the future of selling and sales management: sales 2020
TRANSCRIPT
Text/logo
SALESMANAGEMENT
2020
Sales Management 2020
Is an academic research project aiming to identify and develop solutions for the challenges sales organisations will be facing for the next 10 years.
Sales Management 2020
The project was started in April 2010 in the Netherlands in association with the Sales Management Association.
www.sma.nl
Sales Management 2020
The results shown here are based on 46 in-depth interviews with sales directors from different industries.
Question
What were the major challenges sales organisations faced in the last 10 years ?
2010
Globalisation
Globalisation• Customers merging into larger ones.• Increased coördination between purchase departments.
2010
Globalisation
Internet Technology
Internet• customer expection increased• customer online shopping• customer buying power increases• customers loyalty decreases• leading reduced margins for suppliers
2010
Globalisation
Internet Technology Efficiency and Quality
Efficiency and Qualitysuppliers seek to reduce costs by:
• increasing the quality of their processes and products in order to reduce service cost.
• employing fewer sales people to generate the same sales volumes.
2010
Globalisation
Governance and Ethics
Internet Technology Efficiency and Quality
Governance & Ethics• increased control over sales approach• increased awareness on ethical sales behaviour• increases regulation towards ethical behaviour
2010
Globalisation
Governance and Ethics
Customer Orientation
Internet Technology Efficiency and Quality
Customer Orientation• increased customer orientation• reduced hit and run sales approach• introduced consultative selling
Question
What are the major challenges sales organisations expect for the NEXT 10 years?
Value Co Creation
2020
Value Co Creation•to continue to add value, sales people will have to start co creating value propositions with their customers.• sales people are moving towards a business consulting role.
Value Co Creation
Networks
2020
Networks• in order co create sales people will have to collaborate with a network of partners to deliver the final solution.
Value Co Creation
Networks
2020
Com
mun
icati
on A
mou
nt
Communication
Communication• more and more communication will happen over the internet.• sales people wil have to learn to use social media to communicate with their customers.
Value Co Creation
Knowledge ManagementNetworks
2020
Com
mun
icati
on A
mou
nt
Communication
Knowledge Management• knowledge and know how will become the main differentiating factors for sales people.• systems will be needed to organise the knowledge gathering and dissiminating processes.
Value Co Creation
Knowledge Management
Customer Profitability
Networks
2020
Com
mun
icati
on A
mou
nt
Communication
Customer Profitability• sales people will need to be empowered with tools and knowledge to manager the profitabilty of their customers and opportunities.
Question
How are these past and future challenges affecting the selling process?
PROBLEM SOLUTION PRODUCTCustomer’s
Buying Process
Supplier’s Selling
Process
20002010
ConsultativeSelling
Consultative selling has enabled sales people over the last 10 years to move from solution presenters to problem solvers.
PROBLEM SOLUTION PRODUCT USESTRATEGY GAP
20102020
BusinessConsulting
2020
BusinessConsulting
For the next 10 years sales people will need to movefrom problem solvers to business consultants
Customer’s Buying Process
Supplier’s Selling
Process
PROBLEM SOLUTION PRODUCT USE
FEE BASED REMUNERATION
DEVELOP CUSTOM MADE SOLUTION WITH PARTNERS
REQUIRES SECTOR AND BUSINESS KNOWLEDGE
CONSULTING SELF SERVICE
SALES BASED REMUNERATION
STANDARD OF THE SELF VALUE PROPOSITIONS
REQUIRES PRODUCT KNOWLEDGE
MANAGED SERVICES
KPI BASED
THE SERVICE BECOMES THE VALUE PROPOSITION
REQUIRES BUSINESS OPERATIONS KNOWKEDGE
STRATEGY GAPCustomer’s
Buying Process
Supplier’s Selling
Process
PROBLEM SOLUTION PRODUCT USESTRATEGY GAP
Sales is moving into the fields of marketing and customer service.
MARKETIN
G
SALES
CUSTO
MER
SERVICE
Customer’s Buying Process
Supplier’s Selling
Process
Question
What is the future role of Sales, Marketing and Customer Service?
MARKETING SALES SERVICE
Traditionally there is one commercial approach for all customers, marketing passing leads to sales and sales passing orders to servicing.
MARKETING SALES SERVICE
One process does no longer fit all customers.
LARGEVOLUME of
TRANSACTION ORIENTED
CUSTOMERS
SMALLERVOLUME OF
COMPLEX RELATIONSHIP
ORIENTED CUSTOMERS
SELF SERVICE
SALES FORCE
MARKETING SALES SERVICE
One sales person can no longer have all the knowledge required.
LARGEVOLUME of
TRANSACTION ORIENTED
CUSTOMERS
SMALLERVOLUME OF
COMPLEX RELATIONSHIP
ORIENTED CUSTOMERS
SELF SERVICE
SALES FORCEPRODUCT SUPPORT
PRODUCT CONSULTING
PRODUCT DEVELOPMENT
LARGEVOLUME of
TRANSACTION ORIENTED
CUSTOMERS
SMALLERVOLUME OF
COMPLEX RELATIONSHIP
ORIENTED CUSTOMERS
SELF SERVICE
SALES FORCEPRODUCT SUPPORT
PRODUCT CONSULTING
PRODUCT DEVELOPMENT
“..we now have a two legged commercial organisation each leg serving a different market…” quote from a sales director of a large copier business.
LARGEVOLUME of
TRANSACTION ORIENTED
CUSTOMERS
SMALLERVOLUME OF
COMPLEX RELATIONSHIP
ORIENTED CUSTOMERS
SELF SERVICE
SALES FORCEPRODUCT SUPPORT
PRODUCT CONSULTING
PRODUCT DEVELOPMENT
Next challenge is how to manage the matrix commercial organisation?
Conclusions1. Sales is evolving into a business consulting function.
2. Marketing, sales and customer service are merging into a commercial management department.
3. Commercial organisations are splitting into 2 divisions (or legs) each serving a different market with a different commercial approach.
4. The commercial organisation is moving from a functional towards a matrix organisation creating new management challenges.
Currently additional research on the challenges of the next 10 year is conducted.
If you are interested in participating in any of the follow up research projects, please contact
Dr. Régis Lemmens
Director of the Sales Competence Centre
Email: [email protected]@salescubes.com