Current trends in sales - Vlerick Business School/media/Corporate/Pdf-presentations/sales... ·...

Dirk Peeters, Monitor Deloitte

Deva Rangarajan, Vlerick 3rd June 2015

Current trends in sales

The sales environment

around us is changing

The sales environment around us is changing

Globalization

#1. Impact of globalization

Suppliers have fewer but larger customers

Globalization

Digitization

Omni-channel

Research Choose ServiceUsePurchase Evolve

#2. Impact of digitization & omni-channel

presence

Search engines

Expert Blogs

Company website

Webinars

Comparison websites

Review blogs

Opinion leaders

Tablets

eCommerce /EDI

Self-service

Expert communities

Company website

User Communities

…many new interaction channels, leveraging social media,

become available during the customer lifecycle…

Every company needs to adapt to the digital reality

#2. Impact of digitization & omni-channel

presence

B2B customers search online for:

73%Product

pricing

60%Reviews

from their

56%Company

and brand

reviews

Search engines are a top three

influencer in the areas of

awareness, discovery and research

among B2B buyers

buyers will read an average of 10

pieces of content before making

purchases

Percentage of B2B

buyers who research

products online before making a

purchasing decision

73%that's how far the

average B2B buyer

is through the purchase decision

before engaging a supplier

The internet provides the customer with an endless source of

information

Source: B2B's Digital Evolution – CEB and Google insights (Feb 2013)

The Digital Evolution in B2B Marketing – Marketing leadership council (Oct 2012)

Globalization

Digitization

Omni-channel

Power of

procurement

#3. The increasing power of procurement

Cost center and production enabler

Satisfying internal stakeholders

Competitive advantage by creating value

Strategic function: knowledge and

innovation center

Part of board

Maturity

GlobalizationThe

differentiation

challenge

Digitization

Omni-channel

Power of

procurement

#4 The differentiation challenge

Customers don’t need

you the way they used to

The imperative of change for Sales

The portfolio

approach to

From product

selling to

solution selling

to insight selling

Innovation

is not a nice to

have, it’s a must

The portfolio

approach to

From product

selling to

solution selling

to insight selling

Innovation

is not a nice to

have, it’s a must

The portfolio approach to sales

Competitiveadvantage

Existing New

Repurchase

Stay on top of mind

Have their full confidence

Be there when they need you

Support

Service organization

Sales support team

Customers

Existing New

Repurchase

Stay on top of mind

Support

Sales support team

Replacement

Monitor competitors sales

Look for competitor’s slip up in

product or service performance

Support:

Marketing / market research

Competitive intelligence

Customers

Existing New

Repurchase

Stay on top of mind

Support

Sales support team

Replacement

Support:

Expansion

Develop a more strategic view on your client’s business

Bring detailed expansion project proposals

Support:

Create a business development organization structure that

encourages cross-functional teams: marketing , R&D, finance to

develop these proposals

Established needs

Existing New

Repurchase

Stay on top of mind

Support

Sales support team

Replacement

Support:

Expansion

Develop a more strategic view on your client’s business

Bring detailed expansion project proposals

Support:

Create a business development organization structure that

encourages cross-functional teams: marketing , R&D, finance to

develop these proposals

Innovation

Be a subject matter expert

Interact with top management

Support:

CXO engagement, cross functional teams

Unknown needs

Established needs

Customers

Source: A Portfolio Approach to Sales - Robert C. Dudley and Das Narayandas

The portfolio

approach to

From product

selling to

solution selling

to insight selling

Innovation

is not a nice to

have, it’s a must

Role of sales in

purchasing

decision?

How to begin the

conversation?

When to engage?

Nearly 60% of purchasing decision: researching solutions, ranking options, setting

requirements, benchmarking pricing, … has been done before they contact you

a supplier.

Insight selling is the new solution selling

Which companies

to target?

What information

to gather?

How does this impact sales ?

Source: The end of solution sales, - Harvard Business Review 2012

Be a partner to your clients, not a burden

Leverage

High monetary value

suppliers = burden

Anonyms Bottlenecks

Low High

High added value

suppliers = partners

Source: Risk / Value matrix – Kraljic Model

The portfolio

approach to

From product

selling to

solution selling

to insight selling

Innovation

is not a nice to

have, it’s a must

The challenge of selling innovations

Selling new solutions have an

increased sales cycle time

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% 78% 46%

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

Our organization has the right set of

KPI’s to measure the performance of

new solution selling

Our incentive/reward policy for sales is

aligned with selling innovations

70% 29% 30%

Companies should organize the sales

organization depending on the phase of

innovation

Initiation

Transition

Execution

Ideation phase Design phase Prototype phaseTesting &

adapting phaseCommercialization

Focus on learning &

agility

Ramp up sales force

& support and

service organization

Source: The Sales learning curve -Mark Leslie and Charles A. Holloway

How are you dealing with these topics?

The portfolio

approach to

From product

selling to

solution selling

to insight selling

Innovation

is not a nice to

have, it’s a must

The portfolio

approach to

From product

selling to

solution selling

to insight selling

Innovation

is not a nice to

have, it’s a must

The DNA of a sales person in the future:

Sales as a trusted advisor

Credibility + Reliability + Intimacy

Self orientation

Trusted advisor =

Are you ready?

Always available for more sparring

• Dirk Peeters

Senior Director at Monitor

Deloitte

• dipeeters@deloitte.com

• +32 497 39 27 37

• Deva Rangarajan

Professor Sales & Marketing at

Vlerick Business School

• deva.rangarajan@vlerick.com

• +32 473 83 69 71

Current trends in sales - Vlerick Business School/media/Corporate/Pdf-presentations/sales... ·...

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