2011 sales leadership priorities survey results: europe

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growth team m e m b e rs h i p™

2011 Sales Leadership Priorities Survey Results

Europe

Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . 2What is the Growth Team Membership™ . . . . . . 3Survey Purpose and Respondents . . . . . . . . . . . . . 4

External Factors Shaping Sales Leadership’s Strategies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

Key Sales Leadership Challenges . . . . . . . . . . . . . . 8

Sales Effectiveness and Practices . . . . . . . . . . . . . 12Sales Leadership Overarching Challenges . . . . . . 19

Respondent Demographics . . . . . . . . . . . . . . . . . 20

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2011 survey resultsgrowth team m e m b e rs h i p™

Source: Growth Team Membership™ research.

Key Internal Challenge Internal Challenge Root CauseThe challenge is identifying and qualifying high-potential prospects

The challenge’s root cause is staff limitations

Main External ChallengeThe challenge is capitalising on emerging markets

Executive Summary

Resources Tools and Practices Social Media in SalesRespondents foresee a moderate increase in budgets and staffing in 2011

Respondents utilise traditional tools such as sales automation and customer relationship management software

Social media is typically used to identify and qualify leads

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What is the Growth Team Membership™?

The Growth Team Membership™ (GTM) is a subscription program that supports executives within the functions reporting to the CEO.

GTM provides best practices, events, and services to enable executives to address internal challenges within their companies.

CorporateStrategy

Corporate Development

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CompetitiveIntelligence

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SalesLeadership

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Investors/Finance

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SalesLeadership

Email us [email protected] Visit us online www.gtm.frost.com

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GTM’s case-based best practices help executives:

Speed the design and implementation of initiatives by not reinventing the wheel

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Improve their function/company’s performance and productivity

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Survey Purpose and Respondents

123survey

respondents

In Cooperation withSurvey PopulationMethodologyResearch Objective

To understand the most pressing external and internal challenges shaping sales executives’ 2011 planning .

Web-based survey platform Target respondents were Manager level and above sales executives from companies throughout Europe .

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External Factors Shaping Sales Leadership’s Strategies

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Sales strategies are influenced by the need to capitalise on emerging markets and adjust to changes in customer buying behavior

Top Three External Factors

Survey Question: Please specify the Top Three external factors shaping your sales strategy in 2011 .

External Factor 1 Emerging global markets (21%)

External Factor 2 Changes in customer buying behavior (14%)

External Factor 3 Need for product and service innovation (14%)

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Challenges for Sales Leadership

Changes in customer buying behavior (50%)

External Factors Impact on Sales Leadership

Survey Question: Please indicate if the following factors present a challenge or an opportunity for your 2011 sales strategy .

Opportunities for Sales Leadership

Emerging global markets (91%)

Need for product and service innovation (80%)

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Key Sales Leadership Challenges

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Top Three Sales Leadership Challenges

Identifying and qualifying high-potential prospects

Challenge 1

Responding to pricing pressures from competitors, the market, and customers

Challenge 3

Ensuring accurate reporting of forecasted sales opportunities in the pipeline

Challenge 2

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Challenge 1 Identifying and qualifying high-potential prospects (23%)

Challenge 2 Ensuring accurate reporting of forecasted sales opportunities in the pipeline (10%)

Challenge 3 Responding to pricing pressures from competitors, the market and customers (15%)

Challenge 4 Equipping reps to be more effective solutions sellers [creating value beyond price] (11%)

Challenge 5 Aligning the sales process with customers’ purchasing behavior (9%)

The challenges speak to the difficulties in identifying, engaging, and closing customers

Top Five Key Sales Leadership Challenges

Survey Question: Please indicate the top five functional challenges shaping your sales plans in 2011 .

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Challenge 1Identifying and qualifying high-potential prospects

Staff: Limited resources (55%)

Challenge 2Ensuring accurate reporting of forecasted sales opportunities in the pipeline

Process: Ineffective process (38%)

Challenge 3Responding to pricing pressures from competitors, the market and customers

Process: Ineffective process (22%)

Challenge 4Equipping reps to be more effective solutions sellers (creating value beyond price)

Staff: Limited resources (38%)

Challenge 5Aligning the sales process with customers’ purchasing behavior

Staff: Lack of knowledge (50%)

Sales key challenges are predominantly caused by ineffective processes and insufficient staffing

Survey Question: Please indicate if the root cause of your top five functional challenges are—staff, process, technology/systems, or strategic alignment .

Root Cause of Top Five Sales Leadership ChallengesTop Five Sales Leadership Challenges

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Sales Effectiveness and Practices

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Sales Leadership Effectiveness and Practices Snapshot

Respondents rank their sales function’s effectiveness as “Above Average”

Sales executives implement tools primarily to increase sales productivity

Respondents expect their staffing levels to increase moderately in 2011

Respondents expect their sales budgets to increase moderately in 2011

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32%

59%

7%

2%

The majority of respondents consider their Sales function’s effectiveness to be “Above Average”

Sales Leadership’s View of Its Effectiveness

Survey Question: Please assess the overall effectiveness of your sales function compared to those in other firms within your industry .

Above Average

Exceptional

Below Average

Average

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On average, respondents attribute 40% of their company’s sales to distribution channels or partnerships

Sales by Partnerships

Survey Question: What percentage of your 2010 company sales were attributed to distribution channels or partnerships and alliances?

0%

25%

50%

21%

26%

20% 20%

13%

1 to 20% 21 to 40% 41 to 60% 61 to 80% 81 to 100%

40% is the median percentage of sales attributed to distribution channels and partnerships .

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Respondents tend to utilise tools to increase sales force effectiveness

Primary Purpose of Technology and Practices

Survey Question: Please indicate the primary purpose for implementing each of the following technologies and practices:

Tool/Practice 1Sales Force Automation

Increase sales productivity (33%)

Tool/Practice 2Customer Relationship Management (CRM) Software

Improve information on customer needs (35%)

Tool/Practice 3Solution Selling Practices

Enable value-based selling to customers—focus on outcomes not price and features (47%)

Tool/Practice 4Sales Enablement and Productivity Tools

Do not use (30%)

Increase sales productivity (24%)

Tool/Practice 5Telepresence or Live Streaming Video Comm Capabilities

Do not use (52%)

Reduce cost of sale (20%)

Tool/Practice 6Social Media

Do not use (49%)

Enhance sales presentations and collateral (11%)

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When utilised, social media tends to be used to identify and qualify leads

Social Media in the Sales Cycle

Survey Question: Please indicate where social media is most useful with customers during the sales cycle:

0%

20%

40%

60%

22%

14%

3%

0%

20%

41%

Identifying and Qualifying Leads

Presenting Solutions

Pinpointing Needs and Creating Awareness

Finalizing the Sale

Supporting an Ongoing Relationship

Do Not Use

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48%

3%

7%5%

37%

48%

26%

15%

3%

8%

Sales executives foresee a moderate increase in resources in 2011

Sales Leadership Staffing and Budgets 2011

Survey Question: In comparison to 2010, your 2011 staff will:

Staffing

Budget

Stay the Same

Decrease Moderately

Increase Moderately

Stay the Same

Decrease Moderately

Decrease Substantially

Decrease Substantially

Increase Substantially

Increase Substantially

Increase Moderately

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The Growth Team Membership™ (GTM) is an annual subscription program that supports executives in Marketing, Sales Leadership, Corporate Strategy, Corporate Development, R&D/Innovation, Market Research, and Competitive Intelligence . GTM offers best practices research, events, and services to address the internal challenges executives face . Contact us at GTMResearch@frost .com .

what’s keeping sales executives up at night in 2011?

Overarching Challenges Sample Solutions from the Growth Team Membership

High-Potential Prospects

Sales executives must identify ways to focus activities on high-potential prospects and align the sales process to customer purchasing behaviour .

Learn how Farmers Insurance uses a Consumer Lifetime Value (CLTV) model—the revenue a customer generates during their lifetime with the company—to pursue sales and marketing strategies based on the monetary value of each customer .

Value-Based Selling

Sales executives need to implement a value-based selling approach that emphasises solutions over features and pricing .

Learn how Energy Company* evaluated the sales process and sales force’s capabilities before implementing a sales effectiveness program that conveys value beyond price .

* Energy Company is a pseudonym .

Distribution Channel Partners

Companies tend to rely heavily on distribution channels for sales . However, due to changes in customer purchasing behaviour, Sales needs to ensure that distribution channels are still meeting its needs .

Learn how our Distribution Channel Optimization toolkit helps you conduct an unbiased evaluation of your company’s current distribution channels and partners on their effectiveness in reaching customers and ability to differentiate your organization from the competition .

The Top Overarching Challenges Affecting Sales Executives

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Respondent Demographics

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Respondent Demographics

Survey Question: Please indicate the type of enterprise best represents your company .

N = 116

N = 116 N = 117

Enterprise Type Business Model

Company Revenue

11%

69%

20%

6%

71%

23%

Public

Hybrid Company

Private

B-to-B Company

Venture Capital

0%

30%

60%59%

16%

6%11%

7%

Below €100 Million

€100 Million to €499.99 Million

€500 Million to €999.99 Million

€1 Billion to €11 Billion

More than €11 Billion

B-to-C Company

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Respondent Demographics: Top Five Participating Industries

Survey Question: Please indicate which industry categories best describe your company (check all that apply .)

Energy and Power Systems

Healthcare and Life Sciences

Electronics and Security

Chemicals, Materials, and Food

Information and Communication Technologies

0% 20% 40%

22%

21%

17%

15%

15%

2011 sales leadership priorities survey results: europe

Business

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growth team membership

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ceos growth team gtm

productivity section

survey purpose

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staff limitations section