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How to Increase Your Sales Revenue By 25%

January 29, 2013

Would your organization like to bring in 25% more than you are right now? What if you were able to hire a group of salespeople who could sell 25% more than your current sales team? It is possible. A recent case study shows how making some changes to your selection processes can lead to big changes in your bottom line!increase sales revenue

Let’s put this in perspective.

With more than 1,200 retail stores nationwide, a popular office supply retailer (for the purpose of this blog we will call it Company A) that operates a large North American Business Solutions Division consistently had issues finding the right salespeople. This is a problem for many companies. Company A’s hiring managers were using different selection processes and relying heavily on unstructured interviews, which resulted in a lot of hiring by “gut instinct.” They were unhappy with the results they were getting.

Several years ago, Company A decided to design and validate a new selection process for their business-to-business sales positions. After an extensive search for the right solutions, they partnered with Select International to make some changes to their system.

They wanted to:

• Add consistency
• Improve accuracy
• Improve efficiency

Together, we developed a selection system that included:
1. Telephone pre-screen
2. Sales assessment called Select SalesPro®
3. A panel interview that included a custom sales role play

To ensure that they were maximizing the accuracy of the online assessment, Company A conducted a statistical validation study by having a group of current salespeople complete the sales assessment. This enabled Company A to compare the assessment results to sales performance.

The analysis showed a very strong relationship between assessment scores and job performance, thus establishing the validity evidence they needed and showing that higher sales performance is directly linked to scores on the assessment.

The really cool part is … a year after the pilot was implemented, we re-visited and re-analyzed the new hiring process. To do this, Company A compared the sales quotas and goals of those who met the assessment profile as compared to those who didn’t. Individuals who met the profile sold OVER 25 percent more than those who didn’t. Now 25% might sounds like a small number but this kind of difference can make a BIG impact.

Let’s put some numbers to this.

Let’s say the average salesperson at Company A brings in $2 million in revenue annually, which means that Company A could increase their annual revenue by $37 million by replacing the individuals who did not meet the profile with people who do. And who isn’t a fan of a $37 million increase?

Would your organization’s bottom line benefit from hiring better salespeople?

hiring better salespeople

How do you currently evaluate sales talent within your organization?  Comment below to start the discussion!

Amie Lawrence, Ph.D. Amie Lawrence, Ph.D. is the Director of Global Innovation at PSI and an expert in the design, development, and validation of psychological assessment tools. She runs an innovation lab that is responsible for establishing PSI’s assessment technology roadmap and strategy. An integral member of PSI since 2000, Amie has led the development of numerous global assessments, including personality, situational judgment, cognitive, and interactive work simulations.