Systemic Sales Failure – What is to Blame?

by Kelly Riggs

According to one study, 43 percent of all salespeople fail to reach their revenue objectives.

Yes, that’s right. 4-in-10 salespeople fail to hit their numbers. And in some industries, it’s even worse. Way worse.

And every so-called “expert” can tell you the reason.

It’s because those salespeople haven’t adopted the “new” social selling. Well, no. Actually, it’s because they’ve stopped prospecting, and spend too much time with social selling.

Hold up. Everyone knows it’s because this new generation-the dreaded #Millennial-is far too “soft” and doesn’t have a strong enough work ethic (as though past generations have fared far better at reaching their sales quotas).

Need more excuses? Maybe those salespeople are just using the wrong sales automation tool or marketing automation process or content delivery platform? Maybe they are managing all their sales data manually still, which is preventing them from reaching their true sales potential. Perhaps the company needs a more technical sales support solution that can help facilitate sales in a more organized fashion and take some of the pressure off their heads, like Salesforce Commerce Cloud?

Clearly, there are hundreds of tools, tips, tricks, and techniques that aspiring salespeople can use or adapt to improve their performance. Modern IT solutions tend to have a more thorough understanding of the IT needs of a company, since the niche falls directly under their expertise. Moreover, the software tools that exist today to support salespeople are mind-boggling! The advancement of software helps so many businesses be able to expand and grow as more technology comes out that can aid them with their intended goals. Not all software is compliant with every system and will need to have a software testing program run on it to see how this type of software can work, and if any problems have the potential to arise. Websites like https://www.parasoft.com/solutions/compliance/iec-61508 can help businesses with running this and getting them the answers they need. Although, some businesses will not do this and risk hurting their advancement.

That is why it is important to understand the market and the websites that are intended for this purpose. While most companies take it under their wing and try to sort it out on their own, others who have outsourced their work tend to look for international employment specialists like Peak PEO that could take care of their hiring and handling of payroll, employment contracts, tax, benefits, etc.

But you have to ask yourself, why do more than 40 percent of salespeople continue to come up short of their revenue objectives? Is it only because they don’t implement any or all of those tools? Or, perhaps, is it because sales managers simply set sales quotas too high-each and every year?

Not likely.

Behind the Curtain

The fact is, the root cause of consistently poor sales performance is far different than most people perceive. Rather than tools or techniques or even activities being the culprit, I believe the real reason most salespeople fail is that the system is broken.

The “system” is the approach to selling that exists in the overwhelming majority of companies that employ B2B salespeople. It looks something like this:

• The company only reactively searches for salespeople when a new salesperson or replacement is needed

• The hiring manager has rarely been taught how to identify, interview, and hire sales talent

• The on-boarding process consists of learning the company’s sales paperwork, accessing the CRM system, and receiving a healthy dose of product knowledge, while neglecting other mission-critical areas

• The time from first day to first sales call is typically about a week (or less)

• The salesperson is advised they must create a specific amount of “sales” activity: dials, cold calls, sales calls, presentations, etc.

• There is little, if any, review, coaching, training, or practice; that is, until the numbers don’t add up to success, then the nonsense that passes for sales management kicks in

• Salesperson failure is attributed to a variety of causes/issues that have little to do with the actual cause of failure

Sound familiar?

That is not to say that some companies aren’t doing it exactly right and crushing it. But let’s be clear – those companies are the exception, not the rule.

The RULE is over 40% failure.

When over 4-out-of-10 of your people are failing every year, and more than 25% (and as high as 65%) of your salespeople are turning over every year, it is costing your company a TRUCKLOAD of cash.

So, instead of the flavor-of-the-month excuse for consistently missing sales objectives, and in lieu of rushing out and investing in the newest sales/marketing automation tool, perhaps you should consider these questions first:

1. Are your hiring managers fully trained in interviewing/hiring skills?

2. Do you have a 60- or 90-day on-boarding plan that very clearly defines exactly what a salesperson will learn, what skills they will develop, and what knowledge they will master – or they will not be allowed to continue with the company?

3. Do you provide effective, repetitive, immersion learning for new salespeople in critical selling and planning skills?

4. Have you implemented, and require a salesperson to learn and use, an effective sales process and methodology?

5. Do you require salespeople to practice, practice, practice until they can demonstrate the ability to present a solution effectively?

6. Have your trained your sales managers to be effective sales team LEADERS?

7. Are your sales leaders simply measuring activities (or, worse, sales results) instead of helping each salesperson construct an effective sales plan and holding them accountable to that plan?

It’s time to look in the mirror. This is not a once-in-a-while nuisance issue; it is a systemic problem that plagues the sales profession. Spending money on a new software platform or social media tool will not solve the problem.

And dumping your current set of under-performers for a new group of salespeople won’t get you any closer to a solution, either.

Meanwhile, it may well be another year of 40 percent failure.

Or more.