growth team membership european 2010 sales leadership priorities survey results
TRANSCRIPT
Growth Team Membership™:
European 2010 Sales Leadership Priorities
Survey Results
July 2010
Contact us at [email protected]
2Growth Team Membership™ Research.
What is Growth Team Membership™?
Growth Team Membership™ (GTM) is an annual subscription program that offers research, events and services designed to
increase the effectiveness, productivity, and impact of executives in the functions that support the CEO’s growth strategy.
3Growth Team Membership™ Research.
Table of Contents
Page
Section 1: Survey Purpose and Respondents 4
Section 2: External Factors Shaping 2010 Strategies 5
Section 2.1: By business model 8
Section 3: Key Sales Leadership Challenges 9
Section 3.1: By business model 13
Section 4: Sales Function Effectiveness and Responsibilities 14
Section 4.1: By business model 15
Section 7: Respondent Demographics 23
The content of these pages are © 2010 Frost & Sullivan. All rights reserved.
4Growth Team Membership™ Research.
Survey Purpose and Respondents
There were 200 survey
respondents
Research Objective
To understand the most pressing
external and internal challenges
shaping sales executives’ 2010
planning.
Methodology
Web-based survey platform
Survey Population
Target respondents were manager
level and above sales executives
from companies throughout Europe.
5Growth Team Membership™ Research.
External Factors Shaping
Sales Leadership Strategies
6Growth Team Membership™ Research.
Top Three External Factors
N = 164
KEY TAKEAWAY: Sales leadership plans are heavily influenced by customer shifts and competitor activities
Survey Question: Please indicate the three business environment factors that have the most impact on your 2010 sales leadership strategies.
21%
19%
20%
0% 25% 50%
Need for product/service innovation and capabilities
Changes in customer buying behavior
Intensifying competition
7Growth Team Membership™ Research.
External Factors Impact on Sales Leadership
N = 164
Survey Question: Please indicate the impact that each of the following forces have on your 2010 sales leadership strategies.
KEY TAKEAWAY: The after effects of the economic downturn—intense competition and changes in customer buying
behavior—are negatively affecting plans for 2010.
Negative ImpactPositive Impact
82%
66%
87%
0%
50%
100%
Need for product/service innovation and capabilities
Changes in customer buying behavior Intensifying competition
8Growth Team Membership™ Research.
B-to-B B-to-C Hybrid
Need for
product/service
innovation and
capabilities
Changes in government
regulation1 Adjusting to the
Economic Downturn
Tapping into global
market opportunities
Adjusting to the
economic downturn2 Changes in customer
buying behavior
Intensifying
competition
Need for product/service
innovation and
capabilities3
Need for
green/sustainability
initiatives
KEY TAKEAWAY: There is a high level of variability among the top external challenges by business model.
Top Three External Factors (By Business Model)
N = 164
9Growth Team Membership™ Research.
Key Sales Leadership Challenges
10Growth Team Membership™ Research.
All Companies
Top three challenges:
B-to-B Companies
Top three challenges:
B-to-C Companies
Top three challenges:
► Identifying and qualifying
high-potential prospects
► Identifying and qualifying
high-potential prospects
► Identifying and qualifying
high-potential prospects
►Responding to clients’
changing business
environment and
challenges within it
►Equipping reps to be more
effective solutions sellers
(creating value beyond
price)
►Equipping reps to be more
effective solutions sellers
(creating value beyond
price)
►Responding to competitor
discounting
►Creating a company
culture that better
supports the sales effort
►Responding to clients’
changing business
environment and
challenges within it
Key Sales Leadership Challenges Snapshot
11Growth Team Membership™ Research.
Top Five Key Sales Leadership Challenges
Challenge 1 Identifying and qualifying high-potential prospects (28%)
Challenge 2Responding to clients’ changing business environment and challenges within it
(13%)
Challenge 3 Responding to competitor discounting (11%)
N = 132
Survey Question: Please indicate the top five challenges shaping your sales leadership decision-making in 2010.
KEY TAKEAWAY: Sales Leaderships’ key issues encompass perennial challenges: finding high-potential targets, adapting to
the evolving environment ,and collaborating with Marketing.
Challenge 4 Creating a company culture that better supports the sales effort (11%)
Challenge 5 Increasing collaboration between Sales and Marketing (15%)
12Growth Team Membership™ Research.
Root Cause of Top Five Sales Leadership Challenges
N = 132
Survey Question: For the top five challenges you selected above, please indicate whether the root cause of the challenge is staff, technology, or
process.
KEY TAKEAWAY: Process and staff are the predominant root causes of Sales Leadership’s challenges.
Technology14%
Technology20% Technology
11%
Technology33%
Process57% Process
33%
Process50%
Process23%
Process48%
Staff29%
Staff47%
Staff17%
Staff77%
Staff41%
0%
50%
100%
Identifying and qualifying high-potential prospects
Responding to clients’ changing business environment and
challenges within it
Responding to competitor discounting
Creating a company culture that better
supports the sales effort
Increasing collaboration between Sales and
Marketing
13Growth Team Membership™ Research.
B-to-B B-to-C Hybrid
Identifying and qualifying
high-potential prospects
Identifying and qualifying
high-potential prospects
Identifying and qualifying
high-potential prospects
Equipping reps to be more
effective solutions sellers
(creating value beyond
price)
Equipping reps to be more
effective solutions sellers
(creating value beyond
price)
Responding to clients’
changing business
environment and
challenges within it
Creating a company
culture that better supports
the sales effort
Responding to clients’
changing business
environment and
challenges within it
Implementing effective key
account management
programs
Challenge 1
KEY TAKEAWAY: Key sales leadership challenges remain the same—but vary in their prioritization between business models.
Top Three Sales Leadership Challenges (By Business Model)
N = 132
Challenge 2
Challenge 3
14Growth Team Membership™ Research.
Sales Function Effectiveness and
Responsibilities
15Growth Team Membership™ Research.
Sales Function Effectiveness and Responsibilities Snapshot
All Companies B-to-B Companies B-to-C Companies
►Rank their sales function
effectiveness as “above average”
►Rank their sales function
effectiveness as “above average”
►Rank their sales function
effectiveness as “above average”
►Attribute 30% of their annual sales
to alliances and partnerships
►Attribute 25% of their annual sales
to alliances and partnerships
►Attribute 70% of their annual sales
to alliances and partnerships
►Expect their staffing levels to
increase moderately in 2010
►Expect their staffing levels to
increase moderately in 2010
►Expect their staffing levels to
increase moderately in 2010
►Expect their budgets to increase
moderately in 2010
►Expect their budgets to increase
moderately in 2010
►Expect their budgets to increase in
2010
16Growth Team Membership™ Research.
Average16%
Above Average67%
Exceptional17%
All Companies B-to-B Companies
Hybrid Companies
Sales’ View of Its Effectiveness (By Business Model)
N = 116
Survey Question: Please assess the overall effectiveness of your sales function compared to those in other firms within your industry.
KEY TAKEAWAY: Most of the respondents consider their function’s effectiveness to be “above average”.
Below Average4%
Average36%
Above Average52%
Exceptional8%
Below Average7%
Average37%Above Average
47%
Exceptional9%
Average39%
Above Average57%
Exceptional4%
B-to-C Companies
17Growth Team Membership™ Research.
Sales Technology and Practice Primary Purpose
Sales Force Automation—CRM • Better information on customer requirements and needs
(customer, product, and support data) (32%)
Solution-Selling Practices • Moving from a tactical to strategic relationship with clients
(25%)
Sales Enablement and Productivity
Tools • Do not use (32%)
• Increased sales productivity (27%)
Tele-presence and/or Live
Streaming Video Communication • Do not use (45%)
• Reduced cost of sale (15%)
Social Media • Do not use (61%)
• Higher customer satisfaction or loyalty (11%)
Data mining (customer, market, and
technical information) • Better information on customer requirements and needs
(customer, product, and support data) (40%)
KEY TAKEAWAY: Respondents indicate that sales leaders are not availing themselves of the opportunities created by social
media . However the respondents that are using social media , are using it to increase customer satisfaction and loyalty .
Primary Purpose of Sales Technology and Practices
N = 112
Survey Question: Please indicate the primary purpose for implementing each of the following technologies and practices in your sales interactions:
18Growth Team Membership™ Research.
Company Sales Attributed to Partnerships and Alliances (By
Business Model)
N = 88
Survey Question: What percentage of your 2009 company sales were attributed to partnerships and alliances?
KEY TAKEAWAY: B-to-B companies attribute a quarter of their annual sales to partnerships or alliances.
30%25%
70%
50%
0%
50%
100%
All Companies B-to-B Companies B-to-C Companies Hybrid Companies
Median Percentage of Sales
19Growth Team Membership™ Research.
Sales Responsibilities Time Allocation (2009 vs 2010)
N = 101
KEY TAKEAWAY: There is little change in the time allocated to sales leadership activities from 2009 to 2010.
Survey Question: Please indicate the percentage of your time allocated to each management role in 2009 and the forecasted percentage for 2010
(must sum to 100%).
7%
10%
20%
5%
13%
10%
2%
10%
5%
10%
20%
5%
15%
10%
2%
10%
0%
5%
10%
15%
20%
25%
2009 2010
Management
Sales
Forecasting
Sale-Specific
Training
Coaching Sales Strategy
and Account
Planning
Hiring/
Recruitment
Administration
Monitoring
Individual
and Team
Performance
Compensation
Plan
20Growth Team Membership™ Research.
All Companies B-to-B Companies
Hybrid Companies
2010 vs. 2009 Budgets (By Business Model)
N = 107
Survey Question: In comparison to 2009, your 2010 sales budget will:
KEY TAKEAWAY: Respondents forecast a moderate increase in their budgets for 2010.
Increase Substantially ,
15%
Increase Moderately, 43%
Stay the Same, 27%
Decrease Moderately, 11%
Decrease Substantially, 4%
Increase Substantially
15%
Increase Moderately
41%
Stay the Same28%
Decrease Moderately
13%
Decrease Substantially
3%
Increase Substantially
14%
Increase Moderately
36%Stay the Same
32%
Decrease Moderately
18%
Increase Substantially ,
25%
Increase Moderately, 25%
Stay the Same, 25%
Decrease Moderately, 25%
B-to-C Companies
21Growth Team Membership™ Research.
2010 vs. 2009 Staffing Plans (By Business Model)
N = 104
Survey Question: In comparison to 2009, your 2010 sales staff will:
KEY TAKEAWAY: The majority of respondents indicate their 2010 staffing levels will increase.
All Companies B-to-B Companies
Hybrid Companies
Increase Substantially
6%
Increase Moderately
44%
Stay the Same38%
Decrease Moderately
11%
Decrease Substantially
1%
Increase Substantially
9%
Increase Moderately
41%
Stay the Same46%
Decrease Moderately
4%
Increase Substantially
5%
Increase Moderately
45%Stay the Same
36%
Decrease Moderately
14%
B-to-C Companies
Increase Moderately
50%
Stay the Same25%
Decrease Substantially
25%
22Growth Team Membership™ Research.
All Companies B-to-B Companies
Hybrid Companies
Anticipated Company Performance in 2010 (By Business Model)
N = 107
Survey Question: In comparison to 2009, your company’s performance by the end of 2010 will:
KEY TAKEAWAY: Respondents predict an increase in their company’s performance in 2010.
Increase Substantially
27%
Increase Moderately
59%
Decrease Moderately
14%
Increase Substantially
22%
Increase Moderately
59%
Stay the Same11%
Decrease Moderately
8%Increase
Substantially 21%
Increase Moderately
61%
Stay the Same13%
Decrease Moderately
5%
B-to-B Companies
Increase Substantially
25%
Increase Moderately
25%Stay the Same
25%
Decrease Moderately
25%
23Growth Team Membership™ Research.
Respondent Demographics
24Growth Team Membership™ Research.
Private64%
Venture Capital11%
Public25%
Demographics
N = 180
Survey Question: Please indicate the type of enterprise best represents your organisation.
Respondents tended to be from private, B-to-B companies whose 2009 revenue ranged from € 696 million to € 7 billion.
Enterprise Type Business Model
Company Revenue
N = 181N = 181
B-to-B Company
71%
B-to-C Company
5%
Hybrid Company
24%
19%14% 16%
33%
16%
0%
30%
60%
Below € 70 Million € 70 Million to €3 47.99 Million
€ 348 Million to €695.99 Million
€ 696 Million to € 7 Billion
More than € 7 Billion
Over half of the
respondents work in
a private company.
25Growth Team Membership™ Research.
Demographics: Top Six Participating Industries
N = 192
Survey Question: Please indicate which of these Industry categories best describes you organization (please indicate all that apply).
24%
19%
15%
13%
13%
13%
0% 15% 30%
Energy and Power Systems
Information and Communication Technologies
Healthcare and Life Sciences
Aerospace and Defense
Automotive and Transportation
Chemicals, Materials, and Food
26Growth Team Membership™ Research.
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