current trends in sales - vlerick business school/media/corporate/pdf-presentations/sales... ·...
TRANSCRIPT
Dirk Peeters, Monitor Deloitte
Deva Rangarajan, Vlerick 3rd June 2015
Current trends in sales
The sales environment
around us is changing
The sales environment around us is changing
© 2015 Monitor Deloitte Limited.2
Globalization
#1. Impact of globalization
© 2015 Monitor Deloitte Limited.3
Suppliers have fewer but larger customers
The sales environment around us is changing
© 2015 Monitor Deloitte Limited.4
Globalization
Digitization
Omni-channel
Research Choose ServiceUsePurchase Evolve
#2. Impact of digitization & omni-channel
presence
Cu
sto
me
r sa
tisfa
ctio
n
5
Search engines
Expert Blogs
Company website
Webinars
Comparison websites
Review blogs
Opinion leaders
Tablets
Apps
eCommerce /EDI
Self-service
Expert communities
Company website
User Communities
…many new interaction channels, leveraging social media,
become available during the customer lifecycle…
Every company needs to adapt to the digital reality
#2. Impact of digitization & omni-channel
presence
© 2015 Monitor Deloitte Limited.6
B2B customers search online for:
73%Product
pricing
60%Reviews
from their
peers
56%Company
and brand
reviews
Search engines are a top three
influencer in the areas of
awareness, discovery and research
among B2B buyers
buyers will read an average of 10
pieces of content before making
purchases
Percentage of B2B
buyers who research
products online before making a
purchasing decision
73%that's how far the
average B2B buyer
is through the purchase decision
before engaging a supplier
57%
The internet provides the customer with an endless source of
information
Source: B2B's Digital Evolution – CEB and Google insights (Feb 2013)
The Digital Evolution in B2B Marketing – Marketing leadership council (Oct 2012)
The sales environment around us is changing
© 2015 Monitor Deloitte Limited.7
Globalization
Digitization
Omni-channel
Power of
procurement
#3. The increasing power of procurement
© 2015 Monitor Deloitte Limited.8
Cost center and production enabler
Satisfying internal stakeholders
Competitive advantage by creating value
Strategic function: knowledge and
innovation center
Part of board
Maturity
Time
The sales environment around us is changing
© 2015 Monitor Deloitte Limited.9
GlobalizationThe
differentiation
challenge
Digitization
Omni-channel
Power of
procurement
#4 The differentiation challenge
© 2015 Monitor Deloitte Limited.10
Customers don’t need
you the way they used to
© 2015 Monitor Deloitte Limited.11
Fuse
Bang
The imperative of change for Sales
© 2015 Monitor Deloitte Limited.13
The portfolio
approach to
sales
From product
selling to
solution selling
to insight selling
Innovation
is not a nice to
have, it’s a must
have
The imperative of change for Sales
© 2015 Monitor Deloitte Limited.14
The portfolio
approach to
sales
From product
selling to
solution selling
to insight selling
Innovation
is not a nice to
have, it’s a must
have
The portfolio approach to sales
© 2015 Monitor Deloitte Limited.15
Competitiveadvantage
Old
N
ew
Existing New
Repurchase
Stay on top of mind
Have their full confidence
Be there when they need you
Support
Service organization
Sales support team
Pro
du
cts
Customers
The portfolio approach to sales
© 2015 Monitor Deloitte Limited.16
Competitiveadvantage
Old
Existing New
Repurchase
Stay on top of mind
Have their full confidence
Be there when they need you
Support
Service organization
Sales support team
Replacement
Monitor competitors sales
Look for competitor’s slip up in
product or service performance
Support:
Marketing / market research
Competitive intelligence
New
Pro
du
cts
Customers
The portfolio approach to sales
© 2015 Monitor Deloitte Limited.17
Pro
du
cts
Customers
Competitiveadvantage
Old
Existing New
Repurchase
Stay on top of mind
Have their full confidence
Be there when they need you
Support
Service organization
Sales support team
Replacement
Monitor competitors sales
Look for competitor’s slip up in
product or service performance
Support:
Marketing / market research
Competitive intelligence
Expansion
Develop a more strategic view on your client’s business
Bring detailed expansion project proposals
Support:
Create a business development organization structure that
encourages cross-functional teams: marketing , R&D, finance to
develop these proposals
Established needs
New
The portfolio approach to sales
© 2015 Monitor Deloitte Limited.18
Competitiveadvantage
Old
Existing New
Repurchase
Stay on top of mind
Have their full confidence
Be there when they need you
Support
Service organization
Sales support team
Replacement
Monitor competitors sales
Look for competitor’s slip up in
product or service performance
Support:
Marketing / market research
Competitive intelligence
Expansion
Develop a more strategic view on your client’s business
Bring detailed expansion project proposals
Support:
Create a business development organization structure that
encourages cross-functional teams: marketing , R&D, finance to
develop these proposals
Innovation
Be a subject matter expert
Interact with top management
Support:
CXO engagement, cross functional teams
Unknown needs
Established needs
Pro
du
cts
Customers
New
Source: A Portfolio Approach to Sales - Robert C. Dudley and Das Narayandas
The imperative of change for Sales
© 2015 Monitor Deloitte Limited.19
The portfolio
approach to
sales
From product
selling to
solution selling
to insight selling
Innovation
is not a nice to
have, it’s a must
have
Role of sales in
purchasing
decision?
How to begin the
conversation?
When to engage?
Nearly 60% of purchasing decision: researching solutions, ranking options, setting
requirements, benchmarking pricing, … has been done before they contact you
a supplier.
Insight selling is the new solution selling
© 2015 Monitor Deloitte Limited.20
Which companies
to target?
What information
to gather?
How does this impact sales ?
Source: The end of solution sales, - Harvard Business Review 2012
Be a partner to your clients, not a burden
21 © 2015 Monitor Deloitte Limited.
Value
Risk
Leverage
High monetary value
suppliers = burden
Anonyms Bottlenecks
Low High
High
High added value
suppliers = partners
Source: Risk / Value matrix – Kraljic Model
The imperative of change for Sales
© 2015 Monitor Deloitte Limited.22
The portfolio
approach to
Sales
From product
selling to
solution selling
to insight selling
Innovation
is not a nice to
have, it’s a must
have
The challenge of selling innovations
© 2015 Monitor Deloitte Limited.23
Selling new solutions have an
increased sales cycle time
Selling new solutions requires
a different set of sales skills
Our current counterpart at the client is
the right person to talk about new
solutions & innovations
78% 78% 46%
Companies are currently not organized
around this
© 2015 Monitor Deloitte Limited.24
I need to know if I will be recognized
if I am successfully in meeting my
target of selling new solutions
Our organization has the right set of
KPI’s to measure the performance of
new solution selling
Our incentive/reward policy for sales is
aligned with selling innovations
70% 29% 30%
Companies should organize the sales
organization depending on the phase of
innovation
© 2015 Monitor Deloitte Limited.25
Sale
s Y
ield
Initiation
phase
Transition
phase
Execution
phase
Ideation phase Design phase Prototype phaseTesting &
adapting phaseCommercialization
phase
Focus on learning &
agility
Ramp up sales force
& support and
service organization
Source: The Sales learning curve -Mark Leslie and Charles A. Holloway
How are you dealing with these topics?
© 2015 Monitor Deloitte Limited.26
The portfolio
approach to
sales
From product
selling to
solution selling
to insight selling
Innovation
is not a nice to
have, it’s a must
have
The imperative of change for Sales
© 2015 Monitor Deloitte Limited.27
The portfolio
approach to
sales
From product
selling to
solution selling
to insight selling
Innovation
is not a nice to
have, it’s a must
have
The DNA of a sales person in the future:
C+R+I
ST=
Sales as a trusted advisor
© 2015 Monitor Deloitte Limited.28
Credibility + Reliability + Intimacy
Self orientation
Trusted advisor =
The sales environment around us is changing
© 2015 Monitor Deloitte Limited.29
Are you ready?
Always available for more sparring
© 2015 Monitor Deloitte Limited.30
• Dirk Peeters
Senior Director at Monitor
Deloitte
• +32 497 39 27 37
• Deva Rangarajan
Professor Sales & Marketing at
Vlerick Business School
• +32 473 83 69 71