Presentation is loading. Please wait.

Presentation is loading. Please wait.

1 The Future of Sales The End of Selling as We Know It.

Similar presentations


Presentation on theme: "1 The Future of Sales The End of Selling as We Know It."— Presentation transcript:

1 1 The Future of Sales The End of Selling as We Know It

2 2 The History of Sales Innovation 1.Sales Fore Automation (SFA) 2.Software as a Service (SaaS) 3.Data based analytics and Reporting 4.Information Distribution Mobility 5.Process Automation and Integration 6.Real time Communication (IP and Web) 7.Social Networking

3 3 The Future Market 1.Traditional purchasing is diminishing. Replaced increasingly by internet purchasing, on line auctions, etc. 2.Traditional field sales roles will transition to include more sophisticated inside sales techniques 3.Strategic Account Managers will set the standard for all B-B relationships – With an in depth understanding of their customer’s customer – New technology and market strategy, PLUS – Exceptional skills as “out-sourced purchasing managers” for their customers 4.The future will evolve to a professional level status with college specialties providing the base business savvy, as well as the appropriate segment savvy (Accounting, Finance, Hi Tech, Manufacturing, etc.)

4 4 The Future of Sales 1.Technology assisted sales will dominate throughout the entire funnel 2.Customers will demand greater “virtual: sales calls: Inside sales 3.“Professional” sales will require greater specialization of sales roles 4.Academic requirements will be established for most sales roles

5 5 1. Technology Assisted Sales TECHNOLOGY ASSISTED SALES WILL DOMINATE THROUGHOUT THE ENTIRE FUNNEL

6 6 1. Technology Assisted Sales Future markets have changed permanently: There is little to no competitive advantage based on: 1.Product quality (all serious competitors have the same) 2.Cost, supply chain management and global sourcing have leveled the field) 3.Innovation is short lived – no global protection of Intellectual capital, and – even where it exists reverse engineering debases

7 7 1. Technology Assisted Sales The digital impact has switched the information advantage to the customer Sellers need to recognize the 4 most important things to know about successful selling into today’s unconventional business world.: 1.Selling must now be More Science & Technology than Art 2.Professional Sales Roles Must Become More Differentiated and Specialized 3.The Internet has Made Sales Professionals More Important 4.Universities and colleges will produce the sales professionals of the future

8 8 1. Technology Assisted Sales Sales in the “Internet Age” The digital impact has switched the information advantage to the customer Sellers need to recognize the 3 most important things to know about successful selling into today’s unconventional business world: 1.Selling is now More Science and Technology Than Art 2.Professional Sales Roles Are Specialized 3.The internet has made B to B Sales Professionals More Important than ever before

9 9 1. Technology Assisted Sales Historically, anecdotal personal experience has substituted for sales Science & Technology Most sales training & development books leaned on the “star” syndrome: “I was a successful… This is how I did it If you do it this way you can be successful too!” This has led to the fatally flawed Benchmarking and Top Grading approaches as models Unfortunately Cases studies as proofs don’t pass the placebo effect i.e., Results that would happen by chance But Real scientific research does exist

10 10 1. Technology Assisted Sales The Development of Sales Science & Technology Starting with Fredrick Tailor, business has progressively developed more systematic disciplines: – Moving from numerical process control, to total quality management (TQM), to ISO, to business analytics and finally leading to today’s actuarial applications and predicative business analytics. Until recently even rudimentary TQM and six sigma have seldom been applied to Managing Sales: Until recently there has never been a “TQSalesM” The lack of truly analytic processes and disciplines for most Supplier Customer relationships have led to failure rates unacceptable in any other business function – 20-25% customer churn – 30%+ Sales person turnover – 40% Sales manager turnover

11 11 1. Technology Assisted Sales The Past: A Lack of “Sales Technology” Anecdotal personal experience has substituted for science and technology, most sales books were “star” syndrome: “I was a successful… This is how I did it, If you do it this way you can be successful too!” Benchmarking and Top Grading approaches are equally flawed Most case studies don’t pass the placebo effect with results that could happen by chance But real scientific research does exist!

12 12 1. Technology Assisted Sales Developing the new Sales Technology The best experts with the right data can assess and predict future Insurance companies whose actuarial science is the most accurate future prediction system, can predict things that go wrong – The likelihood of illness, accident, even death: but, – Even though they can’t even define health”…except as a lack of illness The Gambling industry can control and predict their rate of winning “Moneyball” brought actuarial science to sports Chally’s actuarial research, science and predictive statistics has been applied to sales

13 13 2. The Growing Importance Of Inside Sales TRADITIONAL FIELD SALES ROLES WILL TRANSITION TO INCLUDE MORE INSIDE SALES TECHNIQUES

14 14 2. The Growing Importance Of Inside Sales Growing 300 percent faster than outside sales* Higher close rates at 1/3 rd the cost in 1/3 rd the time as traditional sales teams** More flexibility for the customer Can earn six-figure incomes without constant travel *2013 Inside Sales Market Size Survey ** Salesforce.com CEO Marc Benioff in his book, “Behind the Cloud”

15 15 2. The Growing Importance Of Inside Sales With Professional Inside Sales, customer facing positions will bifurcate to: – High end “more sophisticated consultative” strategic sales teams, and – More highly educated telesales (with dedicated accounts) Inside Sales Road Warriors SAMs & Specialized teams Inside Sales Road Warriors SAMs & Specialized teams PAST FUTURE

16 16 2. The Growing Importance Of Inside Sales Chally’s Inside sales research data base 2,800+ Inside sales professionals with – Detailed Job requirements – In depth competency assessments – Matching on-the-job performance measures 22 Different Inside Sales positions

17 17 Lead Generation DiscreteTeamed with Field Inbound Customer Service MOST COMMON INDIDE SALES ROLES 2. The Growing Importance Of Inside Sales PROFESSIONAL INSIDE SALES: HIERARCHY AND SPECIALTIES

18 18 2. The Growing Importance Of Inside Sales The Core Inside Sales Skills 1.INITIATES CUSTOMER CONTACT TO BUILD BUSINESS – Implements a customer contact process to increase business – Develops a high profile that gets the customer’s attention – Commits consistent calling to promote additional opportunities 2.MAINTAINS A DISCIPLINED WORK APPROACH – Evaluates potential prior to committing to a course of action – Tries to control or reduce risks and keep a pace that produce results – Favors successful approaches that have worked elsewhere 3.RESOLVES OBJECTIONS BY REINFORCING VALUE OF FEATURES/BENEFITS – Brings objections to the surface and tackles them head-on – Listens to and agrees with the validity of the customer’s concern – Expertly presents benefits to overcome an established buying habit

19 19 2. The Growing Importance Of Inside Sales The Next Stage of Inside Sales Research 1.Identify THE MOST COMMON INSIDE SALES SPECIALTIES 2.Identify the specific competencies, in addition to the core competencies, required for Inside Sales Roles 3.Develop tailored profiles for individual inside sales forces – Offers a typical predictive selection improvement of 35% over existing methods

20 20 3. Specialized Sales “Professionals” 1.Will resolve customers objections – Our services are hard to understand I don’t trust the fine print (How can we simplify?) – It’s difficult to reach a real person…at my convenience Can we build easily accessible expertise online/phone? – Is cutting costs at customer’s expense? “Phone option hell” What part of your goals are based on customer longevity? 2.Will Create and deliver value added solutions … to meet both the customer's and your objectives and expectations, as well as future potential 3.Will go to protect the customer’s interests? AMEX (a personal story) 4.Will forgive Customer mistakes and help prevent them? AT&T international assistance

21 21 3. Specialized Sales “Professionals” Move Beyond Personal Experience to the Actuarial Business Processes of Other “C” Suite Functions Where Do We Go Next? A Change in Mind Set Unlocking the Science of Sales

22 22 3. Specialized Sales “Professionals” “Professional” Marketing Support Retail: Discounting Cold calling Business to Business: Acceptable: Acceptable: offering “IP” incentive Better: Better: lead generating; i.e. Speaking engagements that draw live enquirers Best: Best: top of mind positioning/branding

23 23 3. Specialized Sales “Professionals” Today’s Professional Sales Requires Both “Hunting” & “Farming” Driving new business (Hunting) 1.Identifying & selecting the right Accounts 2.Training & developing the right Skills 3.Implementing formal processes Retaining existing business (Farming) 1.Adopting a “Customer-Driven Attitude” 2.Utilizing enabling “IT” for the customer 3.Interacting with and integrating other functional professionals Developing the Necessary Skills Requires Specialization!

24 24 3. Specialized Sales “Professionals”

25 25 WHERE DO YOU FIND YOU THE BEST SALES TALENT FOR THE FUTURE? The Professional Recruiting Source: The University Trained Sales Professionals UNIVERSITIES CAN HELP BUSINESS And Teach Tomorrows' Sales Leaders 4. Future Academic Requirements For Sales

26 26 4. Future Academic Requirements For Sales Today’s Weak Sales Performer Challenges* 1.Global companies spend an estimated 80 billion annually on training salespeople 2.An average salesperson spends more than 33 hours per year in training 3.In technical markets, the costs associated with the development of just one salesperson are often in excess of $100,000 4.It may take as long as two years before any profit is realized from a new sales hire Why is “sales force” training the largest employee investment most companies must make? There is no other alternative! *Johnston, Wesley J., Journal of Personal Selling & Sales Management

27 27 4. Future Academic Requirements For Sales The Better Solution: The College Trained Sales Professional 1.Business acumen and P&L analysis: how to speak the customer’s language 2.Computer literacy and information technology 3.Account management and process “disciplines” 4.Interpersonal and relationship building skills 5.Market analysis 6.Product/service promotion and distribution 7.Supply chain management, etc.

28 28 4. Future Academic Requirements For Sales The Better Solution: The College Trained Sales Professional The Benefits* Sales grads: – Ramp up in half the time “on average” – Turnover is reduced by one third – Proven aptitude and desire for sales – More focused on the numbers and the processes designed to get the numbers – More aware of what they need to do *Chally corporate sponsor survey

29 29 Universities and Business Can Make a Difference in the Global Economy Corporations Develop the Professional Specialties Core “University” Based Professional Sales Competencies and Practical Research New Bus. Dev. Nat. Accounts Alternate Channel Territory Mgr. Sales Engineer Product Specialist Universities Develop the Foundation 4. Future Academic Requirements For Sales

30 30 The History of Sales Innovation 1.Sales Fore Automation (SFA) 2.Software as a Service (SaaS) 3.Data based analytics and Reporting 4.Information Distribution Mobility 5.Process Automation and Integration 6.Real time Communication (IP and Web) 7.Social Networking

31 31 The future will evolve to a professional-level status with college specialties providing the base business savvy, as well as the appropriate segment savvy (Accounting, Finance, Hi Tech, Manufacturing, etc.) Strategic Account Managers will set the standard for all B-B relationships With an in-depth understanding of their customer’s customer, New technology and market strategy, PLUS Exceptional skills as “out-sourced purchasing managers” for their customers Traditional field sales roles will transition to include more sophisticated inside sales techniques. Traditional purchasing is diminishing. Replaced increasingly by Internet purchasing, online auctions, etc. The Future Market

32 32 1.Technology assisted sales will dominate throughout the entire funnel 2.Customers will demand greater “virtual sales calls:” e.g., Inside sales 3.“Professional” sales will require greater specialization of sales roles 4.Academic requirements will be established for most sales roles THE FUTURE OF SALES

33 33 TECHNOLOGY ASSISTED SALES Technology Assisted sales will dominate throughout the entire funnel

34 34 Technology Assisted Sales Future Markets Have Changed Permanently There is little to no competitive advantage based on: 1.Product quality (all serious competitors have the same) 2.Cost, supply chain management and global sourcing have leveled the field) 3.Innovation is short lived – no global protection of intellectual capital, and – even where it exists reverse engineering debases

35 35 Technology Assisted Sales Digitally available Information has switched the advantage to the customer. Selling must now be more Science & Technology than Art Professional sales roles must become more Differentiated and Specialized The Internet has made Sales Professionals more important Universities and colleges will produce the sales professionals of the future

36 36 Technology Assisted Sales Sales in the “Internet Age” 1.The digital impact has switched the information advantage to the customer. 2.Sellers need to recognize the 3 most important things to know about successful selling into today’s unconventional business world: – Selling is now more Science and Technology than Art – Professional Sales Roles are specialized – The internet has made B-B Sales Professionals are more important than ever before

37 37 Technology Assisted Sales Most sales training & development books leaned on the “star” syndrome: “I was a successful… This is how I did it If you do it this way, you can be successful too!” This has led to the fatally flawed Benchmarking and Top Grading approaches as models. Cases studies as proofs don’t pass the placebo effect i.e., results that would happen by chance. Historically, anecdotal personal experience has substituted for sales science & technology.

38 38 Technology Assisted Sales The Development of Sales Science & Technology Starting with Frederick Taylor, business has progressively developed more systematic disciplines: Moving from numerical process control, to total quality management (TQM), to ISO, to business analytics, and finally leading to today’s actuarial applications and predicative business analytics. Until recently, even rudimentary TQM and Six Sigma have seldom been applied to managing sales: Until recently there had never been a “TQSalesM” The lack of truly analytic processes and disciplines for most supplier customer relationships have led to failure rates unacceptable in any other business function. – 20-25% customer churn – 30%+ salesperson turnover – 40% sales manager turnover

39 39 Technology Assisted Sales The Past: A Lack of “Sales technology” 1.Anecdotal personal experience has substituted for science and technology, most sales books were “star” syndrome: “I was a successful… This is how I did it, If you do it this way you can be successful, too!” 2.Benchmarking and Top Grading approaches are equally flawed 3.Most case studies don’t pass the placebo effect with results that could happen by chance

40 40 Technology Assisted Sales Developing the new Sales Technology The best experts, with the right data, can assess and predict the future 1.Insurance companies whose actuarial science is the most accurate future prediction system, can predict things that go wrong – the likelihood of illness, accident, even death: but, – even though they “can’t even define health”… except as a lack of illness 2.The gambling industry can control and predict their rate of winning 3.“Moneyball” brought actuarial science to sports Chally’s actuarial research, science, and predictive statistics has been applied to sales

41 41 Neil Rackham On Chally’s Research “The sheer size and comprehensiveness of the Chally databases makes them unique in the sales field. Chally’s work in the selling area has been evolving since the 1970’s; In addition to amassing an impressive sales database of 400,000 salespeople, Chally has made significant contributions to sales benchmarking methodology and research. “The sheer size and comprehensiveness of the Chally databases makes them unique in the sales field. Chally’s work in the selling area has been evolving since the 1970’s; In addition to amassing an impressive sales database of 400,000 salespeople, Chally has made significant contributions to sales benchmarking methodology and research. Add to this approximately 400 predictive validation studies and it is easy to see why the body of Chally’s work would be a solid starting point. An additional advantage is that one of the acknowledged strengths of Chally is the long association between the company and academic sales researchers. In the past, Chally’s data has been used to help establish research priorities in sales strategy and performance.”

42 42 Texts That Cite Chally Research Technology Assisted Sales

43 43 40 Years Research & Technology

44 44 GROWING IMPORTANCE OF INSIDE SALES Traditional field sales roles will transition to include more inside sales techniques

45 45 The Growing Importance of Inside Sales 1.Growing 300 percent faster than outside sales* 2.Higher close rates at 1/3rd the cost in 1/3rd the time as traditional sales teams** 3.More flexibility for the customer 4.Can earn six-figure incomes without constant travel *2013 Inside Sales Market Size Survey ** Salesforce.com CEO Marc Benioff in his book, Behind the Cloud

46 46 The Growing Importance of Inside Sales Growing 300 percent faster than outside sales* Higher close rates at 1/3 rd the cost in 1/3 rd the time as traditional sales teams** More flexibility for the customer Can earn six-figure incomes without constant travel *2013 Inside Sales Market Size Survey ** Salesforce.com CEO Marc Benioff in his book, “Behind the Cloud” Historically, anecdotal personal experience has substituted for sales science & technology. Sales Department Composition

47 47 The Growing Importance of Inside Sales Chally’s Inside sales research data base 1.2,800+ Inside sales professionals with – Detailed Job requirements – In depth competency assessments – Matching on-the-job performance measures 2.22 Different Inside Sales positions

48 48 With Professional Inside Sales, customer facing positions will bifurcate to: – High end “more sophisticated consultative” strategic sales teams, and – More highly educated telesales (with dedicated accounts) The Growing Importance of Inside Sales TelesalesRoad Warriors SAMs & Specialized teams TelesalesRoad Warriors SAMs & Specialized teams PAST FUTURE

49 49 The Growing Importance of Inside Sales Lead Generation Discrete Teamed with Field Inbound Customer Service MOST COMMON INSIDE SALES ROLES Professional Inside Sales: Hierarchy and Specialties

50 50 1.Initiates Customer Contact To Build Business – Implements a customer contact process to increase business – Develops a high profile that gets the customer’s attention – Commits consistent calling to promote additional opportunities 2. Maintains a Disciplined WORK APPROACH – Evaluates potential prior to committing to a course of action – Tries to control or reduce risks and keep a pace that produce results – Favors successful approaches that have worked elsewhere 3. Resolves Objections by Reinforcing Value of Features/Benefits – Brings objections to the surface and tackles them head-on – Listens to and agrees with the validity of the customer’s concern – Expertly presents benefits to overcome an established buying habit The Growing Importance of Inside Sales

51 51 SPECIALIZED SALES “PROFESSIONALS” Unlocking the Science of Sales

52 52 Specialized Sales “Professionals” Will resolve customer objections 1.Our services are hard to understand – I don’t trust the fine print (How can we simplify?) 2.It’s difficult to reach a real person … at my convenience – Can we build easily accessible expertise online/phone? 3.Is cutting costs at customer’s expense? “Phone option hell” – What part of your goals are based on customer longevity? Will create and deliver value-added solutions … to meet both the customer's and your objectives and expectations, as well as future potential Will go to protect the customer’s interests? AMEX (a personal story) Will forgive customer mistakes and help prevent them? AT&T international assistance

53 53 “Professional” Marketing Support Retail: Discounting Cold calling Business to Business: Acceptable: Acceptable: offering “IP” incentive Better: Better: lead generating: i.e., Speaking engagements that draw live enquirers Best: Best: top of mind positioning/branding Specialized Sales “Professionals

54 54 Specialized Sales “Professionals” Today’s Professional Sales Requires Both “Hunting” & “Farming” Driving new business (Hunting) 1.Identifying & selecting the right accounts 2.Training & developing the right skills 3.Implementing formal processes Retaining existing business (Farming) 1.Adopting a “Customer-Driven Attitude” 2.Utilizing enabling “IT” for the customer 3.Interacting with and integrating other functional professionals Developing the Necessary Skills Requires Specialization!

55 55 Specialized Sales “Professionals”

56 56 For Your Kind Attention THANK YOU!


Download ppt "1 The Future of Sales The End of Selling as We Know It."

Similar presentations


Ads by Google