A new version of this article, featuring the latest data and statistics, is available. Check out our report on Sales Management Software Software Statistics for 2022.
One of the biggest problems that plague sales teams today is getting reliable predictive information. Sure, we can backtrack and monitor our past performances, but can we predict the future as well? Sales technologies can help our predictions become more reliable. But we sometimes feel uneasy in trusting them fully. This is why, in this article, we have compiled key online sales management statistics to keep you up to date on the field as it interfaces with technology even more.
Online Sales Management Statistics Table of Contents
Rise of Mobile and Online Sales
We are online, more and more. Baby Boomers, Generation X, and the Millennials seem to be in a deep and loving relationship with their mobile phones. This is why a phone is still handy in sales-related activities, even in the digital age. Technologies like mobile marketing software are called upon by companies to round up their marketing and sales efforts. Markets will likely continue to move towards this direction, and businesses should move with it. Many companies still need to play catch up.
- In 2020, online sales accounted for 21% of total US retail sales, up from 15.8% in 2019 and 14.3% in 2018. (Digital Commerce 360, 2020)
- In 2020, US ecommerce is estimated to reach $839.02 billion in sales, up 40.3% from 2019 ($598 billion). (Digital Commerce 360, 2020)
- In Q3 2020 alone, US ecommerce surged 37%, propelled by changing customer behaviors because of Covid-19. (Digital Commerce 360, 2020)
- The number of digital buyers worldwide is expected to hit 2.14 billion in 2021. (eMarketer)
- Total ecommerce sales during the Thanksgiving weekend in 2020 was $34.4 billion. (Statista, 2020)
- Cyber Monday online sales reached $10.8 billion in the United States. This figure is $1.4 billion higher compared to the 2019 sales. (Statista, 2020)
- 60% to 70% of luxury sales in the world are influenced by digital media. (Luxury Daily, 2019)
- 72% of the highest-spending luxury customers use social media to interact with their favorite brands. (Luxury Daily, 2019)
- B2B ecommerce makes up 13% of the total B2B sales in the United States. (Statista, 2020)
- In 2020, retail chain (77%), consumer brand manufacturer (42%), web only (37%), and catalog/call center (31%) showed the highest ecommerce growth rate. (Digital Commerce 360, 2020)
- Only 25% of business respondents have equipped their salespeople with social engagement tools. (PostBeyond, 2019)
- Only 8% have optimized social engagement for sales. (PostBeyond, 2019)
- Customer preference for ordering via mobile apps increased 30% during the pandemic. (McKinsey, 2020)
- eCommerce sales from May 26 to June 1, 2020 were 40% higher than sales from February 24 to March 1, 2020. (Forbes, 2020)
- 6% to 10% – the increase in sales across all product categories once Covid-19 struck. (The Drum, 2021)
- 30% of Millennials are shopping more frequently online. This coincides with a study that compared Millennials and Gen Zers in connection with the effect of the pandemic on the economy. (The Drum, 2021)
Source: The Drum, 2021
Key Challenges for Sales Professionals
Selling, apparently, is a difficult job. Sales management data show that sales managers face great challenges at work. It is not just about managing sales but also managing people. People can be your leads or your staff. There are some ways to nurture leads and increase sales. But being consistent with them and with other best practices is no small job. On top of that, managers are usually responsible for the lifecycle of a salesperson from onboarding to development. The plate can be very full.
- 46% of respondents in a study said that the new digital sales model they adopted during Covid-19 is less effective at reaching and serving customers. (McKinsey, 2020)
- 14% of sales professionals said that gaining appointments is one of their biggest challenges they encounter in their prospecting efforts.
- 26% struggle to create differentiation from the competition. (HubSpot, 2021)
- As well, 26% of salespeople find it a challenge for their team to be consistent in executing meetings. (HubSpot, 2021)
- Maintaining profitability is a concern for 17% of sales professionals. (HubSpot, 2021)
- 20% of sales organizations have less than 75% sales prediction accuracy. (Miller Heiman Group, 2020)
- 30% of respondents point to sales management as a challenge in sales forecasting. (Miller Heiman Group, 2020)
- Seller subjectivity is a concern for 40% of sales operations leaders when it comes to sales forecasting. (Miller Heiman Group, 2020)
Sales management reports show the great challenges being faced today by managers. If you are in the market for sales automation software, it is better to shortlist the ones that could help your struggling colleague. Great ones can automate workflows so sales managers can do more important things like developing the team. Remember that coaching can help salespeople achieve their quota by 10%. Just outsource the tedious and clerical jobs to your friendly AI.
The Sales Profession and Performance
Just like any other profession, sales is an art and a science. Not many can get it right the first time. Not everyone seems to like being in the profession. But there are those special people who are built for the job. Some key sales management statistics below show how rare it is to find a high-performing and happy salesperson. This rarity is exactly what makes them valuable.
- Around 10% of the total labor force in the US have selling-related occupations. (SSRN Electronic Journal, 2019)
- Total expenditures for selling activities are close to 5% of the GDP. (SSRN Electronic Journal, 2019)
- It takes only 30 days for employees to forget 80% of their sales training. (MarketingProfs)
- 17.6% rate their job as outstanding. (Sales Insights Lab, 2020)
- 47.1% find their job to be “just good.” (Sales Insights Lab, 2020)
- Only 24.3% exceeded their quota in 2018. (Sales Insights Lab, 2020)
- Only 30.8% generate referrals from existing customers, while a low 7.3% exceeds expectations in this aspect. (CSO Insights, 2019)
- 81.6% of top performers spend 4 hours or more on sales-related activities. (Sales Insights Lab, 2020)
- 61% of salespeople consider selling today to be harder than 5 years ago.
- 47% of top performers consistently ask for referrals. (Sales Insights Lab, 2020)
- Globally, 37% of companies transitioned their field sales to online via video conference and phone because of Covid-19. (McKinsey, 2020)
- 79% of B2B companies are likely to keep the digital shift for 12 months or more after Covid-19. (McKinsey, 2020)
of top performers spend 4 hours or more on sales-related activities of salespeople consider selling today to be harder than 5 years ago of top performers consistently ask for referrals of salespeople rate their job as outstanding Source: Marc Wayshak, 2019Selling: Performance and Job Outlook
of top performers spend 4 hours or more on sales-related activities: 81.6
of salespeople consider selling today to be harder than 5 years ago: 61
of top performers consistently ask for referrals: 47
of salespeople rate their job as outstanding: 17.6
It is not just sales managers that suffer from job difficulties. Salespeople can, too, especially if they are unfortunate enough to be part of an organization that does not invest in training and coaching. Sales is both a people and numbers game. Learning how to make sales forecasts is well and good, but the relationship game may be harder to teach. Sometimes the pressure to make the numbers is not supplemented by talent development. This does not make happy campers.
The Sales Force Automation Software Market
The sales force automation software market is as fast-growing as it is big. Sales force automation reports indicate that the volume of purchases will continue to rise. It is good to note that although this may be true, adoption risk remains the number one challenge for businesses. This is in the sense that they may buy software or some tech stack, but members don’t use them well.
- Sales force automation technology comprises around 55% of the sales technology market. (Oracle, 2019)
- The sales force automation market size grew by 12.8% at $6.9 billion in 2018, where most growth is related to cloud-based products. (Oracle, 2019)
- The market value in 2019 was $1.4 billion. It is anticipated to hit $1.65 billion in 2024. (Apps Run The World, 2020)
- Further, the sales force automation software market is predicted to reach $13.82 billion by 2027 with a CAGR of 8.3%. (Yahoo! Finance, 2020)
- 57% use sales tools and technologies for lead generation and lead intelligence. (CSO Insights)
- 56% use sales technology for activity management and tracking. (CSO Insights)
- Only 34.6% used predictive lead scoring tools the year the survey was conducted. (CSO Insights)
- 18.1% plan to purchase predictive lead scoring tools in the following year. (CSO Insights)
- A tool used in conjunction with sales force automation solutions is marketing automation software. As of July 2020, HubSpot dominates the marketing automation market with a 28.71% share. (Datanyze, 2020)
From the last two bits of sales automation statistics, we can tell that many organizations are still stuck with lagging indicators to measure their performance. This is essential but can be supplemented by predictive analytics. It seems that more and more firms now are getting on the predictive analytics train. Sales managers can use this for effective lead generation to improve performance.
Best Sales Force Automation Software
- HubSpot Sales. Sales processes are less arduous with this software, as it automates various stages of the procedure. You can learn more about its capabilities in this HubSpot Sales review.
- Sales Creatio. This platform packs intuitive tools that streamline the sales process from opportunity management to order management. Get to know this software in-depth through our Sales Creatio review.
- xSellco Repricer. Staying competitive at all times is possible with this real-time repricing application. Discover more of its functionalities in this xSellco Repricer review.
- SellerCloud. If a business has a multichannel operation, this platform can be beneficial to it. Learn how it can help your commercial undertaking in this SellerCloud review.
- Groove. Sales representatives can do more with this time, as this solution enhances sales and insights with its analytics. This Groove review can tell you how it can help your business.
Usage of Sales Tools and Technologies
As mentioned, not everyone is on the analytics bandwagon just yet. But data shows that high-performing sales teams tend to be more believers than naysayers. Data analytics software can help sales managers find patterns in seemingly disparate data sets. Having this can have a large effect on your business.
- In 2015, predictive analytics technology was the 2nd most-sought acquisition for sales development. (TOPO)
- In 2019, sales performance management software revenues hit $1.4 billion. The expectation for 2021 is $1.49 billion. (Apps Run The World, 2020)
- Businesses that use analytics efficiently have a 10.5% YOY revenue. (Aberdeen)
- Analytics-savvy businesses increase customer satisfaction annually by 8.1%. (Aberdeen)
- When businesses use analytics well, they can increase social media mentions by 14.6% annually. (Aberdeen)
- 94% of high-performing sales teams use analytics for sales performance prediction and measurement. This is a sharp contrast to 70% of other respondents who do not use analytics. (CSO Insights)
- 76% of world-class sales teams are highly confident in CRM system data in contrast to just 30% of non-high-performing respondents. (CSO Insights)
- 62.3% of sales organizations only use lagging indicators to measure performance. Only 8% use predictive analytics. (CSO Insights)
Source: Miller Heiman Group, 2020
From the sales automation data above, we can say that companies who wish to have an edge over others are likely to prosper with analytics than without. Top sales operations do, and they interface well with their tools. They take care of the human side of things in sales, yet they keep on top of the numbers game through software. Also, the same goes for many business processes. For a more comprehensive understanding, check out what business process management software can help you out with.
From Data to Insights: What to Consider
As mentioned, salespeople can forget their training as time passes. And this is a significant loss of investment. That is why many believe that sales force automation platforms are good investments. They don’t apply for leaves. Programs continue to work during weekends. They can keep up with the times. Also, they do what they are told. But they can’t replace good salespeople. They are there only to empower and not take over.
Researchers caution practitioners that although sales force automation software can provide many possible benefits, these can’t be realized in every organization. This is because sales management tools only provide benefits to the company and end consumers when used correctly. Not every implementation is perfect, and that is why having an expensive program is no guarantee for success. This might be a cliche, but success in this regard is always the right mix of hardware, software, and people.
There is no denying what the sales force automation statistics show. Top-performing sales operations use technology more and better than under-performing ones. Also, the use of analytics seems to become more rampant soon. Data seem to point out that cloud-based solutions will be on the rise. Choosing the right sales automation software may just take your sales operations to the next level.
References:
- Digital Commerce 360. (2020, November 20). 5 ecommerce data forecasts for 2020. Digital Commerce 360.
- eMarketer. (n.d.). Retail & ecommerce articles. eMarketer.
- Richter, F. (2020, December 2). Infographic: Cyber Monday online sales hit $10.8 billion. Statista.
- Richter, F. (2020, December 2). Infographic: Cyber Monday online sales hit $10.8 billion. Statista.
- Forrester. (2019, January). Infographic: Cyber Monday online sales hit $10.8 billion. Luxury Daily.
- Coppola, D. (2021, February 19). B2B e-Commerce in the United States. Statista.
- Durfy, L. (2019). The Forrester new Wave™: Sales social engagement tools, Q2 2019. PostBeyond.
- Harrison, L., Gavin, R., Plotkin, C. L., & Stanley, J. (2020, July 14). How B2B sales have changed during COVID-19. McKinsey.
- Voskresensky, V. (2020, July 8). Sales after Covid-19: The pandemic and the sales pipeline. Forbes.
- Romagnoli, R. (2021, January 13). How COVID-19 changed e-Commerce: Sales growth and irreversible dependence. The Drum.
- Gavin, R., Harrison, L., Plotkin, c. L., Spillecke, D., & Stanley, J. (2020, April 30). The B2B digital inflection point: How sales have changed during COVID-19. McKinsey.
- Richardson. (2021, February 4). Top sales challenges facing salespeople in 2020 [New data]. HubSpot.
- Miller Heiman Group. (2020, January 23). The top four challenges in sales forecasting—and how to right them. Miller Heiman Group.
- Misra, S. (2019). Selling and sales management. SSRN Electronic Journal.
- Ballance, C. (2014, April 16). How to use mobile technology to improve sales and marketing alignment. MarketingProfs.
- Wayshak, M. (2020, March 17). 18 new sales statistics you need to know about right now! Sales Insights Lab.
- CSO Insights. (2019). 2018-2019 sales performance report. CSO Insights.
- Oracle. (2019). Gartner magic quadrant for sales force automation 2019. Oracle.
- Pang, A., Markovski, M., & Trifunovski, N. M. (2020, November 6). Top 10 SPM software vendors, market size and market forecast 2019-2024. Apps Run The World.
- Grand View Research. (2020, June 30). Sales force automation software market size worth $13.82 billion by 2027. Yahoo! Finance.
- CSO Insights. (2018). 2018 sales operations optimization study. PleinAire Strategies.
- Datanyze. (2020). Marketing automation market share. Datanyze.
- Gonzalez, B. (2018). Sales development technology: The stack emerges. TOPO.
- Aberdeen. (2016, February 2). Misinterpreting customer data: Good data can’t save bad marketing. Aberdeen.
- CSO Insights. (2017, February). Sales managers overwhelmed and underdeveloped. CSO Insights.
- CSO Insights. (2018). Sales talent study. CSO Insights.
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