tedx talk 2014: sales 2020, future trends in sales and sales management
Post on 15-Jul-2015
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SALES 2020 is a research project which started in
2010 in collaboration with:
Want to know more?
We interviewed well over 100 sales executives from
different industries in Europe and in the US.
The aim of the project was to:
• Identify future trends in sales• Identify the role of the sales organisation in the future
WHAT WERE THE MAIN TRENDS IN SALES FOR THE PAST 10 YEARS?
Want to know more?
#1 GLOBALISATION
Globalisation meant that many customers
merged into larger ones.
Globalisation has lead many customers to
consolidate their number of suppliers.
As a result, many suppliers have fewer but much larger customers.
As a result, sales people are dealing with highly professional
and well organised purchasing departments.
#2 INTERNET
The Internet has empowered customers with
a wealth of information.
The Internet has enabled customers to easily
compare their suppliers.
As a result, sales people are being replaced by the Internet because
they fail to add value.
#3 EFFICIENCY
Organisations are increasingly doing
more with fewer people.
As a result there are fewer opportunities for sales
people and customers to meet, requiring relationships to be
build on added value and not personal contacts.
#4 GOVERNANCE AND ETHICS
The importance of ethical behaviour has given
selling a bad name.
As a result, selling is evolving from an art, based on personal skills to a science based on replicable and
predictable processes.
WHAT TRENDS DO SALES ORGANISATIONS EXPECT
FOR THE COMING 10 YEARS?
Want to know more?
#1VALUE CO-CREATION
Speed of change and globalisation are making product innovation
increasingly difficult for suppliers.
Sales people will have to engage their customers into co-creating
new innovative products and services.
#2 ECO SYSTEMS OF PARTNERS
AND CUSTOMERS
Co-creating will require many competencies that
suppliers do not have.
Sales people will therefore have to develop an eco-system of partners
with whom to co-create.
#3 SOCIAL MEDIA
Social media is becoming the norm for people to
communicate with each other.
Sales people will have to use social media tools and platforms to
communicate with their customers and partners.
#4 KNOWLEDGE MANAGEMENT
Co-creation requires knowledge and understanding about the
customer’s business.
Suppliers will have to find ways to capture and replicate the knowledge
about their customer’s processes and business.
#5 THE SERVICE
“People don’t want to buy a quarter-inch drill. They want a
quarter-inch hole!”, Theodor Levitt
Sales people will have to help their customers
to maximise the benefits and value they obtain
from using their products and services.
WHAT ARE THE IMPLICATIONS OF THESE TRENDS FOR THE SALES
FUNCTION IN THE FUTURE?
Want to know more?
The sales person in the future will be a business consultant.
… because the process is changing.
COSTOMER’S BUYING PROCESS ROADMAP PROBLEM SOLUTION SUPPLIER PURCHASE USE STRATEGY
2000 SELLING
2020 BUSINESS CONSULTING
2010 CONSULTATIVE SELLING
2020 BUSINESS CONSULTING
Customers will have to pay for the sales people’s efforts.
… because your margins are going down and your sales costs will go up.
COSTOMER’S BUYING PROCESS ROADMAP PROBLEM SOLUTION SUPPLIER PURCHASE USE STRATEGY
Longer Sales Processes
Higher Educated
To co-create solutions with customers sales people will have to adopt a truly
customer centric mind-set.
.. because it requires different values and beliefs.
COSTOMER’S BUYING PROCESS ROADMAP PROBLEM SOLUTION SUPPLIER PURCHASE USE STRATEGY
EFFICIENCY CENTRIC MINDSET
Which solution do we need to
solve the problem?
Which problems does my product
solve?
Which is the fastest way to
sell?
PRODUCT CENTRIC MINDSET
CUSTOMER CENTRIC MINDSET
The sales organisation of the future will be a
matrix organisation combining product and customer experts
CUSTOMER EXPERTS
PRODUCT EXPERT
CUSTOMER SERVICE
PRODUCT SUPPORT
.. because customers will want to buy from us in different ways.
COSTOMER’S BUYING PROCESS ROADMAP PROBLEM SOLUTION SUPPLIER PURCHASE USE STRATEGY
CUSTOMER EXPERTS
PRODUCT EXPERT
CUSTOMER SERVICE
PRODUCT SUPPORT
WHAT DOES THIS MEAN FOR THE ROLE OF THE SALES FORCE
IN THE FUTURE?
Want to know more?
The commercial logic of how sales and marketing
complement each other is fundamentally changing.
THE OLD COMMERCIAL LOGIC
1. MARKETING DEFINES THE STRATEGYAND PRODUCT INNOVATIONS
2. R&D DEVELOPS THENEW PRODUCTS
3. SALES EXECUTE THEMARKETING STRATEGY
This logic is BROKEN
Product innovation based on traditional market research and
focus groups is too risky and not fast enough.
Sales people are too expensive to deploy as a simple personal
selling channel.
How can we fix the logic?
The costs and the risks of developing new innovative products needs to be
shared with customers.
The commercialisation of newly co-created solutions needs be done
through marketing channels.
THE NEW COMMERCIAL LOGIC
1. SALES PEOPLE CO-CREATE NEW INNOVATIVESOLUTIONS WITH KEY CUSTOMERS.
2. R&D DEVELOPS THE NEW PRODUCTS.
3. MARKETING COMMERCIALISES THESE NEWPRODUCTS INTO THE MARKET.
MARKETING
R & D
SALES
SALES
MARKETING
R & D
THE NEW COMMERCIAL LOGIC
THE SALES PERSON OF THE FUTURE WILL BE:
• MANAGING LARGE KEY ACCOUNTS
• PROVIDING BUSINESS ADVICE FOR A FEE
• MANAGING THE COLLABORATION WITH ALL
STAKEHOLDERS
• CO-CREATING SOLUTIONS WITH CUSTOMERS
AND PARTNERS LEADING TO NEW
INNOVATIONS
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