A Case for Statistics

I'm always intrigued and even amused at times by statistics - particularly when the subject is sales data! We've all heard the stories about the validity of statistics, especially those related to the performance of sales professionals.

I believe there is good value - and certainly good discussion material - to be gleaned from most of these findings. Occasionally, I discover data from outside sources which correlates strongly with data collected here at The Brooks Group.

Take, for example, data drawn from the 1500 firms included in CSO Insight's Sales Performance Optimization - 2008 Survey Results and Analysis. Their reports indicate:

• 64.7% of firms plan to increase the size of their sales team.
• Hiring ‘new' or ‘raw' grads pays off with 64% quota attainment vs. 62% prior- quota attainment among prior salespeople.
• Only 61.2% of salespeople make or exceed quota for the year.
• 46.9% of salespeople accrue 40% or more of their compensation in variable pay.
• 63.5% revenue comes from existing business; 36.5% from new business.
• 63% of revenue is earned by the top 20% of reps.
• 55% of sales professionals have closing rates of 50% or less; 26% have closing rates of 50-75%.
• 51.5% find that leads their existing lead-qualification standards need improvement.
• 57.7% have an average deal size less than $50,000.
• The average number of calls required to close in an average sales cycle: (1-5 calls) 56.2%; (6 or more calls) 43.8%.

This data definitely supports the information The Brooks Group has gathered internally for the purposes of developing our existing training programs. How about your sales performance data - what's your picture look like, and what are you doing to shift your numbers?

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What Does Your Buyer Want From Your Price?

This is the want where many salespeople have the greatest angst...the price want. For too many salespeople, having to present price or even anticipating having to present price is the most daunting of all the salespersons' activities. It doesn't have to be this way.

All buyers have a price want and that does not necessarily mean lowest price. To the franchisee, for example, it means a sensible price. A prudent price is "proof" that the franchisee's need for respectability is satisfied. Like most buyers, the price want to the franchisee is a function of value in terms of the four wants discussed previously. Prices are just numbers that can only be meaningful when considered in terms of the value to the buyer...price is actually a component of the value equation.

The price want is one that's sensible to the buyer (franchisee in this case) that makes sense for what it includes. It's neither high nor low, but simply prudent. So, focus on building value rather than simply quoting a price, and fearing rejection of it.

Without corresponding value to your prospect, any price by itself invites rejection. And well it should - the primary reason we salespeople exist is to build value - not to hide behind a price.