According to the US Department of Labor, approximately 47% of the US workforce is female. However, as of 2017, only 39% of sales jobs and 19-21% of senior sales leadership roles were filled by women – even though women achieve their sales quotas at a rate of 70% and men 67%; (Mandelbaum, 2017).
In January 2018, Forbes published an article entitled “Why We Need More Women in Sales” by Rakhi Voria, indicating the following are three reason’s women are valuable in sales:
1. “Women Are Good at Sales” – they are 5% more likely to close on business than men.
2. “Women Can be Better for Your Bottom Line” – diversity creates a better bottom line. In fact, McKinsey research indicates that companies in the top quartile for gender, racial, and ethnic diversity at senior levels perform better financially than companies in the lower quartile.
3. “Women Can Help You Better Connect with Your Customers” – after all, more than 50% of the US population is female. Moreover, diverse companies are better able to “win top talent and improve their customer orientation” (Hunt, Layton, & Prince, 2015).
So why are there fewer women in sales and why so few in leadership positions? First, I would like to acknowledge there may be personal reasons (children, family, personal choice, etc.) why some women choose not to pursue a leadership role, those topics and reasons are beyond the scope of this article. However, some studies indicate that one factor is simply due to a lack of confidence and believing in one’s abilities. Ashley Verrill, Market Analyst at Software Advice, spoke with three high-powered and effective female sales leaders and identified five things women do that unintentionally sabotage their sales careers; they are as follows:
1. “Being Afraid of Self-promotion” – keep in mind there is a difference in bragging and self-promotion. If we consider Patrick Lencioni’s three indispensable virtues of the ultimate teammate, being humble is at the top of the list. So how do we display humility and still promote ourselves? I think the key is to be confident and to know how and when it is appropriate to discuss education, reputation, and accomplishments to build confidence and credibility. Understanding that as a team member, the team/organizational goal accomplishment is preferred to individual achievement.
2. “Undervaluing Themselves and Their Services” – don’t leave money on the table by undervaluing what you bring to the table. Part of the sales process is negotiating, which may include price negotiations. If you start low, where do you go from there? Moreover, what does it say about the value you bring to the table if you undervalue yourself and/or your product?
3. “Not Asking for Directions” – if you don’t understand something, ask for clarity. If you need help, ask for it. Asking for assistance can be a display of strength if done correctly AND if you don’t ask for help – it could slow you down and negatively impact productivity.
4. “Making Relationships a Priority” – I’m all about relationship-based sales, but I don’t disagree with Verrill’s point, that it doesn’t have to be one or the other. She contends that women tend to be more sensitive, placing more emphasis on the positive relationship than the desired business result. Instead of accepting the “no” to preserve the relationship, instead, think of it as an opportunity to educate the client. This approach doesn’t devalue the relationship, but instead builds value and credibility – the more you do this, the better you will get at it.
5. “Being Afraid to Make a Mistake” – no one wants to look foolish nor do they want to let others down. Bringing big and bold ideas to the table also brings greater risk. Don’t be afraid to think outside the box – it’s bold thinking that can sometimes blow the doors off your productivity!
Verrill closes indicating that writing the article helped her both personally and professionally to see that she is “guilty of several of these things.” I support her assertion that awareness helps you to identify the area(s) that need change so that you may focus on adjusting behavior that will lead to long term success.
I want to add a few additional things for women and men in sales to consider if they desire to make it to a top leadership role – and that is the need to understand market share and the P&L (Profit and Loss Statement).
· MARKET SHARE – Defined as a portion of the business in the market that is controlled by a particular company. Some business leaders argue that market share is the single most important metric in determining business effectiveness.
The key here is for a sales leader to take the time to look at the analytics and understand what is in the market (current and future demand), what is your company’s “fair share” of that business, and then devise a strategy to go get it. Great sales leaders not only understand and work to get their “fair share” – they fight to steal share from their competitors. Several other reasons why understanding market share is important:
o Sales goals simply can’t be established if one does not know what is in the market.
o Understanding market share helps us to understand the effectiveness and ROI on sales and marketing campaigns along with CRM and branding initiatives (Buxton.com)
o The average company who doesn’t pay attention to market share tends to overestimate their shares by a “factor of two” (Buxton.com). Overestimating market share can lead to poorly written budgets along with inflated and unattainable sales goals (which leads to demotivating sales team members).
· PROFIT & LOSS STATEMENTS help a company to identify their net income, accomplished by tracking sales and expenses to determine gross margins and net profit. Many salespeople are intimidated by spreadsheets, don’t want to crunch numbers, and generally don’t like spending too much time in the details. This is largely because, for the most part, salespeople like to work with people, not numbers – they are more relational than their accounting counterparts. However, to be an effective sales leader, one must take the time to understand the P&L and the financial implications of the business their team is pursuing. Understanding the P&L helps with the following:
o Determine pricing strategy. If a segment of the business is highly profitable, perhaps we can spend a little more money marketing it to grow the segment.
o Determine target market viability. Understanding how long it will take for a company to re-coupe costs associated with pursuing new lines of business are imperative to the financial health of a company. If the company does not have the cash flow nor resources to sustain itself while it is recouping its investment(s) into new lines of business, pursuing the business does not make sense.
o Are profit margins too tight? If one understands market share, competition, and what the market will bear in pricing – it then becomes possible to run the numbers and understand the profit and loss implications. If the market doesn't bear the price you need to charge for your product to be profitable, it may be time to walk away from that segment of business or re-think your strategy. In either case, if you don’t understand how to read a P&L, you can’t make or understand the need for viable recommendations to ensure the company remains/reaches profitability and can sustain itself.
In summary, to be an effective sales leader, regardless of gender, one must first believe in themselves -- then focus on doing your part to ensure that you AND your team are meeting goals (results matter), ask for help when you need it, and understand the financial implications of the business you and your team are bringing to the table.
I think that sometimes we over complicate things. Managing a company’s budget isn’t unlike managing your home budget – if you take a job that pays less than your bills, you must either cut your spending, get a second job, or find a higher paying job.
Sales are important; however, they must then become actualized revenue – after that, once the direct expenses are subtracted does your company have enough money to pay other indirect expenses such as administrative/support payroll, utilities, etc. and still have money left over. If not, no matter how much you and your team sell, the organization will not be sustainable for the long haul.
Financial skills are considered an integral part of being a successful leader as they provide a way to understand the implications of a leader’s decisions and how to improve the company’s overall performance; this knowledge coupled with the ability to grow sales and revenue for a company can make you incredibly valuable! Annan states it best…
“Knowledge is power. Information is liberating. Education is the premise of progress, in every society, in every family.” — Kofi Annan
References/Resources:
Hunt, V., Layton, D., & Prince, S. (2015, January). Why diversity matters. Retrieved from https://www.mckinsey.com/business-functions/organization/our-insights/why-diversity-matters
Mandelbaum, A. (2017). Trends of Women in Sales. Retrieved from https://www.badgermapping.com/blog/women-in-sales/
Market share: The most important metric for business. Retrieved from https://www.buxtonco.com/blog/market-share-the-most-important-metric-for-business-success
Top trends of women in sales. (2017). Retrieved from https://business.linkedin.com/sales-solutions/resources/sales/top-trends-of-women-sales-professionals#
Verrill, A. (n.d.). 5 ways women in sales sabotage their success. Retrieved from https://www.softwareadvice.com/resources/5-ways-women-in-sales-sabotage-their-success/
Voria, R. (2018, January 17). Why we need more women in sales. Retrieved from https://www.forbes.com/sites/forbesbusinessdevelopmentcouncil/2018/01/17/why-we-need-more-women-in-sales/#47fd86ec30ce
Comments