By Garrett Hollander,
The article debunks some traditional wisdom that many B2B sales professionals still hold as fact.
But really… The top 20% of producers generate about 50% of all sales revenue.
Lesson: It’s still a significant disparity, in that 50% of the business is earned by the top 20% and the other 80% are responsible for the other half of revenue. I’m not sure we can totally debunk this quite yet, but certainly worth noting.
But really… The article states that 39% of customer loyalty is based on the effectiveness of the salesperson, before and after the transaction. As for the rest, 22% of customer loyalty is based on apparent quality or value, 20% on the product offering, and 19% on price.
Lesson: If you develop your B2B sales force, there is a definitive impact on customer loyalty.
But really… You ready for this one? Of the clients a company loses, 60% are a surprise, and 80% rate their vendor as good or very good.
Lesson: Even if you do right by your customers, they may not be shirking the competitors that are still knocking on their door with another offer.
But really… The way the authors lay it out, there’s only an additional 5% gain if you spend the resources to train lower performers. Alternatively, if you replace the bottom 20% with average or above-average performers, there’s a 12% gain.
Lesson: As harsh as it sounds, the authors suggest that you might be better off trimming the fat off of your sales team.