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How Many Salespeople Will Be Left by 2020?

Guest post from Selling Power Magazine by Gerhard Gschwandtner

Note: When Selling Power Magazine came out 15 years ago or so they were way out of the box. They are still innovative and I think this article is worth thinking about if you’re running a sales department.

I’m not sure whether I agree with the numbers: from 18 million salespeople to 4 million in less than 7 years. However I think you’ve got to be hiring better salespeople who are innovative and entrepreneurial or you and your department become dinosaurs …

At our last Sales 2.0 conference, I asked the audience members to raise their hands if they had ever purchased anything on Amazon.com. All hands went up. Then I asked, “How many of you have ever spoken to an Amazon.com salesperson?” Nobody! Amazon.com’s technology architecture has eliminated the need for salespeople. According to the Census Bureau, the amount of sales closed over the Internet through such e-commerce sites as Amazon exceeded $165.4 billion in 2010. According to Forrester Research, that number will grow to $250 billion in 2014.

Lorenzo-As computing power accelerates, online interaction will become more customer friendly, and B2C online sales models will be adopted by B2B companies. Some software companies have already begun to sell their applications online. After the online sale, customer service representatives will stand by to help answer questions.

 

Technology is clearly transforming the profession of selling. IBM is currently working on the DeepQA project, which will allow question-answering technology to consistently outstrip the best human performance. IBM’s team has demonstrated that its processing computer called “Watson” can understand natural language and deliver a single and precise answer to a question asked on Jeopardy! IBM found that the average response time on the game show is 3.5 seconds. IBM’s team created a computer that allowed Watson to deliver the right response faster than the average contestant.

 

At the core of the transformation process is not the software application used, but the computing power that drives the application. For example, in 1992, many computers ran on the 66-MHz Intel chip 486DX. The speed of this chip was 54 MIPS (million instructions per second). Today’s Intel chip Core i7-990X Extreme Edition runs at 3.46 GHz, and it can perform 159,000 MIPS.

 

As the number of software applications is exploding and computing power is accelerating, we will see more sales tasks move online, requiring fewer salespeople.Gartner, a research organization, predicts that by 2020, 85 percent of interactions between businesses will be executed without human intervention. It is likely that of the 18 million salespeople in the United States, there will be only about 4 million left.

 

If today Watson can respond to complex questions in natural language with pinpoint accuracy and in fewer than three seconds, it is likely that 10 years from now, a Watson-like online sales avatar will answer all the questions customers need to ask in order to make a final purchasing decision. I see a clear trend: Outside sales will continue to shrink throughout this decade. Inside sales will grow at a 15 percent rate per year. Sales-support staff will increase over the next decade. New job titles such as chief listening officer, sales transformation manager, sales operations manager, and sales analyst will expand. If you want to stay in sales for the next decade, my advice is to become more efficient, more motivated, more solutions oriented, and more customer focused. The bottom line: If we don’t find and fill a need faster than a computer, we won’t be needed.
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Observe Hiring Speed Limits for Better Sales

 

 

 

Let’s face it: everything we do as sales managers revolves around one idea—ROI. Even our sales hiring methods impact our company’s bottom line. For that reason, we want to make certain that our process assures us of hiring the right person the first time, and that has to do with your hiring speed limit.

I know, you’ve got a high-performance company, and it’s important to you to keep it running at top speed and top efficiency. When something needs to be done, you want it done day before yesterday. That’s what better sales is all about.

The problem is, it’s not often possible to realize the greatest benefits of good sales hiring if you’re racing through the process at mach speed.

If you race through your sales hiring or skip some of the steps in the process, you can actually be incurring substantial expenses by ending up with the wrong people. They won’t contribute to better sales, they’ll be miserable, you’ll be miserable, and soon they’ll be gone. That’s practically a given. Then you’ll have to hire again, and if you don’t have proper sales hiring system in place, as well as the patience to follow the procedures, you’ll find yourself in a recurring loop of hiring failures.

Following the process outlined in the AHS Sales Hiring course materials may seem as though it will take up a lot of time in the beginning, but it actually evens out during the entire process since it significantly reduces the number of viable candidates you’ll end up having to interview. The DISC assessment, along with the values and styles matrices, will allow you to focus on the potential top performers as you eliminate candidates who don’t fit the salesperson profile .

Taking the time to give more than one interview per candidate is also an essential step in effective sales hiring. Remember, for every coaching system for sales hiring, there are probably five coaching systems for interviewing. A candidate can appear polished and perfect during one interview, but that could just be a well-coached façade. Making the time for additional interviews will give you an opportunity to identify inconsistencies and see below the surface.

Of course, no highway system runs smoothly without also having a minimum speed limit, and there is a need for one in sales hiring as well. You don’t want to wait around until there’s a huge need before you think about recruiting new blood. While there may be many top performers out there, chances are they’re not all standing in line until you’re ready to hire them. It’s important to keep yourself open for sales hiring opportunities when they present themselves, even if you weren’t necessarily considering hiring salespeople at the time. After all, an investment in quality will only bring in better returns.

 

 

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The Rejection Letter: an Essential Element in the Sales Hiring Process

 

I think most people would agree that companies who hire sales people expect them to be respectful, responsive, and communicative with their customers. Unfortunately, the majority of these companies don’t practice what they preach when they are doing their sales hiring. In fact, many job applicants are often left in a puddle of confusion after the application process, and often never really know if their application was even considered.

It’s basically a matter of manners. To stay successful, a company needs to maintain a positive image, not only with the public and its employees, but with those who may or may not end up working for the company someday. When candidates apply indirectly online, through the mail, or otherwise, it’s important to acknowledge receipt of the application. Otherwise, the applicants find themselves in an agony of indecision: should they assume that the application has been rejected, or reapply and risk being thought of as a pest?

When you hire sales people,  it may take a little time and effort to send applicants an acknowledgement, but it’s a courtesy to the applicant to let him know that he is or is not being included in the hiring process. Considering the positive perception it will create for your company, and the relative enormity of the rest of the sales hiring process, it’s a small price to pay.

Another small courtesy that could have a big impact on your company’s image is a respectful rejection letter sent to candidates who don’t make the cut at different levels of the hiring process. Timely notes to candidates who have been eliminated will allow them to know where they stand so that they can focus their attention on other opportunities. It will also save you the time and trouble of answering emails and phone calls checking their application status.

Your rejection letters should be sent to every candidate who is eliminated from the hiring process, no matter what stage of the process this occurs. The AHS sales hiring materials include a form letter that you can use when initial applications and résumés are declined, but you can also choose to write a note that’s a little more personal. In fact, the further through the process the candidate has progressed, the more personal you can make the rejection letter.

Two things your rejection letter should do:  show appreciation to the applicant for taking the time to apply to your company, and state the reason for the rejection in a diplomatic way. (Skills don’t match the job requirements, pre assessment tests don’t indicate a match, position has been filled, etc.) You can also indicate what the company might do with the applicant’s information (i.e. forward it to another department, hold on to it for a specific amount of time, in case of future opportunities, etc.), or offer some advice on how to proceed.

Your note should end by wishing your candidate the best, and it should be personally signed. With a considerate, respectful rejection letter, you not only provide closure for the applicant, you also leave the door open for some positive PR.

 

 

 

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