2011 sales leadership priorities survey results: europe
TRANSCRIPT
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The contents of these pages are copyright © 2011 Frost & Sullivan. All rights reserved.
growth team m e m b e rs h i p™
2011 Sales Leadership Priorities Survey Results
Europe
Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . 2What is the Growth Team Membership™ . . . . . . 3Survey Purpose and Respondents . . . . . . . . . . . . . 4
External Factors Shaping Sales Leadership’s Strategies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Key Sales Leadership Challenges . . . . . . . . . . . . . . 8
Sales Effectiveness and Practices . . . . . . . . . . . . . 12Sales Leadership Overarching Challenges . . . . . . 19
Respondent Demographics . . . . . . . . . . . . . . . . . 20
in cooperation with
®
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The contents of these pages are copyright © 2011 Frost & Sullivan. All rights reserved.
2011 survey resultsgrowth team m e m b e rs h i p™
Source: Growth Team Membership™ research.
Key Internal Challenge Internal Challenge Root CauseThe challenge is identifying and qualifying high-potential prospects
The challenge’s root cause is staff limitations
Main External ChallengeThe challenge is capitalising on emerging markets
Executive Summary
Resources Tools and Practices Social Media in SalesRespondents foresee a moderate increase in budgets and staffing in 2011
Respondents utilise traditional tools such as sales automation and customer relationship management software
Social media is typically used to identify and qualify leads
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The contents of these pages are copyright © 2011 Frost & Sullivan. All rights reserved.
2011 survey resultsgrowth team m e m b e rs h i p™
Source: Growth Team Membership™ research.
What is the Growth Team Membership™?
The Growth Team Membership™ (GTM) is a subscription program that supports executives within the functions reporting to the CEO.
GTM provides best practices, events, and services to enable executives to address internal challenges within their companies.
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SalesLeadership
Email us [email protected] Visit us online www.gtm.frost.com
CEO’s Growth Team™ GTM: Creating Client Value
GTM’s case-based best practices help executives:
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Accelerate problem solving with a cross-industry perspective
Improve their function/company’s performance and productivity
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The contents of these pages are copyright © 2011 Frost & Sullivan. All rights reserved.
2011 survey resultsgrowth team m e m b e rs h i p™
Source: Growth Team Membership™ research.
Survey Purpose and Respondents
123survey
respondents
In Cooperation withSurvey PopulationMethodologyResearch Objective
To understand the most pressing external and internal challenges shaping sales executives’ 2011 planning .
Web-based survey platform Target respondents were Manager level and above sales executives from companies throughout Europe .
®
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The contents of these pages are copyright © 2011 Frost & Sullivan. All rights reserved.
2011 survey resultsgrowth team m e m b e rs h i p™
Source: Growth Team Membership™ research.
External Factors Shaping Sales Leadership’s Strategies
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The contents of these pages are copyright © 2011 Frost & Sullivan. All rights reserved.
2011 survey resultsgrowth team m e m b e rs h i p™
Source: Growth Team Membership™ research.
Sales strategies are influenced by the need to capitalise on emerging markets and adjust to changes in customer buying behavior
Top Three External Factors
Survey Question: Please specify the Top Three external factors shaping your sales strategy in 2011 .
External Factor 1 Emerging global markets (21%)
External Factor 2 Changes in customer buying behavior (14%)
External Factor 3 Need for product and service innovation (14%)
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The contents of these pages are copyright © 2011 Frost & Sullivan. All rights reserved.
2011 survey resultsgrowth team m e m b e rs h i p™
Source: Growth Team Membership™ research.
Challenges for Sales Leadership
Changes in customer buying behavior (50%)
External Factors Impact on Sales Leadership
Survey Question: Please indicate if the following factors present a challenge or an opportunity for your 2011 sales strategy .
Opportunities for Sales Leadership
Emerging global markets (91%)
Need for product and service innovation (80%)
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The contents of these pages are copyright © 2011 Frost & Sullivan. All rights reserved.
2011 survey resultsgrowth team m e m b e rs h i p™
Source: Growth Team Membership™ research.
Key Sales Leadership Challenges
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The contents of these pages are copyright © 2011 Frost & Sullivan. All rights reserved.
2011 survey resultsgrowth team m e m b e rs h i p™
Source: Growth Team Membership™ research.
Top Three Sales Leadership Challenges
Identifying and qualifying high-potential prospects
Challenge 1
Responding to pricing pressures from competitors, the market, and customers
Challenge 3
Ensuring accurate reporting of forecasted sales opportunities in the pipeline
Challenge 2
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The contents of these pages are copyright © 2011 Frost & Sullivan. All rights reserved.
2011 survey resultsgrowth team m e m b e rs h i p™
Source: Growth Team Membership™ research.
Challenge 1 Identifying and qualifying high-potential prospects (23%)
Challenge 2 Ensuring accurate reporting of forecasted sales opportunities in the pipeline (10%)
Challenge 3 Responding to pricing pressures from competitors, the market and customers (15%)
Challenge 4 Equipping reps to be more effective solutions sellers [creating value beyond price] (11%)
Challenge 5 Aligning the sales process with customers’ purchasing behavior (9%)
The challenges speak to the difficulties in identifying, engaging, and closing customers
Top Five Key Sales Leadership Challenges
Survey Question: Please indicate the top five functional challenges shaping your sales plans in 2011 .
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The contents of these pages are copyright © 2011 Frost & Sullivan. All rights reserved.
2011 survey resultsgrowth team m e m b e rs h i p™
Source: Growth Team Membership™ research.
Challenge 1Identifying and qualifying high-potential prospects
Staff: Limited resources (55%)
Challenge 2Ensuring accurate reporting of forecasted sales opportunities in the pipeline
Process: Ineffective process (38%)
Challenge 3Responding to pricing pressures from competitors, the market and customers
Process: Ineffective process (22%)
Challenge 4Equipping reps to be more effective solutions sellers (creating value beyond price)
Staff: Limited resources (38%)
Challenge 5Aligning the sales process with customers’ purchasing behavior
Staff: Lack of knowledge (50%)
Sales key challenges are predominantly caused by ineffective processes and insufficient staffing
Survey Question: Please indicate if the root cause of your top five functional challenges are—staff, process, technology/systems, or strategic alignment .
Root Cause of Top Five Sales Leadership ChallengesTop Five Sales Leadership Challenges
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The contents of these pages are copyright © 2011 Frost & Sullivan. All rights reserved.
2011 survey resultsgrowth team m e m b e rs h i p™
Source: Growth Team Membership™ research.
Sales Effectiveness and Practices
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The contents of these pages are copyright © 2011 Frost & Sullivan. All rights reserved.
2011 survey resultsgrowth team m e m b e rs h i p™
Source: Growth Team Membership™ research.
Sales Leadership Effectiveness and Practices Snapshot
Respondents rank their sales function’s effectiveness as “Above Average”
Sales executives implement tools primarily to increase sales productivity
Respondents expect their staffing levels to increase moderately in 2011
Respondents expect their sales budgets to increase moderately in 2011
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The contents of these pages are copyright © 2011 Frost & Sullivan. All rights reserved.
2011 survey resultsgrowth team m e m b e rs h i p™
Source: Growth Team Membership™ research.
32%
59%
7%
2%
The majority of respondents consider their Sales function’s effectiveness to be “Above Average”
Sales Leadership’s View of Its Effectiveness
Survey Question: Please assess the overall effectiveness of your sales function compared to those in other firms within your industry .
Above Average
Exceptional
Below Average
Average
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The contents of these pages are copyright © 2011 Frost & Sullivan. All rights reserved.
2011 survey resultsgrowth team m e m b e rs h i p™
Source: Growth Team Membership™ research.
On average, respondents attribute 40% of their company’s sales to distribution channels or partnerships
Sales by Partnerships
Survey Question: What percentage of your 2010 company sales were attributed to distribution channels or partnerships and alliances?
0%
25%
50%
21%
26%
20% 20%
13%
1 to 20% 21 to 40% 41 to 60% 61 to 80% 81 to 100%
40% is the median percentage of sales attributed to distribution channels and partnerships .
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The contents of these pages are copyright © 2011 Frost & Sullivan. All rights reserved.
2011 survey resultsgrowth team m e m b e rs h i p™
Source: Growth Team Membership™ research.
Respondents tend to utilise tools to increase sales force effectiveness
Primary Purpose of Technology and Practices
Survey Question: Please indicate the primary purpose for implementing each of the following technologies and practices:
Tool/Practice 1Sales Force Automation
Increase sales productivity (33%)
Tool/Practice 2Customer Relationship Management (CRM) Software
Improve information on customer needs (35%)
Tool/Practice 3Solution Selling Practices
Enable value-based selling to customers—focus on outcomes not price and features (47%)
Tool/Practice 4Sales Enablement and Productivity Tools
Do not use (30%)
Increase sales productivity (24%)
Tool/Practice 5Telepresence or Live Streaming Video Comm Capabilities
Do not use (52%)
Reduce cost of sale (20%)
Tool/Practice 6Social Media
Do not use (49%)
Enhance sales presentations and collateral (11%)
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The contents of these pages are copyright © 2011 Frost & Sullivan. All rights reserved.
2011 survey resultsgrowth team m e m b e rs h i p™
Source: Growth Team Membership™ research.
When utilised, social media tends to be used to identify and qualify leads
Social Media in the Sales Cycle
Survey Question: Please indicate where social media is most useful with customers during the sales cycle:
0%
20%
40%
60%
22%
14%
3%
0%
20%
41%
Identifying and Qualifying Leads
Presenting Solutions
Pinpointing Needs and Creating Awareness
Finalizing the Sale
Supporting an Ongoing Relationship
Do Not Use
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The contents of these pages are copyright © 2011 Frost & Sullivan. All rights reserved.
2011 survey resultsgrowth team m e m b e rs h i p™
Source: Growth Team Membership™ research.
48%
3%
7%5%
37%
48%
26%
15%
3%
8%
Sales executives foresee a moderate increase in resources in 2011
Sales Leadership Staffing and Budgets 2011
Survey Question: In comparison to 2010, your 2011 staff will:
Staffing
Budget
Stay the Same
Decrease Moderately
Increase Moderately
Stay the Same
Decrease Moderately
Decrease Substantially
Decrease Substantially
Increase Substantially
Increase Substantially
Increase Moderately
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The contents of these pages are copyright © 2011 Frost & Sullivan. All rights reserved.
2011 survey resultsgrowth team m e m b e rs h i p™
Source: Growth Team Membership™ research.
The Growth Team Membership™ (GTM) is an annual subscription program that supports executives in Marketing, Sales Leadership, Corporate Strategy, Corporate Development, R&D/Innovation, Market Research, and Competitive Intelligence . GTM offers best practices research, events, and services to address the internal challenges executives face . Contact us at GTMResearch@frost .com .
what’s keeping sales executives up at night in 2011?
Overarching Challenges Sample Solutions from the Growth Team Membership
High-Potential Prospects
Sales executives must identify ways to focus activities on high-potential prospects and align the sales process to customer purchasing behaviour .
Learn how Farmers Insurance uses a Consumer Lifetime Value (CLTV) model—the revenue a customer generates during their lifetime with the company—to pursue sales and marketing strategies based on the monetary value of each customer .
Value-Based Selling
Sales executives need to implement a value-based selling approach that emphasises solutions over features and pricing .
Learn how Energy Company* evaluated the sales process and sales force’s capabilities before implementing a sales effectiveness program that conveys value beyond price .
* Energy Company is a pseudonym .
Distribution Channel Partners
Companies tend to rely heavily on distribution channels for sales . However, due to changes in customer purchasing behaviour, Sales needs to ensure that distribution channels are still meeting its needs .
Learn how our Distribution Channel Optimization toolkit helps you conduct an unbiased evaluation of your company’s current distribution channels and partners on their effectiveness in reaching customers and ability to differentiate your organization from the competition .
The Top Overarching Challenges Affecting Sales Executives
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The contents of these pages are copyright © 2011 Frost & Sullivan. All rights reserved.
2011 survey resultsgrowth team m e m b e rs h i p™
Source: Growth Team Membership™ research.
Respondent Demographics
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The contents of these pages are copyright © 2011 Frost & Sullivan. All rights reserved.
2011 survey resultsgrowth team m e m b e rs h i p™
Source: Growth Team Membership™ research.
Respondent Demographics
Survey Question: Please indicate the type of enterprise best represents your company .
N = 116
N = 116 N = 117
Enterprise Type Business Model
Company Revenue
11%
69%
20%
6%
71%
23%
Public
Hybrid Company
Private
B-to-B Company
Venture Capital
0%
30%
60%59%
16%
6%11%
7%
Below €100 Million
€100 Million to €499.99 Million
€500 Million to €999.99 Million
€1 Billion to €11 Billion
More than €11 Billion
B-to-C Company
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The contents of these pages are copyright © 2011 Frost & Sullivan. All rights reserved.
2011 survey resultsgrowth team m e m b e rs h i p™
Source: Growth Team Membership™ research.
Respondent Demographics: Top Five Participating Industries
Survey Question: Please indicate which industry categories best describe your company (check all that apply .)
Energy and Power Systems
Healthcare and Life Sciences
Electronics and Security
Chemicals, Materials, and Food
Information and Communication Technologies
0% 20% 40%
22%
21%
17%
15%
15%