Sales 2020, Future trends in sales and sales management.
 

Sales 2020, Future trends in sales and sales management.

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This presentation is part of our book entitled "from Selling to Co-Creating" and focusses on the main trends in sales for the coming years. Particular attention is given on the role of sales versus ...

This presentation is part of our book entitled "from Selling to Co-Creating" and focusses on the main trends in sales for the coming years. Particular attention is given on the role of sales versus marketing in the future.
Main trends are: co-creation, networking, communication, the sales process, team based selling and the relationship between sales, marketing and customer service.

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Sales 2020, Future trends in sales and sales management. Sales 2020, Future trends in sales and sales management. Presentation Transcript

  • SALES 2020
  • SALES 2020 is a research project which started in 2010 in collaboration with:
  • We interviewed well over 100 sales executives from different industries in Europe and in the US.
  • The aim of the project was to: •  Identify future trends in sales •  Identify the role of the sales organisation in the future
  • WHAT WERE THE MAIN TRENDS IN SALES FOR THE PAST 10 YEARS?
  • #1 GLOBALISATION
  • Globalisation meant that many customers merged into larger ones.
  • Globalisation has lead many customers to consolidate their number of suppliers.
  • As a result, many suppliers have fewer but much larger customers.
  • As a result, sales people are dealing with highly professional and well organised purchasing departments.
  • #2 INTERNET
  • The Internet has empowered customers with a wealth of information.
  • The Internet has enabled customers to easily compare their suppliers.
  • As a result, sales people are being replaced by the Internet because they fail to add value.
  • #3 EFFICIENCY
  • Organisations are increasingly doing more with fewer people.
  • As a result there are fewer opportunities for sales people and customers to meet, requiring relationships to be build on added value and not personal contacts.
  • #4 GOVERNANCE AND ETHICS
  • The importance of ethical behaviour has given selling a bad name.
  • As a result, selling is evolving from an art, based on personal skills to a science based on replicable and predictable processes.
  • WHAT TRENDS DO SALES ORGANISATIONS EXPECT FOR THE COMING 10 YEARS?
  • #1 VALUE CO-CREATION
  • Speed of change and globalisation are making product innovation increasingly difficult for suppliers.
  • Sales people will have to engage their customers into co-creating new innovative products and services.
  • #2 ECO SYSTEMS OF PARTNERS AND CUSTOMERS
  • Co-creating will require many competencies that suppliers do not have.
  • Sales people will therefore have to develop an eco-system of partners with whom to co-create.
  • #3 SOCIAL MEDIA
  • Social media is becoming the norm for people to communicate with each other.
  • Sales people will have to use social media tools and platforms to communicate with their customers and partners.
  • #4 KNOWLEDGE MANAGEMENT
  • Co-creation requires knowledge and understanding about the customer’s business.
  • Suppliers will have to find ways to capture and replicate the knowledge about their customer’s processes and business.
  • #5 THE SERVICE
  • “People don’t want to buy a quarter-inch drill. They want a quarter-inch hole!”, Theodor Levitt
  • Sales people will have to help their customers to maximise the benefits and value they obtain from using their products and services.
  • WHAT ARE THE IMPLICATIONS OF THESE TRENDS FOR THE SALES FUNCTION IN THE FUTURE?
  • The sales person in the future will be a business consultant.
  • … because the process is changing. COSTOMER’S BUYING PROCESS STRATEGY ROADMAP 2020 BUSINESS CONSULTING PROBLEM SOLUTION SUPPLIER 2010 CONSULTATIVE SELLING PURCHASE 2000 SELLING USE 2020 BUSINESS CONSULTING
  • Customers will have to pay for the sales people’s efforts.
  • … because your margins are going down and your sales costs will go up. COSTOMER’S BUYING PROCESS STRATEGY ROADMAP PROBLEM SOLUTION SUPPLIER Higher Educated Longer Sales Processes PURCHASE USE
  • To co-create solutions with customers sales people will have to adopt a truly customer centric mind-set.
  • .. because it requires different values and beliefs.   COSTOMER’S BUYING PROCESS STRATEGY ROADMAP Which solution do we need to solve the problem? CUSTOMER CENTRIC MINDSET PROBLEM SOLUTION SUPPLIER Which problems does my product solve? PRODUCT CENTRIC MINDSET PURCHASE Which is the fastest way to sell? EFFICIENCY CENTRIC MINDSET USE
  • PRODUCT EXPERT CUSTOMER SERVICE PRODUCT SUPPORT CUSTOMER EXPERTS The sales organisation of the future will be a matrix organisation combining product and customer experts
  • .. because customers will want to buy from us in different ways.   COSTOMER’S BUYING PROCESS STRATEGY ROADMAP PROBLEM SOLUTION PRODUCT EXPERT CUSTOMER EXPERTS SUPPLIER PURCHASE CUSTOMER SERVICE USE PRODUCT SUPPORT
  • WHAT DOES THIS MEAN FOR THE ROLE OF THE SALES FORCE IN THE FUTURE?
  • The commercial logic of how sales and marketing complement each other is fundamentally changing.
  • THE OLD COMMERCIAL LOGIC 1. MARKETING DEFINES THE STRATEGY AND PRODUCT INNOVATIONS 2. R&D DEVELOPS THE NEW PRODUCTS 3. SALES EXECUTE THE MARKETING STRATEGY
  • This logic is BROKEN
  • Product innovation based on traditional market research and focus groups is too risky and not fast enough.
  • Sales people are too expensive to deploy as a simple personal selling channel.
  • How can we fix the logic?
  • The costs and the risks of developing new innovative products needs to be shared with customers.
  • The commercialisation of newly cocreated solutions needs be done through marketing channels.
  • THE NEW COMMERCIAL LOGIC 1.  SALES PEOPLE CO-CREATE NEW INNOVATIVE SOLUTIONS WITH KEY CUSTOMERS. 2.  R&D DEVELOPS THE NEW PRODUCTS. 3.  MARKETING COMMERCIALISES THESE NEW PRODUCTS INTO THE MARKET.
  • THE NEW COMMERCIAL LOGIC MARKETING R&D SALES SALES R&D MARKETING
  • THE SALES PERSON OF THE FUTURE WILL BE: •  MANAGING LARGE KEY ACCOUNTS •  PROVIDING BUSINESS ADVICE FOR A FEE •  MANAGING THE COLLABORATION WITH ALL STAKEHOLDERS •  CO-CREATING SOLUTIONS WITH CUSTOMERS AND PARTNERS LEADING TO NEW INNOVATIONS