embracing digital disruption to power sales growth
TRANSCRIPT
Sales Summit 2015
1 Day.
13 sessions. 14 Sales Thought Leaders.
www.salesforce.com/
sales-summit/
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#SalesSummit #DF15
Embracing Digital Disruption to Power Sales Growth #SalesSummit #DF15
Yusuf Tayob Managing Director, Accenture
https://www.salesforce.com/sales-summit/
Digital Disruptors From Multiple Lenses
• Customer
• Competitors
• Sellers
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Digital Disruption: Customer
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Stakeholders Procurement
C-level deciders Business units/users
IT department
Open content & channels: twitter, linkedin, pinterest, youtube,
Branded content & channels:
Consumer (B2C) Business (B2B2C/B2B)
More Accessible
More Continuous
More Dynamic Consumerized Experience
Empowered by the Network
Never a done deal
Faster, always-on, effortless choice
Influence beyond brands’ reach
Re-evaluating all the time
More empowered
Voice of Customers
Always in the channel
Customer Engagement Disruption
Digital Disruption: Customer
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Innovators
Early Adopters
Early Majority
Late Majority
Laggards
Old curve of market
innovation
Big-Bang Market Segments
Trial users
Everybody else
Customer Adoption
Disruptors are Everywhere! Digital enables unencumbered development, resulting in unprecedented disruption…
Digital Disruption: Competitors
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Digital Disruption: Sellers
Operations Disruption
• Direct-to-customer
• New players/value chains
• Indirect channel growth
• Blurred global/local
• Talent efficiency boost
• Role of face-to-face
• Skill gaps (digital…)
• Back-Office now to ‘Front’
• Process Digitization
• Much more collaborative
• Front-Office convergence
Digital disruptions across Marketing, Sales & Service
Ecosystem Disruption
Talent Disruption
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Fragmented, even competing, initiatives
Digital Customers viewed as obscure, special group
Lack of common, material target to
rally around
New capabilities applied to outdated
customer model
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Digital Disruption: Barriers to Success
Sales as we know it… on the verge of extinction?
Execution Excellence & Ops Drive Excellence in Execution
Put your money where your profit is
E
Price & Profit Optimization Deliver Profit, Not Just Revenue
P
S
Enablement of Talent Use Science to Improve Sales Talent
Spend Optimization
D
E
Digital Selling Embrace Dynamic Channels
5 Must-dos to Drive Profitable Growth at S-P-E-E-D
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How Digital Sellers Play to Win
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Advertising
Channel Incentives (Through/to Partner Promotions,
MDF, Rebates, etc.)
Sales Incentives (Commissions, Bonuses,
SPIFs, etc.) Price Discounts Size
of C
lient
Spe
nd (B
illio
ns A
nnua
lly)
Customer: Unaided Consideration,
Qualified Leads
Channel Partner: Qualified Leads, Partner-led Sales
Sales Producer: Direct Sales
Customer: Propensity to Buy
Variable Sales & Marketing Spend Value Chain Illustrative
Companies invest $100s of millions to billions in variable costs to drive top-line Spend Optimization
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• Less than ½ employ analytics to better understand customer needs and identify sales opps
• CSO’s rate visibility and ability to measure performance high – 68%, but… only 1/3 actually track and measure sales Spend ROI
Put your money where your profitability is
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Spend Optimization
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Digital Sellers strategically align working sales spend – the costs CSOs control and influence – with an intense focus on ROI to power profitable growth.
Put your money where your profitability is
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Spend Optimization
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• Best in class performers have nearly 2x the emphasis on improving margins and reducing discounting.
• 44% report their sales managers need improvement in adopting and implementing clear, effecting pricing strategies.
Deliver Profit, Not Just Revenue
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Price & Profit Optimization
Digital Sellers invest in price strategy adoption and deal-level governance, monitoring outcomes to boost profit.
The story of rounding… • Salesperson’s price worksheet:
$76,352 ---- becomes ---> $75,000 • 1.2% to 1.5% rounding is not such a big deal but adds up…
1% improvement in price, or profit optimization, is often worth 10% in EBIT…
Deliver Profit, Not Just Revenue
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Price & Profit Optimization
Enterprise Value
FIN
Maturity Decentralized and Reactive Practices
Cost Effectiveness and Efficiency Gains
1st Generation
2nd Generation
Next Generation Sales Operations
Beyond Efficiency to Become the Sales
Information Engine
Cost Center Revenue Enabler
Geo 1 Geo 3 Geo 2
Ops Ops Ops
Global
Activity Management
Order Management
Incentive Compensation
Pricing & Configuration
Territory Management Shar
ed S
ervi
ce
Sup
por
t #SalesSummit #DF15 Copyright © 2014 Accenture All rights reserved.
Sales Execution Excellence and Operations
• Fewer than 50% of Firms have broadly adopted their CRM technology.
• Only half (51%) of companies follow a formal selling process…
• …and very few (8%) of companies report sales methodology adoption.
Drive Excellence in Execution
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Execution Excellence and Operations
Digital Sellers architect the selling experience to serve the non-stop customer, embracing Digital and Cloud as catalysts for change, and evolving operations to be the “insight engine” for sales.
Drive Excellence in Execution
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Execution Excellence and Operations
Enablement of Sales Talent #
of S
ales
Re
ps
Performance
The top 20% are
bringing in 62% of the
revenue!
80% of the sales force only brings in 38% of the revenue
What’s different about those top 20%? § Is it their skills and competencies?
§ Is it their personality attributes?
§ Is it their behaviors?
§ Yes, Yes and Yes…. * SOURCE: CSO Insights
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• Attrition has increased, especially among the better performers.
• Hiring processes lack needed rigor – 59% plan to add to their sales force, yet 44% of firms struggle to land top talent.
• Training investments have increased, yet reported effectiveness has declined… leaving a large proportion of sales reps in the “frozen middle”.
Use Science to Improve Sales Talent
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Enablement of Sales Talent
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Digital Sellers apply science to uncover the DNA of high performing sellers, apply those insights to the sales coverage model, roles, and enablement, and
move the “frozen middle”.
Use Science to Improve Sales Talent
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Enablement of Sales Talent
Copyright © 2014 Accenture All rights reserved.
• Non-stop customers are 58% through the buying process by the time of the first sales call.
• CSOs expect 12% of sales to come from Service, but Sales and Service are disconnected…
• …and Marketing and Sales don’t even agree on the common definition of a lead.
Embrace Dynamic Channels
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Digital Selling and Dynamic Channels
Digital Sellers use technology to get the right opportunity to the right sellers at the right time, embrace the evolving role of retail and the channel partner, and are reorienting the front office to collaborate around the
non-stop customer.
Embrace Dynamic Channels
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Digital Selling and Dynamic Channels
Questions
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Salesforce Sales Leadership Community www.salesforce.com/salesleadership
#SalesSummit #DF15
Thank you