Why Companies Consistently Miss Their Sales Numbers.

The other day, one of my clients asked me if I could identify the key indicators that a company’s sales team would not make its targets. He wanted a concise list – not a lot of verbiage.

After some thought, I came up with the following 6 key things to watch for. What do you think?

1. Reps fall in love with own product to exclusion of understanding of customer needs – “It’s all about me”.
2. Unable to identify & effectively communicate unique value contribution by understanding, prioritizing, and matching to customer needs
3. Compensation Plan Problems
     a. Too rich – lack motivation
     b. Too lean – frustration – panic activities
     c. Does not provide proper direction
     d. Rep doesn’t understand comp plan
4. Staffing
    
a. Lack of skills necessary for sales environment
     b. Lack of process
          i. Internal (operational)
         ii. defined sales cycle process
     c. Lack of appropriate metrics and monitoring
     d. Lack of coaching/management
     e. Improper territory alignment

5. Service level issues (outside of sales)

6. Product development issues (outside of sales)

Your comments are welcome!

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5 Responses to Why Companies Consistently Miss Their Sales Numbers.

  1. Karl says:

    I’d add another thought to why companies continually miss their sales numbers…and that being that the sales organization does a poor job managing their pipeline in terms of identifying a sufficient number of opportunities and/or working the balance of short-term/long-term sales against deals that are both large and smaller in size.

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