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#DF16 #SalesSummit
salesforce.com/sales-summit
Everything You Want to Know About Sales Growth but
are Afraid to Ask
Lareina Yee Maria Valdivieso
Lareina_Yee@McKinsey.com Maria_Valdivieso@McKinsey.com
@M_Valdivieso1@LareinaYee
#SalesSummit #DF16
75%
of global consumption growth will be
driven by individuals spending more (vs.
population growth) by 2030
18%
Proportion of digital potential that the
U.S. economy as a whole is realizing
>1.5 billion
number of social networking users
globally
$11.1 trillion
Estimated economic value from linking
digital and physical worlds by 2025
4.7%
Expected annual growth for emerging
markets through 2025
45%
Proportion of activities people are paid to
perform that could be automated
#SalesSummit #DF16
1. Sell the way customers
want to buy
4. Put together
the
A-team
3. Build
smart analytics
as a norm
2. Power
growth through
digital sales
1. Sell the way
customers
want to buy
2. Power
growth through
digital sales
3. Build
smart analytics
as a norm
4. Put together
the
A-team
#SalesSummit #DF16
The sales experience is changing dramatically
60%
increased purchasing centralization
to get better negotiating leverage
2x
Speed is 2x more important than
price in a buying experience
46%
of buyers rate comparison as their
biggest pain point
6+
different channels for purchasing
85%
of B2B buyers prefer Digital GTM for
purchase of exact same product
74%
use Twitter for business
70%
use online video to understand
suppliers
43%
B2B customers would purchase, self-
directed, on supplier’s website
90%
use search to make buying decisions
• Digital changing how
customers research and buy
• Proliferation of channels to
meet customer varying needs
and occasions
• Rising expectation of
personalized experience
• From companies to individuals
#SalesSummit #DF16
Meet me where it matters . . .
#SalesSummit #DF16
B2B companies that embed Digital GTM do better…
40-60%
Reductions in cost to serve
…but most struggle
<10%
of B2B companies say they
have a compelling mobile
strategy – 3X lower than top-
performing B2C companies
10%
said digital GTM was a
top investment priority
<15%
of B2B companies use
test-and-learn approaches
that accelerate how to
prioritize digital
<20%
of B2B companies say they
understand key omni
channel journeys
13.5%
EBITDA growth (vs -1.8% for
less digitally able)
30%
Higher acquisition efficiency
5x
Faster growth rates
B2B companies that embed digital
go-to-market do better…
#SalesSummit #DF16
Five sources of value from digital go-to-market
Grow
customer
base
Increase
value and
retention of
current
customers
Reduce
cost to
serve
Ramp up
and scale
offerings
faster
Pre-empt
competitive
disruption
#SalesSummit #DF16
Five sources of value from digital go-to-market
#SalesSummit #DF16
How fast growth companies use analytics:
76%
to identify opportunities
for specific customers
(vs. 59%)
73%
to gain deal-level insights,
such as profitability
(vs. 61%)
53%
to make decisions
(vs. 37%)
76%
to manage post-
sales accounts
(vs. 56%)
How fast-growth companies use analytics:
#SalesSummit #DF16
Build a technological advantage in sales:
AI - Lead generation
Pairing predictive lead analytics with natural language processing
to automate many of the early lead-generation activities
Smart partner portal
rapid responses to partner requests, such as new business price
requirements
Next product to buy CRM recommendation based
on customers’ needs and company’s strongest value proposition
Predictive pipeline analytics
increase the accuracy of pipeline prediction by 2-3x using big
data analysis, resulting in cost reduction and increase in sales
#SalesSummit #DF16
48%
spend significant
resources on sales
force training
(vs. 29%)
51%
believe they have the
right sales talent and
capabilities
(vs. 33%)
38%
bring new hires to
steady state
productivity as quickly
as possible
39%
use tailored training
programs by sales
role (vs. 22%)
Fast growers invest in their people
#SalesSummit #DF16
Selling outcomes is a different game High Medium
Drivers of performance
Skills
Curiosity ProactivityOpennessExtraversion
85 767871
60 556562
Resource
management
Product
knowledge
Understand-
ing customer
needs
Prospecting
Intrinsics
#DF16 #SalesSummit
salesforce.com/sales-summit
Stay connected
Lareina Yee
Senior Partner, San Francisco
Lareina_Yee@mckinsey.com
@LareinaYee
McKinsey on Marketing & Sales
Maria Valdivieso de Uster
Director of Knowledge, Americas M&S, Miami
Maria_Valdivieso@mckinsey.com
@M_Valdivieso1

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Everything you want to know about sales growth but are afraid to ask

  • 1. #DF16 #SalesSummit salesforce.com/sales-summit Everything You Want to Know About Sales Growth but are Afraid to Ask Lareina Yee Maria Valdivieso Lareina_Yee@McKinsey.com Maria_Valdivieso@McKinsey.com @M_Valdivieso1@LareinaYee
  • 2. #SalesSummit #DF16 75% of global consumption growth will be driven by individuals spending more (vs. population growth) by 2030 18% Proportion of digital potential that the U.S. economy as a whole is realizing >1.5 billion number of social networking users globally $11.1 trillion Estimated economic value from linking digital and physical worlds by 2025 4.7% Expected annual growth for emerging markets through 2025 45% Proportion of activities people are paid to perform that could be automated
  • 3. #SalesSummit #DF16 1. Sell the way customers want to buy 4. Put together the A-team 3. Build smart analytics as a norm 2. Power growth through digital sales 1. Sell the way customers want to buy 2. Power growth through digital sales 3. Build smart analytics as a norm 4. Put together the A-team
  • 4. #SalesSummit #DF16 The sales experience is changing dramatically 60% increased purchasing centralization to get better negotiating leverage 2x Speed is 2x more important than price in a buying experience 46% of buyers rate comparison as their biggest pain point 6+ different channels for purchasing 85% of B2B buyers prefer Digital GTM for purchase of exact same product 74% use Twitter for business 70% use online video to understand suppliers 43% B2B customers would purchase, self- directed, on supplier’s website 90% use search to make buying decisions • Digital changing how customers research and buy • Proliferation of channels to meet customer varying needs and occasions • Rising expectation of personalized experience • From companies to individuals
  • 5. #SalesSummit #DF16 Meet me where it matters . . .
  • 6. #SalesSummit #DF16 B2B companies that embed Digital GTM do better… 40-60% Reductions in cost to serve …but most struggle <10% of B2B companies say they have a compelling mobile strategy – 3X lower than top- performing B2C companies 10% said digital GTM was a top investment priority <15% of B2B companies use test-and-learn approaches that accelerate how to prioritize digital <20% of B2B companies say they understand key omni channel journeys 13.5% EBITDA growth (vs -1.8% for less digitally able) 30% Higher acquisition efficiency 5x Faster growth rates B2B companies that embed digital go-to-market do better…
  • 7. #SalesSummit #DF16 Five sources of value from digital go-to-market Grow customer base Increase value and retention of current customers Reduce cost to serve Ramp up and scale offerings faster Pre-empt competitive disruption
  • 8. #SalesSummit #DF16 Five sources of value from digital go-to-market
  • 9. #SalesSummit #DF16 How fast growth companies use analytics: 76% to identify opportunities for specific customers (vs. 59%) 73% to gain deal-level insights, such as profitability (vs. 61%) 53% to make decisions (vs. 37%) 76% to manage post- sales accounts (vs. 56%) How fast-growth companies use analytics:
  • 10. #SalesSummit #DF16 Build a technological advantage in sales: AI - Lead generation Pairing predictive lead analytics with natural language processing to automate many of the early lead-generation activities Smart partner portal rapid responses to partner requests, such as new business price requirements Next product to buy CRM recommendation based on customers’ needs and company’s strongest value proposition Predictive pipeline analytics increase the accuracy of pipeline prediction by 2-3x using big data analysis, resulting in cost reduction and increase in sales
  • 11. #SalesSummit #DF16 48% spend significant resources on sales force training (vs. 29%) 51% believe they have the right sales talent and capabilities (vs. 33%) 38% bring new hires to steady state productivity as quickly as possible 39% use tailored training programs by sales role (vs. 22%) Fast growers invest in their people
  • 12. #SalesSummit #DF16 Selling outcomes is a different game High Medium Drivers of performance Skills Curiosity ProactivityOpennessExtraversion 85 767871 60 556562 Resource management Product knowledge Understand- ing customer needs Prospecting Intrinsics
  • 13. #DF16 #SalesSummit salesforce.com/sales-summit Stay connected Lareina Yee Senior Partner, San Francisco Lareina_Yee@mckinsey.com @LareinaYee McKinsey on Marketing & Sales Maria Valdivieso de Uster Director of Knowledge, Americas M&S, Miami Maria_Valdivieso@mckinsey.com @M_Valdivieso1