Defining sales leadership
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The document discusses sales trends and what companies need to know to compete. It analyzes data from over 600 sales reps to identify traits of high performers. Five sales profiles emerged: The Hard Worker, The Challenger, The Relationship Builder, The Lone Wolf, and The Problem Solver. Challengers made up the highest percentage of high performers. To succeed in complex sales environments, reps need to teach differentiation, tailor their message, and assert control over the customer. The document provides questions for companies to help reps adopt these skills.
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Defining sales leadership
- 1. Buying and Selling Trends What Every Company Needs to Know, in Order to Compete 5/29/2014 1 Roy Burchfield 214.558.1243 roy_burchfield@att.net The following presentation includes exerts from; SALES, MARKETING, AND COMMUNICATIONS PRACTICE INTEGRATED SALES EXECUTIVE COUNCIL White Paper Replicating the New High Performer Equip Your Reps to Challenge Customers
- 2. New Customer Behaviors Implications of the Decline in Customer Financial Condition Decreased Capital Spending “Customers are canceling projects without notice, so we have to get our sales reps to continually validate that the capital is still there.” VP Sales High Tech Industry Increase Price Pressure “Customers are asking us to cut 10% off of existing contracts before we can even say hello.” SVP Sales North American Software Industry Increased Risk Aversion “Just when we think we’ve covered all the bases, a new stakeholder gets involved and we have to go around the track one more time.” VP Sales Operations Software Industry Shorter Time Horizons “Even though customers agree that our solution is in their long-term best interest, they still say no because they have to manage the near-term cost pressures.” VP US Commercial Operations Pharmaceutical Industry Increase Contact Turnover “Years of building customer relationships can be undone with a single round of customer layoffs.” VP Sales Manufacturing Industry 5/29/2014 2 Roy Burchfield 214.558.1243 roy_burchfield@att.net
- 3. Back to Sales Basics Common Approaches to Equipping Reps to Sell More Effectively BETTER COMMUNICATE THE VALUE PROPOSITION REINFORCE THE SALES PROCESS BUILD BUSINESS ACUMEN STRENGTHEN CUSTOMER RELATIONSHIPS BUILD REP CONFIDENCE INCREASE REP EFFORT 5/29/2014 3 Roy Burchfield 214.558.1243 roy_burchfield@att.net
- 4. Determine High Performance Sales Professionals • Managers evaluated 683 sales reps from across 23 companies • Assessed whether the sales reps are more or less likely to exhibit certain sales-related, skills/behaviors, and activities • Used recent annual sales results to derive drivers of success • Understand key traits for hiring and development decisions Quantitative Model-In Search for Answers 5/29/2014 4 Roy Burchfield 214.558.1243 roy_burchfield@att.net
- 5. Attitudes • Desire to Seek Issue • Resolution • Willingness to Risk • Disapproval • Accessibility • Goal Motivation • Extent of Outcome Focus • Attachment to the Company • Curiosity • Discretionary Effort Skills/Behaviors • Business Acumen • Customer Needs Assessment • Communication • Use of Internal Resources • Negotiation • Relationship Management • Solutions Selling • Teamwork Activities • Builds strong advocates in the customer’s organization • Generous in giving time to help others • Gets along with everyone Knowledge • Industry Knowledge • Product Knowledge High Performance Sales Professionals The Minutiae of Sales Professionals Assessment 5/29/2014 5 Roy Burchfield 214.558.1243 roy_burchfield@att.net
- 6. The Hard Worker (21% of Sample) • Always willing to go the extra mile • Doesn’t give up easily • Self-motivated • Interested in feedback & development The Challenger (27% of Sample) • Always has a different view of the world • Understands the customer’s business • Loves to debate • Pushes the customer The Relationship Builder (21% 0f Sample) • Builds strong advocates in the customer’s organization • Generous in giving time to help others • Gets along with everyone The Lone Wolf (18% of Sample) • Follows own instincts • Self-assured • Difficult to control The Problem Solver (14% of Sample) • Reliably responds to internal and external stakeholders • Ensures that all problems are solved • Detailed- oriented Sales Rep Profiles 5/29/2014 6 Roy Burchfield 214.558.1243 roy_burchfield@att.net
- 7. Core and High Performers • Always willing to go the extra mile • Doesn’t give up easily • Self-motivated • Interested in feedback & development • Always has a different view of the world • Understands the customer’s business • Loves to debate • Pushes the customer • Builds strong advocates in the customer’s organization • Generous in giving time to help others • Gets along with everyone • Follows own instincts • Self-assured • Difficult to control • Reliably responds to internal and external stakeholders • Ensures that all problems are solved • Detailed- oriented 23% 15% 22% 14% 26% 39% 25% 17% 12% 7% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% The Challenger The Lone Wolf The Hard Worker The Problem Solver The Relationship Builder % of Core Performers % of High Performers Higher Percentage of Higher Performers Relative to Core Performance Lower Percentage of Higher Performers Relative to Core Performance 5/29/2014 7 Roy Burchfield 214.558.1243 roy_burchfield@att.net
- 8. Why it WorksThe Challenger’s Assessment Profile 6 5.75 6.125 66 5.75 Offers Unique Perspective Two-Way Communication Skills Knows Customer Value Drivers Can Identify Ecconomic Drivers Is Comfortable Discussing Money Can Presure the Customer Challengers Other Profiles Teach for Differentiation Tailor for Resonance Assert Control Proficiency of Most Important Challenger Skills & Non-Challengers Compared to Challengers AverageProficiency(7-pointScale) Defines a battle for customer dollars that supplier is uniquely able to win Restraints on the spending means more people are involved in the sale—each with their own needs Customer risk-aversion has made them less likely to make decisions without pressure * Other skills, such as ability to pitch corporate strategy or product expertise were not statistically significant but appear in the appendix to show their relative importance. Average Proficiency (7-point Scale) Teach for Differentiation Tailor for Resonance Assert Control Source: Integrated Sales Executive 5/29/2014 8 Roy Burchfield 214.558.1243 roy_burchfield@att.net
- 9. 23% 26% 39% 7% The Challenger The Relationship Builder % of Core Performers % of High Performers Challenger versus Relationship Builder Profiles • Offers Unique Perspective • Two-Way Communications Skills • Knows Customer Value Drivers • Can ID Economic Drivers • Is Comfortable Discussing Money • Can Pressure the Customer Teaches Taylors Asserts Control • Forms Good Relationships • Builds Customer Advocates • Builds Cross-Functional Relationships • Can Work with Anyone • Is Genuine • Accessible to the Customer • Gives Time to Help Others • Respects the Customer’s Time Gets Along with Others Likeable Generous with Time The Challenger profile focuses on building constructive tension in customer interactions to push the customer out of his comfort zone. The Relationship Builder profile focuses on resolving tension in customer interactions to make situations more amicable and positive and encourage collaboration. 5/29/2014 9 Roy Burchfield 214.558.1243 roy_burchfield@att.net
- 10. Taking the Long-Term View Frequency of High Performance by Sales Rep Profile Simple Versus More Complex Sales Environment 20% 54% 25% 25% 26% 10% 18% 7%11% 4% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Low Complexity High Complexity Relationship Builder Problem Solver Hard Worker Lone Wolf Challenger The Relationship Builder is highly unlikely to succeed in a complex sales environment The Challenger is very likely to succeed in a complex sales environment 5/29/2014 10 Roy Burchfield 214.558.1243 roy_burchfield@att.net
- 11. What I Have Learned Critical Components of the New High Performer Teach for Differentiation Assert Control Tailor for Resonance The New High Performer Assert Control: Openly pursue goals in a direct, but not aggressive, way to overcome increased customer risk aversion. Teach: Reframe the way customers view their business and their needs to set yourself apart in the market. Tailor: Link your capabilities to customers’ individual goals to overcome specific barriers to purchase. 5/29/2014 11
- 12. Worthy Questions to Consider Critical Components of the New High Performer What should my reps teach? How do I get my reps to tailor? How do I get my reps to assert control? How can I change rep behavior? 5/29/2014 12 Roy Burchfield 214.558.1243 roy_burchfield@att.net
- 13. Questions & Answers Thank You 5/29/2014 13 Roy Burchfield 214.558.1243 roy_burchfield@att.net Roy Burchfield 214.558.1243 roy_burchfield@att.net
Editor's Notes
- Times are tough—with little indication of a dramatic turnaround anytime soon. ■ The economic downturn is having a drastic effect on operating margins, including decreased revenues, increased price pressure, and excess capacity. ■ Economists have concluded there is one trillion dollars worth of excess capacity in the U.S. alone. ■ While it will take some time to fully utilize that one trillion dollars in excess capacity, the exact amount of time is dependent on the rate of economic recovery. ■ Even if the economy rebounds at a steady growth rate similar to that coming out of the last recession—2.3%—it will still take three years to get back to the pre-recession position. ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Current market conditions are wreaking havoc on sales rep confidence. ■ Sales reps do not believe they will be able to achieve their annual sales goals. ■ Making matters worse is that nearly two-thirds of all sales reps are unsatisfied with the business and sales skill training provided by their companies. ~~~~~~~~~~~~~~~~~~~~~~~~~ Sales reps are less engaged and putting in less effort, but are less likely to leave your company. ■ Sales rep engagement has declined precipitously across the past year. ■ As a result, the average sales rep is putting in less discretionary effort. ■ Core performing sales reps are less likely to look for a new job, while high performing sales reps are more likely to look for a new job.
- The economic downturn has changed how customers conduct business and interact with suppliers. ■ In response to the global economic decline, customers reduce operating expenses through aggressive budget cuts. ■ These budget cuts change operating procedures and lower risk tolerance within organizations. ■ The simultaneous global contraction in spending creates a buyer’s market, where customers expect suppliers to make generous concessions in exchange for continued business. ■ This buyer’s market mentality puts significant downward pressure on both supplier revenue and supplier margins.
- Current market conditions are wreaking havoc on sales rep confidence. ■ Sales reps do not believe they will be able to achieve their annual sales goals. ■ Making matters worse is that nearly two-thirds of all sales reps are unsatisfied with the business and sales skill training provided by their companies. ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Sales organizations are using a wide range of approaches to equip reps for changing customer behavior. ■ In response to changing customer behaviors sales organizations are going “back to basics.” ■ The specific interpretation of “back to basics” varies by company, but generally means focusing sales reps on traditional approaches to sales effectiveness. ~~~~~~~~~~~~~~~~~~~~~~~~~ Sales reps are less engaged and putting in less effort, but are less likely to leave your company. ■ Sales rep engagement has declined precipitously across the past year. ■ As a result, the average sales rep is putting in less discretionary effort. ■ Core performing sales reps are less likely to look for a new job, while high performing sales reps are more likely to look for a new job.
- To identify the sales skills associated with success in a tough economy, iSEC surveyed managers about the skills of sales reps worldwide. Survey Details ■ Each manager assesses one star and two core sales reps across a comprehensive set of 44 attributes. ■ In this analysis, direct managers evaluate 683 sales reps from across 23 Integrated Sales Executive Council member companies. ■ Managers assess whether the sales reps are more or less likely to exhibit certain sales-related attitudes, skills/behaviors, knowledge, and activities. ■ Analysis uses the most recent annual sales results to derive drivers of success. ■ The results enable organizations to understand which capabilities to select for and build when making hiring and development
- Sales reps fall into one of five distinct profiles. ■ The profiles are determined using factor analysis to identify common groups of skills or behaviors.
- Sales reps fall into one of five distinct profiles. ■ The profiles are determined using factor analysis to identify common groups of skills or behaviors.
- Challengers are far more likely to be high performers than any other profile. All profiles are roughly equal in occurrence in the total population. Challengers and Lone Wolves are more likely to be high performers than core performers. Lone Wolves can be successful if the environment matches their natural style, but regardless of success they pose a significant management challenge. Hard Workers and Problem Solvers are more likely to be core performers than high performers. The Relationship Builder is significantly more likely to be a core performer than a high performer.
- The Challenger excels in three areas which enable success in today’s environment. ■ The differentiating characteristic of the Challenger is the ability to teach the customer unique insights that are tailored to the customer’s unique value drivers, in an assertive, authoritative way. ■ The Challenger also excels in other areas, such as product and industry knowledge, but these strengths are not statistically significant when analyzed on their own.
- Relationship Builder attributes are in conflict with the attributes driving the Challenger’s success. While Relationship Builders are focused on resolving tension and creating a more collaborative, agreeable environment, Challengers succeed because they create constructive tension with the customer. The Challenger profile focuses on building constructive tension in customer interactions to push the customer out of his comfort zone. The Relationship Builder profile focuses on resolving tension in customer interactions to make situations more amicable and positive and encourage collaboration.
- The Challenger profile is far more likely to be a high performer in a complex environment than any other profile. ■ Given the trend towards greater complexity in sales interactions across all industries, the Challenger profile is the best profile to seek in hiring situations and build with development programs.
- Replicating the new high performer requires building out the Challenger profile in your sales force. ■ The Challenger profile is the best profile in the current economic environment and will become even more important as the complexity of each sale increases. ■ The Relationship Builder profile is the worst performance profile in the current economic environment and will become even worse as the complexity of each sale increases. ■ The key to success for the Challenger profi le is the ability to teach, tailor, and assert control.
- Replicating the new high performer requires building out the Challenger profile in your sales force. ■ The Challenger profile is the best profile in the current economic environment and will become even more important as the complexity of each sale increases. ■ The Relationship Builder profile is the worst performance profile in the current economic environment and will become even worse as the complexity of each sale increases. ■ The key to success for the Challenger profi le is the ability to teach, tailor, and assert control.