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What Makes Great Salespeople

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what makes great salespeople





What Makes Great Salespeople



Three things they do better than the rest



What behaviors drive successful salespeople? Last year, research by my people analytics company VoloMetrix identified three things that were highly correlated with top performing reps: More time spent with customers; larger internal networks; and more time spent with managers and senior leadership. These three behaviors persisted regardless of region, territory, or sales role, suggesting that they are foundational ingredients for success.

We came to these conclusions after studying the sales force of a large B2B software company using six quarters of quota attainment data for several thousand employees. We then correlated it against 18 months of VoloMetrix-created people analytics KPIs. Since then, we have had the opportunity to work with several more companies to perform similar and much deeper analyses.

Building off of the earlier findings, we have developed a broader framework for each of the behaviors we idenftified (two of which we combined), plus an additional one:

1. Customer engagement. This not only includes overall time spent with customers, but also factors in the number of accounts touched; time spent with each; frequency of interactions; and breadth and depth of relationships built within them.

2. Internal networks. We’ve found that it’s useful to break internal network characteristics into three sub-categories:

    General: This includes overall number of relationships within the company; time spent interacting with other colleagues; and influence within the network.

    Support resources: A set of metrics focused on the relationships reps built with sales support staff, including pre-sales specialists, inside sales reps, and others.

    Management: A set of metrics concentrated on relationships between reps and their direct managers, as well as broader rep engagement with company leadership..

3. Energy:This new angle, which is very much related to the previous two, includes a collection of metrics that measure overall time and effort exerted by salespeople.

In total, our new analysis suggests that sales success requires the right engagement model with customers, the right relationships within your own company, and putting in the needed time and energy. These insights may seem intuitive — and in many ways they are — but, according to the data, the details matter. Here’s how our findings play out:

Customer engagement doesn’t just mean spending time with more customers. We’ve stated before that top performers spend up to 33% more time with customers per week which, depending on the company, is typically 2-4 additional hours of time. It’s clear that time with customers matters. However, through further analysis we’ve found that degree of focus can matter as much or more than total time. For example, in one large B2B technology company, top performers spent 18% more time with customers per week. Yet they interacted with 40% fewer accounts over the course of a quarter allowing them to spend more time with each of those accounts relative to lower performers.

In other words, depth trumps breadth when it comes to accounts — top sellers focused on building deeper relationships with fewer customers rather than casting a wider net of shallower engagement. Of course, these metrics are not one size-fits-all and the right balance varies by company based on what they are selling (e.g., highly consultative sales processes benefit most from depth whereas more transactional models can benefit from breadth). Regardless, these key metrics relating to time spent with customers and account relationships have emerged both as strong predictors of sales outcomes as well as highly actionable metrics for sales leaders to track, incorporate into territory design and use to help their teams improve performance.

A bigger internal network is generally better, with some nuances in sales support. No matter how we cut the data, top performers have significantly larger networks within their company (30-40% larger, which typically equates to 10-20 more people they interact with regularly), higher centrality (a measure of influence within the network), and spend more time with leadership. When you think about the level of complexity in a large organization, it makes sense that people who find ways to build more relationships get exposed to more ideas from across the business, are able to access expertise quickly when needed, and have more context about what’s happening. All of these things help them to be successful.

But building relationships doesn’t mean attending lots of meetings, especially those with 20 or so attendees. When we measure relationships, it involves both a frequency and an intimacy component. To qualify as a “relationship,” you have to not only interact with someone frequently (at least 2x per month), but that it also has to be in a relatively intimate group (five or fewer people involved in the meeting or email). So to establish a large network, you have to interact with many people, on separate threads, frequently.

This takes a lot of time. The top performers we study typically spend anywhere from 10-15 hours per week interacting with small groups inside their companies. Often sales executives balk at the idea of their reps spending so much time internally instead of out selling, but the data suggests that it is time well spent.

When we work with companies, we help them find ways to minimize large standing meetings and instead create ways to enable broader networks consisting of smaller groups of people. The unfortunate truth is that top performers in most companies are finding ways to build these bigger networks in spite of the processes they work within rather than because of them.

Management relationships are another important aspect of internal networking. Generally speaking, more exposure to senior leadership correlates with successful sales outcomes. That said, we have found a lot of variation in the specific interaction patterns between sellers and front-line managers across regions, product lines, and companies. For example, in some companies we have seen an inverse correlation between front-line manager involvement and seller success, meaning that top sellers spend less time with their direct manager than lower performers do. However, even in these situations, the top sellers spend relatively more time with other members of senior leadership. Lastly, in complex sales organizations, the relationships between sellers and sales support staff is an area where more relationships is not necessarily better. In fact, in some cases sellers who have more relationships with sales support workers perform worse. This is sometimes the result of inconsistent pairings in which, for example, sellers aren’t able to work with the same pre-sales specialist consistently and instead have to work with a different one each time. This can lead to more relationships, but a weaker team. We’ve also seen that there is a stronger relationship between the time spent with support relationships and the complexity and number of products being sold than there is to actual outcomes. In other words, sellers who are trying to sell a broader portfolio or simply have more complex offerings are more heavily dependent on support resources, regardless of their effectiveness.

Sales is hard work (but you probably knew that already). Consistently, we’ve found that top performers simply put in more time. Their weeks are approximately four hours longer, with up to 40% more time spent outside of normal working hours compared to their lower-performing counterparts. But the answer isn’t saying that everyone should just work harder; even low performers work an average of 50 hours per week.

The implication, instead, is that every hour is precious. So echoing some of the findings above, here are some changes that could be made at the company level:

    If salespeople have 15 hours available to spend with customers in a week, focusing that time on five accounts at three hours each rather than 15 accounts at one hour each is likely to lead to better outcomes.

    To facilitate the growth of internal networks, start with onboarding programs. New hires should meet and interact with a large and diverse set of colleagues, and can be supported through collaboration tools, trainings, coaching, and other mechanisms.

    Create a model where sellers have access to consistent support resources and staff. Having to start over with a different specialist in each account adds lots of overhead and reduces outcomes.

    Know that every additional product line in a seller’s bag comes at the cost of requiring them to build more expertise and more internal relationships to have a shot at being successful. While offering a broad portfolio can provide a powerful value prop to customers in some situations, the implication on sellers needs to be carefully thought through.

    The right approach varies by company, and these things can and do change over time; companies that gather objective data on a regular basis to inform decision making have a massive competitive advantage over those that rely only on anecdotes and gut feel. Organizations we work with, for example, receive automated weekly updates on all of these metrics aggregated by team without any manual data gathering.

Lastly, a note on causality. All of the above metrics are highly correlated with sales success, but we haven’t yet accumulated enough data to have confidence on which of these metrics are truly causal. So while it is true that top sellers spend more time with customers, it is not necessarily true that an underperformer would suddenly become more successful simply by spending more time with customers.

That said, rigorously proven causality is not a prerequisite for learning from these insights. Quite a few companies are enjoying immense value in the predictive power of these metrics, which typically account for up to 70% of the variance in sales outcomes quarter by quarter. And having access to objective, up-to-date data on what behaviors work and don’t work within a specific sales organization is a powerful compliment to existing management tools and allows leaders to set their teams up for success.

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Source: www.hbr.org/