Go Back Up

Fifth Edition

2023 State of Sales Small to Mid-Size Businesses

Insights from 3,686 small to mid-size businesses on how well their sales organizations are functioning.

2023 State of Sales eBook cover

Help Your Business Reach New Levels

Learn how small to mid-size businesses are doing in the four key areas of sales and gain tangible steps for your sales team to focus on in 2023.

Our data reveals that fundamentals are lacking in the four key sales areas. If you are struggling to drive sales growth, read our eBook to learn tangible steps for improvement.

Download

While leading a sales organization, it is often all you can do to simply keep things running.

4% increase in Poor ratings

In fact, our data shows little thought is given to the fundamental processes necessary to put a sales growth strategy in place. Many leaders often don’t realize there is a problem with their sales organization until growth is stagnant or declining, and changes must be made to continue to grow the business. 

Our data reveals 76% of organizations rated themselves as Poor on how well their sales department is performing, while 19% ranked Below Average. Our State of Sales insights are here to guide you on the key aspects that you should be implementing to improve sales performance.

Let’s Dig Deeper into the Four Key Sales Areas

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 Strategy

Sales Methodology

Sales Methodology

Sales Analysis

Sales Analysis

4-2

Sales Organization

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.

Small to Mid-Size Businesses, ranging from $1M to $100M Revenue

We use the results of one person per company - CEO, President, or COO

Companies in North America

85% Business-to-Business (B2B) 15% Business-to-Consumer (B2C)

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 Xceleration 2023 Infographic-performance

We saw a 4% increase in Poor ratings from 2021 - 2022

To maximize revenue and stay ahead of the competition, an effective sales infrastructure is critical. Yet, far too many companies fall short in this area, ranking themselves as Poor in having the right or any sales infrastructure in place.

Definition and Scores of the Four Sales Categories

How Small and Mid-Size Businesses Rate Themselves

Four Key Sales Areas

Sales Strategy Key Insights

Industry Positioning, Competitors, and Value Proposition

Sales-Xceleration-2023-Infographic-value-proposition

It All Starts with Your Value Proposition

Companies are sending their sales team out in the market, and 73% don’t know what makes their company offering unique. They don't know how to share this OR why someone should buy from them.

Sales Strategy

Expert Tips and Tricks

*Click the arrows below to reveal expert tips

Do you have a unique Value 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 Value 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?

Of course, the answer is yes, but why are most not doing competitive research?

Sales-Xceleration-2023-Infographic-competitive-analysis

Sales Strategy

57% of Companies Don't Know Their Competitors in the Markets They Serve

2023: 57% | 2022: 54%

*Note: up 3% in Poor ratings from the prior year

Worse yet, of the companies that do know of their competitors, 96% have not done a thorough analysis of what they offer.

Sales Methodology Key Insights

Territories, Coverage, Processes, and Customer Relationship Management

Sales-Xceleration-2023-Infographic-CRM-steps-1

It All Starts with Insights and Data

Only 15% of small to mid-size businesses prioritize customers by their potential.

*Note: up 1% from the prior year

Only 32% of small to mid-size businesses have a database to track and manage their prospects and clients.

*Note: 1% improvement from 2022, 2% improvement from 2021
Sales Xceleration-2023-Infographic-sales-process

And It's All About the Documentation

92% of companies have not educated their sales team on the steps in their sales cycle, making it impossible to determine when a prospect moves to the next stage.

*Note: poor ratings up 5% from 2022

2023: 92% | 2022: 87%

Sales Methodology

Expert Tips and Tricks

*Click the arrows below to reveal expert tips
Do you have a Customer Relationship Management (CRM)? If so, are you using it?
TIP: There are so many inexpensive or free CRMs, so just get started!
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.

Follow us on LinkedIn for sales tips, insights, and ideas

Follow

Sales Analysis Key Insights

Goals, Quotas, Metrics, Reporting, Compensation, Incentives

Companies continue to go backward in having the company’s metrics defined, tracked, and updated to have proper insights into how their business is performing.

Sales-Xceleration-2023-Infographic_real-time
Sales-Xceleration-2023-Infographic-metrics-1

Compensation is a Key Driver for Sales Success

As the market gets more competitive to find top talent, and in particular sales talent, we have seen slight forward momentum in companies rating themselves as Excellent in building the right compensation plan.

Compensation is a Key Driver for Sales Success

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: Betts Compensation Guide and/or Payscale provide current insights.

Sales Organization Key Insights

Staffing, Hiring, Training, Roles and Responsibilities

Sales-Xceleration-2023-Infographic-onboarding-1

Companies are getting worse at setting new and existing sales team members up for success.

57% of small to mid-size businesses don't have sales resources, roles, and responsibilities defined in writing.

92% are not addressing gaps in sales competency when discovered.

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.

Looking for tools to guide you in implementing best practices? We’ve got you covered.

Sales Resources

According to an article in Forbes, Skills are Becoming the New Currency

Investing in your team is key to hiring and retention.

  • 94% of employees would stay at a company if it invested in their career development, according to a LinkedIn Learning Report

  • Korn Ferry & SHRM are seeing a big talent shortage and less skills in the marketplace

  • Students are not graduating with the skills employers say they need

  • Attracting and retaining talent with the necessary skills are becoming increasingly difficult/competitive

  • Wall Street Journal published an article saying fewer people want to go into sales and schools do not have programs to encourage sales careers

Sales-Xceleration-2023-Infographic-training

Sales Organization

Expert Tips and Tricks

*Click the arrows below to reveal expert tips

Does your company have a solid training program in place?
TIP: Invest in the growth of your team. Find out what they want to learn about and support their growth journey.
Do you send your team to conferences and learning events? Do you look for internal staff members that could move into sales?

TIP: Help your team build more skills to do their current job at their fullest potential. Maximize cross-training and understanding interest to create a career path.

Put the Data into Action

Five Key Areas Sales Teams Should Focus On

According to our research, the following five areas should be focused on in 2023 in order to set sales teams up for success.

1. Create a Value Proposition

It is crucial for a company's success to have all sales team members know what your differentiator is. In fact, not only should your sales team know your value prop but all employees in the company.

2. Document Your Sales Process

Your sales team needs to know each step in the sales process. Defining the buyer journey and tracking key milestones helps increase the probability of closing and provides insights into your pipeline.

3. Set Goals to Create Clear Expectations

Everyone needs to know what is expected on them and outlined in compensation plans, tracking those key performance indicators (KPIs) and related company outcomes. Then, be sure to implement a performance review process that occurs at regular intervals.

4. Initiate Onboarding Programs Immediately

Communicate the onboarding plan in writing, and make sure it's understood by all parties. Then, check-in with new salespeople at 30, 60, and 90 days to ensure they're adjusting well and understand expectations.

5. Focus Sales Performance Metrics on Leading Indicators

Sales performance metrics focus on things that have already taken place, when they should center around metrics that suggest future results. Be sure to review sales performance metrics weekly to ensure your people and company are on the right track.

Past Editions

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. See our other eBooks to review more fundamentals companies need to address to grow sales.

2019 State of Sales Cover

First Edition

2019 State of Sales for Small to Mid-Size Businesses

Download
Second Edition - 2020 State of Sales Cover Image

Second Edition

2020 State of Sales for Small to Mid-Size Businesses

Download
2021 State of Sales Cover

Third Edition

2021 State of Sales for Small to Mid-Size Businesses

Download
2022 State of Sales Cover

Fourth Edition

2022 State of Sales for Small to Mid-Size Businesses

Download

Ready to Elevate Your Sales Strategy?

While our data shows that many companies are falling behind in building a strong sales organization, there is a solution - enlist an expert to implement the right processes, tools, and teams to achieve sales success.

Our sales leadership consultants will conduct a no-obligation assessment of your business to uncover how they can best support you.

Contact Us

*Data compiled from client results from 3,686+ completed SAA 4.0s pre-engagement from 12/1/2018 – 12/31/22. ©Sales Xceleration.