ReflectionPROFESSIONAL SELLING AND SALES MANAGEMENTPROF DR DEVA RANGARAJAN
WHAT IS SALES FORCE EFFECTIVENESS?2|
$800 BN VS $200 BN    120 VS GREATER THAN 5003
OBJECTIVE      Identify some general trends in sales force       management      How are companies trying to deal with  ...
THE SELLING WORLD                                 Company                                             Sales system        ...
INSIGHTS: EXTERNAL ENVIRONMENT Six things keeping sales executives up at night:            1. The end of the “better mous...
1. MOVE TOWARDS SOLUTIONS The move towards solution selling Easier said than done:1.Resistance to change2.Silo Mentality...
INSIGHTS: EXTERNAL ENVIRONMENT Six things keeping sales executives up at night:            2. The death of F2F transactio...
2. FACE TO FACE SELLING?   PAST                                          PRESENT                                          ...
INSIGHTS: EXTERNAL ENVIRONMENT Six things keeping sales executives up at night:            3. Unsustainable hybrid sales ...
3. HYBRID SALES FORCE “Why should my salespeople be taking  business away from small stores while  they should be robbing...
INSIGHTS: EXTERNAL ENVIRONMENT Six things keeping sales executives up at night:            4. The ever extending sales cy...
4. EVER EXTENDING SALES LIFE CYCLE More complex products/service offerings More members in the customer organization  in...
INSIGHTS: EXTERNAL ENVIRONMENT Six things keeping sales executives up at night:            5. The decline of RFP sellingS...
5. THE PROBLEM WITH RFP/RFQ SELLING The problem with RFP/RFQ selling today  is that at this stage, value creation  opport...
INSIGHTS: EXTERNAL ENVIRONMENT Six things keeping sales executives up at night:            6. Skyrocketing costs of chasi...
6. SKYROCKETING COST OF CHASING ANOPPORTUNITY Do you know what it costs you to chase  an opportunity? How can you be sur...
THE SELLING WORLD                                 Company                                             Sales system        ...
FIVE STRATEGIES FOR SALES GROWTH Find growth before competitors do Sell the way your customers want Soup up your sales ...
1. FIND GROWTH BEFORE YOUR COMPETITORS Look 10 quarters ahead Mine growth beneath the surface Use big data20   © Vleric...
2. SELL THE WAY YOUR CUSTOMERS WANT Master multi-channel sales Power growth through digital channels Involve sales earl...
3&4. SOUP UP YOUR SALES ENGINE                                                                                            ...
SALES FORCE EFFECTIVENESS DRIVERS      The Sales job                        The Salesperson                               ...
5. LEAD SALES GROWTH Lead from the top Create a continuous learning environment24 |   © Vlerick Business School   | XX-X...
CONCLUSIONS
IMPLEMENTATION VS. DIAGNOSIS                                   The Sales System                       The Sales force effe...
SET UP A BALANCE SCORECARD TO PRIORITIZE                             HIGH                                                F...
SUGGESTIONS Over resource the best opportunities Take opportunity selection out of the hands of  the salespeople Involv...
CURRENT RESEARCH PROJECTS Key Account Effectiveness: focus groups with  Deloitte Characteristics of Successful Salespeop...
FEEL LIKE SOME MORE? Executive Master Class in B2B Marketing &  Sales (start 20 February 2013) Negotiating to Create Val...
THANK YOU!DEVA.RANGARAJAN@VLERICK.COM
Selling & Sales Management in the future
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Selling & Sales Management in the future

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Selling the Future
Prof Deva Rangarajan
Just when companies were able to convince their salespeople about selling solutions, a recent study pointed out to the fact that solution selling was dead. This combined with the research on procurement professionals that suggests that face to face transactional selling was a waste of time indicates that sales organizations need to rethink their approach towards equipping their sales force with the right tools to be successful. In this session we will focus on tactics used by successful salespeople.

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Selling & Sales Management in the future

  1. 1. ReflectionPROFESSIONAL SELLING AND SALES MANAGEMENTPROF DR DEVA RANGARAJAN
  2. 2. WHAT IS SALES FORCE EFFECTIVENESS?2|
  3. 3. $800 BN VS $200 BN 120 VS GREATER THAN 5003
  4. 4. OBJECTIVE  Identify some general trends in sales force management  How are companies trying to deal with generating growth using the sales force.4| © Vlerick Business School
  5. 5. THE SELLING WORLD Company Sales system Results External Company Marketing and Sales force • Customer forces strategy sales strategy • Company • Company • Market • Market Environment goals and segmentation segmentation objectives • Value • Value • Mergers and proposition proposition Customers acquisitions • Sales process • Sales process • Product • Go-to-market • Go-to-market portfolio strategy strategy Competition strategy Effectiveness huntSource: Zoltners et al., Building a winning sales team, 2009 5 © Vlerick Business School Prof Dr Deva Rangarajan
  6. 6. INSIGHTS: EXTERNAL ENVIRONMENT Six things keeping sales executives up at night: 1. The end of the “better mouse-trap” modelSource: Neil Rackham session at the Global Sales Science Institute meet- Milan 2011 © Vlerick Business School
  7. 7. 1. MOVE TOWARDS SOLUTIONS The move towards solution selling Easier said than done:1.Resistance to change2.Silo Mentality3.New capabilities and skills needed © Vlerick Business School
  8. 8. INSIGHTS: EXTERNAL ENVIRONMENT Six things keeping sales executives up at night: 2. The death of F2F transactional sellingSource: Neil Rackham session at the Global Sales Science Institute meet- Milan 2011 © Vlerick Business School
  9. 9. 2. FACE TO FACE SELLING? PAST PRESENT Consultative Transactional selling selling Consultative EnterpriseTransactional selling sellingselling © Vlerick Business School
  10. 10. INSIGHTS: EXTERNAL ENVIRONMENT Six things keeping sales executives up at night: 3. Unsustainable hybrid sales forceSource: Neil Rackham session at the Global Sales Science Institute meet- Milan 2011 © Vlerick Business School
  11. 11. 3. HYBRID SALES FORCE “Why should my salespeople be taking business away from small stores while they should be robbing banks” adapted from a quote by Larry Ellison- CEO, ORACLE © Vlerick Business School
  12. 12. INSIGHTS: EXTERNAL ENVIRONMENT Six things keeping sales executives up at night: 4. The ever extending sales cycleSource: Neil Rackham session at the Global Sales Science Institute meet- Milan 2011 © Vlerick Business School
  13. 13. 4. EVER EXTENDING SALES LIFE CYCLE More complex products/service offerings More members in the customer organization involved in the decision making Rise of the global customer/shared alliances Need to invest early in the sales cycle Creates more stress on salespeople and other functions internally: production, operations, finance © Vlerick Business School
  14. 14. INSIGHTS: EXTERNAL ENVIRONMENT Six things keeping sales executives up at night: 5. The decline of RFP sellingSource: Neil Rackham session at the Global Sales Science Institute meet- Milan 2011 © Vlerick Business School
  15. 15. 5. THE PROBLEM WITH RFP/RFQ SELLING The problem with RFP/RFQ selling today is that at this stage, value creation opportunity is limited 80% of the decision has been made © Vlerick Business School
  16. 16. INSIGHTS: EXTERNAL ENVIRONMENT Six things keeping sales executives up at night: 6. Skyrocketing costs of chasing an opportunitySource: Neil Rackham session at the Global Sales Science Institute meet- Milan 2011 © Vlerick Business School
  17. 17. 6. SKYROCKETING COST OF CHASING ANOPPORTUNITY Do you know what it costs you to chase an opportunity? How can you be sure that your customer will end up buying from you after all the effort you put into chasing an opportunity? © Vlerick Business School
  18. 18. THE SELLING WORLD Company Sales system Results External Company Marketing and Sales force • Customer forces strategy sales strategy • Company • Company • Market • Market Environment goals and segmentation segmentation objectives • Value • Value • Mergers and proposition proposition Customers acquisitions • Sales process • Sales process • Product • Go-to-market • Go-to-market portfolio strategy strategy Competition strategy Effectiveness huntSource: Zoltners et al., Building a winning sales team, 2009 18 © Vlerick Business School Prof Dr Deva Rangarajan
  19. 19. FIVE STRATEGIES FOR SALES GROWTH Find growth before competitors do Sell the way your customers want Soup up your sales engine Focus on your people Lead sales growthSource: Sales Growth: Five Proven Strategies from the World’s Sales Leaders by Thomas Baumgartner, Homayoun Hatami, and Jon Vander Ark19 © Vlerick Business School Prof Dr Deva Rangarajan
  20. 20. 1. FIND GROWTH BEFORE YOUR COMPETITORS Look 10 quarters ahead Mine growth beneath the surface Use big data20 © Vlerick Business School Prof Dr Deva Rangarajan
  21. 21. 2. SELL THE WAY YOUR CUSTOMERS WANT Master multi-channel sales Power growth through digital channels Involve sales early with the customers Invest in partners for mutual benefit21 © Vlerick Business School Prof Dr Deva Rangarajan
  22. 22. 3&4. SOUP UP YOUR SALES ENGINE Forces outside the Sales The Sales System System Company Environment factors - Market growth - R&D - Competition - Operations - Consolidation - Finance The Sales force effectiveness drivers - Marketing - Government - Technology - Product - Random offering Shocks - Pricing - Services - Channel Definers Shapers Exciters Enlighteners Controllers - Strategy Sales force Customer Companystructure and Salespeople Activities results results rolesSource: « Sales Force Effectiveness : A Framework for researchers and practitioners » by Andris Zoltners,Prabhakant Sinha and Sally Lorimer, Journal of Personal Selling and Sales Management, Spring 200822 © Vlerick Business School Prof Dr Deva Rangarajan
  23. 23. SALES FORCE EFFECTIVENESS DRIVERS The Sales job The Salesperson Impact- Sales strategy - Customer - Recruitingsegmentation - Training - Skills - Customer offering - Coaching Shapers - Capabilities - Sales process - Culture formation - Values- Go-to-market strategy - Compensation- Sales force design - Structure and roles - Size - Customer Research - Territory alignment - Targeting Enlighte - Customer - Data and tools Definers ners insight - Customer relationship management systems Salesperso Impact n / activity - Leadership - Roles - Compensation - Inspiration - Territories - Motivation programs Exciters - Motivation - Selling Process - Meaningful work - Performance Management - Expectations - Coordination systems Controlle - Success - Vertical and horizontal rs measures communication - CompensationSource: « The Sales Force as an engine of organic growth » by Bernard Quancard and Andris Zoltners, Velocity 2009 © Vlerick Business School
  24. 24. 5. LEAD SALES GROWTH Lead from the top Create a continuous learning environment24 | © Vlerick Business School | XX-XX-20XX |
  25. 25. CONCLUSIONS
  26. 26. IMPLEMENTATION VS. DIAGNOSIS The Sales System The Sales force effectiveness drivers Exciter Enlighten Controlle Definers Shapers s ers rs Sales force Compa Salespeo Customestructure and Activities ny ple r results roles results Implementation DiagnosisSource: « Sales Force Effectiveness : A Framework for researchers and practitioners » by Andris Zoltners,Prabhakant Sinha and Sally Lorimer, Journal of Personal Selling and Sales Management, Spring 2008 © Vlerick Business School
  27. 27. SET UP A BALANCE SCORECARD TO PRIORITIZE HIGH Fix it. NOW. High five! Impact of the drivers on performance You can afford There are bigger to procrastinate fish to fry LOW LOW HIGH Current performance on the drivers | XX-XX-27 | © Vlerick Business School 20XX |
  28. 28. SUGGESTIONS Over resource the best opportunities Take opportunity selection out of the hands of the salespeople Involve marketing and marketing tools in opportunity selection Push transactional opportunities to cheaper channels Develop clear strategies to manage channels Upgrade the consultative selling effort Equip your sales managers to deal with managing the sales force during this transition © Vlerick Business School
  29. 29. CURRENT RESEARCH PROJECTS Key Account Effectiveness: focus groups with Deloitte Characteristics of Successful Salespeople: IBM faculty research grant Drivers of sales force effectiveness: CPI Consulting29 © Vlerick Business School Prof Dr Deva Rangarajan
  30. 30. FEEL LIKE SOME MORE? Executive Master Class in B2B Marketing & Sales (start 20 February 2013) Negotiating to Create Value (start 24 April 2013)30 © Vlerick Business School Prof Dr Deva Rangarajan
  31. 31. THANK YOU!DEVA.RANGARAJAN@VLERICK.COM

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