How is sales force management likely to evolve in the coming 10 years? Main themes are: co creation, networking, communication, the sales process, team based selling and the relationship between sales, marketing and customer service.

1. SALES MANAGEMENT 2020 Text/logo

2. Sales Management 2020 Is an academic research projectaiming to identify and developsolutions for the challenges sales organisations will be facing for the next 10 years.

3. Sales Management 2020 The project was started in April 2010 in the Netherlands in association with the Sales Management Association. www.sma.nl

4. Sales Management 2020 The results shown here are based on 46 in-depth interviews with sales directors from different industries.

5. Question What were the major challenges sales organisations faced in the last 10 years?

7. Increased coördination between purchase departments.2010 Globalisation

9. customer online shopping

10. customer buying power increases

11. customers loyalty decreases

12. leading reduced margins for suppliers2010 Globalisation Internet Technology

14. employing fewer sales people to generate the same sales volumes.2010 Globalisation Internet Technology Efficiency and Quality

16. increased awareness on ethical sales behaviour

17. increases regulation towards ethical behaviour2010 Globalisation Governance and Ethics Internet Technology Efficiency and Quality

19. reduced hit and run sales approach

20. introduced consultative selling2010 Globalisation Customer Orientation Governance and Ethics Internet Technology Efficiency and Quality

21. Question What are the major challenges sales organisations expect for the NEXT 10 years?

23. sales people are moving towards a business consulting role.2020 Value Co Creation

26. sales people wil have to learn to use social media to communicate with their customers.2020 Value Co Creation CommunicationAmount Networks Communication

28. systems will be needed to organise the knowledge gathering and dissiminating processes.2020 Value Co Creation CommunicationAmount Networks Knowledge Management Communication

30. Question How are these past and future challenges affecting the selling process?

31. Customer’s Buying Process PROBLEM SOLUTION PRODUCT 2000 2010 Consultative Selling Supplier’s Selling Process Consultative selling has enabled sales people over the last 10 years to move fromsolution presenters to problem solvers.

32. Customer’s Buying Process PROBLEM SOLUTION PRODUCT USE STRATEGY GAP 2020 Business Consulting 2010 2020 Business Consulting Supplier’s Selling Process For the next 10 years sales people will need to movefromproblem solvers to business consultants

33. Customer’s Buying Process PROBLEM SOLUTION PRODUCT USE STRATEGY GAP Supplier’s Selling Process CONSULTING MANAGED SERVICES SELF SERVICE KPI BASED THE SERVICE BECOMES THE VALUE PROPOSITION REQUIRES BUSINESS OPERATIONS KNOWKEDGE FEE BASED REMUNERATION DEVELOP CUSTOM MADE SOLUTION WITH PARTNERS REQUIRES SECTOR AND BUSINESS KNOWLEDGE SALES BASED REMUNERATION STANDARD OF THE SELF VALUE PROPOSITIONS REQUIRES PRODUCT KNOWLEDGE

34. Customer’s Buying Process PROBLEM SOLUTION PRODUCT USE STRATEGY GAP MARKETING SALES CUSTOMER SERVICE Supplier’s Selling Process Sales is moving into the fields of marketing and customer service.

35. Question What is the future role of Sales, Marketingand Customer Service?

36. SALES MARKETING SERVICE Traditionally there is one commercial approach for all customers, marketing passing leads to sales and sales passing orders to servicing.

37. One process does no longer fit all customers. SALES MARKETING SERVICE SALES FORCE SMALLER VOLUME OF COMPLEX RELATIONSHIP ORIENTED CUSTOMERS SELF SERVICE LARGE VOLUME of TRANSACTION ORIENTED CUSTOMERS

38. One sales person can no longer have all the knowledge required. SALES MARKETING SERVICE SALES FORCE PRODUCT SUPPORT PRODUCT CONSULTING PRODUCT DEVELOPMENT SMALLER VOLUME OF COMPLEX RELATIONSHIP ORIENTED CUSTOMERS SELF SERVICE LARGE VOLUME of TRANSACTION ORIENTED CUSTOMERS

39. “..we now have a two legged commercial organisation each leg serving a different market…” quote from a sales director of a large copier business. SALES FORCE PRODUCT SUPPORT PRODUCT CONSULTING PRODUCT DEVELOPMENT SMALLER VOLUME OF COMPLEX RELATIONSHIP ORIENTED CUSTOMERS SELF SERVICE LARGE VOLUME of TRANSACTION ORIENTED CUSTOMERS

40. Next challenge is how to manage the matrixcommercial organisation? SALES FORCE PRODUCT SUPPORT PRODUCT CONSULTING PRODUCT DEVELOPMENT SMALLER VOLUME OF COMPLEX RELATIONSHIP ORIENTED CUSTOMERS SELF SERVICE LARGE VOLUME of TRANSACTION ORIENTED CUSTOMERS

41. Conclusions Sales is evolving into a business consulting function. Marketing, sales and customer service are merging into a commercial management department. Commercial organisations are splitting into 2 divisions(or legs) each serving a different market with a different commercial approach. The commercial organisation is moving from a functional towards a matrix organisation creating new management challenges.

42. Currently additional research on the challenges of the next 10 year is conducted. If you are interested in participating in any of the follow up research projects, please contact Dr.RégisLemmens Director of the Sales Competence Centre Email: r.h.l.lemmens@tiasnimbas.edu regis.lemmens@salescubes.com