Sixth Edition

2024 State of Sales Small to Mid-Size Businesses

Insights from 4,425 small to mid-size businesses on how well their sales organizations are functioning.

Our data reveals that fundamentals are lacking in the four key sales areas: Sales Strategy, Sales Methodology, Sales Analysis, and Sales Organization. By focusing on these areas, small to mid-size businesses can better position themselves for growth in 2024.

If you are struggling to drive sales growth, download our eBook to learn tangible steps for improvement.

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The Top Factors Contributing to Business Failures

It's no secret that sales play a pivotal role in the success or failure of a business. With comprehensive analysis, our State of Sales data sheds light on the critical issues many businesses face.

5 out of the top 10 reasons for business failures are driven by the sales team.*

Unexpected growth and no proper controls and accountability

Unable to keep pace with their competitors

Visibility; prospects don't know the company/their offering exists

Lack of experience; sales leadership is a key area

Low sales; showcasing the need for a revamped sales strategy

Exploring the Crucial Sales Areas That Drive Revenue

This comprehensive report will delve into the four key areas of sales, providing an in-depth analysis and valuable insights for businesses seeking to optimize their sales strategies. By understanding and mastering these core components, organizations can effectively boost their revenue and achieve long-term success in the competitive market.

Sales Strategy

Sales Methodology

Sales Analysis

Sales Organization

Evaluating Performance: Scores Across Four Key Sales Categories

How Small and Mid-Size Businesses Rate Themselves

Who Took the Assessment?

Companies are given the assessment while in the initial discussions with a Sales Xceleration Advisor to help us understand what processes are in place, what tools are being used, and how team members are performing. These companies consist of small to mid-size businesses ranging from $1M to $100M revenue. 88% are B2B companies and 12% are B2C. We use the results of one person per company and report on the results of the CEO, President or COO.

The Sales Agility Assessment provides companies with a benchmark of their performance in the crucial areas that drive sales growth. The assessment has a total of 48 multiple-choice questions, which are assigned a specific number of points based on industry best practices. Study-wide scores fit into the following grading scale of Excellent, Average, Below Average, and Poor.

Sales Strategy

Expert Tips and Tricks

*Click the arrows below to reveal expert tips

Do you have a Unique Selling Proposition? If so, is it communicated to the entire team?

TIP: It's not just for your sales team, it is something everyone in the company should know.

Is your Unique Selling Proposition reviewed often?

TIP: Each year your team should review it to ensure it stays current with your offering and any market changes.

Do you want a competitive edge over others in your industry?

TIP: Gain the competitive advantage by making sure your prospects know what problem your products/services solve.

It's All About The Process

74% don’t have a documented sales process. There is some good news regarding process documenting, as we have seen it improve by 10% over our 2023 report.

86% don’t understand what needs to occur at each sales cycle step. We also saw a 6% improvement from last year in companies enhancing in this area. While there is still a a considerable amount of work ahead, progress is being made.

We saw some key industries that need the biggest improvement in building a sales cycle step process:

96% Manufacturing
87% Construction
86% IT/Tech

And It's All About the Foundation

We continue to see very few companies possessing a solid sales foundation and the processes necessary to drive sales growth year over year. Each individual assessment score is capped at 400 points, reflecting those who are implementing all the right strategies.

Unfortunately, we only see 1% of companies excelling. The assessment has scoring bans, each associated with high-level descriptions based on their final score. Only about 24% (Levels 3-5) of all companies demonstrate having most of the essential components to run a successful sales organization.

Sales Methodology

Expert Tips and Tricks

*Click the arrows below to reveal expert tips

Is your sales process documented and understood by the sales team? Is it reviewed often?

TIP: Your sales process should be evaluated every 6 months to a year.

Do you have a solid sales foundation?

TIP: The average company, after working with a Sales Xceleration Advisor, will end up in Level 4 or 5! Reach out to your local Advisor to learn more.

The average tenure of a head of sales is 18 months, with departures occurring either voluntarily or through termination. At the core of this issue lies a disconnect in perceptions between the CEO/President and the Sales Leaders.

This disconnect is due to poor communication, unreasonable expectations and pressure, lack of process documentation, no standardized tools, not having the right reporting and possibly not having the right team members.

Sales Analysis

Expert Tips and Tricks

*Click the arrows below to reveal expert tips

Do you create individual sales rep goals that align with your corporate goals?

TIP: Creating clear quarterly and annual sales goals will set expectations and ensure reps are focused on tasks that drive the business forward.

Do you have a dashboard to track sales success or lack of sales?

TIP: Tracking and reporting on key leading and lagging indicators allows the team to adjust when necessary.

Sales Analysis

Expert Tips and Tricks

*Click the arrows below to reveal expert tips

How are you paying your sales reps?

TIP: The best practice is 50% salary and 50% compensation. Driven salespeople are motivated to push for their income potential.

Compensation plans should be reviewed and updated yearly.

Do you know if you are paying the current market rates to your salespeople?

TIP: We utilize real-world data, the expertise of our certified sales recruiters and thorough research to compile the most current compensation information.

Looking for more salary insights?

Download Amplify Recruiting's FREE Compensation Guides

Amplify Recruiting's comprehensive guides are jam-packed with valuable insights and expert tips to help you navigate the complex world of compensation. Discover the latest guidelines, salary ranges, and salary mix structures to attract top sales talent.

*Amplify Recruiting, a sales recruiting firm, operates as a wholly-owned subsidiary under Sales Xceleration.

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Performance Review Insights

61% of companies do not provide written performance reviews. If they do provide written performance reviews, 70% don't provide any consequences if their sales goals are not met.

Need more insight? Download our Employee Annual Review Form, designed to streamline the performance review process.

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Sales Organization

Expert Tips and Tricks

*Click the arrows below to reveal expert tips

Does your sales team know what is expected from them? Is it written down and signed by them each year?

TIP: Their goals and associated compensation should be documented and signed each year and reviewed often.

Have you invested in training for your sales reps?

TIP: Thorough onboarding and ongoing training ensure gaps in knowledge are filled, as well as offering the ability to keep their skills and knowledge current is something that should be offered to your entire team.

Training Insights

91% of companies do not offer any sales training to their team. We dug a little deeper into a few key industries we serve, here are those industry percentages:

94% Construction
92% Manufacturing
92% Marketing
91% Tech Companies
80% Professional Services
77% Consulting

Where to Get Started

Key Areas to Focus on to Build a Best-in-Class Sales Organization

Right Team

Ensure your sales team is staffed with Hunters
Provide clear sales goals that roll up into the team’s goals
Train and coach on a frequent basis

Sales KPIs

Clear quarterly and annual sales goals for the team and individuals
Tracking and reporting on key leading and lagging indicators

CRM

Use a tool to track your established leading and lagging indicators
Establish a sales forecasting process and develop a dashboard for insights
Pipeline management: track each step of the sales process by client

Sales Playbook

Value Proposition
Scripting and sales stories
Competitor insights and how you defer from their offerings

Ideal Candidate Profile

Clarity on who is the right buyer(s)
Don’t stop there, uncover who the Buyer Personas are inside those companies

Lead Generation

Test and invest in lead generation
Make it clear to the sales team how leads are being generated and what message is being marketed

Take the first step towards achieving your sales goals by contacting your local Sales Xceleration Advisor.

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State of Sales Small to Mid-Size Businesses eBooks

The topics covered above are just a glimpse into what puts a company on the path to success. It is essential to develop the right processes, implement the right tools and have proper measurements and tracking in place. Download our eBooks to review more fundamentals companies need to address to grow sales.

Sixth Edition: