I have the great pleasure of speaking at #GTM23 Pavilion in Nashville. I was fortunate enough to have many conversations with CROs grappling with the legacy of the past in team and operation, the current challenges and negotiating the path forward. Pavilion GTM23 was the right place to have these conversations.
Following my presentation and the discussions, today, we’re embarking on a journey to explore the essence of sales greatness in 2024. So, grab your favourite beverage and get ready for some eye-opening insights.
Imagine this: it’s the mid-1980s, and Metropolitan Life are in a dire situation. They’ve lost a staggering $150 million in just two years, with $120 million spent on sales training and resources, yielding little or no results. It’s a scenario we’ve seen before – companies investing heavily in revenue generation without a clear strategic plan and measurable success criteria.
MetLife was in a cycle where they recruited 5,000 sales candidates a year, only to witness 50% of them quit within the first year, and a whopping 4,000 were gone by the fourth year. Something had to change, which came from an unexpected source – psychologist Dr. Martin Seligman from the University of Pennsylvania.
The MetLife CEO invited Dr. Seligman to test his process on the importance of optimism in achieving success. He assessed 15,000 employees, measuring their levels of optimism. Surprisingly, the “super-optimists” outsold the pessimists by 21% in the first year and 57% in the second year.
The outcome?
In 2010, MetLife ranked 51 in the Fortune 500, and Dr. Seligman’s positive psychology profiling was credited for cutting recruitment and training costs by a staggering 60%. MetLife became the most successful insurance company in the United States.
But this story isn’t about cutting costs. It’s about recognising that the top 10% of sellers sold 88% more than the most pessimistic 10%.
Could You Apply a Similar Process to Your Sales Team?
It’s a question worth pondering, especially considering that in several recent keynotes, at least 80% of my audience of sales leaders, CROs and CEOs admitted to making a bad sales hire.
The challenges faced by today’s revenue leaders are many. According to research commissioned by Outreach, sales leaders in the US and the UK are grappling with issues like leading multigenerational teams, adapting to rapidly changing buyer preferences, and navigating economic uncertainties.
Adapting to these challenges requires flexible leadership and a deep understanding of market dynamics. Forresters say this is a new skill set becoming increasingly difficult to obtain.
Have You Made a Bad Sales Hire?
When I asked my audience about the percentage of their sales teams that were introverts or extroverts, 60% were extroverts.
Here’s the kicker: according to OMG research, 62% of the best salespeople in the world are introverts, while 84% of the worst salespeople are extroverts. The stereotypical extroverted salesperson might not be your best bet.
Why Are Many Making Sales Hiring Mistakes?
Well, the answer lies in the criteria and methods we’re using. We rely on gut feelings, past performance, customer feedback, and even resumes, which, according to research, have a predictive validity of only 20%.
The cost of a bad sales hire can be staggering, and recent research shows that a whopping 46% of new sales hires fail within 18 months. This risk is mitigated with a comprehensive hiring process that assesses intrinsic drive and sales-specific attributes.
Why Does This Matter? Let’s talk about the future of sales teams
Sales teams and complex sales operations in the future will look very different. They will likely be smaller, more aligned, and focused on account-based strategies that bring sales, marketing, and customer success together, breaking down the silos.
You might be sceptical about reducing your sales teams by 50% while still achieving revenue targets, but evidence supports this shift. Mediafly partnered with Dynata to provide insights into why this might be the future of sales.
95% of buyers’ time is spent away from sellers.
In a world where hybrid and remote selling are prevalent, B2B sales are evolving with AI and automation. Smaller, aligned teams with the right tech and skills can still excel in this environment.
So, how do you know if you have the right salespeople in the correct positions on your team?
In the MetLife example, they used optimism as the key trait. Our research, however, reveals another core competence that has a whopping 375% larger impact compared to other insights. This competence is crucial for effective sales and customer success. Assessing for these core sales competencies can transform your hiring criteria and align your existing sales team with your business objectives and customer needs.
If you want to dive deeper into these insights, I’ve shared more details in my previous LinkedIn LIVE sessions, summarised in my earlier “Revenue Revved Up” newsletter additions. You can also find the recordings on my YouTube channel.
In conclusion, the key to transforming your sales approach in 2024 is a data-driven performance process. It’s about recognising the importance of sales-specific core competencies for sales success and aligning your teams with your business objectives and customer needs. Sales excellence is within reach, and I’m here to help you on this journey.
Let’s make 2024 the year of sales excellence!