Whether you are a President, Sales Leader or Sales Rep, the ability to grow revenue is typically a top priority. Even if a company or region is growing, the question is what is the revenue potential for that defined area and how would you go about maximizing that potential? This is the alignment of strategy and the corresponding investment that enable execution.
We talk to a lot of Sales Leaders every day and data would suggest 85% of organizations raise their quotas annually without a clear path to make that Goal a reality. The simple statement we would make is that most companies are not close to achieving their revenue potential. That may sound controversial, but it is just a reality based on simple facts like:
- Less than 50% of reps make their Sales Quota
- Most companies would agree that they are not involved in enough deals in their target market (Participation Rates) and do not Win enough of the deals they are involved in (Win Rate)
- When asked to rate the Effectiveness of their Sales organizations, the average score from Executives is a 6 (on a scale of 1-10)
p>Most companies know they are leaving money on the table and thus are not close to achieving their potential and the question becomes more about what you do about it. What if growth was more of a requirement that just a quota number? What would you do differently?
We face this kind of reality in our company and with many clients that we work with. When the status quo is no longer acceptable, it leads people to make necessary change. People move from the status quo when they become emotionally attached to the need for change. The rational side of our brain will continue to justify why this time it will be different and why change is “too hard”. Change is hard, but without change the status quo will continue and in all likelyhood worsen over time. Ask yourself this. What is the impact of the status quo versus the desired state or potential of where you would like to be? Can you quantify the impact? Now extend that impact over the next 2-3 years. How does that change positively impact your world if you could achieve those results?
We all have significant opportunities for improvement and there are likely some small bets we can make to create momentum. Momentum and some quick wins make the bigger bets easier to make. What is the one thing that would make the status quo unacceptable for you and focus you on your “revenue potential” versus “good enough”?Share