1 The Future of Sales The End of Selling as We Know It.

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

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1. Technology Assisted Sales

TECHNOLOGY ASSISTED SALES WILL DOMINATE

THROUGHOUT THE ENTIRE FUNNEL

6


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


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


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


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


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


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


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

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• 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


• 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


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

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Core Inside Sales Roles

Lead Generation Discrete Teamed with FieldInbound Customer Service

MOST COMMON INDIDE SALES ROLES


PROFESSIONAL INSIDE SALES: HIERARCHY AND SPECIALTIES

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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

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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

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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


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


“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


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


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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

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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

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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.

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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

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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


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


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


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


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


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


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


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


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


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


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)


Telesales Road Warriors SAMs &Specialized teams

Telesales Road Warriors SAMs &Specialized teams

PAST

FUTURE

49


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


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


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


56

For Your Kind Attention

THANK YOU!

1 The Future of Sales The End of Selling as We Know It.

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Transcript of 1 The Future of Sales The End of Selling as We Know It.