The Future of Selling and Sales Management: Sales 2020

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How is sales force management likely to evolve in the coming 10 years?
Main themes are: co creation, networking, communication, the sales process, team based selling and the relationship between sales, marketing and customer service.

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The Future of Selling and Sales Management: Sales 2020

  1. 1. SALES<br />MANAGEMENT<br />2020<br />Text/logo<br />
  2. 2. Sales Management 2020<br />Is an academic research projectaiming to identify and developsolutions for the challenges sales organisations will be facing for the next 10 years. <br />
  3. 3. Sales Management 2020 <br />The project was started in April 2010 in the Netherlands in association with the Sales Management Association.<br />www.sma.nl<br />
  4. 4. Sales Management 2020 <br />The results shown here are based on 46 in-depth interviews with sales directors from different industries.<br />
  5. 5. Question<br />What were the major challenges sales organisations faced in the last 10 years?<br />
  6. 6. Globalisation<br /><ul><li>Customersmerging into larger ones.
  7. 7. Increased coördination between purchase departments.</li></ul>2010<br />Globalisation<br />
  8. 8. Internet<br /><ul><li>customer expection increased
  9. 9. customer online shopping
  10. 10. customer buying power increases
  11. 11. customers loyalty decreases
  12. 12. leading reduced margins for suppliers</li></ul>2010<br />Globalisation<br />Internet Technology<br />
  13. 13. Efficiency and Quality<br />suppliers seek to reduce costs by:<br /><ul><li>increasing the quality of their processes and products in order to reduce service cost.
  14. 14. employing fewer sales people to generate the same sales volumes.</li></ul>2010<br />Globalisation<br />Internet Technology<br />Efficiency and Quality<br />
  15. 15. Governance & Ethics<br /><ul><li>increased control over sales approach
  16. 16. increased awareness on ethical sales behaviour
  17. 17. increases regulation towards ethical behaviour</li></ul>2010<br />Globalisation<br />Governance and Ethics<br />Internet Technology<br />Efficiency and Quality<br />
  18. 18. Customer Orientation<br /><ul><li> increased customer orientation
  19. 19. reduced hit and run sales approach
  20. 20. introduced consultative selling</li></ul>2010<br />Globalisation<br />Customer Orientation<br />Governance and Ethics<br />Internet Technology<br />Efficiency and Quality<br />
  21. 21. Question<br />What are the major challenges sales organisations expect for the NEXT 10 years?<br />
  22. 22. Value Co Creation<br /><ul><li>to continue to add value, sales people will have to start co creating value propositions with their customers.
  23. 23. sales people are moving towards a business consulting role.</li></ul>2020<br />Value Co Creation<br />
  24. 24. Networks<br /><ul><li> in order co create sales people will have to collaborate with a network of partners to deliver the final solution.</li></ul>2020<br />Value Co Creation<br />Networks<br />
  25. 25. Communication<br /><ul><li> more and more communication will happen over the internet.
  26. 26. sales people wil have to learn to use social media to communicate with their customers.</li></ul>2020<br />Value Co Creation<br />CommunicationAmount<br />Networks<br />Communication<br />
  27. 27. Knowledge Management<br /><ul><li> knowledge and know how will become the main differentiating factors for sales people.
  28. 28. systems will be needed to organise the knowledge gathering and dissiminating processes.</li></ul>2020<br />Value Co Creation<br />CommunicationAmount<br />Networks<br />Knowledge Management<br />Communication<br />
  29. 29. Customer Profitability<br /><ul><li> sales people will need to be empowered with tools and knowledge to manager the profitabilty of their customers and opportunities. </li></ul>2020<br />Customer Profitability<br />Value Co Creation<br />CommunicationAmount<br />Networks<br />Knowledge Management<br />Communication<br />
  30. 30. Question<br />How are these past and future challenges affecting the selling process?<br />
  31. 31. Customer’s <br />Buying <br />Process<br />PROBLEM<br />SOLUTION<br />PRODUCT<br />2000<br />2010<br />Consultative<br />Selling<br />Supplier’s <br />Selling<br />Process<br />Consultative selling has enabled sales people over the last 10 years to move fromsolution presenters to problem solvers.<br />
  32. 32. Customer’s <br />Buying <br />Process<br />PROBLEM<br />SOLUTION<br />PRODUCT<br />USE<br />STRATEGY<br />GAP<br />2020<br />Business<br />Consulting<br />2010<br />2020<br />Business<br />Consulting<br />Supplier’s <br />Selling<br />Process<br />For the next 10 years sales people will need to movefromproblem solvers to business consultants <br />
  33. 33. Customer’s <br />Buying <br />Process<br />PROBLEM<br />SOLUTION<br />PRODUCT<br />USE<br />STRATEGY<br />GAP<br />Supplier’s <br />Selling<br />Process<br />CONSULTING<br />MANAGED SERVICES<br />SELF SERVICE<br />KPI BASED<br />THE SERVICE BECOMES THE VALUE PROPOSITION<br />REQUIRES BUSINESS OPERATIONS KNOWKEDGE<br />FEE BASED REMUNERATION<br />DEVELOP CUSTOM MADE SOLUTION WITH PARTNERS<br />REQUIRES SECTOR AND BUSINESS KNOWLEDGE<br />SALES BASED REMUNERATION<br />STANDARD OF THE SELF VALUE PROPOSITIONS<br />REQUIRES PRODUCT KNOWLEDGE<br />
  34. 34. Customer’s <br />Buying <br />Process<br />PROBLEM<br />SOLUTION<br />PRODUCT<br />USE<br />STRATEGY<br />GAP<br />MARKETING<br />SALES<br />CUSTOMER<br />SERVICE<br />Supplier’s <br />Selling<br />Process<br />Sales is moving into the fields of marketing and customer service.<br />
  35. 35. Question<br />What is the future role of Sales, Marketingand Customer Service?<br />
  36. 36. SALES<br />MARKETING<br />SERVICE<br />Traditionally there is one commercial approach for all customers, marketing passing leads to sales and sales passing orders to servicing.<br />
  37. 37. One process does no longer fit all customers.<br />SALES<br />MARKETING<br />SERVICE<br />SALES FORCE<br />SMALLER<br />VOLUME OF COMPLEX RELATIONSHIP ORIENTED CUSTOMERS<br />SELF SERVICE<br />LARGE<br />VOLUME of<br />TRANSACTION ORIENTED CUSTOMERS<br />
  38. 38. One sales person can no longer have all the knowledge required.<br />SALES<br />MARKETING<br />SERVICE<br />SALES FORCE<br />PRODUCT <br />SUPPORT<br />PRODUCT <br />CONSULTING<br />PRODUCT <br />DEVELOPMENT<br />SMALLER<br />VOLUME OF COMPLEX RELATIONSHIP ORIENTED CUSTOMERS<br />SELF SERVICE<br />LARGE<br />VOLUME of<br />TRANSACTION ORIENTED CUSTOMERS<br />
  39. 39. “..we now have a two legged commercial organisation each leg serving a different market…” quote from a sales director of a large copier business.<br />SALES FORCE<br />PRODUCT <br />SUPPORT<br />PRODUCT <br />CONSULTING<br />PRODUCT <br />DEVELOPMENT<br />SMALLER<br />VOLUME OF COMPLEX RELATIONSHIP ORIENTED CUSTOMERS<br />SELF SERVICE<br />LARGE<br />VOLUME of<br />TRANSACTION ORIENTED CUSTOMERS<br />
  40. 40. Next challenge is how to manage the matrixcommercial organisation? <br />SALES FORCE<br />PRODUCT <br />SUPPORT<br />PRODUCT <br />CONSULTING<br />PRODUCT <br />DEVELOPMENT<br />SMALLER<br />VOLUME OF COMPLEX RELATIONSHIP ORIENTED CUSTOMERS<br />SELF SERVICE<br />LARGE<br />VOLUME of<br />TRANSACTION ORIENTED CUSTOMERS<br />
  41. 41. Conclusions<br />Sales is evolving into a business consulting function.<br />Marketing, sales and customer service are merging into a commercial management department.<br />Commercial organisations are splitting into 2 divisions(or legs) each serving a different market with a different commercial approach.<br />The commercial organisation is moving from a functional towards a matrix organisation creating new management challenges.<br />
  42. 42. 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<br />Dr.RégisLemmens<br />Director of the Sales Competence Centre<br />Email: r.h.l.lemmens@tiasnimbas.edu<br />regis.lemmens@salescubes.com<br />

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