The performance of an average sales team generally maps to the 20/60/20 rule, where 20 percent of the sales team are top performers; 60 percent reside in the middle and consistently fall shy of quota; and another 20 percent dramatically underperform and remain at risk. For most organizations, the temptation to focus on maximizing the performance of top performers is strong. After all, they bring in the majority of revenue. But in reality, focusing on improving the performance of the middle 60 percent provides the biggest impact to the bottom line. In fact, studies show that achieving even a 5 percent performance gain from the core 60 percent of middle performers can yield over 70 percent more revenue.
But it takes more than automating processes to unlock the potential of the “middle.” Sales organizations need to successfully assess and coach their reps so they are equipped to reach their goals faster. Moving the middle requires sales enablement to focus on the human side of sales performance. Here are three important steps to take:
Gather sales capabilities data
It’s alarming to know that more than one-third of reps – even those with significant marketing and product training – show up to sales calls unable to apply their knowledge and skills to the particular situation at hand.
Even more concerning, many organizations aren’t able to determine which reps on their team are unprepared.
Metrics typically used to determine business growth, including activity levels, quota attainment and win rates, are rearview data: once reported, it’s too late to act on them. While analyzing the past has its place, understanding the current capabilities of salespeople is critical to driving future sales and revenue.
An objective view of a team’s capabilities gives organizations a richer understanding of what each sales rep is prepared to bring to every customer interaction – and, ultimately, if they’re capable of reaching their goals. Data-driven insights allow organizations to quickly identify where reps’ skills lie in relation to defined competencies, changing how sales organizations operate. Managers can easily pinpoint their reps’ strengths and weaknesses and then take timely steps to change their behaviors – and drive more sales.
Measure coaching effectiveness
It’s impossible to advance the skill sets of reps “in the middle” without effective coaching. Managers surveyed by the Sales Management Association (SMA) rated coaching as a top priority based on its impact on sales effectiveness, ranking it higher than lead generation, compensation and sales methodology. But with managers frequently responsible for large, distributed sales teams and facing the urgent need to meet forecast, it’s not surprising that many end up coaching to a specific deal versus coaching to competencies. And there’s also the issue that many managers were promoted on the merits of their sales record, not their management experience, so many lack coaching know-how. A SiriusDecisions study last year showed that only 6 percent of sales managers were ready to coach and mentor new hires. Fortunately, data-driven insights can shed light on which reps need coaching and on what topics. These insights, along with tools like video-based coaching, allow managers to optimize their 1:1 time with sales reps and measure their progress.
Align sales enablement with pipeline
With baseline competencies in hand and an understanding of where skill gaps lie, sales enablement can conduct targeted training to reps, measure the progress made and provide sales leadership with a clear indication of how their efforts impact revenue.
With a focus on driving rep behavior forward with data-driven insights, companies can adaptively and predictively influence the future performance of the middle 60 percent of salespeople and make a true impact on revenue.
Steve Preston is chief marketing officer at Qstream, a sales capabilities platform that combines performance analytics, coaching optimization and knowledge reinforcement in a powerfully simple mobile enterprise solution.
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