Good post Trish, I read Chad's post yesterday on this very topic. It seems the reality of the situation is that there are typically more bad reps than good reps out there. It can really hard to attract sales talent because most successful reps who are compensated appropriately tend to hit quota and stay in the same company for years. Typically those who are available are available for a reason, they have failed to hit quota, don't make any money, tend to place the blame elsewhere and then jump shit year after year looking for the new, new thing.  
 
A few trends that I see working against even the best reps today is just society as a whole and also technology. People are just too busy. They receive way too much information and forget things. They are way too connected to their smartphones. As sales reps we have to continually repeat ourselves and remind them of the value we bring. Additionally, technology has made it some much easier for people to block us out. They can delete our email, they can use caller ID. For those in the market for a solution, they can do some much research and get so many answers before getting a sales rep involved. This allows them to have much more control and power in the sales cycle. Once a prospect has all the information they think they need, they stop communicating with us. We lose our ability to leverage a give-get scenario. You can have the best sales process in the world, but if you fail to connect with your prospects, you cannot continue the sales cycle and gain the necessary info needed to win the deal and get into the closing sequences.  
 
Anyone else have any ideas as to why more reps are missing their quota in this sales 2.0 environment? What can reps to to better connect with people who are just so busy and easily block us out? 
 
Thanks, 
 
Brian

I came away with the same questions and although I believe I made some smart ass comments regarding Ivory Towers and a huge disconnect between mgt and the troops, this is a great example as to how disconnected they are. I think you can probably attribute some of these stats to the fact that 2009 was a tough year for most of us. But the fact remains that where adjustments need to be made, management needs to consult the troops to get a better idea of the day to day. Everyone is so concerned with making the number that they sometimes forget that there are actual people out there doing the heavy lifting and it's not just merely a notation in sf.com or a forecast meeting. We don't do enough to talk about successes and use the principle of "perfect practice makes perfect". The top of the management food chain needs to start doing a better job of communicating to the troops on the ground and vice versa. Middle mgt needs to do a better job of training and motivating the troops to help them to do better rather than doing a weekly sales mtg and then hiding in their office until the last week of the month and then going up and down the cubes asking where the orders are. As you said we need to take a good, hard look at what we are doing, how we are doing it and why? I am working my butt off against a 2 mil quota and at the halfway mark am at 89.5%  
I have had a lot of help and some good luck but it's been a struggle. These numbers are a big ole mess, hopefully we can all make the necessary tweaks to improve the results. Thanks

@ Brian. Selling in these crazy times is tough. Let me make a recommendation for you...go buy Jill Konrath's new book "Snap Selling: Speed Up Sales & Win More Business with Today's Frazzled Customers". It is great and I know you learn from it. PS - Look for a quote from yours truly. 
 
@Jerry. Also a great comment and I feel your pain. I hear those complaints about management from many of the sales teams we talk to. Let me ask you this though - If you were a sales manager, what are the 3 things you would do on a weekly/monthly basis to make sure you kept your finger on the pulse of your market and sales team? 
 
Hey, anyone else listening, feel free to chime in on this one!

I agree with Brian on the increase of "bad" sales reps. It's partly the macroenvironment - during the previous "boom" - inside sales was flush with "order taking". Now that we hit a recession last year, only the "good" reps, that understand selling rise up. Add on top of that the change in way companies buy, and the need to increase inbound marketing, old-school order taking reps will continue to fail.

This is a huge problem right now and it's not going to get much better when the economy turns around. I think there are a couple major forces at play here: 
 
- People have fundamentally changed how they buy. They no longer need a salesperson for diagnosis or recommendation. Instead, they just search online.  
 
- People are time-starved. They want nothing to do with salespeople who blather on about their their state-of-the-art products or unique methodologies. This is irrelevant to them and adds no value. 
 
What do I think needs to be done?  
 
1. Companies need to invest in well-crafted lead generation programs to attract, educate and nurture prospects. They need to focus on creating valuable content that helps prospects with all the issues relevant to their product/service offering. Relying on salespeople alone to "fill the funnel" today is simply not enough.  
 
2. Recognize the opportunities in this crazy-busy business environment. Prospects they are desperate for assistance because they have way too much to do and not nearly enough time to get it all done in. 
 
Sellers who have strong business savvy, can provide leadership/guidance in decision making, stimulate thinking, challenge assumptions and bring them new ideas, insights and relevant information will become INVALUABLE.  
 
Since the seller IS THE BRAND from the customer's perspective, companies should invest significantly in making their sales force their primary differentiator. 
 
3. Create easily accessible sales tools. From my experience, nothing works better that tools that are fully integrated into the sales process to raise the skill level of average sellers.  
 
That's just a few of my thoughts. But, I could on and on.  
 
Jill Konrath | Author, SNAP Selling & Selling to Big Companies 
 
P.S. If you're interested in a 45-minute audio on selling to crazy-busy prospects, go towww.snapselling.com and sign up for the free resources. 

Well, the trending of group, I am in agreement with the research results. I would say even less than 4% individual acheivers make it to their quota. However I am not in full agreement with the view as to 'why other 42% are not able to make it' as an individual failure. There are multiple reasons: May be the territory is slow, it is over goaled keeping in mind the other territories, field sales support is rather inactive in such areas, more hunting than farming, slow moving accounts, less number of qualified accounts, upcountry accounts, lack of technical knowledge on part of the new hire, lack of qualified partners etc. While it is a tremendous achievement by the top achievers hitting their quota QonQ and YonY but for the entire inside sales team to be successful quotas have to be driven bottom to up and not top to down. This will help streamline the team efforts and also enable the resources to stick longer and ensure that a good sales team is formed.

To follow-up on what Jill said-- 
 
In addition to talent, better processes, and improved lead generation management, you also have to have reps who 
 
A. Have a clear idea of the true value of the product or service they are selling,  
 
and  
 
B. Have a clear vision how the prospect is ultimately going to attain that value.  
 
I think Point B is the more problematic of the two. There's lots of reps who "believe in their product," and who understand the value proposition of what they sell. But translating that into a something that truly meets a customer's need is a much different animal, and in my experience, often requires skill sets, motivations, and just plain good sense and integrity that a lot of mediocre reps don't have.  
 
-Steve 
<a href="http://www.insidesales.com>InsideSales.com

Very well stated Steve. 
 
 
 
One of the best things I have learned in my sales career is to understand the role(IT, Business user, CFO, etc) of the person you are talking to and their wants/needs/pains, etc. then re-working your value prop messaging so it is then spoken in their language.  
 
 
 
Additionally, I think it is important to be able to either provide a vision to your prospect or get them to establish their own vision of how to use your product or service. I think is particularly important when selling for a startup where you need to find that visionary or else you have no deal and are wasting your time. 
 
 
 
Brian

Can someone explain why targeted sales rep compensation has remained flat for the last several years while sales quotas have gone up? 
 
 
 
Is this because finance executives are establishing the targets and sales executives are establishing the quotas, and the two executive groups don't communicate effectively with one another? 
 
 
 
Or are companies just expecting sales reps to sell more (in spite of of the apparent trend towards buyer empowerment and bigger obstacles for sales reps) while getting paid less?

I would support the opinion that there is a major disconnect between those setting the revenue target for a company which then becomes the quotas for the individual reps and the realities of the territories these people are working in. Asking for to be set bottom up is an interesting idea but faces major hurdles to to the wat sales people are paid  
I just published a post on this today.  
http://bit.ly/8Yj58Q

I have a somewhat different idea of where the problem lies. It has been my experience that when a VP of Sales does a Sales Plan for the year whatever number they come up with the Owner, CEO, VC (pick your poison) adds 10% or more across the board. What is the VP to do now? If he/she pushes back they look weak and risk losing their job because they are "not on board" with the team or "don't believe in the company/product". So the VP agrees and dies a death of a thousand cuts and has a stay of execution or by a miracle pulls it off (either way he was wrong) 
 
Forecasting sales is just pulling numbers from the air. The problem is CEO's/Owners/VC don't like bad news and until this friction between sales and upper management is fixed you will always have results that are similar to the study. 
 
My two cents (go ahead and add 10% to it)

Hi Trish! Very interesting topic! Reading the comments was like watching a sporting event! Judging from people's comments, we can determine who is on the management level and who is on the lower level. The nine points enumerated by Chad are right, these are reasons why sales get affected, but in management's side- - there should be no excuses. With all the figures set and automated system, we should appreciate this and embrace it! BUT- we shouldn't forget to simplify and go back to the basics. Remove the scarcity mindset. People with this kind of thinking are only concerned of two things: Making you become afraid of the problem, and looking for somebody to be blamed for it.  
 
In our company, there are no bad reps or bad managers, we all consider that we have weaknesses and help each other out, in that way we become strong. There will always be quotas, new demands, everyday the obstacles and hindrances will be there, mistakes will be committed, but before we react, we calm down and think--am I part of the problem or will I be part of the solution. I am thankful that my boss is a good servant to all of us, and in return, the respect goes back to management that is extended to customers. The outcome..that's when the numbers are reached! http://bit.ly/ayeen

1.) Why are quotas going up while quota attainment is going down? 
 
I believe many companies are trying to do more with less and not realizing that an individual has their limits. They may also not have the structure in place to support the reps who normally could achieve goals. 
 
 
 
2.) Why is quota attainment going down? 
 
Uncertainty, Economy, Lack of Passion, No Reward for Doing Better Than Average, Low Quality Training, Too Much of a Focus on Process Than Strategy. 
 
 
 
3.) Why are quotas going up? 
 
Companies need more money to strive and grow! 
 
:) 
 
 
 
4.) Is there a disconnect between sales management and front line sales reps? 
 
Sales Reps and Sales Managers should have a close bond so that they can relate and openly discuss. Backstabbing in this department is vile and only leads to downfall of the organization. 
 
 
 
5.) Is the proper training being provided to sales reps? 
 
Sales Reps should be trusted advisors and not just auto dialing robots. Teach a man to fish and he can lead your customers to your table. 
 
 
 
6.) Is this a cyclical trend in the data or a secular shift in the way customers buy? 
 
It's all in how companies are buying. Existing relationships rule if the buyer and sell are on the same page. New vendors are met with stark criticism from buying committees. 
 
 
 
7.) How much of this trend is related to the 2009 recession? 
 
This excuse is old and retired. I helped a client generate $6,330 per hour over 170 hours of calling for them over the past two months. The outside sales reps are still tallying up deals on another dozen opportunities I sent them. Inside Sales needs more energy and enthusiams and to be told the recession is over for the big boys of the world. 
 
 
 
8.) Do you have a repeatable and measurable sales process? 
 
Every single call I make the most of. Even if Just uncover a contact - that is valuable. Opting in to newsletters and content is more valuable. How are you making the most of every call? 
 
 
 
9.) Can you pilot changes in the sales process to increase rep quota attainment? 
 
Management needs to step forward and befriend the little guy making calls. Be my trusted advisor and I'll show you what I'm capable of. Be my boss and I'll give you what you need to get by. I don't care about rewards, awards, etc... Give us pep talks, build a relationship between myself and the company.