Interim Update – Global Sales Challenges Survey

Andrew Moorhouse – August 2011

Global Sales Challenges SurveyThe objective was to identify the

burning issues facing sales leaders and then identify how they have adapted their sales approach to improve win rates.

The interim results identify:◊ The most important sales

development areas

◊ Actual performance in these areas

◊ The biggest capability gaps

212 ‘usable’ responses to the online survey including:

What is the biggest challenge your sales organisation faces today?

Global Sales Director, Fortune 500 Firm“Our biggest challenge is moving from saying we sell solutions to understanding what a real solution is for the customer.Our sellers don’t have the financial acumen or the ability to go beyond a technical conversation and quantify the real business value, not just technical performance.”

The most important sales development areas*

1. Identifying new ways to add value for the customer2. Moving from ‘vendor’ status to become a trusted advisor (x2)

3. Gaining access to executive decision makers

4. Getting involved earlier in the customer's decision making process

5. Transforming reps from information providers ’into ‘value creators’

*Based on 212 responses to the online survey

Best performing areas*

1. Expanding client relationships and becoming a trusted advisor

2. Cross-selling: getting more business from existing customers

3. Moving from ‘vendor’ to partner / trusted advisor status

4. Winning business when on the approved supplier list

5. Speaking the language of C-level executives

*Claimed – but not verified!

Worst performing areas

1. Developing a ‘value calculator’ tool to document actual value created

2. Building a financial case (ROI) for the decision maker.

3. Using a ‘lifetime cost of ownership’ sales strategy

4. Influencing the RFP specification before it is issued

5. Transforming reps from information providers ’into ‘value creators’

Paula Gildert Procurement Director, Novartis“If you can’t quantify your value – don’t be surprised at the failure of the buyer to recognise it.”

Biggest capability gaps*

1. Getting involved earlier in the customer's decision making process

2. Influencing the RFP specification before it is issued

3. Transforming reps from ‘information providers’ into ‘value creators’

4. Identifying new ways to add value for the customer

5. Getting procurement to recognise our differentiation

6. Building a financial case (ROI) for the decision maker

7. Gaining access to executive decision makers

8. Developing a ‘value calculator’ tool to document actual value created

*Stated importance minus actual performance

Next steps

Develop best practice case studies – how leading organisations closed the capability gaps

48 organisations have offered to share how they have adapted their approach to improve win rates

White Paper – Late October 2011

London Sales Conference: 17 November 2011

Report author:

Andrew MoorhousePrincipal ConsultantBlue Sky Performance Improvement01483 739 40007584 178 568andrew.moorhouse@blue-sky.co.ukwww.blue-sky.co.uk

The Old Malt House, 33 The Street, Shalford, Guildford, GU4 8B

Appendix – the full data

Identifying new ways to add value for the customer 6.5Expanding client relationships and becoming a trusted advisor 6.3Gaining access to executive decision makers 6.2Moving from ‘vendor’ to partner / trusted advisor status 6.2Getting involved earlier in the customer's decision making process 6.2Transforming sales reps from information providers ’into ‘value creators’ 6.0Cross-selling: getting more business from existing customers 5.9Building a financial case (ROI) for the person that makes the buying decision. 5.9Influencing the RFP specification before it is issued 5.8Influencing procurement: getting them to recognise your differentiation 5.8Aligning the sales process with the way the customer wants to buy 5.7Defining a rigorous process for identifying the right opportunities to pursue 5.6Improving the effectiveness of sales coaching 5.6Speaking the language of C-level executives 5.6Deploying an effective process for recruiting 'good' salespeople 5.6Helping uncover problems the customer does not even know about 5.5Improving negotiation performance 5.4Applying a structured diagnostic / discovery approach to identify customer challenges 5.4Getting the distribution channel(s) right 5.3Winning business when on the approved supplier list 5.2Developing a ‘value calculator’ tool to document actual value created 5.2Getting compensation right 5.0Harnessing new technology to improve sales productivity 5.0Improving numerical reasoning / financial acumen in salespeople 5.0Shortening the sales cycle 5.0Developing individually tailored development programmes 5.0Using a ‘lifetime cost of ownership’ sales strategy 4.9Aligning the sales and contract management process to shorten sales cycles 4.7

Importance

Developing a ‘value calculator’ tool to document actual value created 3.4Building a financial case (ROI) for the person that makes the buying decision. 3.4Using a ‘lifetime cost of ownership’ sales strategy 3.5Influencing the RFP specification before it is issued 3.6Transforming sales reps from information providers ’into ‘value creators’ 3.8Getting involved earlier in the customer's decision making process 3.8Aligning the sales and contract management process to shorten sales cycles 3.9Shortening the sales cycle 3.9Improving the effectiveness of sales coaching 3.9Defining a rigorous process for identifying the right opportunities to pursue 4.0Applying a structured diagnostic / discovery approach to identify customer challenges 4.0Influencing procurement: getting them to recognise your differentiation 4.0Deploying an effective process for recruiting 'good' salespeople 4.0Developing individually tailored development programmes 4.0Getting compensation right 4.1Harnessing new technology to improve sales productivity 4.1Improving negotiation performance 4.1Improving numerical reasoning / financial acumen in salespeople 4.3Helping uncover problems the customer does not even know about 4.3Gaining access to executive decision makers 4.3Getting the distribution channel(s) right 4.3Aligning the sales process with the way the customer wants to buy 4.5Identifying new ways to add value for the customer 4.6Expanding client relationships and becoming a trusted advisor 5.0Cross-selling: getting more business from existing customers 4.8Moving from ‘vendor’ to partner / trusted advisor status 4.7Winning business when on the approved supplier list 4.7Speaking the language of C-level executives 4.7

Performance (worst to best)

Getting involved earlier in the customer's decision making process 2.1Influencing the RFP specification before it is issued 2.1Transforming sales reps from information providers ’into ‘value creators’ 1.9Identifying new ways to add value for the customer 1.9Influencing procurement: getting them to recognise your differentiation 1.8Building a financial case (ROI) for the person that makes the buying decision. 1.8Gaining access to executive decision makers 1.7Developing a ‘value calculator’ tool to document actual value created 1.6Defining a rigorous process for identifying the right opportunities to pursue 1.6Deploying an effective process for recruiting 'good' salespeople 1.5Improving the effectiveness of sales coaching 1.5Shortening the sales cycle 1.5Moving from ‘vendor’ to partner / trusted advisor status 1.3Expanding client relationships and becoming a trusted advisor 1.3Using a ‘lifetime cost of ownership’ sales strategy 1.3Applying a structured diagnostic / discovery approach to identify customer challenges 1.2Improving negotiation performance 1.2Cross-selling: getting more business from existing customers 1.2Harnessing new technology to improve sales productivity 1.1Aligning the sales process with the way the customer wants to buy 1.1Helping uncover problems the customer does not even know about 1.0Getting the distribution channel(s) right 1.0Developing individually tailored development programmes 0.9Getting compensation right 0.8Speaking the language of C-level executives 0.8Improving numerical reasoning / financial acumen in salespeople 0.8Aligning the sales and contract management process to shorten sales cycles 0.6Winning business when on the approved supplier list 0.5

Biggest capability gaps