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7
Seven
Sales Force Development Trends
OneIt’s (still) all about revenue



CSO Insights Trend Report, 2012 (survey of sales executives): Respondents were asked about the top three
                   goals they have for their sales organisations for the next 12 months.
          Increasing revenues tops the priority list.
Another theme in the report was increasing sales effectiveness. In the early 2000s, sales organisations were
   focused mainly on efficiency — installing CRM systems, reducing paperwork, and making more calls.
 Now, sales executives are realising that efficiency
is not enough; it’s about not just making more calls,
               but making great calls.
To grow revenue and increase effectiveness, sales
organisations are focusing on several key strategies:

         Capture new accounts. For the past three years, in a tough economy, sales organisations have
         turned to their existing customer base as a source of stability. Now, however, many are focused again
         on growing their customer base.

         Improve team selling. “Coordinating the selling efforts across sales teams was mentioned as a key
         objective by some firms. One of their primary goals is to work more effectively at engaging all of the
         individuals involved in selling to or servicing an account and to recognise and leverage the work of
         everyone on the team.”

         Improve cross-selling/up-selling. Sales representatives “need to have the training and support to
         get outside of their comfort zones and sell new products they may not have sold in the past to new
         stakeholders they may not have engaged before.”

         Protect against competitors. With today’s shorter product development cycles, salespeople need
         to guard against competitors coming into their accounts, showing a new and different solution or
         technology, and taking away the business.

         Improve margin. Companies realise that capturing market share is not the end goal; having more
         protable customers is. This means salespeople must know how to sell the value of their solutions
         and reduce reliance on discounting.



                                                                                                                 2
What to do
                                            ?
Seek to improve sales effectiveness, not just efficiency. Consider
focusing your sales learning and development initiatives on the
ve areas previously outlined.
2
Internally
               Two
                Sales is going social




     Sales organisations are becoming social enterprises, using social
     media technology to connect sales representatives with each other and with all
     relevant departments that support sales. Example: The Salesforce.com Chatter tool.

Externally
     Salespeople need to leverage these tools to nd and nurture leads,
     develop viable new prospects, and maintain and build customer relationships.
     Social media has changed how sales reps connect with customers.


Big Data
     Companies are using customer analytics to generate customer insight,
     and sales analytics to better manage sales force performance and effectiveness.
     All the conversations — every tweet, chat, comment, and post — collected on social media
     platforms are ripe for analysis.                                                           4
What to do
                                              ?
Provide clear guidelines and training for how salespeople should
be leveraging social media. Make it clear that effective use of
these tools is not just marketing’s job, but everyone’s job.
3
Sales portal
                        Three
                        Three ways a “sales portal” can
                        become “sales enablement”




    the idea is knowledge delivery: give sales representatives exactly the info they
    need, just when they need it, and in the form they can use it most effectively.
    For a few years now, “sales portals” have been a hot topic. But, that term is becoming outdated,
    as it suggests a mere gateway to various data sources and depends on the sales representatives
    actively seeking information.

Sales enablement
    an integrated ability to push the right information, tools, and guidance to sales
    representatives based on where they are in a selling or account situation.
    One way to think about how this trend is evolving is to think of a continuum of sales portals,
    with “a big file cabinet” on the left and “sales enablement” on the right. Sales technology
    vendors fall at various places on this continuum.                                                  6
1)
                          What to do
                                                   ?
     Don’t limit yourself to “file-cabinet” thinking. Instead, create a blueprint
     — an architecture that integrates the essential elements of your sales
     organisations — and use that as the basis for your sales portal.

2) Establish a governance model as you would for any other key business
     process, with decision-making authority, guiding principles, and
     continuous improvement.

3)   And, work with a vendor that’s farther to the right on the continuum.
Four
                  Move over, solution selling



Is solution selling really dead, or even dying
     No — but it’s no longer anywhere near the cutting edge.
                                                                                     ?
                   Buyers are becoming more sophisticated and savvy,
                   which requires sellers to adapt to keep pace.
                  Sales organisations that rely on solution selling or consultative selling alone
                  will nd themselves falling behind.
                  Terms for the new approach include thought-leadership selling, insight selling, and
                  point-of-view selling (Forum’s term, and the name of our programme). It’s not right for
                  every salesperson or every customer, but it’s what the star salespeople are doing.
                                                                                                            8
Forum research brief
    “Because [senior] leaders are primarily concerned with identifying
     and prioritising which problems need solving and with assigning people
     and resources to tackle them, a consultative selling approach — probing for problems
     and offering possible solutions — will not interest them.

     Since these executives continually scan the horizon for new opportunities and looming
     threats, what does get their attention is showing them something signicant they had
     not seen, or could not see clearly, and helping them determine whether it is worth
     their time to more fully investigate.

     The key to accessing and engaging senior-level decision makers is
     educating them about new, and sometimes provocative, ideas for
     capturing significant business value or managing serious risk.”


    “High-performing sales reps have a new strategy — they’re
     selling insights and coaching customers on how to buy.”
    “Harvard Business Review, July-August 2012
     The End of Solution Sales”
What to do
                                                     ?
Conduct a Sales Organisation Maturity Assessment to see where
your sales organisation and customers are today and what types
of selling approaches and training investments will pay off.
Tailor your sales effectiveness initiatives accordingly.




                                                                 10
5                    Five
                     What to do about the fact that inside sales groups
                     are growing in size and influence




The number of inside sales departments is projected to grow
from 800,000 in 2009, to more than 2 million in 2013.

      IDC’s Sales Advisory Service research indicates a >10 percent increase in inside sales
      headcount from 2010 to 2011, and more than half of companies surveyed intended
      to increase inside sales in 2012; however, respondents said much work is still
      needed to increase those sales representatives’ productivity.

                                                        CSO Insights Telemarketing Report
What to do
                                             ?
Consider bolstering alternate channels, such as an inside sales team,
as a cost-ecient component of your sales and marketing strategy.




                                                                    12
6                Six
                 The game’s half over before
                 you’re called in to play



On average, 57 percent of a purchase decision is
complete before a customer contacts a supplier.
   At this point, needs are scoped, solutions have been compared, the purchase
   is funded, and price is often being benchmarked.
The idea that “executives don’t go online” is a myth.
   Research indicates that most executives — even CEOs — are spending plenty of time
   online seeking out suppliers, partners, and new ideas that can help their business.
Customers aren’t new to the solutions purchase game any longer.
   They’ve put in place purchasing processes, infrastructure, and consultants, professionalising
   their approach and providing a strong internal team on which they rely.

                                                                         Corporate Executive Board
The bottom line:
     Customers don’t need a salesperson to educate them
     about your company and its products and services.
     They can get the ocial line from your website, use social media to nd out
     what everyone else is saying about you, and have their purchasing group
     write up a detailed comparison of potential vendors — all in a matter of days.
     Then — if you’re lucky — they’ll call you.
                                                                                      14
What to do
                                               ?
Be clear with the sales force that consultative selling skills are more
necessary than ever — but that the days of exercising those skills during
the course of three or four leisurely customer meetings are gone. They
must be prepared to move at the customer’s accelerated pace and to
add unmistakable value from the very rst minute of the very rst call.
7                       Seven
                        Why “No Decision” is becoming everyone’s biggest
                        competitor, and what you can do about it




When prospects buy, they are taking longer
to make their final vendor selection —
             the result of intense scrutiny of all purchasing decisions.



The volatility, uncertainty, complexity, ambiguity environment is a factor in nearly all
organisations, creating high levels of uncertainty for buyers and sellers alike.
The Corporate Executive Board reports that globally, half of employees expect a major change in six months.
Given this volatility, buyers may often nd the safest decision to be no decision.


                                                                                                        16
What to do
                                                ?
Articulate and quantify the value to customers of your products and
services. Teach salespeople how to make a clear business case — to
explain not the vague “benefits” of a solution, but the specific,
nancial, mission-critical results it will produce.
Further Resources:
Go to www.forum.com/business-challenges/invigorate-your-salesforce.aspx,
you can download The Strategic Selling Kit:
• Research: Navigating the Sales Funnel
• White Paper: SAM: Move Upstream to Eliminate Competition
• White Paper: Cold Calling is Stone Cold Dead
• Webinar Replay: Fifth Third Bancorp: How to Execute a Customer Focused Sales Strategy
• Brochure: The World's Top Sales Organisations Turn to Forum to Stay Ahead of Their Competition


Forum Europe & Middle East – 44 (0) 20 7017 7150
Forum North America – 617 523 7300
Forum Asia-Pacific – 65 6505 2050

Forum is a recognised global leader in linking learning to strategic business objectives. Our learning solutions help
organisations effectively execute their business strategies by focusing on their most important asset: their people.
We provide clients with practical and research-based advice and tailored programmes that mobilise employees,
accelerate business-initiative implementation, and improve agility. Forum’s 40-year legacy as a pioneer and
thought leader continues with the release of our latest book, Strategic Speed (Harvard Business Press).

For more information, visit www.forumemea.co.uk.

Š 2013 The Forum Corporation.


                                                                                                                 18

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Seven Sales Force Development Trends

  • 2. OneIt’s (still) all about revenue CSO Insights Trend Report, 2012 (survey of sales executives): Respondents were asked about the top three goals they have for their sales organisations for the next 12 months. Increasing revenues tops the priority list. Another theme in the report was increasing sales effectiveness. In the early 2000s, sales organisations were focused mainly on eciency — installing CRM systems, reducing paperwork, and making more calls. Now, sales executives are realising that efficiency is not enough; it’s about not just making more calls, but making great calls.
  • 3. To grow revenue and increase effectiveness, sales organisations are focusing on several key strategies: Capture new accounts. For the past three years, in a tough economy, sales organisations have turned to their existing customer base as a source of stability. Now, however, many are focused again on growing their customer base. Improve team selling. “Coordinating the selling efforts across sales teams was mentioned as a key objective by some rms. One of their primary goals is to work more effectively at engaging all of the individuals involved in selling to or servicing an account and to recognise and leverage the work of everyone on the team.” Improve cross-selling/up-selling. Sales representatives “need to have the training and support to get outside of their comfort zones and sell new products they may not have sold in the past to new stakeholders they may not have engaged before.” Protect against competitors. With today’s shorter product development cycles, salespeople need to guard against competitors coming into their accounts, showing a new and different solution or technology, and taking away the business. Improve margin. Companies realise that capturing market share is not the end goal; having more protable customers is. This means salespeople must know how to sell the value of their solutions and reduce reliance on discounting. 2
  • 4. What to do ? Seek to improve sales effectiveness, not just eciency. Consider focusing your sales learning and development initiatives on the ve areas previously outlined.
  • 5. 2 Internally Two Sales is going social Sales organisations are becoming social enterprises, using social media technology to connect sales representatives with each other and with all relevant departments that support sales. Example: The Salesforce.com Chatter tool. Externally Salespeople need to leverage these tools to nd and nurture leads, develop viable new prospects, and maintain and build customer relationships. Social media has changed how sales reps connect with customers. Big Data Companies are using customer analytics to generate customer insight, and sales analytics to better manage sales force performance and effectiveness. All the conversations — every tweet, chat, comment, and post — collected on social media platforms are ripe for analysis. 4
  • 6. What to do ? Provide clear guidelines and training for how salespeople should be leveraging social media. Make it clear that effective use of these tools is not just marketing’s job, but everyone’s job.
  • 7. 3 Sales portal Three Three ways a “sales portal” can become “sales enablement” the idea is knowledge delivery: give sales representatives exactly the info they need, just when they need it, and in the form they can use it most effectively. For a few years now, “sales portals” have been a hot topic. But, that term is becoming outdated, as it suggests a mere gateway to various data sources and depends on the sales representatives actively seeking information. Sales enablement an integrated ability to push the right information, tools, and guidance to sales representatives based on where they are in a selling or account situation. One way to think about how this trend is evolving is to think of a continuum of sales portals, with “a big le cabinet” on the left and “sales enablement” on the right. Sales technology vendors fall at various places on this continuum. 6
  • 8. 1) What to do ? Don’t limit yourself to “file-cabinet” thinking. Instead, create a blueprint — an architecture that integrates the essential elements of your sales organisations — and use that as the basis for your sales portal. 2) Establish a governance model as you would for any other key business process, with decision-making authority, guiding principles, and continuous improvement. 3) And, work with a vendor that’s farther to the right on the continuum.
  • 9. Four Move over, solution selling Is solution selling really dead, or even dying No — but it’s no longer anywhere near the cutting edge. ? Buyers are becoming more sophisticated and savvy, which requires sellers to adapt to keep pace. Sales organisations that rely on solution selling or consultative selling alone will nd themselves falling behind. Terms for the new approach include thought-leadership selling, insight selling, and point-of-view selling (Forum’s term, and the name of our programme). It’s not right for every salesperson or every customer, but it’s what the star salespeople are doing. 8
  • 10. Forum research brief “Because [senior] leaders are primarily concerned with identifying and prioritising which problems need solving and with assigning people and resources to tackle them, a consultative selling approach — probing for problems and offering possible solutions — will not interest them. Since these executives continually scan the horizon for new opportunities and looming threats, what does get their attention is showing them something signicant they had not seen, or could not see clearly, and helping them determine whether it is worth their time to more fully investigate. The key to accessing and engaging senior-level decision makers is educating them about new, and sometimes provocative, ideas for capturing signicant business value or managing serious risk.” “High-performing sales reps have a new strategy — they’re selling insights and coaching customers on how to buy.” “Harvard Business Review, July-August 2012 The End of Solution Sales”
  • 11. What to do ? Conduct a Sales Organisation Maturity Assessment to see where your sales organisation and customers are today and what types of selling approaches and training investments will pay off. Tailor your sales effectiveness initiatives accordingly. 10
  • 12. 5 Five What to do about the fact that inside sales groups are growing in size and influence The number of inside sales departments is projected to grow from 800,000 in 2009, to more than 2 million in 2013. IDC’s Sales Advisory Service research indicates a >10 percent increase in inside sales headcount from 2010 to 2011, and more than half of companies surveyed intended to increase inside sales in 2012; however, respondents said much work is still needed to increase those sales representatives’ productivity. CSO Insights Telemarketing Report
  • 13. What to do ? Consider bolstering alternate channels, such as an inside sales team, as a cost-ecient component of your sales and marketing strategy. 12
  • 14. 6 Six The game’s half over before you’re called in to play On average, 57 percent of a purchase decision is complete before a customer contacts a supplier. At this point, needs are scoped, solutions have been compared, the purchase is funded, and price is often being benchmarked. The idea that “executives don’t go online” is a myth. Research indicates that most executives — even CEOs — are spending plenty of time online seeking out suppliers, partners, and new ideas that can help their business. Customers aren’t new to the solutions purchase game any longer. They’ve put in place purchasing processes, infrastructure, and consultants, professionalising their approach and providing a strong internal team on which they rely. Corporate Executive Board
  • 15. The bottom line: Customers don’t need a salesperson to educate them about your company and its products and services. They can get the ocial line from your website, use social media to nd out what everyone else is saying about you, and have their purchasing group write up a detailed comparison of potential vendors — all in a matter of days. Then — if you’re lucky — they’ll call you. 14
  • 16. What to do ? Be clear with the sales force that consultative selling skills are more necessary than ever — but that the days of exercising those skills during the course of three or four leisurely customer meetings are gone. They must be prepared to move at the customer’s accelerated pace and to add unmistakable value from the very rst minute of the very rst call.
  • 17. 7 Seven Why “No Decision” is becoming everyone’s biggest competitor, and what you can do about it When prospects buy, they are taking longer to make their nal vendor selection — the result of intense scrutiny of all purchasing decisions. The volatility, uncertainty, complexity, ambiguity environment is a factor in nearly all organisations, creating high levels of uncertainty for buyers and sellers alike. The Corporate Executive Board reports that globally, half of employees expect a major change in six months. Given this volatility, buyers may often nd the safest decision to be no decision. 16
  • 18. What to do ? Articulate and quantify the value to customers of your products and services. Teach salespeople how to make a clear business case — to explain not the vague “benets” of a solution, but the specic, nancial, mission-critical results it will produce.
  • 19. Further Resources: Go to www.forum.com/business-challenges/invigorate-your-salesforce.aspx, you can download The Strategic Selling Kit: • Research: Navigating the Sales Funnel • White Paper: SAM: Move Upstream to Eliminate Competition • White Paper: Cold Calling is Stone Cold Dead • Webinar Replay: Fifth Third Bancorp: How to Execute a Customer Focused Sales Strategy • Brochure: The World's Top Sales Organisations Turn to Forum to Stay Ahead of Their Competition Forum Europe & Middle East – 44 (0) 20 7017 7150 Forum North America – 617 523 7300 Forum Asia-Pacific – 65 6505 2050 Forum is a recognised global leader in linking learning to strategic business objectives. Our learning solutions help organisations effectively execute their business strategies by focusing on their most important asset: their people. We provide clients with practical and research-based advice and tailored programmes that mobilise employees, accelerate business-initiative implementation, and improve agility. Forum’s 40-year legacy as a pioneer and thought leader continues with the release of our latest book, Strategic Speed (Harvard Business Press). For more information, visit www.forumemea.co.uk. Š 2013 The Forum Corporation. 18