Challenges facing Aussie Sales reps

In 2023, the percentage of sales representatives in Australia who hit their targets was been relatively low. According to data published by Salesforce.com in 2023, only about 28% of sales professionals expected to meet their quotas. This trend highlights the challenges faced by sales teams, possibly due to economic shifts and evolving market conditions. 

For business leaders and owners, the ‘sales team math’ we have historically built our businesses against was that ~70% of revenue comes from ~20% of the sellers (the A-players).   We then invest a-lot time and money into either lifting ‘B-Players’ or cycling through sales reps creating inconsistent customer experience.   

Yes this is a general data point from Salesforce.com, with some industries experiencing a boom at present (e.g. you should not be struggling to sell cyber in 2024), but this 2023 data point signals that we are either losing our capability as a sales profession, or the relationship between buyer and seller is changing faster than the sales profession is keeping up with.     

The following are some of the factors that are negatively impacting Australian sales representatives in hitting their targets.  And likely your sellers are telling you about it.

1. Economic Uncertainty 

• Market Volatility: Economic fluctuations and market instability can make it difficult for businesses to forecast sales accurately and set realistic targets. 

• Inflation: Rising costs can affect consumer spending and business investments, leading to lower sales volumes. 

  
  

SHIFT Thoughts: Change is the one constant all in business understand, however the economic fluctuations of past 3 years has been not just significant, it has been unimaginable for many businesses.  From unheard of acquisition valuations and readily accessible capital for investment, to now many Australian businesses being challenged to keep their doors open the one constant keeping businesses afloat is consistent profitable revenue and steady cashflow.  Obvious of course to say this, but how do businesses remain confident in these measures today?  And how is this related back into the Sales teams metrics and plan?  This is a fundamental question all business owners and leaders must be asking themselves regularly.    

2. Changing Buyer Behavior 

• Longer Sales Cycles: Buyers are taking more time to make decisions, often requiring more touchpoints and information before committing. 

• Increased Competition: With more options available, buyers are more selective, making it harder for sales reps to close deals. 

• More informed buyers: Buyers are self-diagnosing, and solutioning their own problems more frequently driving a challenge for sellers to differentiate value early 

• Higher Expectations: Customers now expect more personalized and immediate responses, which can be challenging to deliver consistently. 

• Demand for Value: Buyers are looking for more value and ROI from their purchases, making it harder to close deals without significant concessions. 

  
  

SHIFT Thoughts: The fundamentals in selling really matter. Tight collaboration and alignment between marketing, product management and sales must ensure clarity on the unique value proposition so it can be used early in a sales process to qualify maturity of a prospect in their buying cycle.  Generic sales processes can be a trap, consider the opportunity to use your sales process to purposely create differentiation, not just follow the

3. Technological Challenges 

• Adoption of New Tools: Sales teams may struggle with adopting new technologies and automation tools, which can hinder their efficiency and effectiveness. 

• Data Overload: Managing and interpreting large volumes of data can be overwhelming, leading to analysis paralysis and missed opportunities. 

  
  

SHIFT Thoughts: The availability and cost effectiveness of modern CRM tools presents a strong baseline for defining and governing your sales process, but at the end of the day, any system is only as good as the data within it.  Be aware of over complicating your system steps in the sales process.  Keeping it simpler for the sales team to move through the process at the right speed, capture the minimum necessary information for compliant delivery and minimising the admin overheads is a win for both your business and your customers.   Sounds straight forward enough, but really important to get the balance right and have your sellers outward focused, not inward.  

4. Skill Gaps and Training 

• Insufficient Training: Many sales reps may not receive adequate training to adapt to new sales strategies and tools. 

• Skill Mismatch: There may be a gap between the skills sales reps possess and the skills needed to succeed in the current market environment. 

  
  

SHIFT Thoughts: This is an interesting topic.  Many organisations are putting a lot of effort into their education or enablement of product or service offer to market, however through tighter times the allocation of training budget for external sales education has seemed to lessen.  Sales is a profession in its own right.  This sometimes gets lost – but it is a profession, and as such requires continuous training to refine and improve.  Don’t lose the opportunity to coach your sellers at the right opportunity – this simple management must not only lifts capability, but also loyalty and trust from your sellers with your business.   

5. Internal Processes and Support 

• Inefficient Processes: Outdated or inefficient sales processes can slow down the sales cycle and reduce productivity. 

• Lack of Support: Insufficient support from management and other departments can hinder sales reps’ ability to meet their targets. 

  
  

SHIFT Thoughts: Lack of visibility is the enemy of Revenue. Over the past decade we have seen Sales Operations evolve and expand beyond sales support into a ‘Revenue Operations’ function driven predominantly by the importance of accurate, timely data flowing throughout the Customer Journey.  This includes metrics of customer journey by stage and seeking internal operating efficiencies. Modern revenue operations needs efficiency and transparency underpinned by continuous improvement to ensure sellers can stay focused on their primary role. 

With so many factors potentially impacting your sellers focus day to day it is important to surround them with the right support at the right time. Offering a clear product or service value proposition with differentiated sales process for them and your customers along with the autonomy to practice and refine their sales story will gain the right customers trust and loyalty. Always keep your sellers focused on what is in their control.

If you need specific strategies to work through these obstacles or would just like to chat through your experiences, feel free to reach out to the team @ShiftAdvisory!