We struggle to hit our goals, make our numbers. Every year, we see decreases in % of sales people making their goals. At the same time, our solution to try to make our numbers is driving increases in volumes and velocity.
As I start peeling back the numbers, reinforced by data from the research firms, I start seeing win rates at 20% or less! We’re winning fewer than 5 deals we qualify!
When I challenge leaders about this, too often, they either: Don’t realize this is the actual performance; or shrug their shoulders, “It is what it is….,” alternatively, “We just win our fair share….”
Then when I ask them, “How are you going to help your people make their numbers?” The answer is always, “Do more!” And we pump up the volumes, increase the workloads, increase spending all reinforcing a continued death spiral of sales performance. (By the way, these managers are also the managers that insist on 3X pipeline coverage–I suppose this is new math, I don’t know how 3X pipeline at 20% win rates cause us to hit our goals.)
I simply don’t understand this! Why aren’t we alarmed with these results? Why aren’t we seeking to drive much higher win rates?
Why aren’t we seeking to drive much higher win rates?
I suspect much of the reason is it’s really tough work to improve win rates. It’s far easier to demand we do more. It’s easier to push marketing for more leads, to ask SDRs for more, and to tell sales people, “Work harder.”
We spend too much time, we squander too much opportunity by accepting such low win rates. If we start winning more of the deals we qualify and pursue, we have to compete in fewer opportunities. Performance isn’t just about doing more, it’s really driven by doing better.
We will have individual performers with low win rates. Our job is to coach and develop them, if they can’t improve, we need to help them find new roles. But when we see organizational win rates at 20% or lower, management isn’t paying attention.
We have to do better, we have to do our jobs!
Dave has spent his career developing high performance organizations. He worked in sales, marketing, and executive management capacities with IBM, Tektronix and Keithley Instruments. His consulting clients include companies in the semiconductor, aerospace, electronics, consumer products, computer, telecommunications, retailing, internet, software, professional and financial services industries.
Find out more about Dave Brock on LinkedIn
From north to south, east to west, Membrain has thousands of happy clients all over the world.