CSO Insights Blog Posts

15 Minutes Could Save You $1500

Sorry, no cute geckos here but we do plan to put a cute picture of my pooch and me here on the blog page soon. And this isn't a car insurance ad but an invitation to take CSO Insights Sales Compensation & Performance Management survey now. If you're not the right person at your firm to complete this (i.e., sales ops, sales management, compensation managers, etc.) then please be good enough to let them know of this.

The survey is now in its third year and takes less than 15 minutes to complete. The report on aggregated responses will be released mid-September. Those completing the survey receive the report for free as soon as it's available; those that don't can buy it for $1495! (Note: see headline.)

More than 600 firms have responded thus far and we've taken a preliminary look at some of the numbers. Everyone knows 2009 was "ugly" for all the reasons that have been cataloged here and elsewhere. However, we're surprised to see it may be uglier looking back than previously thought.

In our 2010 SPO study we reported a significant year-over-year drop in the percentage of reps meeting or exceeding their assigned quotas in 2009: from 59% to 52%. However, the data for that report was collected in Q4. The question asked then was, "What percentage of your sales reps made their full year quota for 2009?" recognizing in most cases this would be a projection.

We ask the same question in our comp survey but with the advantage of hindsight. The number has drifted even lower to 50%, the lowest we've recorded since the tech bubble implosion (we all remember that one still, yes?).

While firms and their reps are gaining greater traction in 2010, they'll need to. Weighted quotas up are $1.6Million in 2009 to $1.76Million this year. The good news is pay at quota appears to be keeping pace with the rate of quota increases, reversing last year's trend-up from $109,000 in 2009 to $121,600 in 2010.

Three Steps to Get You to Quota Club

So with the year 60% behind you, take a quick look back and then focus squarely on the road ahead.

Rigorously apply one major lesson learned last year, which is to qualify, qualify, and qualify throughout the sales cycle. Selling time is a precious commodity and having 23% of forecast opportunities result in no decision is unbelievably unproductive.
The numbers are consistent year after year: firms implementing higher levels of sales process simply do better, especially when coupled with developing high levels of relationship with your customers.
And borrowing a page from our just released Lead Gen Optimization report, aligning your sales and marketing efforts-not just talking about it is paying real dividends for companies doing so.

And while, or before, you do these things take 15 minutes to complete our Sales Comp survey. Think of it as insurance.

Sell well,

Barry Trailer

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