Sales Growth - 5 proven strategies from the World's Sales Leaders
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The document outlines five proven strategies for sales growth based on interviews with 120 sales leaders. The strategies are: 1) Find growth opportunities before competitors through analyzing data on markets and customers. 2) Sell through multiple channels tailored to different customer needs. 3) Use sales operations and technology to optimize the sales process and support the sales team. 4) Focus on developing sales talent and culture. 5) Provide leadership to drive organizational commitment to sales growth. Implementing these strategies can help companies significantly outperform their peers in revenue and profit growth.
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Sales Growth - 5 proven strategies from the World's Sales Leaders
- 1. Any use of this material without specific permission of McKinsey & Company is strictly prohibited McKinsey on Marketing & Sales – Slideshare Brief July 23, 2012 Sales Growth Five Proven Strategies from the World’s Sales Leaders
- 2. McKinsey & Company | 1 Customers say that sales is low in importance… SOURCE: McKinsey Product/service features 100% Overall sales experience Reliability Service/support Price Stated importance 8 28 19 21 24 Percent average importance, U.S. and Western Europe
- 3. McKinsey & Company | 2 … however, sales experience makes a big difference in buying behavior Derived importance 28 19 19 12 21 10 24 34 100% Overall sales experience Reliability Service/support Price Product/service features Actual importance 25 Stated importance 8 SOURCE: McKinsey Percent average importance, U.S. and Western Europe
- 4. McKinsey & Company | 3 Over the past two years, we interviewed 120 sales leaders and conducted over 700 studies in Sales & Channel management High-tech Industrial Telecom Healthcare/ pharma Financial services Other leaders SOURCE: McKinsey Companies averaging: ▪ $31 billion revenues ▪ $47 billion market cap. ▪ 86,000 employees Consumer products Basic materials
- 5. McKinsey & Company | 4 The companies we interviewed significantly outperformed their peers 100 148 Revenue growth 2005-2010 (index) 100 180 EBITDA growth 2005-2010 (index) Industry peers Companies interviewed +48% +80%
- 6. McKinsey & Company | 5 Lead sales growth Find growth before your competitors do Soup up your sales engine Focus on your people Sell the way your customers want 3 4 5 2 1 The interviews highlighted five strategies to drive sales growth Gain commitment from the organization, and implement difficult change to beat the market Get to growth opportunities before competitors – be it through capturing trends, finding pockets of growth in existing markets, or drilling into big data Use multiple channels to serve customers of different sizes, in different markets, and with different needs – and optimize direct, indirect, and digital channels Use sales operations and technology as true engines for growth Balance the drive for near-term growth with building long-term capabilities
- 7. McKinsey & Company | 6 A. Find growth before your competitors SOURCE: McKinsey ▪ Collect data from multiple sources ▪ Get personal in selling ▪ Put big data at the heart of sales ▪ Break down the market into discreet units, often in the hundreds ▪ Analyze growth and penetration potential ▪ Group like-markets together ▪ Adjust resources depending on market needs ▪ Align other functions Mine growth beneath the surface 2 Find big growth in big data 3 ▪ Monitor mega trends ▪ Invest 2-4% of sales budget ▪ Make “10 quarters ahead” a way of life Look 10 quarters ahead 1
- 8. McKinsey & Company | 7 B. Sell the way your customers want (1/2) SOURCE: McKinsey ▪ Bring together different routes to market ▪ Align inside and outside sales ▪ Integrate online/ offline ▪ Convert service to sales ▪ Optimize fanatically, and often ▪ Get social to drive growth ▪ Integrate digital in a great multichannel experience ▪ Use unconventional ways to identify needs ▪ Utilize experts ▪ Adopt new ways to hunt Master multichannel sales Power growth through digital sales Innovate direct sales 4 5 6
- 9. McKinsey & Company | 8 B. Sell the way your customers want (2/2) SOURCE: McKinsey ▪ Balance economics and coverage ▪ Treat indirect channels as partners ▪ Manage channel conflict ▪ Get on the ground to understand local nuances ▪ Overinvest in finding the right partners ▪ Take a long-term view of sales capacity Invest in partners for mutual profit Sell like a local in emerging markets 7 8
- 10. McKinsey & Company | 9 C. Soup up your sales engine SOURCE: McKinsey ▪ Leverage back office resources to free up front-line capacity ▪ Use sales operations as a competitive weapon ▪ Arm your sales team with real time insights ▪ Enable channel partners by providing them with right collaboration tools ▪ Gear up for analytics Tune sales operations for growth Build a technological advantage in sales 9 10
- 11. McKinsey & Company | 10 D. Focus on your people SOURCE: McKinsey ▪ Coach rookies into rainmakers ▪ Set the tempo for reporting and intervention ▪ Tap into deeper motivations beyond money ▪ Build capabilities and a winning culture ▪ Make middle managers the center of change ▪ Put together the A-team Manage performance for growth Build sales DNA 11 12
- 12. McKinsey & Company | 11 E. Lead sales growth SOURCE: McKinsey ▪ Start a dialogue about change ▪ Implement the vision, carefully sequencing the introduction of any new sales program ▪ Challenge the status quo ▪ Galvanize your team ▪ Be the role model for change ▪ Demand results Make it happen Drive growth from the very top 14 13
- 13. McKinsey & Company | 12 Staying connected WWW www.MckinseyonMarketingandSales.com @McK_MktgSales Sales Growth book available on Amazon and Barnes & Noble http://salesgrowth.mckinsey.com www.youtube.com/McKinseyCMSOforum