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Megatrends for sales organizations

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Four megatrends are shaping business today: increasing power of technology, shifts in demographics, low costs of experimentation, and the importance of user-centricity. For sales organizations to be successful, they now have to use Big Data more effectively, share their pitch early, use technology better, focus on platforms (not just services), and rethink their sales capabilities.

Publicado en: Ventas, Empresariales
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Megatrends for sales organizations

  1. Megatrends: Shaping the Future of Sales #SalesSummit #DF15 Lareina Yee Partner, McKinsey & Company Lareina_Yee@mckinsey.com @Lareina Yee https://www.salesforce.com/sales-summit/
  2. #SalesSummit #DF15 Today Megatrends  Customer behaviors  Imperatives for sales executives
  3. Our perspective is based on research with sales leaders across industries #SalesSummit #DF15 Companies averaging High-tech Industrial Telecom Healthcare/ pharma Financial services Other leaders Consumer products Basic materials $31B Revenues $47B Market cap. 86,000 Employees
  4. #SalesSummit #DF15 Megatrends TECHNOLOGY The new ABC of IT Hyperconnectivity Interaction Automation USER-CENTRIC Me + free + easy p2p + online DESIGN THINKING Using customer input from sales & marketing into engineering DEMOGRAPHICS New pockets of growth Shifting of the guard SOFTWARE CHANGING EVERYTHING Software eating the world ECONOMICS Share eCommerce Falling cost of experimentation
  5. The new ABC of IT… #SalesSummit #DF15 Analytics Number of connected devices per employee in 2014 Percentage of all server workloads currently virtualized Amount of data enterprise has today …Changes who is the buyer, Allows customers to signal intent, and Buyers to collaborate 1 2 Byod Cloud Used to access business applications are consumer-owned Amount Cloud Services industry will reach by the end of 2015 Companies will spend on big data investments in next 5 years $232 billion 750 – 1,000TB 3.3 devices 40% of devices 60% $180 billion 3
  6. Hyperconnectivity #SalesSummit #DF15 “The Internet of Things . . . will change everything – including ourselves” – Dave Evans, Cisco’s chief futurist “Software is eating much of the value chain of industries that are widely viewed as primarily existing in the physical world” – Marc Andreessen Number of connected devices 2000 2011 2020 50B 10B 200M …Providing customers/sellers more contextual information
  7. 3rd Era – Automating interaction #SalesSummit #DF15 INDUSTRIALIZATION IT ENABLEMENT COLLABORATION ENABLEMENT …To unleash new sales productivity • Production • Transaction • InteractionWORKERS • Capital-intensive • Repeatable / predictable • Unstructured work / collaborationTASKS • Physical • Structured information • Unstructured information and “exhaust” dataFLOW KEY DRIVERS • EOS • Specialization • BPR • Automation • Agility / self-organizing • Transparency (PM, KM)
  8. Me, Free and Easy #SalesSummit #DF15 . . . Raises new expectations for how customers want to be served, and in what cycle time
  9. Auto dealers have been exposed to an unprecedented amount of change Online information sources Average time spent per purchase, in hours Show room traffic Average # of dealers visited per purchase Digital media spend Share of dealer marketing spend for online media, in percent 14 5 ~3x 10 years ago Today 2 4 0.5x 10 years ago Today 33 7 10 years ago Today ~5x B2B is P2P and online 65% of organizations are engaged in online communities #SalesSummit #DF15 . . . Turning traditional ways we buy on its head
  10. Products designed with selling experience in mind Value oriented and consultative mindset Focus on outcomes, not just technology/ product Analyze usage patterns Design thinking approach… #SalesSummit #DF15 …can make selling process a delightful experience
  11. The proliferation of software into every industry… #SalesSummit #DF15 …requires technical savviness in the sales process Enabling product delivery as a service Streaming music and video services Digital marketing solutions Changing non-SW industries Home: SW powered lightbulbs Healthcare: Telemedicine, Personalized drugs Auto: Remote repairs …many more Software changing everything
  12. Falling experimentation costs… #SalesSummit #DF15 “Experimentation is the new planning” – FastCompany EA was able to increase online sales of SimCity 5 by over 40% using promotion testing A/B TESTING …Allows continuous refinements to the selling model
  13. EVERYTHING AS A SERVICE Over 150,000 servers 4 million registered freelancers Over 34,000 cities Almost 1 million users Over 2,400 skills listed 192 countries Over 500,000 listings worldwide The growth of the sharing economy… #SalesSummit #DF15 …Creates a shift towards selling services vs. products
  14. Amazon your eCommerce . . . 129 -94% 2,143 112 100 12-16% Multichannel retailers 116 Amazon Category depth Avg. number of SKUs / category (5 categories) 100 items Price index1 vs. Amazon.com 2013 Experience rating American Customer Satisfaction Index 2013 88% 72% 83% 77% 81% 80% 79% #SalesSummit #DF15 Triple threat . . . why not buy all goods this way? Assortment PriceExperience
  15. New pockets of growth are emerging… #SalesSummit #DF15 Small Large Mega Global rising middle class will drive the next wave of growth . . . By 2025 . . . Amount needed in additional global investments each year China telecom and transportation share of wallet will grow New cities in China with 1M+ people – Europe has 35 today Percentage of new urban consumers emerging cities will have globally $10T 3x 220 60% …And companies will need Go-to-Market agility
  16. Exit Boomers, enter Millennials… Shifting of the guard #SalesSummit #DF15 11% visit a social networking site several times a day 26% visit a social networking site once a day 30%OF BOOMERS USE A SOCIAL NETWORKING SITE 50% 19% visit a social networking site several times a day 29% visit a social networking site once a day OF GEN XERS USE A SOCIAL NETWORKING SITE 75% 29% visit a social networking site several times a day 26% visit a social networking site once a day OF MILLENNIALS USE A SOCIAL NETWORKING SITE New generation of workers, born with the Internet, came to age with social networks …Sales force demographics is changing – and the new generation has different skills and expectations SOCIALMEDIA
  17. How are enterprise buyer behaviors changing? #SalesSummit #DF15 Empowered and Digital • Let me search • Know me before I meet you • Meet me where it matters • All channels, all the time
  18. Let me search . . . Q. How important is online research to your buying decision? % of respondents 44 Not so important 100% Important - online research is one of many aspects Extremely important – I make my decision solely based on online research 27 5 Highly important – online research is key to my decision making process 23 Top three most valuable features during online research  Product comparisons  Pricing information  Product reviews/customer testimonials/case studies #SalesSummit #DF15 > 90% of customers find online research important in making buying decisions
  19. Know me before I meet you… #SalesSummit #DF15 Top of mind concerns Service satisfaction rating Recent Technology trends Last interaction Most recent ticket opened B2B decision makers using social networks for business purposes Use Use Use 34% Use 74% 42% 39%
  20. IDENTIFY BUY Digital / social enables more efficient and effective aftersales services Low channel costs revolutionize GTM approaches New digital sales tools offering new opportunities 35% of B2B pre- purchase activities are digital / social Online is second most important source of information for B2B customers TRIGGER Meet me where it matters . . . #SalesSummit #DF15 …Embrace the Customer Decision Journey (CDJ)
  21. All channels, all the time . . . #SalesSummit #DF15 Customers use on average 6 different channels for prospecting 65% get frustrated when they’re presented with inconsistent experiences through different channels
  22. Online self-serve is 2nd most preferred way to buy IT Q. How do you prefer to buy new IT? % of respondents Adobe moved its marquee product online with Creative Cloud, with over >1.4m Creative Cloud subscribers in 2014 “Customers don't have to come through us, there is no reason why they should buy through a reseller” – Adobe reseller Don’t forget the online channel On-the-ground sales rep from VAR, SI or Distributor 100% Over the phone Brick and mortar store 17 On-the-ground sales rep from vendor 11 Online self-serve 15 25 31
  23. #SalesSummit #DF15 Digitize your sales and channel partner models No more swim lanes Use data as a basis of competitive advantage Imperatives for sales executives
  24. Digitize the experience #SalesSummit #DF15 • Word of mouth • Online research • Recommendations/ criticisms • Traditional advertising • Direct marketing • Sponsorship • Store experience Follow your Customers through their journey Digital innovation at every step Company Marketing Customer Marketing Previous experience F2F contact Buy 22 5 42 Evaluate 26 11 26 Consider 39 28 12 31 37 27 New accounts / initial sales Early-life / onboarding Billing and care Collections Loyalty / retention Life events Up-sales / cross-sales
  25. … yet channel management is ranked in bottom Wake up the channel Indirect is a crucial sales driver % of sales going through indirect % of respondents who agree that they apply best practices in this domain 40 43 39 44 49 52 53 53 54 62 51 55 58 56 65 67 66 66 64 72 Talent mgt Tools and information systems Channel partner management Innovation and product mgt Strategic marketing Tactical marketing Performance mgt Price and contract mgt Org design and effectiveness GTM model design Entire industry Top quartile performers 95% Long Steel 74% IT 52% Auto parts 90% Agric. equipment 45% Telecom (B2C) Capability Average #SalesSummit #DF15
  26. n No more swim lanes #SalesSummit #DF15 CIO CMO • Whitespace opportunity hunting • Micro segmentation • Sales process instrumentation • Coverage optimization Analytic sales CSO Channel Routes to market Direct Online Inside
  27. Basic customer support Customer support evolves to customer success to maximize CLV Customer success evolves to partnership OPEX AS-A-SERVICE MODELS FLEXIBLE CONSUMPTION PAY-AS- YOU GO CAPEX ONE-TIME TRANSACTION PRODUCTS COMMUNITY INFRASTRUCTURE PLATFORMS INFORMATION EXCHANGES ENABLEMENT API DATAANALYTICS ECOSYSTEM Broaden your value proposition #SalesSummit #DF15
  28. Use Data For Your Competitive Advantage #SalesSummit #DF15 Better tools Next product to buy CRM recommendation based on customers’ needs and company’s strongest value proposition Call planning CRM system pre-books 50% of reps’ time Trigger points customer profiles predict trigger points Better resource allocation Growth potential LOW HIGH LOW HIGH Market share HIGH LOW LOW HIGH Market share Growthpotential Micromarket potential
  29. Summary and final thoughts… #SalesSummit #DF15 • The trends are clear • Your customers’ expectations are shifting • Be ready to adapt
  30. Staying connected #SalesSummit #DF15 McKinseyonMarketingandSales.com Lareina_Yee@mckinsey.com @LareinaYee
  31. Thank you
  32. Salesforce Sales Leadership Community www.salesforce.com/salesleadership #SalesSummit #DF15

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