Research has shown that it is appropriate to apply the Pareto principle to
salespeople whereby 20 percent of all salespeople now make 80 percent of all
sales. That means 80 percent of the sales force fights over the remaining 20
percent of the business not produced by the top sales pros.
With so many salespeople competing for shares of such a small pie, the
turnover rate in sales is obviously very high. But many executives are
willing to accept, as a cost of doing business, the unending expenses of
recruiting, selecting, and training the continuing flow of newcomers into the
sales rank. They should, instead, recognize that the poor productivity and
high turnover rampant in the sales field are the result of faulty hiring
practices.
Emotional Intelligence Quotient
Research has shown that 80 percent of the essential competencies required
for success in the workplace are emotional intelligence, which is far greater
than IQ or personality traits. Emotional intelligence quotient (EQ) has been
a "buzzword" in the business world for the past several years. By
definition, EQ is an individual's ability to recognize and regulate
emotions in himself or herself and others. In practical application, it is
one's ability to understand how our emotions and the emotions of others
impact action and performance.
EQ has no greater application than in a sales position. A recent study of
Fortune 500 companies including AT&T, IBM, and PepsiCo by the Hay/McBer
firm in Boston found that the top 10 percent of the sales forces in the
companies surveyed totaled nearly $6.7 million in sales while the norm was
only $3 million—more than twice the average or additional sales totaling 88
times the average salary of $42,000. The top 10 percent of those sales forces
were very strong in EQ competencies, while the average salesperson was
not.
Different sales roles (i.e., hunters versus farmers) require most of the
same competencies, but self-awareness was found to have the largest
difference between the two different sales roles.
Consistent among all sales roles are what we'll term the Fab Five EQ
Sales Competencies, discussed below.
Intuition and Empathy
This is the salesperson's awareness of the prospect's feelings,
needs, and concerns. This competency is important in a sales role for the
following reasons.
- Attitude toward others: One's ability to look positively and
objectively upon others
- Understanding others: An intuitive sense of a prospect's and/or
customer's feelings and perspectives, and showing an active interest in
his or her needs
- Customer service orientation: The ability to anticipate, recognize, and
meet customers' needs
Results Orientation and Decisiveness
This is the salesperson's adeptness at inducing desirable responses
from the customer or prospect. This competency is important in a sales role
for the following reasons.
- Communication: Sending clear and convincing messages that are
understood by the customer or prospect
- Influencing: Using effective tactics and techniques for persuasion and
desired results
- Gaining commitment: One's ability to develop a motivation act
Self-View
This is the salesperson's level of courage and self-esteem that
provides thick enough skin to persevere through various obstacles he or she
encounters throughout the sales cycle. This competency is important in a
sales role for the following reasons.
- Handling rejection: One's ability to handle a no or a non-sale, not
take it personally, and be able to recover and restart quickly to try
again
- Self-esteem: The higher the self-esteem is, the more passion and
courage the salesperson will have in the social arena.
Self-Awareness
This is knowing one's internal states, preferences, resources,
strengths, and limitations. This competency is important in a sales role for
the following reasons.
- Self-confidence: One's ability to believe in his or her own
abilities and strengths to personally take charge in achieving and
exceeding goals
- Persuasiveness: One's ability to stand his or her ground in
negotiations and in handling sales objections to exude to the customer or
prospect that the product or service meets his or her needs
- Competitiveness: One's desire to win and be perceived as competent
in the eyes of others, as well as desire to be personally recognized for
his or her accomplishments
NOTE: A positive and attentive thinking bias in this competency leads
to being effective as a "hunter" salesperson and will be motivated
by sales commissions earned as a result of individual accomplishments. A
negative and inattentive thinking bias in this competency leads to being
effective as a "farmer" salesperson and being motivated by security
or team-based incentives.
Self-Expectations
This is the salesperson's emotional tendencies that guide or
facilitate reaching goals and his or her sense of personal commitment to
responsibilities. This competency is important in a sales role for the
following reasons.
- Achievement drive: Striving to improve or meet a standard of excellence
we impose on ourselves
- Initiative: Readiness to act on opportunities without having to be
told
- Optimism: Persistence in pursuing goals despite obstacles and
setbacks
These are all essential competencies in selling. The salesperson who knows
the product or service inside out will not succeed in the long term without
possessing these essential competencies.
Mike
Poskey is president of ZERORISK HR, Inc., a Dallas-based human
resources risk management firm and exclusive provider of ZERORISK Hiring
System. For more information, visit www.ZERORISKHR.com or e-mail Mike at