Growth Team Membership Americas 2010 Sales Leadership Priorities Survey Results

Growth Team Membership™:

Americas 2010 Sales Leadership Priorities

Survey Results

July 2010

Contact us at [email protected]

2Growth Team Membership™ Research.

What is Growth Team Membership™?

Growth Team Membership™ (GTM) is an annual subscription program that offers research, events and services designed to

increase the effectiveness, productivity, and impact of executives in the functions that support the CEO’s growth strategy.


Table of Contents

Page

Section 1: Survey Purpose and Respondents 4

Section 2: External Factors Shaping 2010 Strategies 5

Section 2.1: By business model 8

Section 3: Key Sales Leadership Challenges 9


Section 4: Sales Function Effectiveness and Responsibilities 14


Section 7: Respondent Demographics 23

The content of these pages are © 2010 Frost & Sullivan. All rights reserved.


Survey Purpose and Respondents

There were 119 survey

respondents

Research Objective

To understand the most pressing

external and internal challenges

shaping sales executives’ 2010

planning.

Methodology

Web-based survey platform

Survey Population

Target respondents were manager

level and above sales executives

from companies throughout North

and Latin America.


External Factors Shaping

Sales Leadership Strategies


Top Three External Factors

N = 103

KEY TAKEAWAY: Sales leadership plans are heavily influenced by customer shifts and competitor activities

Survey Question: Please indicate the three business environment factors that have the most impact on your 2010 sales leadership strategies.

25%

23%

17%

0% 25% 50%

Intensifying competition

Adjusting to the economic downturn

Changes in customer buying behavior


External Factors Impact on Sales Leadership

N = 103

Survey Question: Please indicate the impact that each of the following forces have on your 2010 sales leadership strategies.

KEY TAKEAWAY: The after effects of the economic downturn—intense competition and changes in customer buying

behavior—are negatively affecting plans for 2010.

Negative Impact

80%

87%

47%

0%

50%

100%

Intensifying competition Adjusting to the economic downturn Changes in customer buying behavior


B-to-B B-to-C Hybrid

Intensifying CompetitionNeed for product/service

innovation and

capabilities1 Intensifying competition

Adjusting to the

economic downturn

Adjusting to the

economic downturn2Adjusting to the

economic downturn

Changes in customer

buying behavior

Rising/high material

(input) costs3Keeping pace with

technology advances

KEY TAKEAWAY: There is a high level of variability among the top external challenges by business model.

Top Three External Factors (By Business Model)

N = 103


Key Sales Leadership Challenges


All Companies

Top three challenges:

B-to-B Companies


B-to-C Companies


► Identifying and qualifying

high-potential prospects

► Identifying and qualifying


►Defining and implementing

key metrics (e.g. customer

loyalty, retention, and

profitability) for all sales

activities

►Responding to clients’

changing business

environment and

challenges within it

►Responding to clients’

changing business

environment and


►Creating a company

culture that better

supports the sales effort

►Responding to competitor

discounting

►Responding to competitor

discounting

►Creating a company

culture that better


Key Sales Leadership Challenges Snapshot


Top Five Key Sales Leadership Challenges

Challenge 1 Identifying and qualifying high-potential prospects (31%)

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

(20%)

Challenge 3 Responding to competitor discounting (13%)

N = 81

Survey Question: Please indicate the top five challenges shaping your sales leadership decision-making in 2010.

KEY TAKEAWAY: Sales Leaderships’ key issues reflect the perennial challenges: finding high-potential targets, adapting to

the evolving environment, and streamlining the sales process.

Challenge 4 Streamlining the sales process (Accelerating the close) (11%)

Challenge 5 Creating a company culture that better supports the sales effort (14%)


Root Cause of Top Five Sales Leadership Challenges

N = 81

Survey Question: For the top five challenges you selected above, please indicate whether the root cause of the challenge is staff, technology, or

process.

KEY TAKEAWAY: Process and staff are the predominant root causes of sales leadership’s challenges.

Technology16%

6%

Technology12%

Process56%

Process47%

Process78%

Process63%

Process10%

Staff28%

Staff47%

Staff22%

Staff25%

Staff90%

0%

50%

100%

Identifying and qualifying high-potential prospects

Responding to clients’ changing business environment and


Responding to competitor discounting

Streamlining the sales process

Creating a company culture that better



B-to-B B-to-C Hybrid

Identifying and qualifying


Defining and implementing

key metrics (e.g. customer

loyalty, retention, and

profitability) for all sales

activities

Identifying and qualifying


Responding to clients’

changing business

environment and challenges

within it

Creating a company culture

that better supports the sales

effort

Responding to clients’

changing business

environment and challenges

within it

Responding to competitor

discounting

Implementing effective key

account management

programs

Implementing effective key

account management

programs

KEY TAKEAWAY: Key sales leadership challenges are similar, but vary in their prioritization between business models.

Top Three Sales Leadership Challenges (By Business Model)

N = 81

Challenge 2

Challenge 3

Challenge 1


Sales Function Effectiveness and

Responsibilities


Sales Function Effectiveness and Responsibilities Snapshot

Note: Due to small response rates, there are only data available for B-to-C Respondents on some of the questions.

All Companies B-to-B Companies Hybrid Companies

►Rank their sales function

effectiveness as “above average”


effectiveness as “above average”


effectiveness as “average”

►Attribute 25% of their annual sales

to alliances and partnerships

►Attribute 25% of their annual sales


►Attribute 22.5% of their annual sales


►Expect their staffing levels to stay

the same in 2010


the same in 2010


the same in 2010

►Expect their budgets to increase

moderately in 2010


moderately in 2010


moderately in 2010


All Companies B-to-B Companies

Hybrid Companies

Sales’ View of Its Effectiveness (By Business Model)

N = 72

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

KEY TAKEAWAY: Most of the sales leaders consider their function’s effectiveness to be “above average”.

Below Average6%

Average35%

Above Average44%

Exceptional15%

Below Average6%

Average36%Above Average

45%

Exceptional13%

Average56%

Above Average44%


KEY TAKEAWAY: Respondents indicate that sales leaders are not availing themselves of the opportunities created by social

media, such as increasing customer satisfaction and loyalty or identifying customer requirements or needs.

Primary Purpose of Sales Technology and Practices

N = 69

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

Sales Technology and Practice Primary Purpose

Sales Force Automation-CRM • Increased sales productivity (36%)

Solution-Selling Practices • Moving from a tactical to strategic relationship with clients

(38%)

Sales Enablement and Productivity

Tools • Do not use (43%)

• Increased sales productivity (15%)

Tele-presence and/or Live

Streaming Video Communication • Do not use (43%)

• Reduced cost of sale (22%)

Social Media

• Do not use (68%)

• Better information on customer requirements and needs

(customer, product, and support data) (8%)

Data mining (customer, market, and

technical information) • Better information on customer requirements and needs

(customer, product, and support data) (36%)


Company Sales Attributed to Partnerships and Alliances (By

Business Model)

N = 62

Survey Question: What percentage of your 2009 company sales were attributed to partnerships and alliances?

KEY TAKEAWAY: Respondents indicate that 25% or less of their annual company sales can be attributed to partnerships or

alliances.

25.0% 25.0%

22.5%

0%

25%

50%

All Companies B-to-B Companies Hybrid Companies

Median Percentage of Sales


Sales Responsibilities Time Allocation (2009 vs 2010)

N = 69

KEY TAKEAWAY: Respondents forecast little of no change in time allocated to management duties.

Survey Question: Please indicate the percentage of your time allocated to each management role in 2009 and the forecasted percentage for 2010

(must sum to 100%).

10% 10%

20%

5%

15%

10%

5%

10%10% 10%

20%

5%

10% 10%

5%

10%

0%

5%

10%

15%

20%

25%

2009 2010

Management

Sales

Forecasting

Sale-Specific

Training

Coaching Sales Strategy

and Account

Planning

Hiring/

Recruitment

Administration

Monitoring

Individual

and Team

Performance

Compensation

Plan



Hybrid Companies

2010 vs. 2009 Budgets (By Business Model)

N = 68

Survey Question: In comparison to 2009, your 2010 sales budget will:

KEY TAKEAWAY: Respondents forecast a moderate increase in their budgets for 2010.

Increase Substantially

9%

Increase Moderately

38%Stay the Same

31%

Decrease Moderately

21%

Decrease Substantially

1%


7%

Increase Moderately

43%

Stay the Same31%

Decrease Moderately

17%


2%

Increase Moderately

78%

Stay the Same22%


2010 vs. 2009 Staffing Plans (By Business Model)

N = 68

Survey Question: In comparison to 2009, your 2010 sales staff will:

KEY TAKEAWAY: Sales leaders indicate their staffing levels will remain static in 2010.


Hybrid Companies


9%

Increase Moderately

30%Stay the Same

52%

Decrease Moderately

7%


2%

Increase Moderately

33%

Stay the Same67%

Increase Moderately

31%Stay the Same48%

Decrease Moderately

9%


2%



Hybrid Companies

Anticipated Company Performance in 2010 (By Business Model)

N = 68

Survey Question: In comparison to 2009, your company’s performance by the end of 2010 will:

KEY TAKEAWAY: Regardless of business model, respondents predict an increase in their company’s performance in 2010.


11%

Increase Moderately

56%

Stay the Same33%


19%

Increase Moderately

50%

Stay the Same24%

Decrease Moderately

7%


21%

Increase Moderately

48%

Stay the Same22%

Decrease Moderately

9%


Respondent Demographics


Private41%

Venture Capital7%

Public52%

Demographics

N =109

Over half of the

respondents work in

a public company.

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

Respondents tended to be from public, B-to-B companies whose 2009 revenue was under $100 million.

Enterprise Type Business Model

Company Revenue

N =109N =109

B-to-B Company75%

B-to-C Company7%

Hybrid Company18%

47%

17%

6%

21%16%

0%

30%

60%

Below $100 million $100 to $499.99 million

$500 million to $999.99 million

$1 billion to $11 billion

More than $11 billion


Demographics: Top Six Participating Industries

N = 113

Survey Question: Please indicate which of these Industry categories best describes you organization (please indicate all that apply).

27%

24%

22%

19%

16%

13%

0% 15% 30%

Information and Communication Technologies

Aerospace and Defense

Automotive and Transportation

Energy and Power Systems

Healthcare and Life Sciences

Electronics and Security


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contact us at [email protected]

or visit us at

http://www.frost.com/prod/servlet/growth-team.pag

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