The New Psychology of Sales Performance

1. Introduction A few years ago, I had the opportunity to meet one of the insurance brokerage industry’s most successful “producers” (the industry’s term for salespeople). This man had generated millions of dollars in commissions for years, had been labeled a “power broker” by industry journals, and was managing one of the most successful regional offices for a national brokerage firm. We had become friends over the years as my business supported his successful sales efforts with actuarial services and analytical software. As an entrepreneur, I was interested in understanding what this undisputed industry leader viewed as the main challenges in the insurance brokerage world. When I asked him that question, he paused briefly and then replied, “If you can figure out how to identify who will succeed as a salesperson, then you will have solved the biggest challenge this industry faces.” That was not the answer I expected, but it led me on a journey to understand the factors that contribute to sales performance. In fact, I entered a prestigious executive leadership program at Oklahoma State University so that I could examine this topic at the Ph.D. level. I approached this endeavor in the same way that I have approached all my high-level analytical work—seeking to do quality research and distill the results down to the practical level so as to benefit the sales profession. Thanks to my established reputation and extensive contacts within the insurance field, I was able to access a research sample that few others could have secured. My pilot research had a sample of 1,200 respondents, and my detailed personality testing involved more than 150 insurance salespeople—with an average salary of $137,000—and their supervisors. In other words, I was able to test my hypotheses on the relationships between personality factors and sales performance with a sample of very successful professionals. I am deeply grateful to the salespeople who patiently answered nearly 150 questions each, as well as the supervisors who provided performance evaluations, so that my results could have a high degree of statistical reliability. My findings have compelling, easy-to-apply implications for the all-important task of cultivating a productive sales force in any B2B setting. In this small booklet, I explain what I have learned and how you can put this information to work. I have tried to keep things short and simple. If you want more details, you can look up my whole dissertation online at https://shareok.org/handle/11244/48794. Or feel free to contact me with questions at TLC@SIGMAactuary.com. To help you understand my findings, first I need to take you through a brief primer on the relevant concepts of personality psychology. (If you are already familiar with the Big Five personality traits, HEXACO, grit, and PsyCap, you can skip the next chapter.) With this information in hand, you’ll be able to readily understand my findings and how you can apply them.