Scientific articles contain valuable management implications, but are usually not very easy to digest. We summarize the core results so that you can use the latest research findings for your company.
What is the article about?
One of the core challenges for B2B companies lies in optimizing sales performance. A key success factor is the sales team and their skills. Sales skills can be divided into six dimensions: presentation and communication skills, product and customer knowledge, as well as the ability of the salesperson to adapt both their approach and behavior to the specific sales situation. At the same time, the demands on sales personnel are steadily increasing.
In this study, the authors examine how sales skills impact sales performance. They distinguish between absolute and relative performance. Absolute performance refers to the personal goals and results of a salesperson. Relative performance includes the individual salesperson’s performance in comparison to the entire sales team. The study analyzed data from 389 B2B service companies in Norway.
What are the key findings?
The authors conclude that the direct impact of sales skills on sales performance is often overestimated. Five of the six skills studied showed no measurable influence on relative or absolute sales performance. Only deep customer knowledge had a positive impact — on both absolute and relative performance.
What does this mean for companies?
To improve the performance of their sales teams, B2B companies should focus on the following areas:
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Gain insights: Equip your sales team with appropriate data and tools that allow for comprehensive evaluations. To identify the true needs, decision paths, and decision-makers of customers, a thorough analysis of the buying center and buyer journey is essential.
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Promote the right skills: Ensure you invest in training programs where salespeople are empowered to deepen their customer knowledge (e.g., KAM, Challenger Sale, etc.). Encourage regular exchange between sales and other departments to ensure customer knowledge is not locked inside the heads of individual employees.
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Refine customer allocation: Rethink the traditional geographical allocation of customers. With alternative approaches (e.g., assigning based on industry expertise or specific customer situations), you can ensure that your salespeople engage in targeted and effective interactions with customers.
Original text:
Høgevold, N., Rodriguez, R., Svensson, G. and Otero-Neira, C. (2024). Salespeople’s sales performance skills in B2B of services firms – a cross-industrial study. European Business Review, Vol. 36 No. 2, pp. 201-224.