candidates' qualifications for the position.
I'm not suggesting that subjective information is useless. Subjective information is a valid and valuable component of any "people decision". However, if decisions based solely upon subjective information produce an undesirable result 80 percent of the time, doesn't it make sense to consider making a change?One way to introduce objective information into the sales recruiting process is through specialized sales assessment tests. I'm not referring to personality or behavioral tests like Myers-Briggs or DISC. Those types of tools can be useful for learning how to communicate more effectively with someone. However, I have not found them to be useful for predicting whether someone will succeed in sales. The specialized sales assessment tests that I'm referring to identify an individual's strength or weakness in the following areas:
- Sales Drive: Does the individual enjoy presenting, persuading, negotiating, and motivating others?
- Emotional Toughness: How rapidly does the individual rebound from rejection and sales cycle roadblocks?
- Reasoning Ability: Does the individual ask good questions? Can they dissect answers and pick out the pieces that will help advance the conversation toward a desired end result?
- Service Drive: How interested is the individual in building relationships and helping others?
- Assertiveness: How self-assured is the individual? How effective are they at convincing others to take action?
- Attitude: Does the individual perceive a glass to be half-empty or half-full?
- Communication Skills: How precisely does the individual communicate, both verbally and in writing?
- Competitiveness: How competitive is the individual?
- Energy: Is the individual always "on the go", or do they need to be prodded into action?
- Independence: How readily does the individual accept direction from others?
- Learning Rate: How rapidly does the individual learn new information?
- Tolerance for Administration: How willing is the individual to perform administrative activities?
Specialized sales assessment tests can also help existing salespeople that are struggling. How? First, they can be used to determine whether these individuals should be in sales. If an individual doesn't have the talents required for sales success, there may be other roles in your organization where their talents and interests can be applied to mutual benefit. If no such positions are available, the kindest thing you can do is let them go. Why? Because it is no fun to continue to struggle in a job that is a poor fit!Second, specialized sales assessment tests can help identify each salesperson's unique training needs. Here is an example: Two salespeople, Beth and Bill, work for the same company. Beth is weak in Sales Drive, which makes her reluctant to ask for orders. Bill is weak in Emotional Toughness, which makes him sensitive to rejection and limits his prospecting effectiveness. If Beth and Bill go through the same sales skills training course, how much improvement in performance should their employer expect to see? The answer is little or none. Why? Because Beth and Bill have completely different training needs that will not be addressed by basic sales skills training. Beth would benefit the most from attending an assertiveness training class. She also needs coaching to help her recognize that failing to ask for orders denies her customers valuable solutions to costly business problems. Bill needs to learn to not take rejection personally. He could also benefit from training that teaches positive thinking and other motivational techniques. Unfortunately, unless Beth's and Bill's unique training needs are identified, and targeted training is supplied to address those specific needs, there isn't much reason to expect their performance to improve. Conclusion Many "80/20" performance disparities result from an over-reliance on subjective information when making salesperson hiring and management decisions. The proposed solution is to add objective information (gathered via specialized sales assessment tests) to "people decision" processes. This one change can help companies increase the proportion of top performers on their sales teams and improve the performance of existing sales team members. Copyright 2005 -- Alan Rigg Sales performance expert Alan Rigg is the author of How to Beat the 80/20 Rule in Selling: Why Most Salespeople Don't Perform and What to Do About It. To learn more about his book and sign up for more FREE sales and sales management tips, visit http://www.8020performance.com.
|
 |
 |
 |
RELATED ARTICLES
How to Win Over the Man in the Chair Salesmanship, Repetition, and Direct Mail
In a classic business-to-business print ad from the late 50's for McGraw-Hill Magazines an imposing looking executive sits in his chair. He has both feet planted firmly on the ground, a scowl on his face. His hands are folded together in front of him and his elbows rest on the chair; he leans ever so slightly forward. To his right run these eight lines of copy:
How to Sell Strategically
If you want to maximize your sales performance, take a strategic approach to selling. After all, wouldn't you agree that "the 80/20 rule" applies to customers, where approximately 20 percent of customers produce approximately 80 percent of sales?
How to Keep Projects From Spinning Out Of Control
Are you involved in projects that seem to go nowhere in a hurry?
Five Steps to Maximize Success in Targeting For Growth
Targeting is the process of selecting high potential customer accounts to receive intense sales focus. Goal setting translates that high potential into achievable numeric objectives, i.e. revenue and margin growth.
How Many Salespeople Should I Hire?
One of the most asked questions I get is how many sales people does it take to get the revenue numbers needed. Personally, I believe in large sales forces because in highly competitive situations the largest army wins. That doesn't mean, however, that you can go out and hire 100 sales people if all you can possibly sell this year is a million dollars if everything goes right. So how do you decide how large a staff you need?
Sex, Drugs, & Rock-n-Roll at Trade Shows
Here's the Scenario...
14 Top Lead Generation Tactics
According to former Harvard Business School professor David Maister, typical marketing practices are not only inapplicable for professional service firms, but they may be dangerously wrong.
The Effective Executive
What does it mean to be an "effective executive"? Well very simply it means achieving the goals you set out to achieve in an efficient, creative and effortless manner. Some of the benefits that ensue from this self efficacy are: feelings of self confidence, self esteem, self worth, a sense of personal empowerment, feeling invigorated and passionate about everything you choose to do, a sense of resilience, more energy, personal emotional and physical health and for some a great sense of purpose.
Train a Winning Sales Team: Rounding Third and Heading for Home
Although I never met the man, I imagine Lou Boudreau would have made one heck of a field sales trainer. In 1942 the 24-year old Cleveland Indians shortstop was promoted to player/manager of his team, and for the next eight years Boudreau did what we, as trainers, are called upon to do every day: demonstrate success, inspire success and cultivate success. Think of it as the triple play of sales training.
Leadership Lessons for Sales Managers
Leadership, like class, is hard to define, but easy to spot.
A Coachs Handbook For Sales Managers
This article may be reprinted in its entirety with express written permission from Nicki Weiss. The reprint must include the section "About the Author".
Transforming Your Sales Force by Creating Specific Expectations
I just finished a phone call with a potential client who had called to discuss a problem. His 18 person sales force was paid on straight commission. All had been with the company for 8 - 15 years and were earning healthy incomes. His problem was that he couldn't get them to do what he wanted them to do. Here's the example he shared.
Never Trust a Silent Customer
Imagine you run a pizza parlour. You have all these neighbourhood families that pop in at least once a week for some pizza, garlic bread and Coke. On an average, one customer spends about $30 per week. But let's assume they spend just $20. Imagine you did something that bugged this customer, but he or she never told you about it. What would you stand to lose if they left?
When Its DUH? Time at Trade Show - 3 Little Words Save the Day
TIME, MONEY, HASSLE - You can make a sale on one of
the Three Little Words, but when you sell on two of the three,
you'll have a very loyal client.
Hire A Six, To Consistently Produce Sales Success
For many years as a sales manager, I would only hire the stereotypical sales representative. You know the type-on a human relations continuum or scale of zero to ten, with the ten representing a candidate who is totally gregarious and outgoing and the zero, someone who is introverted with few people skills, I'd always recruit the ten. As an advisor to businesses and professional service firms on how to build an effective sales team, I would also council my clients to hire "tens." Big mistake!
The Sales Carpenter
I remember moving my family to Argentina as Vice President of Sales for Latin America. I was in charge of managing five regional offices, Argentina of course being one of them.
Raise Concern About Sales Competition, Not About Yourself
As you are reading this sales article, read very carefully. Because I wouldn't want you to think of a pig right now. No, do not think of a fat, brown, smelly pig right this moment. What are you doing? Do you have a picture of a smelly, fat, brown pig in your head right now? I thought I just told you not to do that. What are you doing then?
A Real CRM Strategy or Just Tracking Customers?
Exactly what is CRM
Getting Off The Advertising And Sales Rollercoaster
Seeing the results of advertising your business can be like watching a roller coaster. The day you run your ad you see a flurry of activity; your ph0ne starts ringing, your web site traffic increases and/ or potential clients visit your store. Your hopes soar. sales go up. Two or three days pass and the response goes down. You look at the bill for the advertising and your jaw drops. Your hopes descend.
Is Your Forecast Too Sunny? How to Improve the Accuracy of Sales Forecasts
As spring moves to summer, the forecast should be for warmer and sunnier weather. What is the forecast for your business? Is the outlook sunny or cloudy?
|