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1
The Future of SalesThe End of Selling as We Know It
2
The History of Sales Innovation
1. Sales Fore Automation (SFA)2. Software as a Service (SaaS)3. Data based analytics and Reporting4. Information Distribution Mobility5. Process Automation and Integration6. Real time Communication (IP and Web)7. Social Networking
3
The Future Market
1. Traditional purchasing is diminishing. Replaced increasingly by internet purchasing, on line auctions, etc.
2. Traditional field sales roles will transition to include more sophisticated inside sales techniques
3. Strategic Account Managers will set the standard for all B-B relationships– With an in depth understanding of their customer’s customer– New technology and market strategy, PLUS – Exceptional skills as “out-sourced purchasing managers” for their customers
4. The future will evolve to a professional level status with college specialties providing the base business savvy, as well as the appropriate segment savvy (Accounting, Finance, Hi Tech, Manufacturing, etc.)
4
The Future of Sales
1. Technology assisted sales will dominate throughout the entire funnel 2. Customers will demand greater “virtual: sales calls: Inside sales3. “Professional” sales will require greater specialization of sales roles4. Academic requirements will be established for most sales roles
5
1. Technology Assisted Sales
TECHNOLOGY ASSISTED SALES WILL DOMINATE
THROUGHOUT THE ENTIRE FUNNEL
6
1. Technology Assisted Sales
Future markets have changed permanently:There is little to no competitive advantage based on:1. Product quality (all serious competitors have the same) 2. Cost, supply chain management and global sourcing have leveled the
field) 3. Innovation is short lived
– no global protection of Intellectual capital, and – even where it exists reverse engineering debases
7
1. Technology Assisted Sales
The digital impact has switched the information advantage to the customer Sellers need to recognize the 4 most important things to know about successful selling into today’s unconventional business world.:
1. Selling must now be More Science & Technology than Art2. Professional Sales Roles Must Become More Differentiated and
Specialized3. The Internet has Made Sales Professionals More Important 4. Universities and colleges will produce the sales professionals of
the future
8
1. Technology Assisted Sales
Sales in the “Internet Age”The digital impact has switched the information advantage to the customer Sellers need to recognize the 3 most important things to know about successful selling into today’s unconventional business world:
1. Selling is now More Science and Technology Than Art2. Professional Sales Roles Are Specialized3. The internet has made B to B Sales Professionals More Important
than ever before
9
1. Technology Assisted Sales
Historically, anecdotal personal experience has substituted for sales Science & Technology Most sales training & development books leaned on the “star” syndrome:• “I was a successful…• This is how I did it• If you do it this way you can be successful too!”
This has led to the fatally flawed Benchmarking and Top Grading approaches as modelsUnfortunately Cases studies as proofs don’t pass the placebo effect• i.e., Results that would happen by chance
But Real scientific research does exist
10
1. Technology Assisted Sales
The Development of Sales Science & Technology• Starting with Fredrick Tailor, business has progressively developed
more systematic disciplines:– Moving from numerical process control, to total quality management (TQM), to ISO,
to business analytics and finally leading to today’s actuarial applications and predicative business analytics.
• Until recently even rudimentary TQM and six sigma have seldom been applied to Managing Sales: Until recently there has never been a “TQSalesM”
• The lack of truly analytic processes and disciplines for most Supplier Customer relationships have led to failure rates unacceptable in any other business function – 20-25% customer churn – 30%+ Sales person turnover– 40% Sales manager turnover
11
1. Technology Assisted Sales
The Past: A Lack of “Sales Technology”• Anecdotal personal experience has substituted for science and
technology, most sales books were “star” syndrome:“I was a successful…This is how I did it,If you do it this way you can be successful too!”
• Benchmarking and Top Grading approaches are equally flawed • Most case studies don’t pass the placebo effect with results that could
happen by chance
But real scientific research does exist!
12
1. Technology Assisted Sales
Developing the new Sales TechnologyThe best experts with the right data can assess and predict future• Insurance companies whose actuarial science is the most accurate
future prediction system, can predict things that go wrong – The likelihood of illness, accident, even death: but,– Even though they can’t even define health”…except as a lack of
illness• The Gambling industry can control and predict their rate of winning• “Moneyball” brought actuarial science to sports
Chally’s actuarial research, science and predictive statistics has been applied to sales
13
2. The Growing Importance Of Inside Sales
TRADITIONAL FIELD SALES ROLES WILL TRANSITION TO INCLUDE MORE
INSIDE SALES TECHNIQUES
14
2. The Growing Importance Of Inside Sales
• Growing 300 percent faster than outside sales*
• Higher close rates at 1/3rd the cost in 1/3rd the time as traditional sales teams**
• More flexibility for the customer
• Can earn six-figure incomes without constant travel
*2013 Inside Sales Market Size Survey** Salesforce.com CEO Marc Benioff in his book, “Behind the Cloud”
15
2. The Growing Importance Of Inside Sales
• With Professional Inside Sales, customer facing positions will bifurcate to:– High end “more sophisticated consultative” strategic sales teams, and – More highly educated telesales (with dedicated accounts)
Inside Sales Road Warriors SAMs &Specialized teamsInside Sales Road Warriors SAMs &Specialized teams
PASTFUTURE
16
2. The Growing Importance Of Inside Sales
Chally’s Inside sales research data base• 2,800+ Inside sales professionals with
– Detailed Job requirements– In depth competency assessments– Matching on-the-job performance measures
• 22 Different Inside Sales positions
17
Core Inside Sales Roles
Lead Generation Discrete Teamed with FieldInbound Customer Service
MOST COMMON INDIDE SALES ROLES
2. The Growing Importance Of Inside Sales
PROFESSIONAL INSIDE SALES: HIERARCHY AND SPECIALTIES
18
2. The Growing Importance Of Inside Sales
The Core Inside Sales Skills1. INITIATES CUSTOMER CONTACT TO BUILD BUSINESS
– Implements a customer contact process to increase business– Develops a high profile that gets the customer’s attention– Commits consistent calling to promote additional opportunities
2. MAINTAINS A DISCIPLINED WORK APPROACH– Evaluates potential prior to committing to a course of action– Tries to control or reduce risks and keep a pace that produce results– Favors successful approaches that have worked elsewhere
3. RESOLVES OBJECTIONS BY REINFORCING VALUE OF FEATURES/BENEFITS– Brings objections to the surface and tackles them head-on– Listens to and agrees with the validity of the customer’s concern– Expertly presents benefits to overcome an established buying habit
19
2. The Growing Importance Of Inside Sales
The Next Stage of Inside Sales Research1. Identify THE MOST COMMON INSIDE SALES SPECIALTIES
2. Identify the specific competencies, in addition to the core competencies, required for Inside Sales Roles
3. Develop tailored profiles for individual inside sales forces
– Offers a typical predictive selection improvement of 35% over existing methods
20
3. Specialized Sales “Professionals”
1. Will resolve customers objections – Our services are hard to understand
• I don’t trust the fine print (How can we simplify?)– It’s difficult to reach a real person…at my convenience
• Can we build easily accessible expertise online/phone?– Is cutting costs at customer’s expense? “Phone option hell”
• What part of your goals are based on customer longevity?2. Will Create and deliver value added solutions
… to meet both the customer's and your objectives and expectations, as well as future potential
3. Will go to protect the customer’s interests?• AMEX (a personal story)
4. Will forgive Customer mistakes and help prevent them?• AT&T international assistance
21
3. Specialized Sales “Professionals”
Move Beyond Personal Experience tothe Actuarial Business Processes of Other “C”
Suite Functions
Where Do We Go Next?A Change in Mind SetUnlocking
the Science of Sales
22
3. Specialized Sales “Professionals”
“Professional” Marketing Support
Retail:DiscountingCold calling
Business to Business:Acceptable: offering “IP” incentive Better: lead generating; i.e. Speaking engagements that draw live enquirers Best: top of mind positioning/branding
23
3. Specialized Sales “Professionals”
Today’s Professional Sales Requires Both “Hunting” & “Farming”Driving new business (Hunting)1. Identifying & selecting the right Accounts2. Training & developing the right Skills3. Implementing formal processesRetaining existing business (Farming)4. Adopting a “Customer-Driven Attitude”5. Utilizing enabling “IT” for the customer 6. Interacting with and integrating other functional professionals
Developing the Necessary Skills Requires Specialization!
24
3. Specialized Sales “Professionals”
25
WHERE DO YOU FIND YOU THE BEST SALES TALENT FOR THE FUTURE?
The Professional Recruiting Source:The University Trained Sales Professionals
UNIVERSITIES CAN HELP BUSINESS
And Teach Tomorrows' Sales Leaders
4. Future Academic Requirements For Sales
26
4. Future Academic Requirements For Sales
Today’s Weak Sales Performer Challenges*1. Global companies spend an estimated 80 billion annually on training
salespeople
2. An average salesperson spends more than 33 hours per year in training
3. In technical markets, the costs associated with the development of just one salesperson are often in excess of $100,000
4. It may take as long as two years before any profit is realized from a new sales hire
Why is “sales force” training the largest employee investment most companies must make?
There is no other alternative!
*Johnston, Wesley J., Journal of Personal Selling & Sales Management
27
4. Future Academic Requirements For Sales
The Better Solution: The College Trained Sales Professional1. Business acumen and P&L analysis: how to speak the customer’s
language2. Computer literacy and information technology3. Account management and process “disciplines”4. Interpersonal and relationship building skills5. Market analysis6. Product/service promotion and distribution7. Supply chain management, etc.
28
4. Future Academic Requirements For Sales
The Better Solution: The College Trained Sales ProfessionalThe Benefits*
Sales grads:
– Ramp up in half the time “on average”
– Turnover is reduced by one third
– Proven aptitude and desire for sales
– More focused on the numbers and the processes designed to get the numbers
– More aware of what they need to do
*Chally corporate sponsor survey
29
Universities and Business Can Make a Difference in the Global Economy
Corporations Develop the Professional Specialties
Core “University” Based Professional Sales Competencies and Practical Research
New Bus. Dev.
Nat. Accounts
Alternate Channel
Territory Mgr.
Sales Engineer
Product Specialist
Universities Develop the Foundation
4. Future Academic Requirements For Sales
30
The History of Sales Innovation
1. Sales Fore Automation (SFA)2. Software as a Service (SaaS)3. Data based analytics and Reporting4. Information Distribution Mobility5. Process Automation and Integration6. Real time Communication (IP and
Web)7. Social Networking
31
The future will evolve to a professional-level status with college specialties providing the base business savvy, as well as the appropriate segment savvy (Accounting, Finance, Hi Tech, Manufacturing, etc.)
Strategic Account Managers will set the standard for all B-B relationships• With an in-depth
understanding of their customer’s customer,
• New technology and market strategy, PLUS
• Exceptional skills as “out-sourced purchasing managers” for their customers
Traditional field sales roles will transition to include more sophisticated inside sales techniques.
Traditional purchasing is diminishing. Replaced increasingly by Internet purchasing, online auctions, etc.
The Future Market
32
1. Technology assisted sales will dominate throughout the entire funnel
2. Customers will demand greater “virtual sales calls:” e.g., Inside sales
3. “Professional” sales will require greater specialization of sales roles
4. Academic requirements will be established for most sales roles
THE FUTURE OF SALES
33
TECHNOLOGY ASSISTED SALES
Technology Assisted sales will dominate throughout the entire funnel
34
Technology Assisted Sales
Future Markets Have Changed PermanentlyThere is little to no competitive advantage based on:
1. Product quality (all serious competitors have the same)
2. Cost, supply chain management and global sourcing have leveled the field)
3. Innovation is short lived
– no global protection of intellectual capital, and
– even where it exists reverse engineering debases
35
Technology Assisted Sales
Digitally available Information has switched the advantage to the customer.
Selling must now be more Science & Technology than Art
Professional sales roles must become more Differentiated and Specialized
The Internet has made Sales Professionals more important
Universities and colleges will produce the sales professionals of the future
36
Technology Assisted Sales
Sales in the “Internet Age”
1. The digital impact has switched the information advantage to the customer.
2. Sellers need to recognize the 3 most important things to know about successful selling into today’s unconventional business world: – Selling is now more Science and Technology than Art– Professional Sales Roles are specialized– The internet has made B-B Sales Professionals are more important
than ever before
37
Technology Assisted Sales
Most sales training & development books leaned on the “star” syndrome:
“I was a successful…This is how I did itIf you do it this way, you can be successful too!”
This has led to the fatally flawed Benchmarking and Top Grading approaches as models.
Cases studies as proofs don’t pass the placebo effect i.e., results that would happen by chance.
Historically, anecdotal personal experience has substituted for sales science & technology.
38
Technology Assisted Sales
The Development of Sales Science & Technology
Starting with Frederick Taylor, business has progressively developed more systematic disciplines:Moving from numerical process control, to total quality management (TQM), to ISO, to business analytics, and finally leading to today’s actuarial applications and predicative business analytics.
Until recently, even rudimentary TQM and Six Sigma have seldom been applied to managing sales: Until recently there had never been a “TQSalesM”
The lack of truly analytic processes and disciplines for most supplier customer relationships have led to failure rates unacceptable in any other business function.
– 20-25% customer churn– 30%+ salesperson turnover– 40% sales manager turnover
39
Technology Assisted Sales
The Past: A Lack of “Sales technology”
1. Anecdotal personal experience has substituted for science and technology, most sales books were “star” syndrome:
“I was a successful…This is how I did it,If you do it this way you can be successful, too!”
2. Benchmarking and Top Grading approaches are equally flawed 3. Most case studies don’t pass the placebo effect with results that
could happen by chance
40
Technology Assisted Sales
Developing the new Sales Technology
The best experts, with the right data, can assess and predict the future1. Insurance companies whose actuarial science is the most accurate future
prediction system, can predict things that go wrong – the likelihood of illness, accident, even death: but,– even though they “can’t even define health”… except as a lack of illness
2. The gambling industry can control and predict their rate of winning3. “Moneyball” brought actuarial science to sports
Chally’s actuarial research, science, and predictive statistics has been applied to sales
41
Neil Rackham On Chally’s Research
• “The sheer size and comprehensiveness of the Chally databases makes them unique in the sales field. Chally’s work in the selling area has been evolving since the 1970’s;
• In addition to amassing an impressive sales database of 400,000 salespeople, Chally has made significant contributions to sales benchmarking methodology and research.
• “The sheer size and comprehensiveness of the Chally databases makes them unique in the sales field. Chally’s work in the selling area has been evolving since the 1970’s;
• In addition to amassing an impressive sales database of 400,000 salespeople, Chally has made significant contributions to sales benchmarking methodology and research.
• Add to this approximately 400 predictive validation studies and it is easy to see why the body of Chally’s work would be a solid starting point.
• An additional advantage is that one of the acknowledged strengths of Chally is the long association between the company and academic sales researchers.
• In the past, Chally’s data has been used to help establish research priorities in sales strategy and performance.”
42
Texts That Cite Chally Research
Technology Assisted Sales
43
40 Years Research & Technology
44
GROWING IMPORTANCEOF INSIDE SALES
Traditional field sales roles will transition to include more inside sales techniques
45
The Growing Importance of Inside Sales
1. Growing 300 percent faster than outside sales*2. Higher close rates at 1/3rd the cost in 1/3rd the time as traditional
sales teams**3. More flexibility for the customer 4. Can earn six-figure incomes without constant travel*2013 Inside Sales Market Size Survey** Salesforce.com CEO Marc Benioff in his book, Behind the Cloud
46
The Growing Importance of Inside Sales
Growing 300 percent faster than outside sales*
Higher close rates at 1/3rd the cost in 1/3rd the time as traditional sales teams**
More flexibility for the customer
Can earn six-figure incomes without constant travel*2013 Inside Sales Market Size Survey** Salesforce.com CEO Marc Benioff in his book, “Behind the Cloud”
Historically, anecdotal personal experience has substituted for sales science & technology.
Sales Department Composition
47
The Growing Importance of Inside Sales
Chally’s Inside sales research data base
1. 2,800+ Inside sales professionals with
– Detailed Job requirements
– In depth competency assessments
– Matching on-the-job performance measures
2. 22 Different Inside Sales positions
48
• With Professional Inside Sales, customer facing positions will bifurcate to:– High end “more sophisticated consultative” strategic sales teams, and – More highly educated telesales (with dedicated accounts)
The Growing Importance of Inside Sales
Telesales Road Warriors SAMs &Specialized teams
Telesales Road Warriors SAMs &Specialized teams
PAST
FUTURE
49
The Growing Importance of Inside Sales
Core Inside Sales Roles
Lead Generation Discrete Teamed with FieldInbound Customer Service
MOST COMMON INSIDE SALES ROLES
Professional Inside Sales: Hierarchy and Specialties
50
1. Initiates Customer Contact To Build Business– Implements a customer contact process to increase business– Develops a high profile that gets the customer’s attention– Commits consistent calling to promote additional opportunities
2. Maintains a Disciplined WORK APPROACH– Evaluates potential prior to committing to a course of action– Tries to control or reduce risks and keep a pace that produce results– Favors successful approaches that have worked elsewhere
3. Resolves Objections by Reinforcing Value of Features/Benefits– Brings objections to the surface and tackles them head-on– Listens to and agrees with the validity of the customer’s concern– Expertly presents benefits to overcome an established buying habit
The Growing Importance of Inside Sales
51
SPECIALIZEDSALES “PROFESSIONALS”
Unlocking the Science of Sales
52
Specialized Sales “Professionals”
Will resolve customer objections 1. Our services are hard to understand
– I don’t trust the fine print (How can we simplify?)2. It’s difficult to reach a real person … at my convenience
– Can we build easily accessible expertise online/phone?3. Is cutting costs at customer’s expense? “Phone option hell”
– What part of your goals are based on customer longevity?
Will create and deliver value-added solutions
… to meet both the customer's and your objectives and expectations, as well as future potential
Will go to protect the customer’s interests?
• AMEX (a personal story)
Will forgive customer mistakes and help prevent them?
• AT&T international assistance
53
“Professional” Marketing SupportRetail:DiscountingCold calling
Business to Business:Acceptable: offering “IP” incentive Better: lead generating: i.e., Speaking engagements that draw live enquirers Best: top of mind positioning/branding
Specialized Sales “Professionals
54
Specialized Sales “Professionals”
Today’s Professional Sales Requires Both “Hunting” & “Farming”
Driving new business (Hunting)
1. Identifying & selecting the right accounts2. Training & developing the right skills3. Implementing formal processes
Retaining existing business (Farming)
4. Adopting a “Customer-Driven Attitude”5. Utilizing enabling “IT” for the customer 6. Interacting with and integrating other functional professionals
Developing the Necessary Skills Requires Specialization!
55
Specialized Sales “Professionals”
56
For Your Kind Attention
THANK YOU!