Growth Team Membership European 2010 Sales Leadership Priorities Survey Results

Growth Team Membership™:

European 2010 Sales Leadership Priorities

Survey Results

July 2010

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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 4: Sales Function Effectiveness and Responsibilities 14


Section 7: Respondent Demographics 23

The content of these pages are © 2010 Frost & Sullivan. All rights reserved.


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.


External Factors Shaping

Sales Leadership Strategies


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


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


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


Key Sales Leadership Challenges


All Companies

Top three challenges:

B-to-B Companies


B-to-C Companies


► 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



price)

►Responding to competitor

discounting

►Creating a company

culture that better

supports the sales effort

►Responding to clients’

changing business

environment and


Key Sales Leadership Challenges Snapshot


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%)


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


Responding to competitor discounting

Creating a company culture that better

supports the sales effort

Increasing collaboration between Sales and

Marketing


B-to-B B-to-C Hybrid

Identifying and qualifying






Equipping reps to be more



price)

Equipping reps to be more



price)

Responding to clients’

changing business

environment and


Creating a company

culture that better supports

the sales effort

Responding to clients’

changing business

environment and


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


Sales Function Effectiveness and

Responsibilities


Sales Function Effectiveness and Responsibilities Snapshot

All Companies B-to-B Companies B-to-C Companies

►Rank their sales function

effectiveness as “above average”





►Attribute 30% of their annual sales

to alliances and partnerships





►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


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


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:


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


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



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%


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


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.


Hybrid Companies


6%

Increase Moderately

44%

Stay the Same38%

Decrease Moderately

11%


1%


9%

Increase Moderately

41%

Stay the Same46%

Decrease Moderately

4%


5%

Increase Moderately

45%Stay the Same

36%

Decrease Moderately

14%

B-to-C Companies

Increase Moderately

50%

Stay the Same25%


25%



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.


27%

Increase Moderately

59%

Decrease Moderately

14%


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


25%

Increase Moderately

25%Stay the Same

25%

Decrease Moderately

25%


Respondent Demographics


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.


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


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