Feedback Form
Home Features Mastermind Videos About Advertise Blog Network Contact
   

Have A Suggestion?
Toronto Salsa Classes / Toronto Salsa Lessons Email us your ideas on how to make our website more valuable! Thank you Sharon from Toronto Salsa Lessons / Classes for your suggestions to make the newsletter look like the website and profile younger entrepreneurs like Jennifer Lopez and Sean Combs!
Have A Suggestion?

Featured Ebook


ebook Famous Entrepreneurs - Modern Empire Builders


Featured Ebook

More Evan Carmichael
More popular articles
Have A Suggestion?

Sales Lessons From Starbucks And Dell

Productivity Study - Sales force effectiveness



Productivity Study - Sales force effectiveness
   

Productivity Study
Sales force effectiveness
This report covers an analysis of sales force productivity and effectiveness, reported by ten industry sectors. A two-stage methodology is used. In Phase1, salespeople were asked to give a realistic estimate of the time they devoted to five categories of activity (see Figure 1 – Observed Sales Activity chart). They were then asked to indicate how much time they would ideally like to spend in each category. Finally, the study observed how much time they actually devoted to each. In Phase2, it was observed how effective the salespeople were, scoring them in eight key areas of competency (see Figure 6 – Phase2 Sales effectiveness - 8 competencies). The diagrams and charts in blue show the results of Gallup’s global opinion poll of 925 business executives.

Use of time

The most surprising finding was the small amount of recorded time salespeople spent actively selling and prospecting for customers. Another was the very high figure recorded for time spent on administration. Observations showed that salespeople UNDERestimated how much time was spent on administration, while, in interviews they revealed a desire to do significantly less. When questioned, salespeople thought just 3% of their time, was downtime. Through observation, it was recorded that a significantly higher figure of 17% was found. However, despite some variances in how time is spent, one overall fact has barely changed: sales people are spending 80% of available time doing things other than actually selling. Tellingly, people believed they spent almost 50% MORE TIME selling than they actually did! This is despite acknowledging that almost half of all available time should be spent on this activity.

Comparing these findings with those of the Gallup opinion poll (see Figure 2) it is evident that there is a gap between executive perceptions of sales force effectiveness and reality. For example, on average, 24% of executives don’t know how much time sales people spend selling and one third (33%) think they spend more than half their time on this activity. However, this study showed that the average time spent actively selling is actually 10%. Even if ‘prospecting’ was included, the amount of time still only reaches 20%! Knowing these figures would allow processes to be put in place to release sale resources to do what they are hired to do – Prospect, Qualify and Close. Do you have a plan to increase sale productivity by 30%?!

Two thirds (66%) rate their sales teams as ‘good’ or ‘very good’ (See Figure 3). This study indicates that this perception of ability does not match actual competence levels within sales teams. Slightly alarming is the fact that 21% don’t know, or will not say, by how much sales force productivity in their firms could be increased. Much more executive effort is expended on the logistical nature (margins, acquiring, stocking levels etc.) of revenue generation rather than understanding these ‘actual’ times which are expended in the sales effort.

A further 12% believe it cannot be increased at all! Most sales managers understand that there is always room for improvement. But where to place the effort for the best return?

All Industry Average

A time and motion study would give you a good measurement on how your team compares with these Industry Averages.

Turning lastly to industry sector findings – found in Figure 5. Salespeople in four sectors: telecommunications; engineering; insurance and retail spend well above the All Industry Average (Figure 4) time recorded on active selling (Dark Green). Each spends around a third of available time in this way. Conversely, those in chemicals, electronics, paper and wholesale sectors fail to break into double figures. This is partly explained by the fact that each sector spends around twice the average time solving problems.

Effectiveness

Having shown that only 20% of time available is spent actively selling or prospecting, how effectively that time is used is clearly all the more important. In order to gauge this, the study used a simple scale ranking system for those observed (see Figure 6 – Phase2 Sales effectiveness - 8 competencies), rating them in eight key sales skills before, during and after each call. It was observed, that the greatest deficiencies lay in presenting, concluding and debriefing, with more than half rated as poor, less than one quarter were considered competent. More than 60% were also rated poorly or needed improvement in “building” and “securing” skills, two of the most important competencies required in an effective sales force. During this Phase2 it was repeatedly encountered that ineffective behaviour or processes was evident. These varied from poor sales call quality and in adequate monitoring, to weak or cumbersome sales reporting systems.

Figure 6 – Phase2 Sales effectiveness - 8 competencies
Often, where good sales information systems were in place, they were not used to full advantage. Training was seldom reinforced or properly coached in the field. Some customers received an unwarranted level of attention while others with potential but who were harder to deal with were ignored. In many instances it was found that managers were not providing feedback or help to their sales teams.

The findings of the Gallup executive poll (See Figure 7) on sales effectiveness show a significant gap between their perception of competency and the recorded observations. For example, two-thirds (66%) rate their sales teams as ‘good’ or ‘very good’. Hardly any executives ranked their sales colleagues poorly in any key skill area, whereas over 30% of people that were observed were considered poor in the eight competencies measured (see Assessment Criteria in Figure 8 - Observed Competencies).

Productivity Study - Sales force effectiveness - To learn more about this author, visit Peter French's Website.

Like this article? Share it with your friends
[Get Copyright Permissions] E-Mail | Print | More  


Related Articles Related Articles
Productivity Study - Sales force effectiveness
  Based on a Proudfoot Consulting study, salespeople were asked to give a realistic estimate of the time they devoted to five categories of activity. They were then questioned on how much time they would ideally like...
Increased Sales Effectiveness: Opportunity #1
  This article uses a Survey of about 3,000 sales people to draw a concusion about a large opportunity for increased sales effectiveness that exists in most sales forces.
Do It Again
  Back in the days of FDR, Lever Brothers asked its employees for suggestions to improve the sales of their shampoo (a new product back then). One employee suggested they add one word at the end of the instructions on...
PRODUCTIVITY, EFFICIENCY, EFFECTIVENESS, and FOCUS – Doing the Next Right Thing
  There has been an exponential explosion of information available for increasing personal productivity, so much so that it’s become known as productivity porn (or, for those active on the Net and looking to avoid spa...
Questions Every CEO Should Be Asking His Sales Managers
  High impact sales questions for CEOs

Related Forum Posts Related Forum Posts
Online Sales and Marketing vs Traditional Online Sales and Marketing vs Traditional
On Being Productive On Being Productive
Nana excercise Nana excercise
Re: How can I best help you? Re: How can I best help you?
Re: Online Sales and Marketing vs Traditional Re: Online Sales and Marketing vs Traditional
Practical Sales Advice Practical Sales Advice
Do bigger monitors save time? Do bigger monitors save time?
Re: Personality Not Included Re: Personality Not Included

 
About the Author


Peter French
(Visit Peter's Website)
Peter French - Managing Member of QuadS International UPSA member 0601220013 With 40 years experience in sales having entered the profession directly from college. His sales skills cover hardware sales in mainframe and distributed computing to large customers with complex IT problems. He has managed sales teams in Hardware, Customer Relationship, Channel and Software sales. We work with management to identify sales process issues by critically analysing recent losses. Key sales team members provide input to ensure that our solution is tailored to meet specific needs. Infoteam’s solutions include workshops for top management and account teams supported by easy-to-use tools, and implementation support: Change Partners – to secure buy-in and involvement throughout the change process Initiating New Business – to generate qualified opportunities and fill the pipeline Winning Complex Sales – to increase the probability of winning current and future sales opportunities Coaching the Sales Process – to develop sales managers into team coaches Managing Strategic Accounts – to create stronger partnerships and grow key accounts.
Have A Suggestion?

View Author's Blog
Become An Author

View Author's Video
Become An Author

Free Downloads


Peter French's

Complete
List Of
Sales
Articles

First Name
Last Name
Email
 
If you enjoyed this article, get Peter French's Complete List of Sales Articles For FREE!

More Peter French
Market Research Report What matters in B2B selling
Distinctive Value Propositions DVP
ROSI Return on SUNK Investment
Pipeline Management Tool
Sales team Productivity 20 per year
Productivity Study Sales force effectiveness
Why should you consider coaching the sales team
RoP Return on Prospecting inventing a better mousetrap
Become An Author