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Case Study 3: International/PLC

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Validation results at a Major Insurance company


This study shows that a Major Insurance Company would have achieved significant benefits by using SalesMax as a sales recruitment assessment for its Group Sales Representatives:

  • Candidates who scored BETTER / BEST averaged 1.9 TIMES the average sales for the Group.
  • Candidates who scored AVOID / OK managed to sell less that THREE QUARTERS of the average.
  • Had the poor performers (candidates who scored AVOID / OK) been screened out before employment, the average sales per salesperson would have risen by £1.15 M.

Case Study

A study to test the predictive power of SalesMax for recruiting Sales Representatives was conducted at a Fortune 500 Insurance Company. A criterion-related validation process was followed to determine the relationship between assessment results and job performance.

A sample of Sales Representative completed the SalesMax survey and the test results were compared against the chosen sales criterion “Total Sales” achieved by each representative. The test sample was 37 representatives.

Confirmation of the predictive power of the SalesMax Sales Personality Index

Average sales performance was compared with SalesMax’s index ranges – AVOID, OK, GOOD, BETTER and BEST. Table 1 presents Average Sales Performance at various Index levels. The Average Sales Ratio is defined as each individual's total sales expressed as percentage of the Company's sales average. For example, individuals with a sales ratio of .75 only produce 75% of the average sales, while 1.90 indicates that these individuals produce nearly 2 times the average sales.

Table 1

Average Sales Performance By SalesMax Index Range
SalesMax Index Score No. in Range Average Sales Ratio Average Sales
AVOID 8 .75 £2.8 million
OK 8 .72 £2.7 million
GOOD 12 .86 £3.2 million
BETTER / BEST 9 1.90 £7.1 million

Average Sales = £3.7 million per sales representative

Looking again at the sales performance in terms of average sales in Table 2, the results show that a very significant financial improvement will result by screening out candidates scoring in the bottom two ranges of SalesMax - AVOID / OK. Based on these results, if the 16 sales representatives from the bottom levels had been screened out, there would have been a potential for an average improvement in sales of £1.15 million per sales representative.

Table 2

Average Sales Performance By SalesMax Index Range
SalesMax Index Score No. in Range Average Sales Ratio Average Sales
AVOID / OK 16 .74 £2.7 million
GOOD 12 .86 £3.2 million
BETTER / BEST 9 1.90 £7.1 million

Average Sales for GOOD and BETTER / BEST Only = £4.90 million

Personality/Sales Bar Chart

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Partial User List

A. B. Dick Company
Aegis Wholesale
American Cancer Society
American Heart Association
Belo Corp.
Big Chief, Inc.
Blankenship & Seay Consulting Group
Charter One Mortgage
Coastal Mortgage
Coastline FCU
ConAgra Foods
Contech Construction Products
Corner Bakery Cafe
Culligan Water Conditioning
DentalEZ Group
Elk Corporation
Equity One, Inc.
Farm Bureau Insurance
Federal Funding
First Franklin Financial
First Franklin Mortgage
Fleetwood Enterprises
Fujitsu Consulting
GMAC Mortgage
HomeBanc Mortgage Corporation
Jones Blair Company
Knight Ridder Newspapers - San Luis Obispo
Morgan Stanley
Mutual of Omaha Employee Benefits
Mutual of Omaha Insurance Company
National City Bank
National City Mortgage Company
Patterson Dental
Paypro Corp.
Regions Mortgage
Schneider National
Software Spectrum
Spherion Staffing Group
Spherion Technology Group
SunTrust Mortgage

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