"Increase-Sales Success Stories"
SalesMax Case Study – MultiMedia Co. (SME)
By using SalesMax for its sales recruitment, MultiMedia Co. would have:
- Recruited 100% of its top performers
- Avoided recruiting 44% of its bottom performers
- Been able to recruit people who achieve an average of 94% of Sales Goal
The goal of this study was to test and prove the predictive power of the SalesMax sales assessment. This was done by defining the profile of an exemplary MultiMedia Inc. Account Representative, and then comparing the scores achieved by representatives against the ideal profile with their SalesMax> results.
The sample used in this study was existing MultiMedia Inc. Account Representatives; a total of 41 individuals completed the SalesMax survey, and a MultiMedia Inc. manager provided performance data that measured Account Representatives against the "ideal profile" and then ranked them either "A", "B" or "C":
- "A" represented performers in the top 20%
- "B" represented performers in the middle 60%
- "C" represented performers in the bottom 20%
The rankings were based on several criteria including:
- Revenue generated
- How quickly they performed
- Products they could sell
- The size of their market
- The quality of presentations
- The volume of their sales activity (prospecting calls, presentations, etc).
These rankings were existing internal measures created to assist with salary negotiations, but other performance data used included individual sales targets and actual sales performance against target. When the performance data was matched against SalesMax, there were 9 "A" rated (22%), 23 "B" rated (56%) and 9 rated "C" (22%).
The Exemplary Performer Profile
SalesMax’s normal advice is to look for candidates whose personality characteristics fall in the upper ranges of each of the eight important personality traits. The scores of MultiMedia Inc. are in perfect alignment with this, with the exemplary "A" performers falling into the shaded bars on the SalesMax profile. While the poorer "C" performers generally fall into the bars as well, their average scores are significantly lower, and their Index Score is also lower.
Scores on Sales Knowledge were essentially the same for the two groups with no significant differences, except that "A" performers (not surprisingly) scored higher on their knowledge of closing techniques.
The exemplary "A" group showed the highest motivation in the areas of achievement and developing expertise, while the "C" performers showed similar motivations in that their top motivation was also achievement, but this was followed by money.
The predictive power of SalesMax
SalesMax score against Sales Rating
- The average SalesMax score for "A" rated Account Representatives was 31 (the BETTER> category)
- For those rated "B", the average SalesMax score was 26 (top of the Good> Category)
- For those rated "C", the average score was 22 (the OK Category).
Comparing "A" rated performers with "C" rated performers, 100% of the A’s fell in the GOOD, BETTER and BEST Categories of SalesMax.
Sales Performance against Sales Target
The predictive power of SalesMax can be demonstrated by comparing its recommendations with candidates’ average sales performance. Because the sales potential of various markets can vary, it is more appropriate to use the measure of sales as a percentage of sales target rather than total sales.
Account Representatives who scored in the BEST range averaged 94% of goal
- In the GOOD and BETTER ranges, Representatives achieved 57%-60% of goal
- Those who scored in the OK range averaged 52% of goal.
- Those who were AVOIDs averaged 7% of goal.
The chart below shows the same information in graphical form. Using a larger sample size, where any one person can affect the averages less, there would be a consistent upward progression of performance.
- Sales Knowledge and Sales Motivation scores were very similar for both groups, and therefore are not a differentiator between poor and top performers. However, there were significant differences in Sales Personality, where the study shows that MultiMedia Inc. Account Representatives who are ranked as "A" performers generally score in the GOOD, BETTER, and BEST ranges on SalesMax. Conversely, Account Representatives ranked as "C" performers tend to score in the AVOID and OK ranges.
- Using sales against goal as a criterion, those who scored in the GOOD / BETTER / BEST categories of SalesMax also showed much better performance. Our advice is to hire candidates who fall in the GOOD, BETTER, and BEST ranges, and avoid candidates who fall into the AVOID range.
- By including SalesMax in the selection process and heeding its advice, MultiMedia Inc. will hire fewer account representatives who become "C" performers and a greater number who develop into "A" performers.
- For the sample available, SalesMax would have screened out 44% of "C" performers while recommending 100% of "A" performers.
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