The Future of the Field Sales Rep Management Summary
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1 The Future of the Field Sales Rep Management Summary MI-Study 2012 Copyright Mercuri International
2 Management summary
3 Revenue streams from e-commerce are expected to increase while revenues from field sales are expected to decrease even though the number of sales reps are expected to stay the same or even increase. 9 in 10 respondents say the challenges of the sales force have increased The main reasons to the increasing challenges are become more knowledgeable about competition It is more difficult to maintain revenue It is increasingly necessary to differentiate the sales process to different customer types and segments
4 Im 3-stufigen Vertrieb Baustoffe konzentriert sich die Marktbearbeitung auf immer weniger Handelspartner. Dies erfordert eine wesentlich konzentriertere und konsequentere Zusammenarbeit mit diesen Leistungsträgern als in der Vergangenheit. Auch die bisherige Arbeitsteilung Industrie/Handel wandelt sich. Immer stärker steht die gemeinsame Marktbearbeitung im Mittelpunkt. Das heißt für den Außendienst, sich auf weniger Partner im Markt, die allerdings viel umfangreicher betreut werden müssen, zu konzentrieren. Konsequente Fokussierung auf die Leistungsträger mit deutlich stärker gelebtem gegenseitigem Bekenntnis ist die Herausforderung der wir uns stellen müssen! Ausschreibungsabhängige Produkte/Systeme verlangen heute wesentlich intensivere Vor- Verkaufsaktivitäten als in der Vergangenheit! Diese gestiegenen Anforderungen sind nur bedingt durch klassische Verkaufsorganisationen erfüllbar. Neben dem verkaufs- bezogenen Außendienst installieren wir daher eine eigenständige Vorverkaufsorganisation. Diese hat die Aufgabe, Bedarfe früh zu entdecken, den Planungsprozess zu unterstützen und unsere Alleinstellungsmerkmale bei Betreiber und Planer zu platzieren. Besonders der langfristige Projekt-Vorverkauf wird somit aus der klassischen Organisation ausgegliedert und verselbstständigt! Rainer Mohr, Aco Tiefbau GmbH, Rendsburg
5 Kunden, insbes. im B2B-Geschäft, werden zunehmend anspruchsvoller. Gerade im Handelsgeschäft agieren Einkaufsleiter und abteilungen professioneller als in der Vergangenheit. Neben reinen Konditionen werden Zahlungsbedingungen, Lagerbestände und Kapitalbindung sowie Vermarktungs- und Abverkaufsaktionen diskutiert bzw. gefordert. Dies erfordert eine Weiterentwicklung der Fähigkeiten und Kompetenzen jedes einzelnen Key-Account-Managers. Die zunehmende Konzentration im Handel erfordert stringente Konditionensysteme, die den unterschiedlichen Kundenclustern Rechnung tragen. Abhängig von der der Zielgruppe unserer Kunden, des Bestellvolumens und letztendlich der Vermarktungskompetenz müssen unterschiedliche Vertriebsprozesse und aktivitäten gemeinsam gestaltet und umgesetzt werden. Stefan Krumme, Vaillant Deutschland GmbH&Co. KG, Remscheid Aus Sicht von Orthomol haben sich die Anforderungen des Marktes an unseren Aussendienst ebenfalls deutlich verändert. Wir waren durch unsere Struktur eines Arzt- Aussendienstes und eines Key-Account-Managements schon immer sehr gut aufgestellt, und das bei einem Nichtarzneimittel-Sortiment. Zukünftig werden wir bundesweit in kleinen, regionalen Team s arbeiten, um am Markt noch effizienter und schlagkräftiger zu sein. Der Focus liegt weiterhin auf der Apotheken-Exclusivität unserer Produkte. Bodo Lauterbach, Orthomol pharmazeutische Vertriebs GmbH, Langenfeld
6 Background
7 The survey was carried out as a web-based questionnaire in February 2012 The results are based on 2311 completed questionnaires from 23 countries The purpose of the study has been to analyze the challenges sales organizations today are facing
8 Wide country spread in responses BE CN CZ DE DK EE FI FR HR HU IT LV NL NO PL RU SE SI SK UK US / NA ZA
9 All respondents within sales Mostly in charge of field sales... 90% Managing Director Sales Director Sales Manager Sales Team Leader Other 80% 70% 81% 18% 24% 60% 6% 50% 40% 35% 30% 27% 24% 28% 20% 17% 10% 0% External Sales / Field Sales Internal Sales / Tele Sales E-Commerce / Electronic Sales Other
10 Mainly B2B companies 3% 2% 15% Business-to-business (B2B) Business-to-consumer (B2C) Business-to-government (B2G) Other 79%
11 The Numerical Development of the Sales Force
12 Revenues from field sales expected to decrease, while e-commerce will increase Even though the number of field sales reps will stay the same or even increase 5% Difference in percentage points between now and 1-2 years 4% 3% 12% 3% 2% 1% 40% It will increase It will remain the same It will decrease 0% -1% External Sales / Field Sales Internal Sales / Tele Sales E-Commerce / Electronic Sales Other 44% Don t know -2% -3% -4% -5%
13 The Challenges of the Sales Force
14 Mean % Disagree 1-3 % Neutral 4 % Agree 5-7 increased the use of formal Request for Proposal / Request for Information in their buying process 4,43 26% 21% 53% Decisions require the involvement of more people on the buying side 4,80 19% 18% 63% Decisions require the involvement of more top executives on the buying side 4,60 21% 21% 57% increased their decision making time 4,81 20% 18% 62% Customers more often require formal Return on Investment calculations before making purchasing decisions 4,48 27% 19% 55% become more knowledgeable about competition, prices, etc. 5,55 7% 11% 82% less time to meet face to face 4,58 25% 19% 56% It is increasingly necessary to differentiate our sales process and sales activities to our different customer types / segments 5,84 5% 7% 88% It is getting more difficult to maintain our revenue 4,74 23% 17% 59% In general, the challenges of the sales force are increased 5,78 4% 7% 89%
15 The main drivers to the increasing challenges for the sales force are become more knowledgeable about competition, prices, etc. 34,3% 26,7% It Sales is increasingly processes necessary and acitivities to differentiate have to be differentiated our sales process for and different sales customers activities to our different customer types / segments It is getting more difficult to maintain our revenue 39,1%
16 Results split into Sub-Groups
17 No major differences between sub-segments Copyright Mercuri International
18 Per company size Strongly agree 6,50 Small Medium Large 6,00 Significant differences 5,50 5,00 4,50 4,00 increased the use of formal Request for Proposal / Request for Information in their buying process Decisions require the involvement of more people on the buying side Decisions require the involvement of more top executives on the buying side increased their decision making time Customers more often require formal Return on Investment calculations before making purchasing decisions become more knowledgeable about competition, prices, etc. less time to meet face to face It is increasingly necessary to differentiate our sales process and sales activities to our different customer types / segments It is getting more difficult to maintain our revenue In general, the challenges of the sales force are increased
19 Per field sales force size Strongly agree 6,50 Small Medium Large Copyright Mercuri International Field Sales Force size (division into three equal sized groups) Large = > 21 Medium = 7-20 Small = < 7 6,00 Significant differences 5,50 5,00 4,50 4,00 increased the use of formal Request for Proposal / Request for Information in their buying process Decisions require the involvement of more people on the buying side Decisions require the involvement of more top executives on the buying side increased their decision making time Customers more often require formal Return on Investment calculations before making purchasing decisions become more knowledgeable about competition, prices, etc. less time to meet face to face It is increasingly necessary to differentiate our sales process and sales activities to our different customer types / segments It is getting more difficult to maintain our revenue In general, the challenges of the sales force are increased
20 Per profitability Strongly agree 6,50 Low performers Medium performers High performers Copyright Mercuri International Profitability High performers = the app. 25% with highest profit margin (> 11,26%) Medium performers = the app. 50% with medium profit margin (2,23% - 11,25%) Low performers = the app. 25% with low profit margin (< 2,22%) 6,00 Significant differences 5,50 5,00 4,50 4,00 increased the use of formal Request for Proposal / Request for Information in their buying process Decisions require the involvement of more people on the buying side Decisions require the involvement of more top executives on the buying side increased their decision making time Customers more often require formal Return on Investment calculations before making purchasing decisions become more knowledgeable about competition, prices, etc. less time to meet face to face It is increasingly necessary to differentiate our sales process and sales activities to our different customer types / segments It is getting more difficult to maintain our revenue In general, the challenges of the sales force are increased
21 Per position Strongly agree 6,00 5,80 5,60 5,40 5,20 5,00 4,80 4,60 4,40 4,20 4,00 increased the use of formal Request for Proposal / Request for Information in their buying process Decisions require the involvement of more people on the buying side Decisions require the involvement of more top executives on the buying side Sales Manager Sales Director Managing Director increased their decision making time Customers more often require formal Return on Investment calculations before making purchasing decisions become more knowledgeable about competition, prices, etc. less time to meet face to face It is increasingly necessary to differentiate our sales process and sales activities to our different customer types / segments It is getting more difficult to maintain our revenue In general, the challenges of the sales force are increased
22 Disagree Neutral Agree Disagree Neutral Agree Disagree Neutral Agree Disagree Neutral Agree Copyright Mercuri International Per industry What kind of Industry would describe you the best: Health care Banking and Insurance Automotive ICT increased the use of formal Request for Proposal / Request for Information in their buying process Decisions require the involvement of more people on the buying side Decisions require the involvement of more top executives on the buying side increased their decision making time Customers more often require formal Return on Investment calculations before making purchasing decisions become more knowledgeable about competition, prices, etc. 22% 18% 60% 27% 19% 55% 29% 20% 51% 28% 20% 53% 17% 17% 65% 20% 19% 60% 22% 21% 57% 13% 13% 74% 22% 17% 62% 19% 26% 55% 24% 18% 59% 17% 16% 67% 25% 18% 58% 17% 28% 55% 18% 15% 67% 13% 18% 69% 27% 16% 57% 20% 21% 58% 26% 25% 50% 19% 14% 67% 6% 9% 85% 9% 6% 85% 8% 11% 81% 7% 9% 84% less time to meet face to face 20% 18% 62% 28% 30% 43% 29% 22% 50% 33% 16% 51% It is increasingly necessary to differentiate our sales process and sales activities to our different customer types / segments It is getting more difficult to maintain our revenue In general, the challenges of the sales force are increased 5% 6% 89% 5% 7% 88% 6% 12% 82% 3% 9% 88% 18% 13% 69% 26% 20% 54% 26% 20% 55% 22% 17% 61% 3% 7% 90% 4% 8% 88% 9% 7% 85% 6% 8% 86%
23 Agree less than average Agree more than average Copyright Mercuri International Per country 0,8 0,6 0,4 0,2 0,0 BE CN CZ DE DK EE FI FR HR HU IT LV NL NO PL RU SE SI SK UK US NA ZA -0,2-0,4-0,6-0,8
24 Expected investment in training/ education of the Sales Force
25 Expected investment in training / education of the Sales Force Copyright Mercuri International 6% 4% 51% 39% It will increase It will remain the same It will decrease Don t know
26 For a talk about how to tackle these challenges, please contact. Christian Peters christian.peters@mercuri.de +49 (0) For more information about the study, please contact Henrik Viftrup Hansen, senior consultant and analyst Telephone: henrik.viftrup@mercuri.dk Copyright Mercuri International
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