The End of Selling as We Know It

1. The End of Selling as We Know It

2. The History of Sales Innovation • Sales Fore Automation (SFA) • Software as a Service (SaaS) • Data based analytics and Reporting • Information Distribution Mobility • Process Automation and Integration • Real time Communication (IP and Web) • Social Networking

3. The Future Market • Traditional purchasing is diminishing. Replaced increasingly by internet purchasing, on line auctions, etc. • Traditional field sales roles will transition to include more sophisticated inside sales techniques • Strategic Account Managers will set the standard for all B-B relationships • With an in depth understanding of their customer’s customer • New technology and market strategy, PLUS • Exceptional skills as “out-sourced purchasing managers” for their customers • The future will evolve to a professional level status with college specialties providing the base business savvy, as well as the appropriate segment savvy (Accounting, Finance, Hi Tech, Manufacturing, etc.)

4. The Future of Sales • Technology assisted sales will dominate throughout the entire funnel • Customers will demand greater “virtual: sales calls: Inside sales • “Professional” sales will require greater specialization of sales roles • Academic requirements will be established for most sales roles

5. 1. Technology Assisted Sales Technology Assisted sales will dominate throughout the entire funnel

6. 1. Technology Assisted Sales Future markets have changed permanently: There is little to no competitive advantage based on: Product quality (all serious competitors have the same) Cost, supply chain management and global sourcing have leveled the field) Innovation is short lived • no global protection of Intellectual capital, and • even where it exists reverse engineering debases

7. 1. Technology Assisted Sales The digital impact has switched the information advantage to the customer Sellers need to recognize the 4 most important things to know about successful selling into today’s unconventional business world.: • Selling must now be More Science & Technology than Art • Professional Sales Roles Must Become More Differentiated and Specialized • The Internet has Made Sales Professionals More Important • Universities and colleges will produce the sales professionals of the future

8. 1. Technology Assisted Sales Sales in the “Internet Age” The digital impact has switched the information advantage to the customer Sellers need to recognize the 3 most important things toknow about successful selling into today’s unconventional business world: • Selling is now More Science and Technology Than Art • Professional Sales Roles Are Specialized • The internet has made B to B Sales Professionals More Important than ever before

9. 1. Technology Assisted Sales Historically, anecdotal personal experience has substituted for sales Science & Technology Most sales training & development books leaned on the “star” syndrome: “I was a successful… This is how I did it If you do it this way you can be successful too!” This has led to the fatally flawed Benchmarking and Top Grading approaches as models Unfortunately Cases studies as proofs don’t pass the placebo effect i.e., Results that would happen by chance But Real scientific research does exist

10. 1. Technology Assisted Sales The Development of Sales Science & Technology Starting with Fredrick Tailor, business has progressively developed more systematic disciplines: • Moving from numerical process control, to total quality management (TQM), to ISO, to business analytics and finally leading to today’s actuarial applications and predicative business analytics. Until recently even rudimentary TQM and six sigma have seldom been applied to Managing Sales: Until recently there has never been a “TQSalesM” The lack of truly analytic processes and disciplines for most Supplier Customer relationships have led to failure rates unacceptable in any other business function • 20-25% customer churn • 30%+ Sales person turnover • 40% Sales manager turnover

11. 1. Technology Assisted Sales The Past: A Lack of “Sales Technology” Anecdotal personal experience has substituted for science and technology, most sales books were “star” syndrome: “I was a successful… This is how I did it, If you do it this way you can be successful too!” Benchmarking and Top Grading approaches are equally flawed Most case studies don’t pass the placebo effect with results that could happen by chance But realscientific research does exist!

12. 1. Technology Assisted Sales Developing the new Sales Technology The best experts with the right data can assess and predict future Insurance companies whose actuarial science is the most accurate future prediction system, can predict things that go wrong • The likelihood of illness, accident, even death: but, • Even though they can’t even define health”…except as a lack of illness The Gambling industry can control and predict their rate of winning “Moneyball” brought actuarial science to sports Chally’s actuarial research, science and predictive statistics has been applied to sales

13. Traditional field sales roles will transition to include more inside sales techniques 2. The Growing Importance Of Inside Sales

14. 2. The Growing Importance Of Inside Sales • Growing 300 percent faster than outside sales* • Higher close rates at 1/3rdthe cost in 1/3rd the time as traditional sales teams** • More flexibility for the customer • Can earn six-figure incomes without constant travel *2013 Inside Sales Market Size Survey ** Salesforce.com CEO Marc Benioffin his book, “Behind the Cloud”

15. 2. The Growing Importance Of Inside Sales • With Professional Inside Sales, customer facing positions will bifurcate to: • High end “more sophisticated consultative” strategic sales teams, and • More highly educated telesales (with dedicated accounts) FUTURE PAST SAMs & Specialized teams SAMs & Specialized teams Road Warriors Road Warriors Inside Sales Inside Sales

16. 2. The Growing Importance Of Inside Sales Chally’s Inside sales research data base 2,800+ Inside sales professionals with • Detailed Job requirements • In depth competency assessments • Matching on-the-job performance measures 22 Different Inside Sales positions

17. 2. The Growing Importance Of Inside Sales Professional Inside Sales: Hierarchy and Specialties MOST COMMON INDIDE SALES ROLES Inbound Customer Service Teamed with Field Discrete Lead Generation Core Inside Sales Roles

18. 2. The Growing Importance Of Inside Sales The Core Inside Sales Skills INITIATES CUSTOMER CONTACT TO BUILD BUSINESS • Implements a customer contact process to increase business • Develops a high profile that gets the customer’s attention • Commits consistent calling to promote additional opportunities Maintains a Disciplined WORK APPROACH • Evaluates potential prior to committing to a course of action • Tries to control or reduce risks and keep a pace that produce results • Favors successful approaches that have worked elsewhere RESOLVES OBJECTIONS BY REINFORCING VALUE OF FEATURES/BENEFITS • Brings objections to the surface and tackles them head-on • Listens to and agrees with the validity of the customer’s concern • Expertly presents benefits to overcome an established buying habit

19. 2. The Growing Importance Of Inside Sales The Next Stage of Inside Sales Research Identify The Most Common Inside Sales Specialties Identify the specific competencies, in addition to the core competencies, required for Inside Sales Roles Develop tailored profiles for individual inside sales forces • Offers a typical predictive selection improvement of 35% over existing methods

20. 3. Specialized Sales “Professionals” • Will resolve customers objections • Our services are hard to understand • I don’t trust the fine print (How can we simplify?) • It’s difficult to reach a real person…at my convenience • Can we build easily accessible expertise online/phone? • Is cutting costs at customer’s expense? “Phone option hell” • What part of your goals are based on customer longevity? • Will Create and deliver value added solutions … to meet both the customer's and your objectives and expectations, as well as future potential • Will go to protect the customer’s interests? • AMEX (a personal story) • Will forgive Customer mistakes and help prevent them? • AT&T international assistance

21. 3. Specialized Sales “Professionals” Unlocking the Science of Sales Move Beyond Personal Experience to the Actuarial Business Processes of Other “C” Suite Functions Where Do We Go Next? A Change in Mind Set

22. 3. Specialized Sales “Professionals” • “Professional” Marketing Support • Retail: • Discounting • Cold calling • Business to Business: • Acceptable: offering “IP” incentive • Better: lead generating; • i.e. Speaking engagements that draw live enquirers • Best: top of mind positioning/branding

23. 3. Specialized Sales “Professionals” Today’s Professional Sales Requires Both “Hunting” & “Farming” Driving new business (Hunting) Identifying & selecting the right Accounts Training & developing the right Skills Implementing formal processes Retaining existing business (Farming) Adopting a “Customer-Driven Attitude” Utilizing enabling “IT” for the customer Interacting with and integrating other functional professionals Developing the Necessary Skills Requires Specialization!

24. 3. Specialized Sales “Professionals”

25. 4. Future Academic Requirements For Sales Where do you find you The best Sales talent for the Future? The Professional Recruiting Source: The UniversityTrained Sales Professionals Universities Can Help Business And Teach Tomorrows' Sales Leaders

26. 4. Future Academic Requirements For Sales Today’s Weak Sales Performer Challenges* Global companies spend an estimated 80 billion annually on training salespeople An average salesperson spends more than 33 hours per year in training In technical markets, the costs associated with the development of just one salesperson are often in excess of $100,000 It may take as long as two years before any profit is realized from a new sales hire Why is “sales force” training the largest employee investment most companies must make? There is no other alternative! *Johnston, Wesley J., Journal of Personal Selling & Sales Management

27. 4. Future Academic Requirements For Sales The Better Solution: The College Trained Sales Professional Business acumen and P&L analysis: how to speak the customer’s language Computer literacy and information technology Account management and process “disciplines” Interpersonal and relationship building skills Market analysis Product/service promotion and distribution Supply chain management, etc.

28. 4. Future Academic Requirements For Sales The Better Solution: The College Trained Sales Professional The Benefits* Sales grads: • Ramp up in half the time “on average” • Turnover is reduced by one third • Proven aptitude and desire for sales • More focused on the numbers and the processes designed to get the numbers • More aware of what they need to do *Chally corporate sponsor survey

29. New Bus. Dev. Nat. Accounts Territory Mgr. Sales Engineer Product Specialist Alternate Channel 4. Future Academic Requirements For Sales Universities and Business Can Make a Difference in the Global Economy Corporations Develop the Professional Specialties Core “University” Based Professional Sales Competencies and Practical Research Universities Develop the Foundation

30. The History of Sales Innovation • Sales Fore Automation (SFA) • Software as a Service (SaaS) • Data based analytics and Reporting • Information Distribution Mobility • Process Automation and Integration • Real time Communication (IP and Web) • Social Networking

31. The Future Market Traditional purchasing is diminishing. Replaced increasingly by Internet purchasing, online auctions, etc. Traditional field sales roles will transition to include more sophisticated inside sales techniques. • Strategic Account Managers will set the standard for all B-B relationships • With an in-depth understanding of their customer’s customer, • New technology and market strategy, PLUS • Exceptional skills as “out-sourced purchasing managers” for their customers The future will evolve to a professional-level status with college specialties providing the base business savvy, as well as the appropriate segment savvy (Accounting, Finance, Hi Tech, Manufacturing, etc.)

32. THE FUTURE OF SALES • Technology assisted sales will dominate throughout the entire funnel • Customers will demand greater “virtual sales calls:” e.g., Inside sales • “Professional” sales will require greater specialization of sales roles • Academic requirements will be established for most sales roles

33. TECHNOLOGY ASSISTED SALES Technology Assisted sales will dominate throughout the entire funnel

34. Technology Assisted Sales Future Markets Have Changed Permanently There is little to no competitive advantage based on: • Product quality (all serious competitors have the same) • Cost, supply chain management and global sourcing have leveled the field) • Innovation is short lived • no global protection of intellectual capital, and • even where it exists reverse engineering debases

35. Digitally available Information has switched the advantage to the customer. Technology Assisted Sales • Professional sales roles must become more Differentiated and Specialized The Internet has made Sales Professionals more important Universities and colleges will produce the sales professionals of the future • Selling must now be more Science & Technology than Art

36. Technology Assisted Sales Sales in the “Internet Age” • The digital impact has switched the information advantage to the customer. • Sellers need to recognize the 3 most important things to know about successful selling into today’s unconventional business world: • Selling is now more Science and Technology than Art • Professional Sales Roles are specialized • The internet has made B-B Sales Professionals are more important than ever before

37. Most sales training & development books leaned on the “star” syndrome: “I was a successful… This is how I did it If you do it this way, you can be successful too!” Technology Assisted Sales Historically, anecdotal personal experience has substituted for sales science & technology. • This has led to the fatally flawed Benchmarking and Top Grading approaches as models. • Cases studies as proofs don’t pass the placebo effect i.e., results that would happen by chance.

38. Technology Assisted Sales The Development of Sales Science & Technology Starting with Frederick Taylor, business has progressively developed more systematic disciplines: Moving from numerical process control, to total quality management (TQM), to ISO, to business analytics, and finally leading to today’s actuarial applications and predicative business analytics. Until recently, even rudimentary TQM and Six Sigma have seldom been applied to managing sales: Until recently there had never been a “TQSalesM” The lack of truly analytic processes and disciplines for most supplier customer relationships have led to failure rates unacceptable in any other business function. • 20-25% customer churn • 30%+ salesperson turnover • 40% sales manager turnover

39. Technology Assisted Sales The Past: A Lack of “Sales technology” • Anecdotal personal experience has substituted for science and technology, most sales books were “star” syndrome: “I was a successful… This is how I did it, If you do it this way you can be successful, too!” • Benchmarking and Top Grading approaches are equally flawed • Most case studies don’t pass the placebo effect with results that could happen by chance

40. Technology Assisted Sales Developing the new Sales Technology The best experts, with the right data, can assess and predict the future • Insurance companies whose actuarial science is the most accurate future prediction system, can predict things that go wrong • the likelihood of illness, accident, even death: but, • even though they “can’t even define health”… except as a lack of illness • The gambling industry can control and predict their rate of winning • “Moneyball” brought actuarial science to sports Chally’s actuarial research, science, and predictive statistics has been applied to sales

41. Neil Rackham On Chally’s Research • “The sheer size and comprehensiveness of the Chally databases makes them unique in the sales field. Chally’s work in the selling area has been evolving since the 1970’s; • In addition to amassing an impressive sales database of 400,000 salespeople, Chally has made significant contributions to sales benchmarking methodology and research. • “The sheer size and comprehensiveness of the Chally databases makes them unique in the sales field. Chally’s work in the selling area has been evolving since the 1970’s; • In addition to amassing an impressive sales database of 400,000 salespeople, Chally has made significant contributions to sales benchmarking methodology and research. • Add to this approximately 400 predictive validation studies and it is easy to see why the body of Chally’s work would be a solid starting point. • An additional advantage is that one of the acknowledged strengths of Chally is the long association between the company and academic sales researchers. • In the past, Chally’s data has been used to help establish research priorities in sales strategy and performance.”

42. Texts That Cite Chally Research Technology Assisted Sales

43. 40 Years Research & Technology

44. GROWING IMPORTANCE OF INSIDE SALES Traditional field sales roles will transition to include more inside sales techniques

45. The Growing Importance of Inside Sales • Growing 300 percent faster than outside sales* • Higher close rates at 1/3rd the cost in 1/3rd the time as traditional sales teams** • More flexibility for the customer • Can earn six-figure incomes without constant travel *2013 Inside Sales Market Size Survey ** Salesforce.com CEO Marc Benioff in his book, Behind the Cloud

46. Growing 300 percent faster than outside sales* Higher close rates at 1/3rd the cost in 1/3rd the time as traditional sales teams** More flexibility for the customer Can earn six-figure incomes without constant travel *2013 Inside Sales Market Size Survey ** Salesforce.com CEO Marc Benioff in his book, “Behind the Cloud” The Growing Importance of Inside Sales Historically, anecdotal personal experience has substituted for sales science & technology. Sales Department Composition

47. The Growing Importance of Inside Sales Chally’s Inside sales research data base • 2,800+ Inside sales professionals with • Detailed Job requirements • In depth competency assessments • Matching on-the-job performance measures • 22 Different Inside Sales positions

48. The Growing Importance of Inside Sales • With Professional Inside Sales, customer facing positions will bifurcate to: • High end “more sophisticated consultative” strategic sales teams, and • More highly educated telesales (with dedicated accounts) FUTURE SAMs & Specialized teams SAMs & Specialized teams Telesales Road Warriors Telesales Road Warriors PAST

49. The Growing Importance of Inside Sales Professional Inside Sales: Hierarchy and Specialties MOST COMMON INSIDE SALES ROLES Inbound Customer Service Lead Generation Discrete Teamed with Field Core Inside Sales Roles

50. The Growing Importance of Inside Sales • Initiates Customer Contact To Build Business • Implements a customer contact process to increase business • Develops a high profile that gets the customer’s attention • Commits consistent calling to promote additional opportunities 2. Maintains a Disciplined WORK APPROACH • Evaluates potential prior to committing to a course of action • Tries to control or reduce risks and keep a pace that produce results • Favors successful approaches that have worked elsewhere 3. Resolves Objections by Reinforcing Value of Features/Benefits • Brings objections to the surface and tackles them head-on • Listens to and agrees with the validity of the customer’s concern • Expertly presents benefits to overcome an established buying habit