Why Are 50% of Sales Reps Missing Their Sales Quota?

Guest post by Russ Emrick of Breakout Selling:

Very few salespeople are achieving their quota. The numbers are alarming – down to almost 50% and down from 64% quota attainment in 2008 and 67% quota attainment in 2007. The data raises many questions for sales organizations. While quotas have risen by 33% in the past 5 years less reps are hitting their number. The question becomes why and how do we fix it?

Of course this is a multi-faceted problem that involves sales management, marketing and salespeople. However almost every article for sales managers discusses how hard it is to find sales talent implying that it is the salesperson’s fault for poor results. The advice to salespeople is equally as bad. I just read an article from a well known sales trainer that salespeople are failing at prospecting. If we only would cold call more, knock on more doors and send out more direct mail we would sell more. Hooey. Buyers have changed to customer 2.0.

Dan Kennedy, a prolific author on sales wrote, “It’s been my observation that the weakest link in the selling chain for most salespeople is prospecting. Most people can do at least an adequate job of presenting their products or services, if there’s a reasonably interested prospect in front of them. But most of the salespeople I’ve encountered simply hate prospecting. Consequently, they avoid it, both consciously and unconsciously, and do it only when the dire necessity of imminent starvation pushes them to do it. And then they do it poorly.”

We can continue to have unrealistic expectations on salespeople or provide them the leads they need to succeed. Taking the first path – blaming salespeople has only resulted in failed quota attainment, lower revenues and thin pipelines. However if management, especially sales management, takes responsibility for lead generation dramatic increases in salesproductivity can be produced. This isn’t as difficult as it sounds. What it does require is a shift in thinking. Become a partner with your salespeople in lead generation and do as much of the demand creation as your budget and resources permit.

Start with identifying the best markets and prospects for your salespeople. Then create scripts, lead generation letters, voice mail messages and collateral materials specifically designed for lead generation. This doesn’t mean more brochures, data sheets or marketing hype. The company is best positioned to develop case studies, white papers and research what has worked in lead generation. Apply those lessons to creating the tools salespeople can then use to find and nurture prospects into opportunities. Don’t make your sales team create their own messages and collateral material. This takes away from selling time and ends up having different and inconsistent messages across your market.

Another area that Management can improve is training. Most salespeople have had tons of product training and all sorts of sales training – solution selling, value forward selling, power negotiation, the list is endless. Change your training, your metrics and your coaching calls to improve the skills of your team for demand generation. Role play elevator pitches. Practice with your team on how to have interest grabbing conversations at networking events such as trade-shows and conferences. Get the team to interact and share what is working. Spend less time on your funnel calls discussing bad deals and internal problems and more time about what prospects are responding too and the needs customers are talking about. Honestly evaluate how much time you dedicate to the team on improving lead generation versus all the other demands of selling? Lead generation is the life blood of sales but most managers surprise themselves when they actually learn how little time and focus they place on prospecting.

Wherever possible outsource prospecting tasks to less costly people with the skills, time and personality to do them. Salespeople capable of closing ‘C’ level executives typically cost 6 figures. Do you want them dialing for dollars or meeting with the executives that can sign an order? Find the money somehow, even if you have to change the compensation plan. Remove the demotivating, repetitious activities and drudgery from your team’s work as much as possible. Salespeople love selling and working with people – not filling out paperwork or filling in CRM records. Get them more time to sell and prospect.

The economy is down. Leads are harder to get. The number one challenge I hear from everyone is “I know I could sell more if I just had someone to sell to, if I could just get in the door.” Helping your team get more leads is crucial to making the companies numbers, your quota as a sales manager and having a successful sales force. Instead of blaming the sales force for lack of performance provide them the resources to do better and sell more. In working with thousands of salespeople over the years I’ve found most are really motivated and able to succeed. The failure is on us as leaders. If we do better so will they, I promise.

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Russ Emrick is a sales coach with almost 30 years of experience as a salesperson and sales manager. Having sold over $120 million dollars worth of goods and services to other businesses Russ now concentrates on coaching other sales professionals and sales managers on how to succeed in the new economy of 21st Century. More information about sales and powerfully managing a sales team can be found at Breakout Selling.

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