Responding to Customer Needs and External Pressures - 2012 Sales Leadership Priorities Survey Results

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The contents of these pages are copyright © 2012 Frost & Sullivan. All rights reserved.

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2012 sales leadership priorities survey results

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2012 survey resultsgrowth team m e m b e r s h i p™

CONTENTS

INTRO

Executive Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

Survey Purpose and Respondents . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

What is the Growth Team Membership™ . . . . . . . . . . . . . . . . . . . . . . . . 5

Sales Leadership Overarching Challenges . . . . . . . . . . . . . . . . . . . . . . . . 6

Key Sales Leadership Challenges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7SECTION

1

Respondent Demographics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25SECTION

4

Sales Leadership Resource Trends . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11SECTION

2

Special Interest Topic: Tools and Social Media . . . . . . . . . . . . . . . . . . . . . . 17SECTION

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Growth Team Membership™ research.

Introduction

Sales Leadership Survey Executive Summary

SECTION 1: Key Sales Leadership Challenges

Key Internal Challenge Key Internal Challenge Root CauseResponding to pricing pressures from competitors, the market, and customers

Insufficient personnel

SECTION 2: Sales Leadership Resource Trends

Budgets ResourcesSales typically has an annual budget under $1 million Budgets and staffing levels will increase moderately in 2012

SECTION 3: Tools and Social Media

Social Media in the Sales Cycle Top Social Media Platforms LinkedIn UsesSocial media is used during the lead identification and qualification phase

LinkedIn is the primary social media platform used in sales activities

Sales executives use LinkedIn to collect information on customer needs

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Introduction

Survey Purpose and Respondents

Co-SponsorSurvey PopulationMethodologyResearch Objective

To understand the most pressing challenges shaping sales executives’ 2012 planning

Web-based survey platform Manager-level and above sales executives from companies throughout Europe

®

106survey

respondents

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Introduction

What is the Growth Team Membership™?

GTM is a subscription program that supports executives within the functions that report to the CEO

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

CorporateStrategy

Corporate Development

Marketing

CompetitiveIntelligence

MarketResearch

SalesLeadership

R&D/Innovation

Investors/Finance

CEO

SalesLeadership

CEO’s Growth Team™ GTM: Creating Client Value

GTM’s case-based best practices help executives:

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

Save money and reduce risk by avoiding mistakes made by other companies

Accelerate problem-solving with a cross-industry perspective

Improve their functions’ and companies’ performance and productivity

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Introduction

Sales Leadership Overarching Challenges Sample Solutions from GTM

What’s Keeping Sales Executives Up at Night in 2012?

Contact us at GTMResearch@frost .com .

Customer Focus

Sales executives must increase their familiarity with clients so they can respond to changes in customers’ decision-making behavior and needs .

Learn how Tandberg made customer segmentation the foundation of its customer-centric business model .

Distribution Channel PartnersCompanies tend to rely on distribution channels for sales . However, due to changes in customer purchasing behavior, Sales must verify whether distribution channels are still meeting the company’s needs .

Learn how our Distribution Channel Optimization toolkit helps you evaluate your distribution channels’ ability to reach customers and differentiate your value proposition from the competition .

Social Media and SalesSales executives already have a presence in social media (through their activities on LinkedIn) but often struggle with establishing a branded presence and engaging customers .

Learn how Cisco developed a Center of Excellence to serve as a company-wide resource for best practices in social media .

mailto:[email protected]

http://www.frost.com/prod/servlet/cpo/213056946



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INTRO

SECTION

1

SECTION

2

SECTION

4

SECTION

3

SECTION

1 Key Sales Leadership Challenges

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Section 1

Challenge 1 Responding to pricing pressures from competitors, the market, and customers (19%)

Challenge 2 Aligning the sales process with customers’ decision-making behavior (16%)

Challenge 3 Identifying and responding to clients’ changing needs (12%)

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

Challenge 5 Employing actionable customer feedback mechanisms (10%)

Top Five Key Sales Leadership Challenges

SURVEY QUESTION: What are the top five functional challenges shaping your sales strategy?

Note: The respondents were asked to rank their top five challenges. The percentage values indicate how many respondents listed that particular challenge as their first through fifth challenge.

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Section 1

Problems in staffing and process are responsible for sales executives’ top challenges

SURVEY QUESTION: Please indicate the root cause—staff, process, technology/systems, or strategic alignment—of your top five sales leadership challenges.

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

Challenge 1 Responding to pricing pressures from competitors, the market, and customers Staff: Limited resources (33%)

Challenge 2 Aligning the sales process with customers’ decision-making behavior Process: Lack of process (22%)

Challenge 3 Identifying and responding to clients’ changing needs

Staff: Limited resources (33%)

Staff: Lack of knowledge (33%)

Challenge 4 Enhancing sales reps’ productivity [focusing on the highest-value activities] Staff: Lack of knowledge (34%)

Challenge 5 Employing actionable customer feedback mechanisms Process: Lack of process (50%)

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INTRO

SECTION

1

SECTION

2

SECTION

4

SECTION

3

SECTION

2 Sales Leadership Resource Trends

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Section 2

0%

10%

20%

30%

40%

34%

27%

12%

9%

3%

15%

Most sales budgets are below $1 million

2012 Sales Budget

SURVEY QUESTION: Which of the above ranges (in $USD) best describes your 2012 total sales budget (all expenditures on sales activities and general & administrative—including staff) .

Below $1 Million $1 Million to $2.99 Million

$3 Million to $4.99 Million



$20 Million or more

revenue sourcesOn average, distribution channels and partners account for 20% of companies’ revenue

SURVEY QUESTION: What percentage of your 2011 company sales were attributed to distribution channels or partnerships and alliances?

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Section 2

Sales executives expect moderate staffing and budget increases in 2012

Sales Staffing Changes and Budget Changes

SURVEY QUESTION: In comparison to 2011, your 2012 sales staffing and budget will…

6%7%

37% 40%Stay the Same

Decrease Moderately

Decrease Substantially Increase Substantially

Increase Moderately

Staffing Budget

Decrease Substantially

Increase Substantially

10% 10%

3%

32%43%

12%

Stay the Same

Decrease Moderately

Increase Moderately

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Section 2

Most respondents rated their functions’ effectiveness as “Average”

Sales Effectiveness

SURVEY QUESTION: How would you rate the performance or effectiveness of your function compared to others within your industry?

12%

32% 43%

10%

Above Average

Exceptional Below Average

Average

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INTRO

SECTION

1

SECTION

2

SECTION

4

SECTION

3SECTION

3 Special Interest Topic: Tools and Social Media

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Section 3

SURVEY QUESTION: What is your company’s primary purpose for using each of the above tools?

Few sales executives report using social media tools in their sales activities

Tools & Social Media Purpose

Tele-presence and/or Live Streaming Video

100% Use

Increase sales productivity (69%)

Social Media CRM (e .g ., Nimble)

29% Use

Boost customer satisfaction and loyalty (27%)

Improve information on customer needs (27%)

Social Media dashboard to manage individual activity (e .g ., Hootsuite)

13% Use


Social Media dashboard to manage team activity (e .g ., MediaFunnel)

17% Use


Social media monitoring (e .g ., Radian 6)

16% Use

Boost customer satisfaction and loyalty (38%)


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Section 3

SURVEY QUESTION: During which stage of the sales cycle do you find social media most useful?

Respondents who employ social media, primarily use it to identify and qualify leads

Use of Social Media in the Sales Cycle

Use Social Media 57% 14% 0% 5% 24%

Identifying and qualifying leads

Pinpointing needs and creating awareness Presenting solutions Finalizing the sale Supporting an

ongoing relationship

Use Social Media43%

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Section 3

SURVEY QUESTION: Please list the top three social media platforms (e .g ., LinkedIn, Twitter, SlideShare) you use in your sales efforts .

The majority of sales executives use LinkedIn as their primary social media platform

Top Three Social Media Platforms Used throughout the Sales Cycle

Twitter (22%)

Facebook (30%)

LinkedIn (69%)

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Section 3

SURVEY QUESTION: For what purpose do you use the above LinkedIn activities in your sales efforts?

Sales executives use LinkedIn to increase their knowledge on customer needs

Use of Specific LinkedIn Activities

Yes YesYes

Yes

Conduct individual searches Join special interest groups Actively participate in special interest groups

Create/moderate special interest group(s)

50% 59% 46% 22%

Primary Purpose:Improve information on customer needs (52%)

Primary Purpose:Improve information on customer needs (39%)

Primary Purpose:Demonstrate topical expertise (38%)

Primary Purpose:Boost brand recognition (50%)

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Section 3

Few respondents’ CRM systems capture social media activity

Customer Relationship Management (CRM) Capture of Social Media Activity

SURVEY QUESTION: Does your company’s CRM (Customer Relationship Management) system capture your social media efforts?

Yes No Do Not Use

12%

58%

30%

The majority of sales executives do not use predictive analytics

Approach to Predictive Analytics

52%5%

16%

27%

Combination of Internal and External Efforts

Do Not Use

Conduct Internally

Outsource to Vendor

SURVEY QUESTION: Which of the above best describes your approach to predictive analytics (the analysis of customer behavioral data to identify patterns and provide insights for customer interactions)?

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INTRO

SECTION

1

SECTION

2

SECTION

4

SECTION

3

SECTION

4 Respondent Demographics

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Section 4

Respondent Demographics

SURVEY QUESTION: Please indicate the type of enterprise, business model, and revenue that best represents your company .

N = 106

N = 104N = 105

Enterprise Type Business Model

Company Revenue

62%

6%5%

27% 20%

8%

72%

Public

Private

Hybrid

B-to-B Company

Venture Capital

0%

30%

60%

39%

14%8%

21%18%

Below $100 Million



$1 Billion to $11 Billion

More than $11 Billion

B-to-C Company (Indirect)

B-to-C Company (Direct)

The majority of the respondents come from B-to-B companies .

The majority of the respondents come from privately held companies .

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Section 4

Electronics and Security

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

Respondent Demographics: Top Six Participating Industries

N = 1040% 20% 40%

32%

29%

23%

22%

21%

21%

Automotive and Transportation

Energy and Power Systems

Healthcare and Life Sciences

Aerospace and Defence

Information and Communication Technologies