Download - Improving Productivity and Customer Focus - 2012 Sales Leadership Priorities Survey Results
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2012 sales leadership priorities survey results
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CONTENTS
INTRO
Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Survey Purpose and Respondents . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
What is the Growth Team Membership™ . . . . . . . . . . . . . . . . . . . . . . . . 5
Sales Leadership Overarching Challenges . . . . . . . . . . . . . . . . . . . . . . . . 6
Key Sales Leadership Challenges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7SECTION
1
Respondent Demographics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25SECTION
4
Sales Leadership Resource Trends . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11SECTION
2
Special Interest Topic: Tools and Social Media . . . . . . . . . . . . . . . . . . . . . . 17SECTION
3
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2012 survey resultsgrowth team m e m b e r s h i p™
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Introduction
Sales Leadership Survey Executive Summary
SECTION 1: Key Sales Leadership Challenges
Key Internal Challenge Key Internal Challenge Root CauseEnhancing sales’ reps productivity (focusing on the highest-value activities)
Insufficient personnel
SECTION 2: Sales Leadership Resource Trends
Budgets ResourcesSales typically has an annual budget under $1 million Budgets and staffing levels will increase moderately in 2012
SECTION 3: Tools and Social Media
Social Media in the Sales Cycle Top Social Media Platforms LinkedIn UsesSocial media is used during the lead identification and qualification phase
LinkedIn is the primary social media platform used in sales activities
Sales executives use LinkedIn to improve information on customer needs and demonstrate topical expertise
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2012 survey resultsgrowth team m e m b e r s h i p™
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Introduction
Survey Purpose and Respondents
Co-SponsorSurvey PopulationMethodologyResearch Objective
To understand the most pressing external and internal challenges shaping sales executives’ 2012 planning
Web-based survey platform Manager level and above sales executives from companies in North and South America
®
260survey
respondents
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2012 survey resultsgrowth team m e m b e r s h i p™
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Introduction
What is the Growth Team Membership™?
GTM is a subscription program that supports executives within the functions that report to the CEO
GTM provides best practices, events, and services that enable executives to address challenges within their companies
CorporateStrategy
Corporate Development
Marketing
CompetitiveIntelligence
MarketResearch
SalesLeadership
R&D/Innovation
Investors/Finance
CEO
SalesLeadership
CEO’s Growth Team™ GTM: Creating Client Value
GTM’s case-based best practices help executives:
Speed the design and implementation of initiatives by not reinventing the wheel
Save money and reduce risk by avoiding mistakes made by other companies
Accelerate problem-solving with a cross-industry perspective
Improve their functions’ and companies’ performance and productivity
[email protected] www.gtm.frost.com slideshare.net/FrostandSullivantwitter.com/Frost_GTM
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2012 survey resultsgrowth team m e m b e r s h i p™
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Introduction
Sales Leadership Overarching Challenges Sample Solutions from GTM
What’s Keeping Sales Executives Up at Night in 2012?
Contact us at GTMResearch@frost .com .
Customer Focus
Sales executives must increase their familiarity with their clients so they can respond to the changes in their customers’ decision-making behavior and needs .
Learn how Tandberg made customer segmentation the foundation of its customer-centric business model .
Lead Generation Strategies
Sales executives are struggling with identifying and qualifying high-potential leads and need a strategy for improving the overall demand generation process .
Learn how Kronos developed a demand management strategy to provide Sales with high-quality, actionable leads.
Distribution Channel PartnersCompanies tend to rely heavily on distribution channels for sales. However, due to changes in customer purchasing behavior, Sales must ensure that distribution channels are still meeting its needs .
Learn how our Distribution Channel Optimization toolkit helps you evaluate your distribution channels’ ability to reach customers and differentiate your value proposition from the competition .
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2012 survey resultsgrowth team m e m b e r s h i p™
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INTRO
SECTION
1
SECTION
2
SECTION
4
SECTION
3
SECTION
1 Key Sales Leadership Challenges
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2012 survey resultsgrowth team m e m b e r s h i p™
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Section 1
Challenge 1 Enhancing sales reps’ productivity [focusing on the highest-value activities] (18%)
Challenge 2 Aligning the sales process with customers’ decision-making behavior (10%)
Challenge 3 Selecting and building effective channel partnerships (10%)
Challenge 4 Streamlining the sales process (11%)
Challenge 5 Integrating win/loss analysis with sales strategies (14%)
Top Five Key Sales Leadership Challenges
SURVEY QUESTION: What are the top five functional challenges shaping your sales strategy?
Note: The respondents were asked to rank their top five challenges. The percentage values indicate how many respondents listed that particular challenge as their first through fifth challenge.
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Section 1
Respondents in B-to-B companies are focused on productivity, while those in B-to-C companies are concerned with customer needs and behavior
Top Five Sales Leadership Challenges (By Business Model)
B-to-B B-to-C
Challenge 1 Enhancing sales reps’ productivity [focusing on the highest-value activities] (20%)
Implementing lead generation strategies (22%)
Challenge 2 Aligning the sales process with customers’ decision-making behavior (10%)
Responding to pricing pressures from competitors, the market, and customers (17%)
Challenge 3 Responding to pricing pressures from competitors, the market, and customers (10%)
Aligning the sales process with customers’ decision-making behavior (15%)
Challenge 4 Streamlining the sales process (11%)Identifying and responding to clients’ changing needs (20%)
Challenge 5 Integrating win/loss analysis with sales strategies (12%)
Integrating win/loss analysis with sales strategies (20%)
Note: The respondents were asked to rank their top five challenges. The percentage values indicate how many respondents listed that particular challenge as their first through fifth challenge.
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2012 survey resultsgrowth team m e m b e r s h i p™
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Section 1
Respondents attribute sales challenges to limitations in staffing and processes
SURVEY QUESTION: Please indicate the root cause—staff, process, technology/systems, or strategic alignment—of your top five sales leadership challenges.
Root Cause of Top Five Sales Leadership ChallengesTop Five Sales Leadership Challenges
Challenge 1Enhancing sales reps’ productivity [focusing on the highest-value activities] (18%)
Staff: Limited resources (23%)
Challenge 2Aligning the sales process with customers’ decision-making behavior (10%)
Process: Ineffective process (21%)
Challenge 3 Selecting and building effective channel partnerships (10%)
Staff: Limited resources (58%)
Challenge 4 Streamlining the sales process (11%)Process: Ineffective process (25%)
Staff: Limited resources (25%)
Challenge 5 Integrating win/loss analysis with sales strategies (14%)
Process: Lack of process (44%)
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2012 survey resultsgrowth team m e m b e r s h i p™
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INTRO
SECTION
1
SECTION
2
SECTION
4
SECTION
3
SECTION
2 Sales Leadership Resource Trends
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Section 2
F
F
F
F
F
F
0%
10%
20%
30%30%
28%
23%
21%
9%
12%
8%7%
10%11%
20%21%
29%
23%
10%
7%
11%
20%
Most sales departments have budgets under $1 million
2012 Sales Budgets (By Business Model)
SURVEY QUESTION: Which of the above ranges (in $USD) best describes your 2012 total sales budget (all expenditures on sales activities and general & administrative—including staff):
The red percentages are for all respondents .
Below $1 Million $1 Million to $2.99 Million
$3 Million to $4.99 Million
$5 Million to $9.99 Million
$10 Million to $19.99 Million
$20 Million or more
All Companies B-to-B Companies B-to-C Companies
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Section 2
B-to-B companies attribute a greater percentage of their revenue to distribution channels or partners
Percent of Revenue Attributed to Distribution Channels and Partners (By Business Model)
SURVEY QUESTION: What percentage of your 2011 company sales were attributed to distribution channels or partnerships and alliances?
All Companies B-to-B Companies B-to-C Companies0%
10%
20%
18%
20%
18%
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Section 2
Respondents anticipate a moderate increase in sales staffing for 2012
Sales Staffing Changes (By Business Model)
SURVEY QUESTION: In comparison to 2011, your 2012 sales staffing will…
7%
1%
41% 43%Stay the Same
Decrease Moderately Decrease Substantially Increase Substantially
Increase Substantially
Increase Moderately
All Companies
B-to-C Companies
B-to-B Companies
5%
3%
45%33%
Stay the Same
Decrease Moderately Decrease Substantially
Decrease SubstantiallyIncrease Substantially
Increase Moderately
8%
14%
6%
1%
40% 46%
7%
Stay the Same
Decrease Moderately
Increase Moderately
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Section 2
Most sales executives foresee moderate budget increases in 2012
Sales Budget Changes (By Business Model)
SURVEY QUESTION: In comparison to 2011, your 2012 sales budget will…
7%
2%
16%
2%
28%
45%
Stay the Same
Decrease Moderately Decrease Substantially
Increase Substantially Increase Substantially
Increase Moderately
All Companies
B-to-C Companies
B-to-B Companies
2%
36%
39%
Stay the Same
Decrease Moderately
Increase Substantially
Increase Moderately
18%
23%
24%
48%
10%
Stay the Same
Decrease Moderately Decrease Substantially
Increase Moderately
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Section 2
B-to-C companies are more likely to rate their sales functions as “Above Average”
Sales Effectiveness (By Business Model)
SURVEY QUESTION: How would you rate the performance or effectiveness of your function compared to others within your industry?
All Companies B-to-B Companies
B-to-C Companies
8% 9%
5%
52% 45%
65%
34% 39%
25%
6% 7%
5%
Above Average
Above Average
Above Average
Exceptional Exceptional
Exceptional
Below Average Below Average
Below Average
Average Average
Average
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INTRO
SECTION
1
SECTION
2
SECTION
4
SECTION
3SECTION
3 Special Interest Topic: Tools and Social Media
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Section 3
SURVEY QUESTION: What is your company’s primary purpose for using each of the above tools?
Most respondents are not using social media tools in the sales process
Tools & Social Media Purpose (By Business Model)
All Companies B-to-B Companies B-to-C Companies
100% Use 100% Use 100% Use
Increase sales productivity (51%) Increase sales productivity (48%) Increase sales productivity (59%)
48% Use 47% Use 50% Use
Increase sales productivity (32%) Increase sales productivity (34%)
Increase sales productivity (13%)
Enable value-based selling to customers—focus on outcomes not price and features (26%)
22% Use 21% Use 24% Use
Improve information on customer needs (54%)
Improve information on customer needs (63%)
Reduce sales cycle time (44%)
18% Use 20% Use 14% Use
Increase sales productivity (48%) Increase sales productivity (50%) Increase sales productivity (40%)
19% Use 21% Use 14% Use
Improve information on customer needs (30%)
Improve information on customer needs (39%)
Boost customer satisfaction and loyalty (20%)
Improve information on customer needs (20%)
Tele-presence and/or Live Streaming Video
Social media CRM (e.g., Nimble)
Social media dashboard to manage individual activity (e.g., Hootsuite)
Social media dashboard to manage team activity (e.g., MediaFunnel)
Social media monitoring (e.g., Radian 6)
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Section 3
SURVEY QUESTION: During which stage of the sales cycle do you find social media most useful?
The majority of sales executives are using social media to identify and qualify leads
Use Social Media in the Sales Cycle (By Business Model)
All Companies 52% 23% 7% 1% 17%
B-to-B Companies 56% 24% 6% 0% 14%
B-to-C Companies 41% 23% 9% 5% 22%
Identifying and qualifying leads
Pinpointing needs and creating awareness Presenting solutions Finalizing the sale Supporting an
ongoing relationship
All Companies B-to-B Companies B-to-C Companies
Use Social Media
Use Social Media
Use Social Media58%58%58%
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Section 3
All Companies
SURVEY QUESTION: Please list the top three social media platforms (e.g., LinkedIn, Twitter, SlideShare) you use in your sales efforts.
Sales executives use LinkedIn as their primary social media platform
Top Three Social Media Platforms Used During Sales (By Business Model)
B-to-B Companies B-to-C Companies
LinkedIn (72%)
Twitter (41%) Twitter (47%) Facebook (27%)
Facebook (22%)Facebook (18%) Twitter (40%)
LinkedIn (75%) LinkedIn (65%)
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Section 3
SURVEY QUESTION: For what purpose do you use the above LinkedIn activities in your sales efforts?
Respondents use LinkedIn primarily to look up information on customer needs and promote their topical expertise
Use of Specific LinkedIn Activities
Yes YesYes
Yes
Conduct individual searches Join special interest groups Actively participate in special interest groups
Create/moderate special interest group(s)
75% 82% 65% 43%
Primary Purpose:Improve information on customer needs (40%)
Primary Purpose:Improve information on customer needs (37%)
Primary Purpose:Demonstrate topical expertise (43%)
Primary Purpose:Demonstrate topical expertise (35%)
Boost brand recognition (35%)
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2012 survey resultsgrowth team m e m b e r s h i p™
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Section 3
SURVEY QUESTION: For what purpose do you use the above LinkedIn activities in your sales efforts?
Sales executives are promoting their thought leadership through special interest groups on LinkedIn
Use of Specific LinkedIn Activities (By Business Model)
B-to-C Companies
71%
29%
79%
21%
44%
56%64%
36%
86%
14%
88%
12%
41%
59%
72%
28%
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
B-to-B Companies
Conduct individual searches Join special interest groups Actively participate in
special interest groupsCreate/moderate special
interest group(s)
71%
86%
79%
88%
64%
72%
44%
41%
Primary Purpose:Improve information on customer needs (29%)
Primary Purpose:Improve information on customer needs (50%)
Primary Purpose:Improve information on customer needs (42%)
Primary Purpose:Improve information on customer needs (37%)
Primary Purpose:Demonstrate topical expertise (40%)
Primary Purpose:Demonstrate topical expertise (52%)
Primary Purpose:Demonstrate topical expertise (29%)
Boost brand recognition (29%)
Primary Purpose:Demonstrate topical expertise (31%)
Boost brand recognition (31%)
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Section 3
The majority of respondents’ CRM systems do not capture the sales force’s social media activities
Customer Relationship Management (CRM) Capture of Social Media Activity (By Business Model)
SURVEY QUESTION: Does your company’s CRM (Customer Relationship Management) system capture your social media efforts?
Yes No Do Not Use
16%
57%
27%
Yes No Do Not Use
18%
56%
26%
All Companies
Yes No Do Not Use
10%
59%
31%
B-to-B Companies
B-to-C Companies
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Section 3
Few respondents are using predictive analytics in their sales processes
Approach to Predictive Analytics (By Business Model)
SURVEY QUESTION: Which of the above best describes your approach to predictive analytics (the analysis of customer behavioral data to identify patterns and provide insights for customer interactions)?
All Companies B-to-B Companies
B-to-C Companies
52%
5%
66%
5%
30%
16%
47%
4%
8%
27%
19%
21%
Combination of Internal and External Efforts
Combination of Internal and External Efforts
Combination of Internal and External Efforts
Do Not Use Do Not Use
Do Not Use
Conduct Internally Conduct Internally
Conduct Internally
Outsource to Vendor Outsource to Vendor
Outsource to Vendor
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INTRO
SECTION
1
SECTION
2
SECTION
4
SECTION
3
SECTION
4 Respondent Demographics
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Section 4
Respondent Demographics
SURVEY QUESTION: Please indicate the type of enterprise, business model, and revenue that best represents your company.
N = 255
N = 257N = 260
Enterprise Type Business Model
Company Revenue
55%
4%
1% 1%
5%
34%
18%
11%
71%
Public
Private
Hybrid
B-to-B Company
Venture CapitalGovernment/Public Sector
Not for Profit
0%
30%
60%
43%
22%
9%
21%
5%
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 (Indirect)
B-to-C Company (Direct)
The majority of the respondents come from B-to-B companies .
The majority of the respondents come from privately held companies .
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Section 4
Chemicals, Materials, and Food
Electronics and Security
SURVEY QUESTION: Please indicate which industry categories best describe your company (check all that apply) .
Respondent Demographics: Top Six Participating Industries
N = 2570% 20% 40%
33%
25%
25%
24%
20%
19%
Automotive and Transportation
Energy and Power Systems
Healthcare and Life Sciences
Information and Communication Technologies