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I WAS FORTUNATE to work for great sales companies as a salesperson. I was surprised when I began consulting with companies because I thought all companies would understand the importance of having a strong sales team and culture. Many do not. Many see and treat the sales team as a necessary evil. They see it as a war to get the most from the sales team and pay them as little as possible.
I consulted with a firm that always complained about the quality of their team. I told them, “You treat your sales team badly, you talk down to them. Of course your team is weak because good salespeople won’t take poor treatment. They’ll leave for a company that will treat them with respect.”
My brother was senior VP of sales & marketing for DirecTV. Before he took over the job, the sales team was “the butt of all jokes” inside the company. He changed that, and sales and profits skyrocketed.
Companies that have strong sales teams and great sales cultures do many of the following:
Testing
It takes a certain kind of person to be successful in sales. Intelligence, creativity, ego drive and relatability are the key attributes that make up a great salesperson. There are several tests available that help companies ascertain whether a particular candidate has these attributes. Turnover is costly so these test are worth the money it takes to administer them to potential hires.
1. Hogan psychometric assessment - predicts job performance by assessing normal personality, derailment characteristics, core values and cognitive reasoning ability.
2. Core values assessment - measures fundamental beliefs and principles that guide a potential hire’s actions and decision-making, revealing areas of alignment and potential for growth or change.
3. EQI assessment - measure emotional intelligence.
4. Wonderlic assessment - The test assesses verbal reasoning, problem-solving, general knowledge, and mathematical aptitude.
Over time, companies build a baseline of attributes that the successful salespeople in their organization possess and measure those against the test scores of potential hires.
Budget for Turnover
The turnover rate in sales is about 35%. This is about three times higher than the rate in other job areas. Companies that want to grow a strong sales team budget for this. Of course they’d like all hires to make it, but are realistic. One client, who took 15 years to build from two to a team of 25 killer salespeople, says, “My only protection is to hire more salespeople.” His turnover rate hovers around 40%.
They take their time in the interview process, test (see above) potential salespeople to make the right decision.
Clear Compensation Packages
Successful companies have clear/fair compensation packages. I closed a consulting job with a large distribution company. The first day the owner started explaining their compensation package to me. I’d been in sales for 20 years at the time. I could not understand it. He said, “Well, you need to learn it.” I said, “No, if you can’t explain your package in less than two sentences, then it is demotivating to the sales team.”
I worked with them for two years. I asked general managers at five different branches and multiple salespeople, and none of them understood or could explain it to me. A seasoned and successful salesperson at the company told me, “James, it’s confusing and I think they want it that way.” I quoted that to the owner, and he said, “Oh that probably comes from ----; he’s always complaining.” I said, “No. It’s coming from one of your superstars, ----.”
Contests and Celebrations
Sales contests work. Salespeople enjoy competition and prizes! Successful sales companies celebrate their sales teams. They motivate them by offering trips or free dinners or cash for salespeople who hit their goals. They give awards to the highest performers in several categories, i.e., the highest sales margin, highest number of sales, highest number of new customers, etc.
Sales Training
Successful sales companies offer sales training. Sales training decreases turnover, helps salespeople become profitable more quickly and strengthens sales cultures.
Building a strong sales team takes sustained work, but is doable.
- James Olsen is principal of Reality Sales Training, Portland, Or., and creator of SellingLumber.com. Call him at (503) 544-3572 or email james@realitysalestraining.com.
