Sales Skills Assessment

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Sales Skills Assessment Content

The five content areas that should be covered in a best-in-class sales skills assessment are communication skills, effective prospecting skills, negotiation skills, business acumen, sales leadership. Other content areas that should be covered include presentation skills and time management skills.

CORE COMPETENCY IN BEST-IN-CLASS SALES SKILL ASSESSMENT WITH SKILL DESIGN

COMMUNICATION SKILLS

  • As reported by Hubspot, during the early interview stages, communication skills are typically evaluated with written skills regarding sales skill assessment. Communication skills should be a core competency as these are used as crucial abilities when interacting with clients through emails or phone.
  • Communication is the top key sales skill that every salesperson should possess because it is the foundation of developing a significant business relationship with a potential client.
  • According to Fred Diamond, the Director and co-Founder of "The Institute For Excellence in Sales," clear communication is one of the top five sales competencies needed by salespeople today as it remains the foremost skill to measure the understanding of a salesperson to the selling process.
  • Around 7% of conversations rely on communication content, while about 38% depend on communication tone, which makes the communication skill in sales an ability that every salesperson should master.
  • Communication (oral or written) is one of the most valuable competency areas as a salesperson as it will measure how articulate and how simple for a salesperson to comprehend a conversation.

NEGOTIATION SKILLS

  • Negotiation skills are an essential factor in sales skill assessment during an interview, according to interviewers. It is a vital instrument that any salesperson, sales team, and business can possess.
  • One of the most crucial competencies is the ability to negotiate as a disciplined negotiation process leads to a significant business agreement. High stakes negotiations can cause an error that impacts price agreements.
  • As listed by the sales app Spotio, the negotiation process is one of the best sales skills to achieve sales quota for one's team. When a salesperson is able to customize the deal according to the convenience of the client, it will lead to more sales for the company.
  • According to the Sales Competence Model made by Sales Sense, negotiation is one of the sales competency factors highlighting preparation, methods, and skills.

EFFECTIVE PROSPECTING SKILLS

  • Efficient prospecting skills, along with consistency, are core competencies of an adequate salesperson.
  • Prospecting is a vital core competency sales skill that a salesperson should possess. Poor prospecting can cause buyers to turn down a business offer. For it to be useful, there should be a suitable strategic approach for new business opportunities.
  • Prospecting can define high-performing sales teams. When it comes to systems, a salesperson can explore the industry's marketplace and learn the fundamental sectors to research, revealing friction points and an exemplary client profile.
  • Strategic prospecting skills facilitate a salesperson to take advantage of the existing clients through referrals, which means they can end up identifying new prospecting customers that match the target market or ideal client profile.
  • The President and CEO of the Anthony Cole Training Group, Tony Cole, lists consistent and efficient prospecting is one of the seven core sales competencies. As stated in Kurlan's Baseline Selling book, the steady nature of prospecting is more significant than being productive in technique.
  • According to the Sales Competence Model made by Sales Sense, proactive prospecting is a sales competency factor that highlights motivation, planning, methods, and skills.

BUSINESS ACUMEN

SALES LEADERSHIP

OTHER CORE COMPETENCY IN BEST-IN-CLASS SALES SKILL ASSESSMENT WITH SKILL DESIGN

PRESENTATION SKILLS

TIME MANAGEMENT

OTHER HELPFUL FINDINGS

  • According to sales managers, they assess a salesperson through the following skills:
    • 70% ability to close account
    • 69% ability to prospect new opportunity
    • 59% ability to retain existing clients
    • 53% ability to find solutions to problems
    • 52% qualify new deals
    • 50% ability to negotiate
    • 50% ability to plan strategically
    • 46% ability to have effective time management
  • Sales competency assessment trends in the future include a shift in core competency in sales skill assessment, which will involve peer feedback, role-playing, live ride-alongs, formal certification, quizzes, video recording, call recording, and activity tracking.
  • The barriers to assessing the sales competency of salesperson are the lack of leadership, systematic metrics, focus, etc.
  • Modern core competencies for sales representatives include customer focus, planning and organization, result orientation, flexibility, and goal achievement.

Research Strategy:

To determine the best-in-class sales skills assessment core competency, given the content areas/core competencies, we searched for articles, press release, journals, and media coverage about effective prospecting, sales call execution, communication skills, negotiation skills, business acumen, sales leadership, and strategic account management as a core competency for best-in-class sales skills assessment. To determine the content covered in best-in-class sales skills assessment, we utilized the following metrics:
  • The content (core competency) area should be employed by HR/skill assessment companies.
  • The content (core competency) area should be typically be mentioned in articles, as well as reputable and trusted company blog posts in assessing salespersons.
  • The content (core competency) area should be recommended by industry experts or leaders.

After determining the content (core competency) areas that should be covered in a best-in-class sales skills assessment, we provided a summary of what is being assessed, description of the best ways to assess the core competency and an explanation why it is considered best-in-class. Also, we identified additional content that is likely to be found in multiple sources and other findings on the trend and barriers for content areas that should be covered in a best-in-class sales skills assessment.


Part
02
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Part
02

Sales Skills Assessment Scoring

Measuring the sales contribution, assessing the number of generated clients, and determining the number of successful conversions is some best practices on how to score/evaluate a sales skills assessment.

MEASURING THE NUMBER OF SALES CONTRIBUTION

  • According to Pipe drive, the volume of sales generated by a salesperson is a very good indicator of sales negotiation skills as well as confidence.
  • The size of the sales contribution a salesperson defines is considered best-in-class because it measures how well one can choose its prospect client.
  • According to Research Gate, sales contribution is one way to evaluate a sales person's sales skill performance.
  • It is important to measure the volume of sales contribution regardless whether if it is peak season or off-season as this is the main objective of every sales company and there is a certain performance standard set by the management.
  • Percentage of increase in the market share of the company/product and the quota obtained by the salesperson are some key factors in measuring the volume of sales contributions.
  • According to the research, a quantitative measure, 83.9% said that sales contribution volume is a great factor influencing the sales skill performance of a salesperson.
  • According to AZ Central, measuring the sales volume is a way for a salesperson to measure/evaluate their long-term success.
  • To be able to measure the sales volume, sales companies usually set quotas. The difference between actual sales performance and quota is a very strong indicator of sales effectiveness.
  • According to Sales Gravy, measuring the volume of sales contributions is also to know if the salesperson generated revenue in contribution to the goal revenue of the company and if they reach the quota.
  • To measure the sales contribution, sales reports on either a weekly or monthly basis are generated by sales person so that sales managers can measure if the sales team are performing well.
  • According to Richardson, quota attainment, which is added to sales contributions, is the primary measure of sales performance.
  • According to Sales Force Evaluation, sales revenue achieved by the salesperson/company measures the sales skill, performance, and profit performance.
  • According to the Canadian Government, to measure the sales performance, the quantitative measures to be used is the volume of sales made.

ASSESSING THE NUMBER OF GENERATED CLIENTS

  • According to Research Gate, measuring the sales person's generated clients is one way to evaluate a sales person's sales skill performance.
  • Sales call execution frequency, sales call execution per day, order call ratio, the average cost per sales call execution, the average order size, and non-selling sales activities are some quantitative factors to be considered in measuring the sales person's generated, clients.
  • The research revealed that sales call frequency is given 84.6% prioritization or considered as the best practice on how to score/evaluate a sales skills assessment.
  • According to Sales Gravy, every sales team should set a key performance indicator to measure the sales skills such as quantitative measures like the number of generated clients or the number of newly generated clients.
  • According to Sales Force Evaluation, a number of new customers generated by the salesperson/company measure the sales skill, performance, and profit performance.
  • According to the Canadian Government, to measure the sales performance, the quantitative measures to be used is the number of new accounts opened made by the salesperson.

DETERMINING THE NUMBER OF SUCCESS CONVERSION

  • According to Pipe Drive, to measure the sales skill, measuring of total win conversion should be a metric of evaluation.
  • Most sales managers and salesperson use success conversion ratio as a useful tool to measure/score/evaluates sales skills/performance.
  • Win conversion ratio clearly indicates the sales skill performance when it comes to turning the client's prospect needs into identifiable pain that is why this metric should be relative to their sales team.
  • The conversion ratio is a concrete metric in evaluating a sales skill or sales performance because this is the percentage of prospect client's that are successfully closed.
  • Setting success conversion is an important measure as the sales person's performance is dependent on this. Moreover, if a salesperson could not close a certain account, this only means that the sales opportunity is being put into waste which means that opportunity could go to the competitor's salesperson.
  • According to the Copper Chronicles, conversion rates are a competitive representation of the sales company's return on investment.
  • This quantitative measure shows that with high success conversion means that the salesperson is investing to clients who also see the value of the product and services being offered. In contrary, low success conversion means there is a problem with the sales process made.
  • Wolfgang Digital uses this metric to assess the sales skills or sales performance of the salesperson.
  • Success conversion is the primary measure of market competitiveness.

HELPFUL INSIGHT

Other Practice/Method (Quantitative Output Measures)

  • Some quantitative performance output measures are profits generated, percentage gross profit margin achieved, sales per potential account, sales per active account, sales revenue as a percentage of sales potential, number of orders and sales to new customers.

Other Practice/Method (Quantitative Input Measures)

  • Some quantitative performance input measures are number of calls made, calls per potential account, calls per active account, number of quotations, and number of calls on prospects.

Example of Sales Skill Assessment Test taken by a Salesperson and its Scoring/Evaluation

  • This is an example of the result analysis of a sales skill assessment successfully done by a company with its salesperson. The assessment highlights the extensive narrative explanation and valuable insights about the sales skill assessment.

RESEARCH STRATEGY

We began our research by combing through credible sources for a precompiled information regarding best practices on how to score/evaluate a sales skills' assessment, the detailed description of the practice/method and the explanation why it was considered the best practice. We hope to find direct information easily as the information about the sales skill assessment is numerous on the internet. We utilize Forbes and AZ Central for information regarding how companies are evaluating the sales skills or sales performance of their salespeople. The results of this strategy were not successful as information found was mostly referencing on how to evaluate sales skill/performance of a salesperson. We did not find any relevant and direct information about the best practices on how to score/evaluate a sales skills' assessment, the detailed description of the practice/method and the explanation why it was considered the best practice. However, due to the relevancy of the information about how to evaluate sales skill/performance of a salesperson, we included our findings under helpful insight section of this request.

Next, we scoured media coverage and press release statements from sales skill assessment industry experts like sales manager reports, reports regarding how the director of sales evaluate or score a sales skills' assessment, detailed description of the practice/method and the somehow any explanation why it was considered as the best practice. We went further to leverage information found on professional databases like LinkedIn. We hope to locate sales skill assessment report from industry experts. Unfortunately, we did not find any relevant data about the topic except for the effective sales coaching strategies that sales manager or sales experts should possess.

Our research team attempted to triangulate the requested information by collecting samples of sales skill assessment tests with evaluation provided and maybe from there we could identify the best practice/method used by assessors on how to evaluate/score a sales skill assessments. We were hoping to find the sales skill assessment samples with evaluation on pdf files or documentation from different sales skill assessment tests conducted by companies. Fortunately, we were able to find a sample of sales skill assessment tests with result evaluation but unfortunately, one sample is not enough to generate the best practice method on how to evaluate/score a sales skill assessments, thus there is no basis why it was a best-in-class. Therefore, we were not able to triangulate the requested information.

Lastly, to locate the best-in-class examples of how companies are evaluating their salespersons, we comb through credible business reports and academic publications for information regarding some examples of how companies are evaluating the sales skills or sales performance of their salespeople. To determine the best-in-class examples of how companies are evaluating their salespeople, we used the following metric: the best-in-class examples of how companies are evaluating their salespeople should be used by companies as a quantitative measure in evaluating sales skill, the best-in-class examples of how companies are evaluating their salespeople should be cross-referenced across several articles and research studies as possible, and the best-in-class examples of how companies are evaluating their salespeople should be practiced before and still in practice today.

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