Growth Team Membership Americas 2010 Sales Leadership  Priorities Survey Results
 

Growth Team Membership Americas 2010 Sales Leadership Priorities Survey Results

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Growth Team Membership Americas 2010 Sales Leadership Priorities Survey Results.

Growth Team Membership Americas 2010 Sales Leadership Priorities Survey Results.

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Growth Team Membership Americas 2010 Sales Leadership  Priorities Survey Results Growth Team Membership Americas 2010 Sales Leadership Priorities Survey Results Presentation Transcript

  • Growth Team Membership™:Americas 2010 Sales Leadership Priorities Survey Results July 2010 Contact us at GTMResearch@frost.com
  • What is Growth Team Membership™?Growth Team Membership™ (GTM) is an annual subscription program that offers research, events and services designed toincrease the effectiveness, productivity, and impact of executives in the functions that support the CEO’s growth strategy. Growth Team Membership™ Research. 2
  • Table of Contents PageSection 1: Survey Purpose and Respondents 4Section 2: External Factors Shaping 2010 Strategies 5 Section 2.1: By business model 8Section 3: Key Sales Leadership Challenges 9 Section 3.1: By business model 13Section 4: Sales Function Effectiveness and Responsibilities 14 Section 4.1: By business model 15Section 7: Respondent Demographics 23 The content of these pages are © 2010 Frost & Sullivan. All rights reserved. Growth Team Membership™ Research. 3
  • Survey Purpose and RespondentsResearch ObjectiveTo understand the most pressingexternal and internal challengesshaping sales executives’ 2010planning.MethodologyWeb-based survey platformSurvey PopulationTarget respondents were managerlevel and above sales executivesfrom companies throughout Northand Latin America. There were 119 survey respondents Growth Team Membership™ Research. 4
  • External Factors ShapingSales Leadership Strategies Growth Team Membership™ Research. 5
  • Top Three External Factors KEY TAKEAWAY: Sales leadership plans are heavily influenced by customer shifts and competitor activities Changes in customer buying behavior 17% Adjusting to the economic downturn 23% Intensifying competition 25% 0% 25% 50% Survey Question: Please indicate the three business environment factors that have the most impact on your 2010 sales leadership strategies.N = 103 Growth Team Membership™ Research. 6
  • External Factors Impact on Sales Leadership KEY TAKEAWAY: The after effects of the economic downturn—intense competition and changes in customer buying behavior—are negatively affecting plans for 2010. Negative Impact 100% 87% 80% 50% 47% 0% Intensifying competition Adjusting to the economic downturn Changes in customer buying behavior Survey Question: Please indicate the impact that each of the following forces have on your 2010 sales leadership strategies.N = 103 Growth Team Membership™ Research. 7
  • Top Three External Factors (By Business Model) KEY TAKEAWAY: There is a high level of variability among the top external challenges by business model. B-to-B B-to-C Hybrid Need for product/service 1 Intensifying Competition innovation and capabilities Intensifying competition Adjusting to the Adjusting to the Adjusting to the 2 economic downturn economic downturn economic downturn Changes in customer Rising/high material Keeping pace with 3 buying behavior (input) costs technology advancesN = 103 Growth Team Membership™ Research. 8
  • Key Sales Leadership Challenges Growth Team Membership™ Research. 9
  • Key Sales Leadership Challenges SnapshotAll Companies B-to-B Companies B-to-C CompaniesTop three challenges: Top three challenges: Top three challenges:► Identifying and qualifying ► Identifying and qualifying ► Defining and implementing high-potential prospects high-potential prospects key metrics (e.g. customer loyalty, retention, and profitability) for all sales activities► Responding to clients’ ► Responding to clients’ ► Creating a company changing business changing business culture that better environment and environment and supports the sales effort challenges within it challenges within it► Responding to competitor ► Responding to competitor ► Creating a company discounting discounting culture that better supports the sales effort Growth Team Membership™ Research. 10
  • Top Five Key Sales Leadership Challenges KEY TAKEAWAY: Sales Leaderships’ key issues reflect the perennial challenges: finding high-potential targets, adapting to the evolving environment, and streamlining the sales process. Challenge 1 Identifying and qualifying high-potential prospects (31%) Responding to clients’ changing business environment and challenges within it Challenge 2 (20%) Challenge 3 Responding to competitor discounting (13%) Challenge 4 Streamlining the sales process (Accelerating the close) (11%) Challenge 5 Creating a company culture that better supports the sales effort (14%) Survey Question: Please indicate the top five challenges shaping your sales leadership decision-making in 2010.N = 81 Growth Team Membership™ Research. 11
  • Root Cause of Top Five Sales Leadership Challenges KEY TAKEAWAY: Process and staff are the predominant root causes of sales leadership’s challenges. 100% Staff Staff Staff 22% 28% 25% Staff 47% Staff 90% 50% Process Process 56% Process 63% 78% Process 47% Technology Technology 16% Process 6% 12% 10% 0% Identifying and qualifying Responding to clients’ Responding to Streamlining the sales Creating a company high-potential prospects changing business competitor discounting process culture that better environment and supports the sales effort challenges within it Survey Question: For the top five challenges you selected above, please indicate whether the root cause of the challenge is staff, technology, or process.N = 81 Growth Team Membership™ Research. 12
  • Top Three Sales Leadership Challenges (By Business Model) KEY TAKEAWAY: Key sales leadership challenges are similar, but vary in their prioritization between business models. B-to-B B-to-C Hybrid Defining and implementing key metrics (e.g. customer Identifying and qualifying Identifying and qualifying Challenge 1 high-potential prospects loyalty, retention, and high-potential prospects profitability) for all sales activities Responding to clients’ Responding to clients’ Creating a company culture changing business changing business Challenge 2 that better supports the sales environment and challenges environment and challenges effort within it within it Implementing effective key Implementing effective key Responding to competitor Challenge 3 account management account management discounting programs programsN = 81 Growth Team Membership™ Research. 13
  • Sales Function Effectiveness and Responsibilities Growth Team Membership™ Research. 14
  • Sales Function Effectiveness and Responsibilities SnapshotAll Companies B-to-B Companies Hybrid Companies► Rank their sales function ► Rank their sales function ► Rank their sales function effectiveness as “above average” effectiveness as “above average” effectiveness as “average”► Attribute 25% of their annual sales ► Attribute 25% of their annual sales ► Attribute 22.5% of their annual sales to alliances and partnerships to alliances and partnerships to alliances and partnerships► Expect their staffing levels to stay ► Expect their staffing levels to stay ► Expect their staffing levels to stay the same in 2010 the same in 2010 the same in 2010► Expect their budgets to increase ► Expect their budgets to increase ► Expect their budgets to increase moderately in 2010 moderately in 2010 moderately in 2010 Note: Due to small response rates, there are only data available for B-to-C Respondents on some of the questions. Growth Team Membership™ Research. 15
  • Sales’ View of Its Effectiveness (By Business Model) KEY TAKEAWAY: Most of the sales leaders consider their function’s effectiveness to be “above average”. All Companies B-to-B Companies Below Average 6% Below Average Exceptional Exceptional 6% 13% 15% Average Average Above Average 36% 35% 45% Above Average 44% Hybrid Companies Above Average 44% Average 56% Survey Question: Please assess the overall effectiveness of your sales function compared to those in other firms within your industry.N = 72 Growth Team Membership™ Research. 16
  • Primary Purpose of Sales Technology and Practices KEY TAKEAWAY: Respondents indicate that sales leaders are not availing themselves of the opportunities created by social media, such as increasing customer satisfaction and loyalty or identifying customer requirements or needs. Sales Technology and Practice Primary Purpose Sales Force Automation-CRM  • Increased sales productivity (36%) • Moving from a tactical to strategic relationship with clients Solution-Selling Practices  (38%) • Do not use (43%) Sales Enablement and Productivity Tools  • Increased sales productivity (15%) • Do not use (43%) Tele-presence and/or Live Streaming Video Communication  • Reduced cost of sale (22%) • Do not use (68%) Social Media  • Better information on customer requirements and needs (customer, product, and support data) (8%) • Better information on customer requirements and needs Data mining (customer, market, and technical information)  (customer, product, and support data) (36%) Survey Question: Please indicate the primary purpose for implementing each of the following technologies and practices in your sales interactions:N = 69 Growth Team Membership™ Research. 17
  • Company Sales Attributed to Partnerships and Alliances (By Business Model) KEY TAKEAWAY: Respondents indicate that 25% or less of their annual company sales can be attributed to partnerships or alliances. 50% 25.0% 25.0% 25% 22.5% 0% All Companies B-to-B Companies Hybrid Companies Median Percentage of Sales Survey Question: What percentage of your 2009 company sales were attributed to partnerships and alliances?N = 62 Growth Team Membership™ Research. 18
  • Sales Responsibilities Time Allocation (2009 vs 2010) KEY TAKEAWAY: Respondents forecast little of no change in time allocated to management duties. 2009 2010 25% 20% 20% 20% 15% 15% 10% 10% 10% 10% 10% 10% 10% 10% 10% 10% 5% 5% 5% 5% 5% 0% Sale-Specific Coaching Sales Strategy Hiring/ Administration Individual Compensation Management Training and Account Recruitment Monitoring and Team Plan Sales Planning Performance Forecasting 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%).N = 69 Growth Team Membership™ Research. 19
  • 2010 vs. 2009 Budgets (By Business Model) KEY TAKEAWAY: Respondents forecast a moderate increase in their budgets for 2010. All Companies B-to-B Companies Decrease Decrease Substantially Increase Substantially 2% Substantially 1% Increase Decrease 7% Decrease Moderately Substantially Moderately 9% 17% 21% Increase Increase Moderately Stay the Same Moderately 38% 31% 43% Stay the Same 31% Hybrid Companies Stay the Same 22% Increase Moderately 78% Survey Question: In comparison to 2009, your 2010 sales budget will:N = 68 Growth Team Membership™ Research. 20
  • 2010 vs. 2009 Staffing Plans (By Business Model) KEY TAKEAWAY: Sales leaders indicate their staffing levels will remain static in 2010. All Companies B-to-B Companies Decrease Decrease Increase Substantially Substantially Substantially Decrease 2% Decrease 2% 9% Moderately Moderately 9% 7% Increase Moderately Increase 30% Moderately Stay the Same Stay the Same 31% 52% 48% Hybrid Companies Increase Moderately 33% Stay the Same 67% Survey Question: In comparison to 2009, your 2010 sales staff will:N = 68 Growth Team Membership™ Research. 21
  • Anticipated Company Performance in 2010 (By Business Model) KEY TAKEAWAY: Regardless of business model, respondents predict an increase in their company’s performance in 2010. All Companies B-to-B Companies Decrease Moderately Increase Decrease Increase 9% Substantially Moderately Substantially 7% 21% 19% Stay the Same Stay the Same 22% 24% Increase Moderately 50% Increase Moderately 48% Hybrid Companies Increase Substantially 11% Stay the Same 33% Increase Moderately 56% Survey Question: In comparison to 2009, your company’s performance by the end of 2010 will:N = 68 Growth Team Membership™ Research. 22
  • Respondent Demographics Growth Team Membership™ Research. 23
  • Demographics Respondents tended to be from public, B-to-B companies whose 2009 revenue was under $100 million. Enterprise Type Business ModelOver half of the Hybrid Companyrespondents work in 18%a public company. Private 41% Public B-to-C Company 52% 7% N =109 N =109 B-to-B Company Venture Capital 75% 7% Company Revenue 60% 47% 30% 21% 17% 16% 6% 0% Below $100 million $100 to $499.99 $500 million to $1 billion to $11 More than $11 billion million $999.99 million billion N =109Survey Question: Please indicate the type of enterprise best represents your organization. Growth Team Membership™ Research. 24
  • Demographics: Top Six Participating Industries Electronics and Security 13% Healthcare and Life Sciences 16% Energy and Power Systems 19% Automotive and Transportation 22% Aerospace and Defense 24% Information and Communication Technologies 27% 0% 15% 30% Survey Question: Please indicate which of these Industry categories best describes you organization (please indicate all that apply).N = 113 Growth Team Membership™ Research. 25
  • Contact UsIf you have any questions or comments, please contact us at GTMResearch@frost.com or visit us at http://www.frost.com/prod/servlet/growth-team.pag Growth Team Membership™ Research. 26