Survey Finds that Increasing Market Share is More Important than Achieving Sales Quotas
As we get into 2017, sales executives have their eyes on the competitive landscape.
In Infinity’s recent survey, the majority of sales executives surveyed say that increasing market share is more important than achieving sales quotas in 2017.
It’s a surprising result, considering that the most heard phrase in boardrooms is: “We need more sales.”
What’s the Difference between Sales Quotas and Market Share?
Sales quotas are those goals that sales units need to hit to meet company goals. Achieving sales quota means successfully executing on sales campaigns (like acquisition, loyalty, upsell, and bundling).
On the other hand, market share is the percentage of total business that a particular company earns. The idea being that there’s only so much money that will be spent on any particular service, so market share is a company’s portion of that total spend. Market share reflects how much a customer prefers one brand to another. It’s that brand loyalty — and love — that businesses are looking for in 2017.
What’s Behind This Interest in Market Share?
There are several reasons why sales execs might be more interested in market share.
1. Strategic Mindset
One reason sales executives are placing more important on market share could be timing — sales executives are thinking big picture as they go into the new year.
At the time this survey was distributed, most companies were likely planning for 2017, and that could put people in a strategic mindset. And while achieving sales quota is an operational goal that focuses on sales functions, market share is strategic, involving company-wide integration and considering the entire industry landscape.
2. An Improving Economy
Choosing market share over sales quotas also could point to increased confidence in the economy. Companies may feel more confident in their ability to achieve targets and aim for something more difficult to attain—like market share. According to Gallup polls, US Economic Confidence increased 68% over the last four years from August 2011 to August 2016, just before our survey started.
3. Meeting Sales Quota Leads to Market Share
Of course, gaining market share and achieving sales quotas are not mutually exclusive. If a company exceeds sales quotas, they will likely also increase in market share. So to some extent, those surveyed who chose market share covered both bases.
Increasing Market Share Requires More than Sales Execution
Although market share and sales quotas are related, there is more to gaining market share than just sales execution. It involves integrating all of the components of go-to-market strategy that lead to superior sales, including staffing the right people, developing on-going training, supporting technological systems integration, and optimizing the sales process.
Bringing all of these elements together is a big challenge for all companies, but with so many sales execs already in a big-picture mindset, this is the time to do it.
Infinity revolutionizes the art and science of sales. Learn more about how Infinity can help your company achieve a new 100% sales target and increase market share: https://infinitydelivers.com/