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www.pipedrive.com © 2021 Pipedrive. All rights reserved STATE OF SALES 2020 - 2021 Contents Foreword ................................................................................................................................................... 3 Key sales stories in 2020-2021 ......................................................................................................... 4 Salespeople feel underappreciated but proud ......................................................................... 5 Working hours and aspirations ....................................................................................................... 12 Carrying success through to 2021 .................................................................................................. 21 Sales skills and training ...................................................................................................................... 27 Measuring success.................................................................................................................................. 32 Working from home.............................................................................................................................. 40 The challenges of lead generation.................................................................................................. 57 Tools and technology............................................................................................................................ 63 Conclusions............................................................................................................................................... 72 Survey respondent demographics.................................................................................................. 73 State of Sales/ 3 Foreword The Covid-19 pandemic has changed our lives in the most fundamental of ways: how we live, how we work, how we connect with others and the world around us. Some of these changes will be temporary, while others are likely to be long-lasting. The sales profession was prepared, apparently and somewhat surprisingly. Overnight, people became confined to their homes, immediately forced into remote working. And it worked; we coped. Technology said, ‘This is why you invested in us.’ The pandemic rapidly accelerated trends that were already underway and also created new trends as businesses seek ways to grow at a time when we are physically apart. Communication became more important than ever before. It had to be transparent, regular and effective. We had to communicate with staff to ensure everyone was OK and proactively reach out to clients to see how they could be helped through these unprecedented times. Since the start of the pandemic, Pipedrive has undertaken regular research to understand the sales trends as we move through the various stages of the crisis, looking at how it has impacted ways of working and results. This year’s Pipedrive State of Sales Report collates the key insights from this research, highlighting the implications for the industry, including some unexpected opportunities, as we continue to navigate this period. In particular, the report takes a deeper look into key themes that emerged from our research: work from home, technologies driving success and the challenges of lead generation. Following the events of 2020, we can expect trends such as the use of online technologies and working from home to continue. Yet one constant also remains: people still treasure personal connections, perhaps now more than ever. The challenges that have emerged this year are far from over, but I continue to be inspired by the collective efforts of everyone in the sales industry as we weather this storm together. We have a history of outstanding resilience, and while this may be one of our biggest tests yet, as this report outlines, the future is full of opportunity. Sergei Anikin Interim Co-CEO and CTO State of Sales/ 4 Key sales stories in 2020-2021 1. Salespeople believe they have a positive impact, despite feeling undervalued Despite the majority (61%) saying that sales is underappreciated, an impressive 91% of salespeople are proud to call themselves a salesperson. Respondents are also confident that they will play a role in global economic recovery, with 92% saying that they believe their role will have a positive impact on the economy in 2021. 2. 2020 was a challenging year, but many feel they can carry their success into 2021 Almost two-thirds (63%) of respondents say that they work over 40 hours a week (which, for English-speaking respondents in particular, is a 10 percentage point increase on 2019), while 83% at least sometimes work weekends. However, this extra effort is paying off, as 59% of salespeople believe they became more successful at sales in 2020 and 81% expect an increase in their sales this year. 3. The trend toward working from home has impacted the industry The Covid-19 pandemic has changed the way many of us work. Lots of people have now worked from home for over a year. When it comes to sales professionals, 60% reported that the place they work from the most has changed over the past year, while four in ten (41%) say they primarily work from home. 4. The right training and technology drive success The vast majority (88%) of respondents regularly work on improving their soft skills, which helps them to be more successful. Those who regularly work on their soft skills are 11 percentage points more likely to usually or always hit their regular sales quota. With the right tools and technology, respondents are 14 percentage points more likely to have hit their annual sales goal in 2020. 5. Lead generation was a challenge for salespeople in 2020 After selling, prospecting and lead generation are the two activities that respondents spend the most of their time on. In fact, for English- speaking respondents, lead prospecting has overtaken selling as their key activity since we conducted our survey in 2019. However, English speakers have turned to technology to help them manage these efforts. 6. Interesting differences between demographics For this report, we surveyed English-, German-, Portuguese- and Spanish-speaking sales professionals. German speakers, for example, are far more likely to work from nine to five and get compensated for weekend work, while Portuguese speakers are more likely to regularly work on their soft skills. State of Sales/ 5 Salespeople feel underappreciated but proud Despite the challenges they faced in 2020, respondents feel proud of their profession and their impact. However, those who identify as salespeople are more likely to feel that their profession is underappreciated. Interestingly, despite the fact that many companies have had to downsize during the pandemic, only 4% of respondents left their role without finding a new one in 2020. More success and satisfaction Respondents have every reason to feel proud, as the majority (59%) feel that they became more successful in their role in 2020. There is also a feeling of job satisfaction in the industry, with half (49%) saying that they feel more satisfied in their role. Across all of those surveyed, Spanish-speaking salespeople are the most likely to feel satisfied. State of Sales/ 6 Pride comes from inside Sales professionals do not need external validation to feel proud of their career or identity. Over half of the respondents (61%) believe that salespeople are underappreciated in the business world, yet an impressive 91% of those who consider themselves to be a salesperson are proud to do so. Do you think salespeople are underappreciated in the business world? Are you proud to call yourself a salesperson? 9% 91% 61% 39% Yes No Yes No State of Sales/ 7 This is particularly true for Spanish speakers, who are the most likely to feel that sales is underappreciated (65%) but also the most likely to be proud of their identity as a salesperson (98%) if they consider themselves to be one. Do you think salespeople are underappreciated in the business world? Are you proud to call yourself a salesperson? 61% 60% 60% 65% English-speaking Portuguese-speaking German-speaking Spanish-speaking 89% 87% 95% 98% State of Sales/ 8 Salespeople have demonstrated their value during the pandemic When compared with last year’s report, the number of English-speaking salespeople who feel underappreciated decreased by 8%, from 69% in 2019 to 61% in 2020. This statistic suggests that the pandemic has been an opportunity for salespeople to show their worth, which is reflected in their increased job success and satisfaction, as well as in their positive attitude to the impact that sales could have on economic recovery in 2021 (which is detailed later in this report). 31% 69% 61% 39% Do you think salespeople are underappreciated in the business world? Yes No 2019 2020 State of Sales/ 9 Salespeople have become more successful and satisfied, despite the pandemic Almost half of sales professionals (49%) became more satisfied in 2020 and only 12% experienced a decrease in their satisfaction. Spanish-speaking sales professionals were the most likely to experience an increase in their job satisfaction, with 63% of them reporting they had become more satisfied over the last 12 months. 12% 2% 49% 22% 15% Which of these statements are more accurate? I have become more satisfied in my role over the last 12 months I have become more satisfied in my role over the last 12 months There has been no change in my role satisfaction over the last 12 months I have become less satisfied in my role over the last 12 months I have changed roles over the last 12 months I don’t know 48% 40% 48% 63% English-speaking German-speaking Spanish-speaking Portuguese-speaking State of Sales/ 10 Another positive trend was identified among those who changed roles. The majority moved to a sales role in a new company (55%) and a quarter were promoted (16%). Only 4% of respondents were yet to move to a new role after leaving their previous position. How has your role changed? 4% 8% 16% 17% 55% I have moved to a sales role in a new company I have moved to a new but not more senior role in my company I have been promoted I have moved to a new non-sales role I have left my role and not started a new one State of Sales/ 11 More than half (59%) of respondents have become more successful at sales over the last 12 months and only 10% have become less successful. 8% 59% 23% 10% Which of these statements is most accurate? I have become more successful at sales over the last 12 months There has been no change in my sales success over the last 12 months I have become less successful at sales over the last 12 months I don’t know State of Sales/ 12 Working hours and aspirations Sales professionals are still working long hours and on weekends, with the majority who work weekends doing so without financial compensation. There are some interesting differences betweenthe speakers of different languages. German speakers are the least likely to work weekends and the most likely to average 36 to 40 hours a week. German employment laws keep the average working week to no more than 48 hours, but so do many other countries, including Mexico. German respondents, however, are far more likely to maintain a standard nine to five. There are also interesting differences when it comes to progression within the sales industry in each language market. The majority of Spanish and Portuguese speakers who aren’t sales managers or don’t own a business want to take that next step, while only 35% of German speakers want to own a business in the future. State of Sales/ 13 Salespeople work long hours and weekends without compensation The majority (63%) of respondents say that they work 40-hour weeks or longer, with almost one in ten working over 60 hours a week. Over a third work weekends either regularly (20%) or usually (16%). However, three-quarters (75%) of respondents who work weekends do not get compensated. On average, how many hours a week do you work? 2% 4% 6% 25% 16% 9% 38% <10 h 10-25 h 26-35 h 36-40 h 41-50 h 51-60 h >60 h State of Sales/ 14 6% 17% 42% 19% 16% Do you ever work weekends? Are you compensated for weekend work? 25% 75% Yes No Never Rarely Regularly Usually Always State of Sales/ 15 English-speaking respondents are also less likely to be compensated for workingWeekends. In last year’s survey, 32% of sales professionals who worked weekends were compensated, compared to 27% in this year’s survey. Are you compensated for weekend work? 68% 32% 73% 27% Yes No 2019 2020 State of Sales/ 16 Spanish speakers work weekends, while German speakers work 40-hour weeks Spanish speakers are 20 percentage points more likely to usually work weekends, but 17 percentage points less likely to get compensated for weekend work, with only 8% receiving some compensation. In contrast, German speakers are the most likely to maintain a more even work-life balance, with 36% of them working 36 to 40 hours per week, compared to an average of 26% for all respondents. They are also the least likely to usually work weekends (7%), but are 11 percentage points more likely to be compensated for weekend work. I usually work weekends On average, I work 36 to 40 hours per week I am compensated for weekend work 11% 7% 20% 36% 26% 36% 22% 21% 27% 36% 24% 8% English-speaking Portuguese-speaking German-speaking Spanish-speaking State of Sales/ 17 Sales managers are more likely to work long hours, with almost three-quarters (73%) working more than 40 hours a week, compared to 60% of salespeople. Almost half (48%) of sales managers also work weekends at least regularly, as opposed to one-third (33%) of salespeople who do so. 2% 2% 6% 6% 32% 39% 14% 7% 11% 19% 43% 19% 10-25 26-35 36-40 41-50 51-60 More than 60 On average, how many hours a week do you work? Do you ever work weekends? Sales managers Salespeople 20% 21% 29% 45% 44% 8% 9% 5% 7% 12% Never Rarely Regularly Usually Always State of Sales/ 18 Sales professionals worked longer hours during the pandemic The number of English-speaking sales professionals who work more than 40 hours per week increased by 10 percentage points between 2019 and 2020, from 50% in 2019 to 60% last year. On average, how many hours a week do you work? Less than 40 hours More than 40 hours 50% 50% 40% 60% 2019 2020 State of Sales/ 19 Satisfaction and aspirations Despite the long hours, most sales professionals are satisfied in their current role (81%), but that does not limit their career aspirations. More than half of respondents wish to become a sales manager (54%) or business owner (62%) in the future. Are you satisfied with your current role? Do you wish to become a sales manager in the future? Do you wish to own a business in the future? 19% 81% 62% 38% 54% 46% No Yes State of Sales/ 20 Pride fuels ambition Spanish- and Portuguese-speaking salespeople, who our survey shows are the most proud of their roles overall, are also the most ambitious when it comes to managerial roles and business ownership. Sales professionals who are Spanish speakers are 15 percentage points more likely than the average to aspire to be a sales manager, while Portuguese speakers are 9 percentage points more likely to report this ambition. Spanish- and Portuguese-speaking respondents are also far more likely to want to own a business, with 75% of those who don’t already wishing to do so. I wish to become a sales manager in the future I wish to own a business in the future 47% 46% 63% 69% 59% 75% 75% 35% English-speaking Portuguese-speaking German-speaking Spanish-speaking State of Sales/ 21 Carrying success through to 2021 Despite the pandemic, 2020 was a successful year for sales professionals, and they hoped to carry that success into 2021. Respondents also believe in the importance of their industry in helping the global economy recover, with 92% saying that their role will have a positive impact on economic recovery in 2021. Unsurprisingly, the respondents who identify as salespeople are more likely to believe that the sales industry will help drive economic growth. Those more proud of their role as a salesperson are also more likely to back themselves to increase revenue in 2021 and drive recovery. State of Sales/ 22 A year of opportunities for salespeople Most sales professionals experienced an increase in their job satisfaction and success in 2020 and expect to do so in 2021 as well. When asked about the future of sales over the next 12 months, 81% of respondents said that they expect an increase in their sales. They also believe that sales will be a catalyst for the economy, with almost all of them (92%) feeling that their role will have a positive impact on the economy in 2021 and over three-quarters reporting that sales will be either important (24%) or very important (54%) to the recovery of economy. I expect my sales to increase over the next 12 months My sales will stay the same over the next 12 months I expect my sales to decrease or stop over the next 12 months I’m not sure what will happen with my sales over the next 12 months Which of the following statements is true? 9% 7% 3% 81% State of Sales/ 23 8% 92% Do you see your role having a positive impact on the economy in 2021? How important do you think sales will be to helping the economy recover in 2021? Very important Important Unsure Not important Very unimportant No Yes 2% 13% 24% 7% 54% State of Sales/ 24 Optimism is a matter of pride Salespeople who are proud to call themselves a salesperson are 14 percentage points more likely to think that sales will be very important to helping the economy recover in 2021 and that their role will have a positive impact on it. Meanwhile, salespeople who are not proud of their sales identity are 13 percentage points less likely to expect an increase in their sales in 2021. I think sales will be very important to helping the economy recover in 2021 57% 43% Are you proud to call yourself a salesperson? Yes No State of Sales/ 25 Respondents proud to call themselves a salesperson Do you see your role having a positive impact on the economy in 2021? Respondents not proud to call themselves a salesperson 5% 95% 19% 81% No Yes State of Sales/ 26 Respondents proud to call themselves a salesperson Do you expect your sales to increase over the next 12 months? Respondents not proud to call themselves a salesperson No Yes 16% 84% 71% 29% State of Sales/ 27 Sales skills and training On-the-job training is still the most common method used by respondents to develop their sales skills, with more than half (53%) selecting this option. The next highest percentage is 13%, which is the percentage of people using training and qualifications. Soft skills are vital to a salesperson’s success The vast majority of respondents (88%) regularly work on improving their soft skills, and it’s having an impact: Respondents who work on their soft skills are more likely to hit their regular sales quota than those who neglect their soft skills. State of Sales/ 28 Skills development through hands-on experience Roughly half (53%) of sales professionals have mostly developed their sales skills on the job, whereas 13% have acquired their skills through training and qualifications. On the job Training and qualifications Analyzing reports With a mentor/coach Feedback from my manager Online blogs and/or courses Videos and/or podcasts Books 53% 13% 6% 6% 6% 6% 6% 4% What method have you used the most to develop your sales skills? State of Sales/ 29 Portuguese speakers opt for formal training Portuguese speakers are, on average, 13 percentage points less likely to have developed their skills on the job and 11 percentage points more likely to have developed them mostly through training and qualifications. Taking into account that Portuguese speakers are among the most proud and ambitious salespeople, informal training might not be enough for the standards they set for themselves. I have mostly used training and qualifications to develop my sales skills I have mostly developed my sales skills on the job 9% 7% 24% 16% 57% 59% 61% 40% English-speaking Portuguese-speaking German-speaking Spanish-speaking State of Sales/ 30 Besides adopting a multidimensional approach for their sales skills training, Portuguese speakers are 8 percentage points more likely than the average to regularly improve their soft skills, with 96% reporting they do so. I regularly work on improving my soft skills 87% 86% 96% 80% English-speaking Portuguese-speaking German-speaking Spanish-speaking State of Sales/ 31 Soft skills have tangible benefits Salespeople understand the importance of soft skills for their profession, with 88% of respondents regularly working to improve them. Respondents who work on their soft skills are 11 percentage points more likely to usually or always hit their regular sales quota than those who do not work on them. 12% 88% Do you regularly work on improving your soft skills? How often do you hit your regular sales quota? 2% 4% 15% 41% 46% 32% 24% 10% 7% 19% Never Rarely Regularly Usually Always Do you regularly work on improving your soft skills? Yes No State of Sales/ 32 Measuring success Interestingly, despite the fact that they are less likely to work on their soft skills—which, as we saw from the last section, helps sales professionals to hit their sales targets more often—German speakers are the most likely to consider themselves to be successful. This confidence is well-placed, however, as German speakers rank second among those who usually hit their sales targets. Portuguese speakers are way out in the lead, with over two of every five (43%) Portuguese-speaking respondents saying that they usually hit their sales quota. The pandemic has hit English-speaking respondents hard when it comes reaching targets. There was a 19 percentage point decrease in the number of English-speaking respondents who usually or always hit their regular sales quota. State of Sales/ 33 Sales goals are intertwined with success and satisfaction Most respondents consider themselves to be successful at sales (83%). Interestingly, however, that does not align with their sales performance. Almost four in ten respondents (42%) did not hit their annual sales target last year and only 10% always hit their regular sales quota. Still, there is a considerable 42% of salespeople who hit their regular sales quota regularly and another 31% who do so usually. Do you consider yourself to be successful at sales? How often do you hit your regular sales quota? Did you reach your annual sales target last year? 17% 83% 42% 58% 2% 15% 42% 31% 10% Never Rarely Regularly Usually Always No Yes State of Sales/ 34 Sales success does not necessarily mean hitting targets When we delve further into the responses, it’s clear that not all sales professionals measure their own success by annual goals and quotas. On the one hand, 32% of individuals who did not reach their target last year consider themselves to be successful at sales. On the other hand, 37% of individuals who reached their target last year do not consider themselves to be successful at sales. No Yes Do you consider yourself to be successful at sales? Salespeople who reached their annual target last year Salespeople who did not reach their annual target last year 37% 63% 68% 32% State of Sales/ 35 Meanwhile, 10% of respondents who rarely meet their sales quota still consider themselves successful, whereas 26% of respondents who usually or always meet their sales quota do not consider themselves successful. 1% 9% 10% 39% 46% 26% 11% 1% 25% 32% Never Rarely Usually Always Regularly How often do you hit your regular sales quota? Do you consider yourself to be successful at sales? Yes No State of Sales/ 36 However, the pandemic has impacted their ability to hit their numbers, as there was a 19 percentage point decrease in the number of English-speaking respondents who usually or always hit their regular sales quota, from 56% in 2019 to 37% in 2020. How often do you hit your regular sales quota? 2019 2020 16% 11% 26% 40% 26% 43% 15% 17% 3% 3% Never Rarely Usually Always Regularly State of Sales/ 37 Ambition leads to high standards Portuguese speakers—who, along with Spanish speakers, are also among the most likely to want to become sales managers or business owners— are, on average, 9 percentage points less likely to consider themselves successful at sales, despite being 12 percentage points more likely to usually hit their regular sales quota and, as previously shown, the most likely to have become more successful this year. I consider myself to be successful at sales I usually hit my regular sales quota 85% 89% 74% 83% 26% 29% 34% 43% English-speaking Portuguese-speaking German-speaking Spanish-speaking State of Sales/ 38 Sales performance does not define role satisfaction Four in ten respondents who are satisfied in their current role did not reach their sales target last year, while 14% who rarely meet their regular sales quota are satisfied. Conversely, a noteworthy 46% of people who reached their sales target last year aren’t satisfied in their current role. Meanwhile, over a third of salespeople who usually (30%) or always (8%) meet their regular sales quota are also not satisfied in their current role. 46% 60% 40% 54% Are you satisfied in your current role? People who reached their annual target last year People who did not reach their annual target last year No Yes State of Sales/ 39 How often do you hit your regular sales quota? Are you satisfied in your current role? 1% 7% 10% 8% 14% 20% 44% 35% 31% 30% Never Rarely Usually Always Regularly Yes No State of Sales/ 40 Working from home Working from home is the new normal, a trend that has had a small, but noticeable impact on success and working habits. Unsurprisingly, 60% of the respondents reported that the place they work from the most has changed over the past year, with four in ten (41%) people mostly working from home. Compared to 2019, there was a 25% increase in the number of English-speaking respondents working from home and a 10% decrease in the number of individuals working in an open-plan office. Although the majority of sales professionals have coped well with the change, there is a difference in those working from home and those working elsewhere when it comes to success. The working week has also spread out for people who are working from home, with a higher percentage of this group saying they work weekends. Overall, though, people working from home are working fewer hours. State of Sales/ 41 Work from home is the new normal 60% of respondents reported that the place they work from the most has changed over the past year, with four in ten (41%) people mostly working from home. 40% 60% Has the place you work from the most changed in the last 12 months? Where do you work from the most? From home In an open-plan office In a cubicle Multiregionally In a co-working space On the road Yes No 41% 25% 13% 8% 8% 5% State of Sales/ 42 Compared to 2019, there was a 25% increase in the number of English-speaking respondents working from home and a 10% decrease in the number of individuals working in an open-plan office. Where do you work from the most? 2020 2019 5% 3% 9% 5% 12% 5% 12% 10% 48% 23% 39% 29% In an open-plan o ce From home Co-working space On the road Cubicle Multiregionally State of Sales/ 43 German speakers were 15 percentage points less likely to report a change in their workplace, with only a quarter (26%) mostly working from home. On the other hand, English speakers are the most likely to work from home, with almost half of them (48%) doing so. 62% 64% 60% 45% 48% 26% 30% 42% The place I work from the most has changed over the last 12 months I mostly work from home English-speaking Portuguese-speaking German-speaking Spanish-speaking State of Sales/ 44 Interestingly, Portuguese speakers, the most likely to report a change in their workplace, are among the least likely to work from home (30%). It appears that Portuguese speakers still go to the office, but instead of working in an open-plan office, they now mostly work in a cubicle and/or multiregionally. 29% 33% 25% 12% 5% 4% 29% 30% 4% 9% 3% 21% I mostly work in an open-plan office I mostly work in a cubicle I mostly work multiregionally English-speaking Portuguese-speaking German-speaking Spanish-speaking State of Sales/ 45 People working from home still feel successful, but they are less likely to hit their goals There is only a small difference between the percentage of people who feel successful working at home and those who feel successful but don’t work from home. However, people working from home are 5 percentage points less likely to say that they have become more successful. They are just as unlikely to have hit their annual sales target last year and to regularly, usually or always hit their sales quota. 18% 82% 16% 84% People who work from home the most People who do not work from home the most Do you consider yourself to be successful at sales? Yes No State of Sales/ 46 How has your success at sales changed over the last 12 months?(excluding those who have changed roles or responded “I don’t know”) 57% 62% 25% 22% 10% 10% I have become less successful at sales over the last 12 months There has been no change in my sales success over the last 12 months I have become more successful at sales over the last 12 months Do you work from home the most? Yes No State of Sales/ 47 45% 55% 40% 60% Did you reach your annual sales target last year? No Yes People who work from home the most People who do not work from home the most State of Sales/ 48 2% 3% 9% 10% 29% 33% 19% 12% 41% 42% Never Rarely Usually Always Regularly How often do you hit your regular sales quota? Do you work from home the most? Yes No State of Sales/ 49 Working from home hasn’t impacted job satisfaction or pride Despite the difference in success, those working from home are still satisfied in their role and, if they identify as one, proud to be a salesperson. Are you satisfied in your current role? People who work from home the most People who do not work from home the most 18% 82% 19% 81% Yes No State of Sales/ 50 How has your role satisfaction changed over the last 12 months? Do you work from home the most? 49% 48% 21% 22% 12% 12% I have become less satis ed in my role over the last 12 months There has been no change in my role satisfaction over the last 12 months I have become more satis ed in my role over the last 12 months Yes No State of Sales/ 51 8% 92% 9% 91% Are you proud to call yourself a salesperson? People who work from home the most People who do not work from home the most Yes No State of Sales/ 52 People working from home are working fewer hours, but they are working weekends more People working mostly from home are 5 percentage points more likely to be working a 40-hour week or less, but they are also 5 percentage points more likely to at least rarely work weekends. The trend toward working from home has also had an impact on what tasks sales professionals spend their time on, with those mostly working from home 6 percentage points less likely to say they spend their time selling. On average, how many hours a week do you work? Do you work from home the most? Yes No <10h 10-25 h 26-35 h 36-40 h 41-50 h 51-60 h >60 h 2% 2% 5% 6% 8% 7% 9% 15% 16% 26% 25% 37% 39% 3% State of Sales/ 53 Do you ever work weekends? Do you work from home the most? 6% 7% 16% 15% 22% 18% 42% 41% 14% 19% Never Rarely Usually Always Regularly Yes No State of Sales/ 54 28% 23% 24% 18% 13% 18% 7% 6% 50% 56% Selling 48% 45% Prospecting 34% 27% Account management 25% 23% Marketing 15% 17% Administrative support IT/Tech support 37% 35% Qualifying leads Business operations Managing a team Founder/C-level duties What do you spend most of your workday on? Do you work from home the most? Yes No State of Sales/ 55 Sales professionals working from home have turned to tools and technology Sales professionals who are working from home are more likely to use technology to help them manage and automate their sales processes. They are 8 percentage points more likely to use a CRM than people not mostly working from home. This is a good strategy because, as is shown later in this report, using a CRM makes people more likely to hit their sales goals and feel successful. CRM Spreadsheets Pen and paper 83% 75% 14% 20% 3% 5% What do you use to track your sales? Do you work from home the most? Yes No State of Sales/ 56 38% 62% Do you use any technology or automation leads to help you source and qualify leads? People who work from home the most People who do not work from home the most 35% 65% Yes No State of Sales/ 57 The challenges of lead generation Other responsibilities and tasks continue to drag salespeople away from their most important function: selling. Only 53% of respondents (and 76% of respondents think of themselves as salespeople) spend most of their workday selling. The pandemic made prospecting harder English-speaking sales professionals have struggled to focus on selling in 2020. The number of English-speaking respondents with selling as one of their main day-to-day activities has decreased from 62% in 2019 to 54% in 2020. Instead, more are saying they focus on prospecting and lead qualification. State of Sales/ 58 Sales professionals are struggling with lead generation More than half of respondents regularly (24%) or usually (21%) struggle to find enough sales leads. On the other hand, over a third of salespeople rarely struggle with lead generation (37%). Never Rarely Regularly Usually Always Do you struggle to find enough sales leads? 7% 24% 21% 11% 37% State of Sales/ 59 Selling is just one of many workday activities Sales professionals have a lot on their plate, with half of respondents spending most of their workday on selling (53%) and lead prospecting (46%), while another 36% spend their time generating leads. 53% 46% 36% 30% 25% 24% 21% 16% 15% 6% What do you spend most of your workday on? Selling Prospecting Qualifying leads Account management Business operations Marketing Managing a team Administrative support Founder/C-level duties IT/Tech support State of Sales/ 60 Lead generation was a greater challenge in 2020 compared to 2019 The number of English-speaking respondents who report selling as one of their main day-to-day activities has decreased by 8 percentage points, from 62% in 2019 to 54% in 2020. In 2020, the focus of English-speaking salespeople was on lead prospecting and qualification, potentially to account for the hardships related to the pandemic. Selling Lead prospecting Lead qualification 62% 54% 54% 64% 43% 49% What do you spend most of your workday on? 2020 2019 State of Sales/ 61 Lead generation is a challenge for Spanish speakers, but not for German speakers Spanish speakersare, on average, 38 percentage points more likely to usually struggle to find sales leads, whereas German speakers are 25 percentage points more likely to never or rarely struggle with lead generation. I usually struggle to find enough sales leads I never or rarely struggle to find enough sales leads 11% 34% 59% 6% 51% 44% 21% 73% English-speaking Portuguese-speaking German-speaking Spanish-speaking State of Sales/ 62 German speakers are able to focus on selling German speakers are 10 percentage points more likely than the average to spend most of their workday on selling and far less likely to spend it on prospecting, with only 13% doing so. I spend most of my workday on selling I spend most of my workday on prospecting 49% 63% 57% 57% 48% 52% 54% 13% English-speaking Portuguese-speaking German-speaking Spanish-speaking State of Sales/ 63 Tools and technology To combat the challenges presented by the pandemic around generating and qualifying leads, many sales professionals have turned to technology. For example, the number of English-speaking sales professionals using lead generation technology increased by 12%, from 51% in 2019 to 63% in 2020. Thanks to this adoption, even though lead qualification and prospecting are taking up more of this demographic’s time, they are finding it easier to generate leads. The interesting outliers are German-speaking respondents, only 51% of whom use technology and automation tools to source and qualify leads. Many German speakers who don’t use these tools say they just don’t need them. State of Sales/ 64 How people are tracking their sales The majority of respondents (75%) are happy with the sales tools and technology available to them, while using a CRM to track sales is a standard practice for most respondents (79%). Only a minority (17%) still rely on spreadsheets or pen and paper (4%). Are you happy with the tools and tech available to you for your sales work? What do you use to track your sales? 25% 75% 17% 4% 79% CRM software Spreadsheets Pen and paper Yes No State of Sales/ 65 Many salespeople aren’t using technology to drive success Almost 40% of respondents do not use any technology or automation tools for lead generation, despite the challenges they regularly face with this task. Less than a quarter (24%) of those who don’t use technology to source and qualify leads believe that they don’t have a need for a lead generation tool; the majority either haven’t found the right tool or don’t have the resources. Do you use any technology or automation tools to help you source and qualify leads? Why aren’t you using any technology or automation tools to help you source and qualify leads? 37% 63% Yes No 31% 24% 19% 10% 8% 8% My company hasn't found the right tool yet My company doesn't need a tool for this My company doesn't have the budget for this My company doesn't have the right sta to use this My company doesn’t have time to implement this My company tried tools before, but it didn't work for us State of Sales/ 66 English speakers have turned to lead tech during the pandemic As we saw earlier in this report, lead generation and prospecting were two of the greatest challenges sales professionals faced in 2020. To cope with this challenge, many English-speakers have turned to technology. The number of English-speaking sales professionals using leads tech increased by 12%, from 51% in 2019 to 63% in 2020. Do you use any technology or automation tools to source and qualify leads? 2019 2020 49% 51% 37% 63% Yes No State of Sales/ 67 Thanks to their adoption of this technology, English-speaking sales professionals actually struggled less with lead acquisition in 2020 than they did in 2019, dropping from 30% saying they usually or always struggled to find enough leads to 20%. Do you struggle to find enough sales leads? 2020 2019 12% 34% 24% 16% 14% 9% 11% 30% 38% 12% Never Rarely Usually Always Regularly State of Sales/ 68 Although German speakers don’t struggle to find leads, they aren’t using technology Unlike English speakers (and, in fact, Spanish and Portuguese speakers), German-speaking sales professionals aren’t relying on technology to source and qualify new leads. Of those who don’t use technology to source and qualify leads, 39% just don’t need this technology. This is despite the fact, as we saw earlier, that German-speaking sales professionals are the least likely to say that they struggle to find leads or spend time prospecting. I use technology and automation tools to source and qualify leads My company doesn’t need technology or automation tools for lead generation 63% 67% 69% 51% 26% 12% 9% 39% English-speaking Portuguese-speaking German-speaking Spanish-speaking State of Sales/ 69 The right tools pave the road to success Identifying and using tools that cater to the needs of salespeople enhances sales performance across all metrics. Respondents who are happy with the tools and technology at their disposal are 12 percentage points more likely to consider themselves successful at sales and 18 percentage points more likely to be satisfied in their current role. 77% 65% 23% 35% People happy with the tools and tech at their disposal People not happy with the tools and tech at their disposal Do you consider yourself successful at sales? No Yes State of Sales/ 70 People happy with the tools and tech at their disposal People not happy with the tools and tech at their disposal Are you satisfied in your current role? No Yes 22% 40% 78% 60% State of Sales/ 71 Also, individuals who use technology and automation tools for lead generation are 14 percentage points more likely to have reached their annual sales target last year. Did you reach your annual sales target last year? 51% 49% People who use technology and automation tools to source and qualify leads People who do not use technology and automation tools to source and qualify leads 37% 63% No Yes State of Sales/ 72 Conclusions Resilience, adaptability and digitization. These are the key themes from this year’s State of Sales report. The world is in many aspects at a crossroads. The pandemic as a so-called “black swan” event, something unpredictable with severe effects, has changed how we view the world. So it is striking to see how confident sales professionals are across the countries surveyed. In addition, the majority say that they have seen greater sales success than in 2019. These are very encouraging results that highlight how the resilience and adaptability of sales professionals help them to achieve great results. The report also emphasizes the importance of using the right digital tools to become more successful. The fact that sales professionals who are happy with their current tooling are 12-percentage-points more likely to feel successful at sales than sales professionals who are not happy speaks volumes. Wherever you read this year’s edition of the State of Sales report, be it at home, in an office or at a remote location near a beach, we at Pipedrive look to the road ahead with full confidence. The global sales professional community has proven its resilience and adaptability. Pipedrive will continue to focus first and foremost on creating digital solutions that enable sales professionals and revenue teams to be more successful. We are certain that the pandemic served as a catalyst for many important changes in the world and, with the level of dedication and preparation as well as the right tooling, we will see further advancement and success going forward. Stay healthy. Michael Schrezenmaier Interim Co-CEO and COO State of Sales/ 73 Survey respondent demographics 1% 29% 70% Spoken language Gender English Portuguese German Spanish Female Male Prefer not to say 404 922 191 185 State of Sales/ 74 Company size Approximately one-third (30%) of respondents work in mid-sized companies of 21-100 employees, while four in ten respondents (40%) have a small team of two to four salespeople working in their company. How many employees are there in your company? How many salespeople are there in your company? 1 employee 2-4 employees 5-10 employees 11-20 employees 21-100 employees 101-500 employees 501+ employees 1 salesperson 2-4 salespeople 5-10 salespeople 11-20 salespeople 21-50 salespeople 51+ salespeople 7% 6% 12% 10% 18% 17% 30% 18% 21% 40% 6% 7% 8% State of Sales/ 75 Even in large companies with more than 500 employees, only half of them have more than 50 salespeople. Only 28% of Portuguese speakers have a team of more than 50 salespeople in companies with more than 500 employees. 1% 4% 12% 7% 25% 51% There are more than 500 employees in my company There are more than 500 employees and more than 50 salespeople in my company 1 salesperson 2-4 salespeople 5-10 salespeople 11-20 salespeople 21-50 salespeople More than 50 salespeople 53% 69% 75% 28% English-speaking German-speaking Spanish-speaking Portuguese-speaking State of Sales/ 76 Job role The “salesperson” identity is independent of the job role. Three-quarters of the respondents consider themselves a salesperson (76%). However, almost 40% of the respondents are sales managers, while over a third (38%) are business owners. Interestingly, 81% of sales managers and 77% of business owners still consider themselves a salesperson. 24% 76% Do you consider yourself to be a “salesperson”? No Yes State of Sales/ 77 Do you own your business? Do you manage salespeople? 62% 38% 56% 44% No Yes State of Sales/ 78 Sales managers Do you consider yourself a salesperson? Business owners 19% 81% 23% 77% No Yes State of Sales/ 79 Education Most respondents (72%) say that the highest level of education they have attained is an undergraduate or postgraduate degree, while another 8% have a trade, technical or vocational qualification. What is the highest degree or level of schooling you have completed? College/university degree Postgraduate degree High school diploma or equivalent Trade/technical/vocational qualification Other 8% 3% 22% 17% 50% State of Sales/ 80 German speakers value practical education 32% of German speakers have a trade/technical/vocational qualification, as opposed to an average of 8% across all respondents. Meanwhile, none of them reported having earned a postgraduate degree. 4% 7% 8% 32% 32% 21% 30% 0% I have a trade/technical/vocational qualification I have a postgraduate degree English-speaking Portuguese-speaking Germa-speaking Spanish-speaking State of Sales/ 81 Respondents per industry. A quarter (25%) of respondents work in the tech/software/IT industry. Which one of these industries do you work in? Tech/Software/IT Consulting Retail/Wholesale Advertising/Marketing/Creative agency Construction Manufacturing Financial services Healthcare/Life sciences Education/Training Real estate News/Media/Publishing Public sector Non-pro t Other 25% 10% 16% 9% 8% 7% 7% 6% 4% 4% 4% 1% <1% <1% State of Sales/ 82
