2011 Sales Leadership Priorities Survey Results: The Americas

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growth team m e m b e rs h i p™

2011 Sales Leadership Priorities Survey Results

Americas

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 adjusting to changes in customer buying behavior

Executive Summary

Resources Tools and Practices Social Media in SalesRespondents foresee little to no change in budgets or staffing in 2011

Respondents utilize 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™?

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Survey Purpose and Respondents

119survey

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 North and Latin America .

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External Factors Shaping Sales Leadership’s Strategies

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Sales strategies are driven by changes in clients’ purchasing behavior and product commoditization

Top Three External Factors

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

External Factor 1 Changes in customer buying behavior (14%)

External Factor 2 Product commoditization pressures (13%)

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

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Challenges for Sales Leadership

Changes in customer buying behavior (73%)

Product commoditization pressures (77%)

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

Need for product and service innovation (93%)

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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

Streamlining the sales process (accelerating the close)

Challenge 3

Responding to clients’ changing business environment and challenges within it

Challenge 2

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Challenge 1 Identifying and qualifying high-potential prospects (35%)

Challenge 2 Responding to clients’ changing business environment and challenges within it (12%)

Challenge 3 Streamlining the sales process [accelerating the close] (12%)

Challenge 4 Enhancing sales reps’ productivity [focus on highest value activities] (12%)

Challenge 5 Aligning the sales process with customers’ purchasing behavior (12%)

Sales leaderships’ challenges focus on identifying ways to improve effectiveness and become more customer-centric

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 (50%)

Challenge 2Responding to clients’ changing business environment and challenges within it

Process: Lack of process (22%)

Challenge 3Streamlining the sales process (accelerating the close)

Process: Ineffective process (40%)

Challenge 4Enhancing sales reps’ productivity (focus on highest value activities)

Staff: Inadequate skills (22%)

Challenge 5Aligning the sales process with customers’ purchasing behavior

Process: Ineffective process (22%)

Sales challenges are predominantly caused by ineffective processes and staffing issues

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 tools are used primarily to increase sales force productivity

Respondents foresee no additional staffing in 2011

Respondents expect their budgets to increase moderately in 2011

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7% 7%

38%48%

Sales executives consider their 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, distribution channels and partnerships account for approximately 30% of company sales

Sales by Partnerships

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

0%

25%

50%

32%

19%

16%

11%

22%

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

30% is the median percentage of sales from distribution channels and partners .

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Respondents largely utilize traditional tools such as sales automation software

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 (36%)

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 (37%)

Tool/Practice 4Sales Enablement and Productivity Tools

Do not use (33%)

Increase sales productivity (26%)

Tool/Practice 5Telepresence or Live Streaming Video Comm Capabilities

Do not use (38%)

Reduce cost of sale (14%)

Tool/Practice 6Social Media

Do not use (49%)

Improve information on customer needs (13%)

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Social media is used infrequently and usually for lead generation

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%

24%

12%

8%

1%

17%

37%

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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18%

39%

6%

37%

20%

35%

36%

6%

2%

Sales executives foresee little to no increase in resources in 2011

Sales Leadership Staffing and Budgets 2011

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

Staffing

Budget

Stay the Same

Decrease Moderately

Increase Moderately

Stay the Same

Decrease Moderately

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 .

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 behavior .

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

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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 = 116N = 117

Enterprise Type Business Model

Company Revenue

7%

24%

69%

19%

76%

5%

Public

Hybrid Company

Private

B-to-B Company

Venture Capital

0%

30%

60% 59%

10% 10%15%

5%

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 .)

Aerospace and Defense

Information and Communication Technologies

Automotive and Transportation

Professional Services

Healthcare and Life Sciences

0% 20% 40%

35%

23%

21%

18%

17%