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