According to new research released today in Salesforce's sixth State of Sales report, 67% of sales reps don't expect to meet their quota this year, and an even larger 84% missed it last year. These numbers highlight the significant pressure sellers are under. Lagging productivity may also be a factor. Sales reps report spending 70% of their time on non-selling tasks, making it difficult to connect with prospects.
But there is good news. To address these challenges, many companies are using predictive and generative AI to free reps to focus on selling and building trusted relationships with customers. In fact, 81% of sales teams are either experimenting with or have fully implemented AI. The results speak for themselves: 83% of sales teams with AI saw revenue growth this year vs. 66% without AI.
The State of Sales report includes these and other insights from 5,500 sales professionals across 27 countries, revealing how companies drive growth and stand out in a crowded marketplace.
Reps say selling has gotten more challenging amid heightened competition
Across most sales organizations, revenue growth isn't keeping pace with company goals. Worldwide, sales professionals say rising customer demands and competition are their top obstacles. Fifty-seven percent of sellers say competition has gotten more challenging since last year, and only 13% say it's gotten easier.
Nonselling tasks pull reps away from customer relationship building
Competition isn't the only obstacle to sales. Non-selling tasks, such as administrative work and meeting preparation, consume 70% of reps' time. Without time carved out for critical selling efforts, reps struggle to connect with customers.
B2B buyers specifically have flagged this disconnect. Eighty-six percent say they're more likely to purchase when companies understand their goals, yet non-selling work may be getting in the way: 59% of buyers say reps don't take the time to understand their business' unique challenges and objectives.
"Deep relationships with customers are the difference-makers when it comes to challenging sales environments," said Ketan Karkhanis, EVP and GM of Sales Cloud at Salesforce. "B2B buyers are more likely to purchase when reps act as trusted advisors. However, too often, deep knowledge of customer need and opportunity is lacking or not effectively communicated. That makes it difficult to build trust, derailing deals."
Deep relationships with customers are the difference-makers when it comes to challenging sales environments. Ketan Karkhanis, EVP and GM of Sales Cloud at Salesforce
Sellers see accuracy, personalization benefits from AI despite adoption hurdles
In a climate of heightened competition and scarce hours in the day to sell, many sales teams are looking to AI for support. Currently, 40% of sales organizations are experimenting with AI, and an additional 41% say they have the technology fully implemented in their operations. Of course, given the exceptionally rapid pace at which AI is evolving, whether teams consider their current implementations complete may change in the future.
Regardless, the benefits of AI for sales teams are clear and growing. For example, 80% of reps working on teams using AI say it's easy to get the customer insights they need to close deals, compared to just 54% at orgs without AI.
When asked to name where AI has had the biggest impact, sales professionals point to five key areas:
There are some obstacles to successful AI implementation, however:
Sales teams are taking action to address these obstacles. Fifty-three percent of sales teams that have fully implemented AI first consolidated their tech stack, which helps streamline data. Nearly the same amount (51%) implemented additional data security measures.
"AI is no longer a nice to have - it's a must," noted Sales Cloud CMO Amber Armstrong. "Its impact is greatest when every tool in a team's tech stack is consolidated. Having a single platform - like Sales Cloud - allows sellers to leverage comprehensive data for the most accurate, relevant AI outputs. It also streamlines workflows for maximum productivity."
Companies with AI also see improved employee retention
Beyond the benefits to core sales motions, AI is linked to higher employee retention. High levels of stress can threaten employee longevity, but on teams with AI, sales reps are 2.4x less likely to feel overworked. This can help lower anticipated staff turnover: Two-thirds of reps using AI say they have no intention of leaving, compared to just over half on teams without AI.
Data also suggests that AI is not replacing sales jobs, as some fear. Quite the opposite: 68% of sales teams with AI added headcount in the past year, compared to 47% of teams without AI.
"In the era of AI-driven sales, the value of retaining skilled reps has never been more critical," said Karkhanis. "Employee retention keeps staffing and training costs down. So, by investing in both cutting-edge AI technology and the continuous development of our people, we ensure that our teams are not only more productive but also more engaged and committed, leading to stronger teams and higher sales.
Data in this report is from a double-anonymous survey conducted from March 8 through April 18, 2024. The survey generated 5,500 responses from sales professionals across North America, Latin America, Asia-Pacific, and Europe. For more demographic information, please refer to the full State of Sales report.
