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SELLING CHALLENGES

UNDERSTANDING

RESEARCH

20172017

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INTRODUCTION

Richardson’s annual research survey of field reps, senior sales professionals, and sales leaders across industries aims to paint a clear picture of existing sales challenges and how they are evolving. T his year’s report continues to highlight a

challenging sales environment driven by ongoing shifts in buyer behaviors, competitive pressures, and operational trends. It also suggests there has never been a better time to understand, challenge, and change how sales are made. With unprecedented access to mobile and digital technologies, sellers can understand their buyers better than ever before, creating new opportunities to build lasting engagements in today’s hyper-connected world.

The new customer expectation — regardless of industry — is one of value and trust. As a result, sales success in 2017 and beyond means acting as a true business advisor by delivering value through authentic curiosity, prepared relevancy, and unmatched credibility.

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EXECUTIVE OVERVIEW

41%

2017

T he annual Richardson Selling Challenges research survey was designed to gain

insight into the issues sellers face as they navigate the sales process from prospecting through closing. Productivity was top of mind, drawing the largest response, as 49% of respondents cited “spending too much time on administrative or non-selling activities” as their biggest challenge.

The second-largest response, at 26%, were “knowledge about how to team-sell effectively” and, for challenges facing buyers in making purchasing decisions, “combatting the status quo.” Questions about negotiating and closing received the third-largest response, at 24%, where the top challenges were “gaining higher prices” and “competing against a low-cost provider.”

These results are consistent with trends in the selling environment, with its fast pace and high demands for productivity. Time is a precious commodity, and sellers must use it wisely. Sellers must also adapt to new buyer behaviors and more decision makers at the table, learning effective strategies for demonstrating value and closing deals.

RESPONSES RECEIVED

MORE THAN

350COMPANY SIZE

< $200Million

>$500Million

38%

QUOTA SIZE

59%

carry a goal over $1 Million

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RICHARDSON

INSIGHTS

A successful prospecting strategy is comprised of dedicated time and focus in the following areas: identifying the right prospects (depending on a well-documented ideal client profile); identification of contacts and triggers; market, organization, and contact research; tailoring of targeted messages and insights; networking; cold and warm calling activity; social prospecting; referrals; and effective time management. Sellers need to attack these areas with a specific game plan and stick to it. Every week, no matter the gap to goal, sellers must dedicate time to growing their portfolio. Sales enablement tools can give sellers better visibility into their target prospects and the issues they face, laying the groundwork for developing an executable strategy. Marketing departments can provide a wealth of information about prospects, allowing sellers to be more strategic in how they use their time.

Sales and marketing need to work together in defining the standards for a quality lead so marketing can identify and nurture them, helping sellers connect with the right prospects at the right time. The role of the Sales Development Resource continues to gain in popularity to nurture leads until they are truly qualified for sales.

Getting a prospect to engage and agree to an appointment — by phone or face-to-face — has become more challenging as buyers are targeted and inundated with every prospecting strategy imaginable. The old saying remains as true today as it ever was — there is no easy path to success. Understanding industry challenges, relevant messaging, and persistence are paramount in a successful prospecting effort. Research, insights, business acumen, and preparation are necessary, and each takes time and effort.

17% 16%

T ime is a precious commodity, especially as demands for productivity increase in

an increasingly difficult selling environment. Being able to create a targeted prospecting strategy is essential to avoid wasting time, making this the number one prospecting challenge in 2017.

Compared with 2016 responses, this year’s top challenges indicate a trend toward greater targeting and quality of leads. Sellers are homing in on ways to become more strategic in their prospecting efforts, while being less concerned with the “how” — which sales and marketing enablement tools to use — in identifying triggers for their accounts. The availability of data through lead generation and research tools has lifted some of this burden from sellers. The problem, however, is that without a plan for how best to use this data, sellers can easily get lost in the sheer volume available.

The top two prospecting challenges from 2016 dropped off this year’s list. With more sales enablement tools being used, sellers are easily able to research companies as possible targets and to set triggers for their accounts.

TOP PROSPECTING CHALLENGES2017

Creating a targeted prospecting strategy

Identifying triggers/sales signals that indicate issues

you can resolve

Quality of leads from marketing

14%

Identifying target accounts

15%

Gaining appointments

12%

Gaining appointments

12%

1PROSPECTINGIn 2017, which of the following will be the biggest challenge in your prospecting efforts?

TOP PROSPECTING CHALLENGES2016

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INSIGHTS

Trust and credibility are keys to managing relationships with customers and closing win-win deals. Sellers can’t claim trusted advisor status; it has to be earned. Being a trusted partner begins with integrity but also requires skill and strategy, which can be learned and practiced.

Sellers need a process for how to negotiate a win-win-deal, understanding when and how to unlock a deadline and when it’s best to walk away.

In closing a negotiation, be prepared for the “nibble,” in which clients expect something extra without additional cost. The response should depend on how the change affects the seller, profitability, and the relationship.

Throughout the negotiation, sellers need to stay in control of the process, follow up thoroughly and quickly, deliver on the agreed deal, and check for satisfaction.

24%

TOP NEGOTIATION CHALLENGES2017

Gaining higher prices

Gaining higher prices

Closing win-win deals

20%

Handling adversarial negotiations

Maintaining profitability

17%

Customers who continue to reopen the negotiation/

more concessions

2NEGOTIATIONWhich of the following do you believe will be your toughest negotiation challenge?

TOP NEGOTIATION CHALLENGES2016

29%

21%

19%

G aining higher prices” has been the top negotiating challenge for three years

running. This year’s top challenges indicate a laser-sharp focus on negotiation outcomes — prices, wins, and profits.

“Closing win-win deals” shows the value sellers place on building trust and credibility in order to develop long-term, productive relationships.

“Maintaining profitability” is a challenge made visible by the greater availability of real-time sales data, which allows organizations to be smarter about decisions affecting profits.

“Managing procurement” is another response worth noting, rising from 4% in 2016 to 11% in 2017. This reflects the increasing involvement of procurement staff as they join the decision-making team late in the process without any emotional attachment to the deal. Their role is to drive down price or get additional products or services for the same price. While this specific challenge didn’t make the top three, its impact is reflected there.

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In today’s information-rich environment, buyers have the world at their fingertips, but the sheer volume of data can be overwhelming, making it harder to reach consensus, much less a decision. More information doesn’t always translate into accurate, clearer understanding. This is where sellers can add value by helping buyers diagnose their unique situations and identify the best solutions so they can make an informed buying decision that drives the results they desire.

Sellers need to present buyers with well-crafted solutions that meet their exact needs, in priority order, and nothing more. Focus on the end game for the business, keeping in mind what matters most to the buyer, not only what is important to you, the seller.

Creating a compelling case doesn’t just mean sharing impact data. It must be impact that is specific and relevant to that buyer. So, timing is essential. You may want to highlight impact potential in the early stage of the sales process to create momentum, but you must come back to it at a later stage and make it specific to that buyer and what areas of impact they care about. Highlighting the risks of keeping the status quo is good — but remember, buying is an emotional process. Don’t forget to highlight the opportunities and potential for your buyer as well.

24%

TOP CLOSING CHALLENGES2017

Competing against a low-cost provider

Competing against a low-cost provider

Positioning competing value propositions

(differentiating your product/service)

19%

Positioning competing value proposition

(differentiating your product/service)

Creating a compelling case for change to avoid

a “no-decision”

16%

Creating a compelling case for change to avoid

a “no-decision”

3CLOSING Which of the following will be your most

difficult challenge in closing a deal?

TOP CLOSING CHALLENGES2016

47%

15%

9%

W hile the top three challenges remain the same year to year, the percentages

add color to the story. In 2016, “competing against a low-cost provider” took 47% of the responses, showing just how keenly this challenge was perceived. One year later, the ranking among all three challenges is more even, an indication that sellers realize the importance and interplay of several elements involved in closing deals.

Creating a compelling case against stalled decisions or “no-decisions” takes understanding the customer’s buying cycle and helping customers sort through what matters most in order to find value among the options.

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Creating a compelling case to combat the status quo doesn’t just mean sharing impact data. As mentioned earlier, impact shared must be specific and relevant to your buyer. To combat the buyer’s status quo, sellers should highlight the loss or risk associated with not changing. Address missed opportunity costs — the benefits unrealized — by staying put, and outline a clear path forward to make the change decision easier to make.

Remember, buying is an emotional process. Don’t forget to highlight the opportunities and potential for your buyer as well.

Help buyers compare options by presenting personalized insights, information, and perspective based on credible research or relevant experiences. Avoid overwhelming buyers with too much (and irrelevant) information.

Sellers cannot rely solely on an individual

buyer — their initial contact — to build internal consensus for their solution. Sellers need to consider all stakeholders and the lens each one uses to view value: financial, technical, strategic, or partnership. The preferred lens is often reflected in the questions they ask, and sellers should position the solution to resonate with individual stakeholders and their value lenses. Sellers can also support their contacts by providing additional materials, working alongside them, and building their own relationships with stakeholders.

CHALLENGES FACING BUYERS2017

26%

Combating the status quo

Comparing their options

21%

Building internal consensus

16%

4BUYERS’ DECISIONS What is the biggest challenge your buyers face when making a purchasing decision?

B uyers can be too comfortable with the status quo, adverse to the risk of

something new and hesitant to stretch outside of their current comfort zones. They may be tired of change or skeptical. Even those who welcome change may feel degrees of concern, stress, or anxiety.

Comparing options is made increasingly complex with the more information there is to consider. When sellers present something that buyers consider irrelevant or not tied to their specific issues, it only adds to the noise in decision making.

With more decisions being made by committee, building internal consensus grows more difficult. Sellers who engage all stakeholders, providing relevant insights and demonstrating value, can help move the process along.

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INSIGHTS

When sellers find themselves consumed with administrative or operational work, it’s hard to focus on sales and closing new deals. This can also happen when sales professionals babysit their accounts because they don’t trust their own service and support people to do a good job. Managers need to be aware of what’s going on and who is doing what work — and it is the manager’s job to remove obstacles so sellers can get back to selling.

Sales enablement tools and sales effectiveness training can help teams stay on top of their game without sacrificing too much time away from the field. At Richardson, we created Accelerate™, a blended-learning, cloud-based platform that works either as a standalone online solution or in conjunction with minimal classroom time, where selling skills learned online are modeled and practiced.

Territory management plans can help sellers set the right balance for time spent on priority customers and prospects as a critical step in achieving revenue and relationship objectives. When such plans are based on a disciplined process for territory management that analyzes and prioritizes opportunities, sellers gain a clear and focused picture of how to best spend time to win business.

One other survey response worth noting is “lack of digital tools to help stay organized.” This response choice came in last place, making it clear that sellers aren’t looking for more tools. What is needed, however, is better use of the tools currently available. Sales enablement tools should be quick, easy, and intuitive to use, helping, not hindering, the seller.

TOP PRODUCTIVITY CHALLENGES 2017

49%

Spending too much time on administrative or non-selling activities

Finding the right marketing assets to support

your selling efforts

17%

Balancing time spent with your prospects and clients due a to a large territory

14%

5PRODUCTIVITY What are your biggest challenges to improving your own or your sales team’s productivity?

I t’s a common trap for sellers: spending too much time on non-selling activities. In

effect, they end up replacing their primary job with someone else’s job, with internal work becoming a barrier to prospecting or meeting with customers. Nearly half of all respondents cited this as a top challenge.

Marketing assets exist to support selling efforts, but there is no one-size-fits-all solution. Choosing the right assets requires a deep understanding of the customer’s business, the value lens they use to make decisions, and the organization’s business imperatives. When such assets are embedded into the seller’s CRM systems or other data-rich platforms, they can be more easily identified and accessed.

Dividing a seller’s time between prospects and clients, especially in a large territory, is always a balancing act. Sellers need a way to determine where their time is best spent so they can be at the right place when prospects are either poised to buy or actively in the process.

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INSIGHTS

Pivotal meetings with clients and prospects now often involve more people — on both sides of the table. Selling like a team requires a different process, one that spans five natural stages: creating your team, organizing its work, practicing your pitch, executing when it counts, and regrouping afterwards to execute and grow.

More decision-makers equal more complexity, as stakeholders may have differing interests. This increases the seller’s task during discovery to understand the players, their interests, how they influence one another, and with whom the seller’s competitive strengths and weaknesses lie. Richardson Senior Coach and previously State Street Global Advisors Managing Director, Michael Dalis, has studied the topic of Team Selling for his new book “Sell Like a Team: The Blueprint for Building Teams that Win Big at High-Stakes Meetings”. From his viewpoint, “The survey responses are spot on. Today, winning a B2B sale, large or small, requires a team. And when the time comes to put that team together, sales managers and salespeople scramble, uncertain who to ask and what to do to win the deal.”

TOP PRODUCTIVITY CHALLENGES 2017

6TEAM SELLING When in a team selling situation, what is the biggest challenge you or your team might face?

T he trend in buyers wanting to interact with subject-matter experts and project

teams is increasing the need to team sell. Many times, these team members are not trained in either selling or effective customer interactions, which can lead to a disjointed and confusing buying and selling process.

Sellers often work on their own, so collaborating as part of a selling team is a skill that needs reinforcement. As one respondent wrote, “The challenges involve alignment of message, breaking down silos, and forming an effective partnership.” Another cited the challenge of being part of a team that lacks responsibility and neglects obligation. N

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Knowledge about how to team

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Consistency in executing meetings as

an effective team

23%

Availability of high-impact

team members

21%

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ADDITIONAL CHALLENGESBeyond the challenges outlined in

Richardson’s 2017 research study, sellers identified several additional areas of concern:

2017

SALES AND MARKETING

ALIGNMENT

For the third year in a row, this issue was cited as a challenge. “We learn rather quickly we are not equipped to work with them … We take a defensive stance when a Marketing team does something out of our fairway.” Having a strong alignment between sales and marketing teams drives better leads, helps to close more business, and reduces internal conflicts that may stand in the way of meeting objectives. Some tips for improving collaboration include developing a joint service level agreement that outlines goals and a clear process for how leads are nurtured and followed, aligning key performance indicators, defining criteria for good leads, and using social selling tools to share content-based marketing assets with prospects and customers.

ADDING, DELIVERING, AND PRESERVING VALUE

There can be a disconnect between knowing the importance of adding value to customers and being able to consistently convey that value, especially in a changing marketplace. As one respondent offered, “Main challenge is adding value as competition closes gap on new product and its capabilities.” Sellers are concerned about “delivering value that rises above technological superiority or even complacency born from deep relationships.” They are also challenged to preserve value while managing the complete customer experience and maintaining profitability. At Richardson, we know that beyond delivering value in their solutions, sellers must also create value in the buying experience itself — through relevant insights and ideas. If sellers themselves do not become a point of differentiation, they will find themselves relegated to the role of order-taker, even when what the customer asks for is either wrong for their needs or doesn’t reflect the seller’s strengths.

SELLING CHALLENGES

SUMMARY2017

T oday’s selling environment presents tremendous opportunities for sales

professionals who understand the changing dynamics at the buyer’s table. Sellers, like buyers, have a world of information at their fingertips — along with sales and marketing enablement tools and the collaborative efforts of marketing in nurturing warm leads.

Sellers need to use these available tools to understand not just their own product or service, but their buyer’s needs, internal political environment, buying cycle, and both who the seller competes against and who the client competes against.

The challenges facing sellers today keep us at Richardson committed to our work: helping sales organizations improve their performance, making stronger connections with customers, and gaining confidence in their power to sell.

To learn how Richardson can help your sales orga-nization with their current

challenges, connect with us at

215.940.9255 or visit us on the web at

Richardson.com

THE POWER TO SELL

Contact the Richardson Team at 215.940.9255

Visit us on the web at www.richardson.com