Dayton, OH, October 5, 2010 – Independent research firm, Aberdeen Group, recently conducted a survey examining 531 organizations’ sales effectiveness. The research, Sales Performance Management: Getting Everyone on the Same Page, found that companies utilizing sales performance management solutions have a higher achievement in attainment of sales quota, and higher average customer renewal rate. Overall, survey participants who were Chally Group’s customers, a provider of sales productivity and talent analytics solutions, had significantly higher ratings than those using other methods. Similar results were found with CSO Insights’ Sales Performance Optimization study (2009).
Specifically, Aberdeen’s study confirmed Chally’s customers rated better in year-over-year results in the following categories:
- Team attainment of sales quota (84% Chally Customers/63% All Others)
- Percent of sales Reps Achieving quota (63% Chally Customers/ 43% All Others)
- Average Customer renewal rate (60% Chally customers/ 49% All Others)
- Average sales or contract value (rated 5.5% compared to -1.2% others)
- Lead conversion rate (4.7% compared to -0.9% others)
- Customer renewal rate (4.1% compared to -0.7% others)
- Reduction in sales turnover (1.1% compared to -2.2% others)
- Reduction in sales cycle (0.6% compared to -3.1% others)
As Aberdeen states, while many companies are seeing a recovery from the economic downturn, the distribution and pace of forward progress are not necessarily being enjoyed across the board by all companies, Industries or geographies. Firms are clearly seeking to capitalize on every competitive edge available to them, and the human capital of their sales team represents one of the most significant opportunities to grow revenue and market share by hitting quota more consistently. While the classic B2B sales organization may traditionally be identified with an “every man for himself” mentality among reps, only the fittest survive. To achieve World Class sales performance, companies must
- Measure, share and manage to defined performance metrics throughout the sales team. Beyond setting quotas, management should address team achievements, collaboration and engagement in building and sustaining sales performance.
- Drive desired behavior with incentives, compensation, and knowledge management deployments that consistently paint a clear picture of expectations, and show team members their performance against those goals in real-time.
Bottom line, new metrics from this survey confirm that most firms using third-party assessments during the hiring process say the effort is worth it. It’s proven that assessing can help you reduce the number of bad hires and significantly increase ROI in relation to revenue, turnover, ramp-up time and training costs, and that Chally assessments outperform other options.
The Sales Performance Management: Getting Everyone on the Same Page study can be purchased from the Aberdeen Group by going to www.aberdeen.com.
About Chally Group Worldwide: Located in Dayton, Ohio, Chally is a sales improvement, talent management, and leadership development company who provides tools and research services in 23 languages across 35 countries for over 37 years. Chally is recognized as an international technology leader in scientific, predictive talent analytics for selection, job alignment, and development for sales and leadership. www.chally.com