Four megatrends are shaping business today: increasing power of technology, shifts in demographics, low costs of experimentation, and the importance of user-centricity. For sales organizations to be successful, they now have to use Big Data more effectively, share their pitch early, use technology better, focus on platforms (not just services), and rethink their sales capabilities.
3. Our perspective is based on research with sales leaders across
industries
#SalesSummit #DF15
Companies averaging
High-tech
Industrial
Telecom
Healthcare/
pharma
Financial
services
Other leaders
Consumer
products
Basic
materials
$31B
Revenues
$47B
Market cap.
86,000
Employees
4. #SalesSummit #DF15
Megatrends
TECHNOLOGY
The new ABC of IT
Hyperconnectivity
Interaction Automation
USER-CENTRIC
Me + free + easy
p2p + online DESIGN THINKING
Using customer input
from sales & marketing
into engineering
DEMOGRAPHICS
New pockets of growth
Shifting of the guard
SOFTWARE CHANGING
EVERYTHING
Software eating the world
ECONOMICS
Share
eCommerce
Falling cost of experimentation
5. The new ABC of IT…
#SalesSummit #DF15
Analytics
Number of connected devices
per employee in 2014
Percentage of all server
workloads currently virtualized
Amount of data
enterprise has today
…Changes who is the buyer, Allows customers
to signal intent, and Buyers to collaborate
1 2
Byod Cloud
Used to access business
applications are consumer-owned
Amount Cloud Services industry
will reach by the end of 2015
Companies will spend on big
data investments in next 5 years
$232 billion
750 – 1,000TB 3.3 devices
40% of devices
60%
$180 billion
3
6. Hyperconnectivity
#SalesSummit #DF15
“The Internet of Things . . .
will change everything –
including ourselves”
– Dave Evans,
Cisco’s chief futurist
“Software is eating much of the
value chain of industries that are
widely viewed as primarily existing
in the physical world”
– Marc Andreessen
Number of connected devices
2000 2011 2020
50B
10B
200M
…Providing customers/sellers
more contextual information
7. 3rd Era – Automating interaction
#SalesSummit #DF15
INDUSTRIALIZATION IT ENABLEMENT
COLLABORATION
ENABLEMENT
…To unleash new sales productivity
• Production • Transaction • InteractionWORKERS
• Capital-intensive
• Repeatable /
predictable
• Unstructured work /
collaborationTASKS
• Physical • Structured information
• Unstructured information
and “exhaust” dataFLOW
KEY
DRIVERS
• EOS
• Specialization
• BPR
• Automation
• Agility / self-organizing
• Transparency (PM, KM)
8. Me, Free and Easy
#SalesSummit #DF15
. . . Raises new expectations for how customers
want to be served, and in what cycle time
9. Auto dealers have been exposed to an unprecedented amount of change
Online information sources
Average time spent per
purchase, in hours
Show room traffic
Average # of dealers visited
per purchase
Digital media spend
Share of dealer marketing
spend for online media, in
percent
14
5
~3x
10 years
ago
Today
2
4 0.5x
10 years
ago
Today
33
7
10 years
ago
Today
~5x
B2B is P2P and online
65% of organizations are engaged in online communities
#SalesSummit #DF15
. . . Turning traditional ways we buy on its head
10. Products designed
with selling
experience in mind
Value oriented and
consultative mindset
Focus on outcomes,
not just technology/
product
Analyze usage
patterns
Design thinking approach…
#SalesSummit #DF15
…can make selling process a delightful experience
11. The proliferation of software into every industry…
#SalesSummit #DF15
…requires technical savviness in the sales process
Enabling product delivery
as a service
Streaming music
and video services
Digital marketing
solutions
Changing non-SW
industries
Home: SW powered
lightbulbs
Healthcare:
Telemedicine,
Personalized drugs
Auto: Remote repairs
…many more
Software
changing
everything
12. Falling experimentation costs…
#SalesSummit #DF15
“Experimentation is the
new planning”
– FastCompany
EA was able to increase
online sales of SimCity 5
by over 40% using
promotion testing
A/B TESTING
…Allows continuous refinements to the selling model
13. EVERYTHING AS A SERVICE
Over 150,000 servers
4 million registered freelancers
Over 34,000 cities
Almost 1 million users
Over 2,400 skills listed
192 countries
Over 500,000
listings worldwide
The growth of the sharing economy…
#SalesSummit #DF15
…Creates a shift towards selling services vs. products
14. Amazon your eCommerce . . .
129
-94%
2,143
112
100
12-16%
Multichannel
retailers
116
Amazon
Category depth
Avg. number of SKUs /
category (5 categories)
100 items
Price index1 vs. Amazon.com
2013
Experience rating
American Customer
Satisfaction Index 2013
88%
72%
83%
77%
81%
80%
79%
#SalesSummit #DF15
Triple threat . . . why not buy all goods this way?
Assortment PriceExperience
15. New pockets of growth are emerging…
#SalesSummit #DF15
Small
Large
Mega
Global rising middle class will drive
the next wave of growth . . .
By 2025 . . .
Amount needed in additional
global investments each year
China telecom and transportation
share of wallet will grow
New cities in China with 1M+ people –
Europe has 35 today
Percentage of new urban consumers
emerging cities will have globally
$10T
3x
220
60%
…And companies will need Go-to-Market agility
16. Exit Boomers, enter Millennials…
Shifting of the guard
#SalesSummit #DF15
11% visit a social networking
site several times a day
26% visit a social networking
site once a day
30%OF BOOMERS USE A SOCIAL
NETWORKING SITE
50%
19% visit a social networking
site several times a day
29% visit a social networking
site once a day
OF GEN XERS USE A SOCIAL
NETWORKING SITE
75%
29% visit a social networking
site several times a day
26% visit a social networking
site once a day
OF MILLENNIALS USE A
SOCIAL NETWORKING SITE
New generation of
workers, born with the
Internet, came to age
with social networks
…Sales force demographics is changing – and the
new generation has different skills and expectations
SOCIALMEDIA
17. How are enterprise buyer behaviors changing?
#SalesSummit #DF15
Empowered and Digital
• Let me search
• Know me before I meet you
• Meet me where it matters
• All channels, all the time
18. Let me search . . .
Q. How important is online research
to your buying decision?
% of respondents
44
Not so important
100%
Important - online research is
one of many aspects
Extremely important –
I make my decision solely
based on online research
27
5
Highly important –
online research is key to
my decision making process
23 Top three most valuable
features during online
research
Product comparisons
Pricing information
Product reviews/customer
testimonials/case studies
#SalesSummit #DF15
> 90% of customers find online research
important in making buying decisions
19. Know me before I meet you…
#SalesSummit #DF15
Top of
mind
concerns
Service
satisfaction
rating Recent
Technology
trends
Last
interaction
Most
recent ticket
opened
B2B decision makers using social
networks for business purposes
Use
Use
Use
34% Use
74%
42%
39%
20. IDENTIFY BUY
Digital / social
enables more efficient
and effective aftersales
services
Low channel
costs revolutionize
GTM approaches
New digital sales tools
offering new opportunities
35% of B2B pre-
purchase activities are
digital / social
Online is second
most important source
of information for B2B
customers
TRIGGER
Meet me where it matters . . .
#SalesSummit #DF15
…Embrace the Customer Decision Journey (CDJ)
21. All channels, all the time . . .
#SalesSummit #DF15
Customers use on average
6 different channels
for prospecting
65% get frustrated
when they’re presented with
inconsistent experiences
through different channels
22. Online self-serve is 2nd most preferred way to buy IT
Q. How do you prefer to buy new IT?
% of respondents
Adobe moved its marquee product online
with Creative Cloud, with over >1.4m
Creative Cloud subscribers in 2014
“Customers don't have to come through us,
there is no reason why they should buy through
a reseller”
– Adobe reseller
Don’t forget the online channel
On-the-ground sales rep
from VAR, SI or Distributor
100%
Over the phone
Brick and mortar store
17
On-the-ground sales rep
from vendor
11
Online self-serve
15
25
31
23. #SalesSummit #DF15
Digitize your sales and channel partner models
No more swim lanes
Use data as a basis of competitive advantage
Imperatives for sales executives
24. Digitize the experience
#SalesSummit #DF15
• Word of mouth
• Online research
• Recommendations/
criticisms
• Traditional advertising
• Direct marketing
• Sponsorship
• Store
experience Follow your Customers
through their journey
Digital innovation at
every step
Company
Marketing
Customer
Marketing
Previous
experience
F2F contact
Buy
22
5
42
Evaluate
26
11
26
Consider
39
28
12
31
37
27
New accounts /
initial sales
Early-life /
onboarding
Billing
and care
Collections
Loyalty /
retention
Life events
Up-sales /
cross-sales
25. … yet channel management is ranked in bottom
Wake up the channel
Indirect is a crucial sales driver
% of sales going through indirect
% of respondents who agree that they apply
best practices in this domain
40
43
39
44
49
52
53
53
54
62
51
55
58
56
65
67
66
66
64
72
Talent mgt
Tools and information systems
Channel partner management
Innovation and product mgt
Strategic marketing
Tactical marketing
Performance mgt
Price and contract mgt
Org design and effectiveness
GTM model design
Entire industry
Top quartile performers
95%
Long
Steel
74%
IT 52%
Auto
parts
90%
Agric.
equipment
45%
Telecom
(B2C)
Capability Average
#SalesSummit #DF15
26. n
No more swim lanes
#SalesSummit #DF15
CIO
CMO
• Whitespace
opportunity hunting
• Micro segmentation
• Sales process
instrumentation
• Coverage optimization
Analytic
sales
CSO
Channel
Routes
to market
Direct
Online
Inside
27. Basic
customer
support
Customer support
evolves to customer
success to
maximize CLV
Customer
success evolves
to partnership
OPEX
AS-A-SERVICE
MODELS
FLEXIBLE
CONSUMPTION
PAY-AS-
YOU GO
CAPEX
ONE-TIME
TRANSACTION
PRODUCTS
COMMUNITY
INFRASTRUCTURE
PLATFORMS
INFORMATION
EXCHANGES
ENABLEMENT
API
DATAANALYTICS
ECOSYSTEM
Broaden your value proposition
#SalesSummit #DF15
28. Use Data For Your Competitive Advantage
#SalesSummit #DF15
Better tools
Next product to buy
CRM recommendation
based on customers’
needs and company’s
strongest value proposition
Call planning
CRM system pre-books
50% of reps’ time
Trigger points
customer profiles predict trigger points
Better resource allocation
Growth potential
LOW HIGH
LOW HIGH
Market share
HIGH
LOW
LOW HIGH
Market share
Growthpotential
Micromarket
potential
29. Summary and final thoughts…
#SalesSummit #DF15
• The trends are clear
• Your customers’
expectations are shifting
• Be ready to adapt