Will a “Sales Force Sink Hole” cripple your plans for what should have been a strong sales year?

sales sink hole

 

The year is starting to show some strong sales velocity potential. Customers have a lot of cash to spend and need to solve problems they just lived with when the economy was so poor. Sales are picking up and the cost cutting you have done over the past 3-4 years is now producing strong profits. This year is projected to have strong sales performance right? ( at least that is what you told the board) Not so fast….Nothing hurts and sends a sales growth trajectory spinning out of control like losing a sales superstar or a few star sales people. When a sales superstar leaves, studies show at a minimum two more will follow shortly there after. In a study done a year ago on general job satisfaction; 60% of employees plan to leave their current job once the economy improves. The economy is showing improvement and a number of companies are  investing in plants and equipment, new technology and creating a strong foundation to support their market growth opportunities. What if all that investment is built on a” Sales Force Sink Hole”?

 

The recent story in the news of a family who had just gone to bed like any other day then had one of their bedrooms sucked into a sink hole under their home and killing a family member Jeremy Bush in an instant was sad and frightening. The sink hole opened up under his home with no warning and literally swallowed the bedroom of their home in an instant. My parents now live in Florida and they too are now worried …” do we have a sink hole under our home that could just swallow our home and possibly hurt or kill us?”  Sink holes are depressions in the earth caused by water eroding the bedrock below the surface. Acidic water slowing works on dissolving small amounts of bedrock and washes it away and then one day a sink hole  emerges when there is nothing left of the foundation of bedrock that normally would have supported the weight of layers of earth and sediment. Rain following long periods of drought often triggers sink holes (I hear some of you saying….enough with the geology lesson…what’s your point Mark?)

 

I am concerned… I see number of companies vulnerable, even as their market conditions that suggest the sales drought is over that will fail because they have a “Sales Force Sink Hole” about to open and swallow any chances they had of having a profitable year. (and negatively impact their bottom line for years to come)

 

Why do sales superstars leave?

 

What causes a sales supper star to leave and often have 2 or more other sales stars to leave as well?

 

When I ask senior leaders why as sales super star left they often quickly dismiss my question with: they left for more money…is this true?

 

I decided to tackle this question like I would for a business development challenge. The first place to start is gathered market truths and do not assume anything. So I reached out to a number of Linked In groups and asked sales leaders, salespeople, marketing, and business owners why good sales people leave. Once we gather the market data, we will group it into common causes, then develop a product (strategy in this case) to solve the unmet, urgent market problem. In this first post I will share just the raw market data I gathered. If you have other reasons why you have seen sales super stars leave an organization (often at the worst possible time) please add to the discussion in the comments section. In following posts I will group common problems, identify ways of predicting sales force sink holes and how to prevent them from occurring.

 

Below are the results from recent questions I posed on Linked In and personal interviews with salespeople on why sales superstars leave your organization. Buckle up I plan to go fast…

 

Inadequate training

Consolidating markets

Brand damaged product

Trust broken with management

No defined sales process

Don’t believe in what they are selling anymore

Stress

Ethics

No sales on boarding process

Don’t want to be on a B or C team, want to be with other winners

Bad Boss

More money

Lack of freedom

Asked to learn on the fly

Poor compensation model

Capped commissions

Change in commissions

Change in compensation model

Change in benefits

Poor product quality

Lack of support

No training

No clear future growth opportunity

Not feeling motivated

No marketing support

Operations driven organization

Engineering driven organization

Accounting driven organization

Job was not what I was told it would be

Understaffed support

Too hard to sell what we have

Micro management

New CRM

Change in Strategy

New company leadership disconnected with what really happens in market today

Lack of sales tools

Dated sales tools

Asked to do non sales activities

New Culture does not match salesperson anymore

No new products

New products that do not work

High sales goal for new products that do not launch on time

Comp plan designed around hitting new product goals, product not ready

New product launched with quality issues

Asked to sell something I know is not what we promise

Unrealistic goals

Cut in my expense budget but bigger goals

Work harder to make the same (often less)

Account conflict

Spend more time trying to keep sales I made than making new ones

Change in customer service

Raised prices above market price with no perceived benefit to buyers

Competitors beat us to market all the time with new innovative products

New products that fail

No clear target or goal

Changing goals and priorities

Something in their personal life changed

Desire to grow skills and responsibility

Growing quotas with shrinking commissions

No leads

Not feeling senior management values the role we play

Not feeling valued by my boss

Internally focused and not market focused

Poor company leadership (making same mistakes over and over again)

Playing favorites (treating some salespeople on team differently, not same standards)

No recognition

No praise for job well done

Told “just make it happen” without proper tools

Do not feel appreciated

Not paid what was promised

Not paid expenses timely

Capped commissions

Poor leads

Poor job Satisfaction overall

Change in territory

Asked to chase payment

Change in products I can sell

Unstable company

Company just sold

Company for sale

No common agreement on what is a “sales lead”

Company up for sale

No empowerment to make decisions in market

Slow response to needed answers to close a sale

Channel conflict

Rude, ego driven new leader

Asked to be a farmer when I am a hunter

Disconnect between Management Expectations and Market Reality

Wrong strategy

Market shift

Market I built reassigned and asked to build new territory

Bad strategy

Treated like sales is a necessary evil

No strategy

Change in go to market strategy, dealer model now selling direct

Dated strategy

Told we make too much money

Failure to innovate

Because I hit my goals; given unfair share of new team sales quota

Burn out

Hostile work environment

Change in a benefit like company car taken away, company credit card taken away

Lack of freedom

Lack of respect from company leaders and immediate boss

Not paid based on size of sales I produce

Mature Market

Bored

Treated like we are disposable

 

The above are a list of raw feedback when I asked why sales supper stars leave. To make sure we are on the same page I am not discussing why poor performing salespeople leave as I believe we should try to improve them and if that does not occur we should encourage poor performers to leave. The topic I am exploring is why Bill, who has been with you for 12 years, consistently blows away his goal year after year, who you think you are paying well , up and leaves and joins a competitor….how and why does this happen?

 

How about your company…does any of your salespeople share the above?

 

How many of the above concerns would your sales people say are occurring in your sales team today?

 

Is your future corporate financial performance at risk to a Sales force Sink hole? ..you sure?

 

Is your company at risk?

 

Have you lost a sales super star in the last six months? Why?

 

Do you account for the loss of good salespeople in your cost of quality meetings?

In the following posts I will group the concerns into common issues and themes then close by sharing how to develop a culture sales leaders are attracted to and want to be a part of.

This Post Has 5 Comments
  1. I found your site on technorati and read a few of your other posts. Keep up the good work. I just added your RSS feed to my Google News Reader. Looking forward to reading more from you down the road!

  2. I regard myself as one of the better salesmen this company has had over the past few years (185% of budget attained last year good enough?) and I have mentally ticked a whole string of the reasons above.

    Bottom line (no pun intended): there’s acid water in them there hills…

Leave a Reply

Your email address will not be published. Required fields are marked *