Trends in Sales Productivity 1

 

A company’s sales force is usually its lifeline, generating much of its sales revenue. However, company executives often view salespeople as a necessary evil. Sales organizations routinely suffer from low productivity and high turnover. Some companies frequently operate with an extremely short-term mindset with a primary theme of “deliver quickly or hit the road.” 

 

Sales reps are encouraged to build lasting relationships with customers, yet they are measured on the amount of revenue they generate in a relatively short period of time. Technology and automation have contributed significantly to the time pressures salespeople grapple with today.

 

It’s difficult to create a great culture and foster loyalty this way. 

 

Here are statistics that paint a worrisome picture for the contribution of the sales force to a company’s results. 

  • The average turnover (that is, churn) for salespeople is nearly 35% per year in the U.S. 
  • The average tenure of a salesperson at a company is only one and a half years. 
  • The average cost to replace a salesperson can be up to double their total annual compensation. 
  • The percentage of sales reps achieving quota is just 54%
  • The average tenure for a vice-president of sales at a company is just nineteen months.

 

I’m DJ Sebastian. These stats are staggering… In the next briefing, we’ll continue discussing why sales productivity is declining and what to do about it. 

 

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