Sales Productivity: Why Companies don’t Reach Sales Growth Expectations

Recent market reports reveal that many companies are not reaching their sales growth expectations. Often times, companies fail to see the potential threats that can arise when the sales growth expectation is not met. Unfortunately, neglecting to address underachieving sales performance can cause great danger.

Challenges in the market place today:

  • Companies’ efforts to perform well have increasingly become a struggle due to an increase in competitive pressures.
  • The lack of a good sales force can hinder a company’s ability to stay competitive through investments.
  • Globalization and technological advancements have caused market growth and expansion to increase at a progressively faster rate, meaning company growth alone is not a sufficient representation of how a company is performing.

Due to these recent challenges, a company must pay more attention to their sales performance and how they can work to improve it if they wish to survive in the market place. Companies put too much focus on traditional sales revenue growth strategies, while neglecting to acknowledge the effectiveness of different sales and business development investments as well as the efficiency of its sales force. Neglecting to track the effectiveness of different sales and business development investments can cause a company to invest money into methods of improving sales performance that are ineffective. If poor sales force efficiency is what is causing a company’s poor sales performance, then increasing sales capacity will not solve the central issue.

Such market and company situations create a pressing need for companies to embody methods that are efficient and effective in order to improve sales performance. Companies need to track their sales force efficiency and their return on investment in order to enhance sales performance; but how? Stay tuned for our next post on how companies can improve their sales performance.

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