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Miller Heiman Releases Sales Performance Index for Q3 2005

Market Exuberance Wanes, Turnover Declines

RENO, NV -  July 28, 2001  -   Miller Heiman announces the results of the Q3 2005 Sales Performance Index. The Index is 104 for the quarter. The Index number is indicative of a 2.8-point shift from the Q2 2005 Index of 106.8.

Miller Heiman’s Sales Performance Index is a new and unprecedented market indicator that measures the confidence companies have in effectively selling products and services in current market conditions.

It is the first nationally published Index of its kind. When announced, the Index reflects the expectations of a select group of sales leaders for the current quarter’s sales performance.

The Q3 2005 Index reflects continued optimism in a company’s ability to achieve sales results in the current quarter. However, this quarter the Index reveals a decline in the exuberance of sales leaders to attain sales performance goals.

In Q3, 67% of sales leaders are confident they will achieve quota this quarter, down 8% from last quarter’s results. Moreover, the number of sales leaders who are uncertain about meeting their quota this quarter rises to 17%, compared to only 10% in Q2 2005.

For the first time since the Index was first published in Q4 2004, the number of sales leaders who are confident they will sell more products/services in the next 90 days, as compared to the last 90 days dips below 70% by three points, at 67%.

“While we are seeing some areas of declined optimism, the sentiment in the market remains relatively strong when compared to the fourth quarter of last year when the Index debuted,” said Sam Reese, president and CEO, Miller Heiman.

On an optimistic note, the Index demonstrates that more companies are continuing to maintain their sales force size. Turnover is on the decline, with only 12% of companies reporting that they are decreasing their sales force.

The Sales Performance Index is comprised of a consistent composition of members from a range of company sizes. The Index shows that overall, companies reflect similar responses, regardless of size. However, when questioned about discounting, there is a notable difference in medium sized companies compared with small and large companies. Medium sized companies are discounting significantly more than small and large companies, an average of 10%-20% more.

About the Sales Performance Index

The Index is comprised of responses by a fixed group of 250 sales leaders representing a consistent composition of small, medium, and large companies in various industries throughout North America. Company size is derived by total number of employees. The members are referred to as the Sales Performance Index 250.

Each quarter, members of the Sales Performance Index 250 are asked the same ten questions relating to their confidence in the overall market and toward specific performance-related metrics.

Each question focuses on a specific driver reflective of overall sales performance. Questions range from the sales leader's ability to achieve quota in the current quarter to lead quality, sales cycles, discounting pressures, and growth or decline in average billing per customer.

The Index number itself is a summation of the mean responses of the participants.

The announcement schedule for the Sales Performance Index is as follows: Q4 2005, October 31; Q1 2006, January 30; and Q2 2006, April 24.

About Miller Heiman: The Sales Performance Company

Miller Heiman is a global leader in sales performance solutions with more than 30 years of documented results. The company works with leading organizations to improve sales effectiveness through issue-based consulting and training. Headquartered in Reno, Nev., Miller Heiman has additional corporate offices in the United Kingdom and Australia and representation in more than 30 countries. For more information, contact 877.506.2973 or visit www.millerheiman.com.