Four megatrends are defining today's and tomorrow's sales landscape: Technology, demographic shifts, economics of experimenting, and the power of the user. This speech by McKinsey's Jennifer Stanley explores the trends, and lays out the five things that sales executives need to do now to adapt. For more on McKinsey's megatrends, be sure to check out: http://www.mckinseyonmarketingandsales.com/megatrends-for-sales-organizations
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The new ABC of IT
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1
60% of server
workloads
virtualized
Cloud
Cloud Services =
$180B
by 2016
3.3 connected
devices
per employee
BYOD
40% of business
devices
are consumer-
owned
Analytics
750TB – 1,000TB
of data
$232B on big data
in
next 5 years
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Software is everywhere
“The Internet of
Things . . . will
change everything
– including
ourselves”
– Dave Evans,
Cisco’s chief futurist
Number of connected devices
2000 2011
200M
10B
50B
2020
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New pockets of growth emerging
220 new cities in
China with 1M+
people – 35 in Europe
Small
Large
Mega
Emerging cities = 60%
of new urban
consumers
Rising middle class By 2025 . . .
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2
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Shifting of the guard
Exit Boomers, enter Millennials
OF BOOMERS USE A SOCIAL
NETWORKING SITE
11% visit a social
networking site several times a
day
26% visit a social networking site
once a day
30%
OF GEN XERS USE A SOCIAL
NETWORKING SITE
50%
OF MILLENNIALS USE A
SOCIAL NETWORKING SITE
75%
19% visit a social
networking site several times a
day
29% visit a social networking site
once a day
29% visit a social
networking site several times a
day
26% visit a social networking site
once a day
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2
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Me + Free + Easy
8
High expectations for how
and when customers want
to be served
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Falling experimentation costs
“Experimentation is the
new planning”
– FastCompany
In 2011 alone, Google performed
over 7,000 A/B tests
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500,000 listings
34,000 cities
192 countries
>150,000 servers
~1 million users
4 million registered
>2,400 skills listed
Everything-
as-a-Service
Growth of the sharing economy
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How are business buyer behaviors changing?
The consumerization of business
• Know me before I meet you
• Funnel paradigm has changed
• Multi-channel 24/7
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Know me before I meet you
39%
42%
74%
34%
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Top of
mind
concerns
Service
satisfaction
rating
Recent
Technology
trends
Last
interaction
Most
recent ticket
opened
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More tailored
post-sale
interactions
Less costly
channel mix
New sales
tools in use
35% of sales
digitally-
enabled
Online #2
information
source
Goodbye, B2B sales funnel
Trigger
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Multi-channel 24/7
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IVR
Activation
Retail Card
Transaction
Retention
Call
Agent
Activations
Web
Activations
Call Center
Balance
Transfer
Retail
Balance
Transfer
Web Balance
Transfer
Call Center
Inquiry
Retail
Deposit/With
Drawal
Training:Call
Center
Inquiry
Call Center
Dispute
Retention
Call
Retail Card
Transaction
IVR
Activation
Agent
Activation
Web
Activation
Call Center
Balance
Transfer
Retail
Balance
Transfer
Web Balance
Transfer
Call Center
Inquiry
Retail
Deposit/With
drawal
Training:Call
Center
Inquiry
Account
Application
(Web)
Call Center
Dispute
Retention
Call
IVR
Activation
Agent
Activation
Retail
Balance
Transfer
Web Balance
Transfer
Call Center
Inquiry
Retail
Deposit/With
drawal
Low CSAT Training:Call
Center
Inquiry
Account
Application
(Web)
Web
Activation
Agent
Activation
Web Balance
Transfer
Call Center
Inquiry
Retail
Deposit/With
drawal
Account
Application
(Web)
Low CSAT
Call Center
Dispute
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Imperatives for sales executives
Use Big Data
Share your pitch
Leverage technologies
Product Service Platform
Rethink sales capabilities and leadership
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Better resource allocation
HIGH
LOW
LOW HIGH
Market share
Growthpotential
Micromarket potential
Call planning
Next product
to buy
Trigger points
Use Big Data as an unfair advantage
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Share your pitch before you meet them
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Use social media to create
communities, educate customers
and promote thought leadership
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Manage the multichannel decision journey
Initial sales On-boarding
Billing
and care
Collections
Loyalty /
retention
Life events
Up and
cross-sales
Follow your Customers
through their journey
Uncover how different touch
points impact outcomes
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Product Service Platform
COMMUNITY
INFRASTRUCTURE
MARKET
INFORMATION
EXCHANGES
ENABLEMENT
API
PAY-AS-
YOU GO
OPEX
AS-A-SERVICE
MODELS
FLEXIBLE
CONSUMPTION
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CAPEX
ONE-TIME
TRANSACTION
PRODUCTS
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Rethink sales capabilities and leadership
Talent
On-boarding
Performance
management
Automation
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Final thoughts
Trends are clear
Customers’ expectations are shifting
Prepare to adapt
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jennifer_stanley@mckinsey.com
Staying connected
JenniferStanley
Expert Associate Principal,
McKinsey & Company
@JenStanley3
McKinsey on Marketing & Sales
www.linkedin.com/in/jenniferstanley/