HARVARD BUSINESS REVIEW, JULY 2018
Expert
Chronicles
Stratégie
The salesperson, seemingly unrelated to growth
18/07/2018
Salespeople are rarely involved in strategic thinking even
though they are the primary link to customers and are the ones most likely to
identify new growth opportunities.
Few companies recognize the strategic role of their sales teams. Despite the fact that programs tapping the insights of sales people are largely successful, few firms routinely involve their sales organizations in strategy development. When used, these programs generally start by integrating salespeople into working groups dedicated to themes related and relevant to customers and their environment: (1) customer demands and expectations, (2) competitive landscape, (3) trends and innovations, and (4) major political, economic, socio-cultural and technological developments.
An essential analysis phase
Examining the recommendations
of these working groups highlights new levers for growth as well as hypotheses related
to the challenges faced by customers. These put the selling company in a
privileged position to identify appropriate areas where it can advise clients,
better meet their expectations, and anticipate their needs.
As a result, these programs help define how commercial efforts are defined and organized. Strategic conversations between the two parties (and/or with other partners) begin at senior management levels by posing the appropriate questions. Who are the stakeholders? What kind of discussion is required? Are the views of the seller and buyer aligned? Are buyers receiving additional information from the sales people? Do buyers have a better understanding about how the seller helps them better compete in their marketplaces? These are some of the most basic questions whose answers can drive a better relationship.
Underutilized strategic information
Once launched, this process is deployed and driven by indicators pertaining to the portfolio of offers considered, the degree of exploration in the customer's organization chart, the flow of opportunities, sales, and other similar data. It is this long-term strategic vision and this type of broader partnership that B2B customers require from their suppliers to better develop their own positions in their markets. Our experience confirms that integrating salespeople into the strategic construction of customer relationships creates better relationships with customers that unlock more profits.
The sales and profit numbers prove the value of this approach. There are other, more subtle benefits for the sellers and buyers: the sales teams are more motivated, customers feel more involved, and the organizations are better aligned (read the article: "How to really motivate salespeople"). Conversations become strategic and contextually business-oriented product-driven transactions. It is therefore surprising to discover that commercial organizations are largely ignored by senior management during strategic reviews. This implies that valuable strategic information is underutilized or even lost. What can explain this phenomenon?
A professional gap
In France, like in some other countries, few professions suffer such a lack of alignment between status and economic weight. In France, commercial careers do not attract students, except when they finally understand what the "commercial" label entails. Thus, companies are struggling to recruit commercial talent. Paradoxically, sales organization economic weight is very large as evidenced by the fact that sales compensation is estimated at three times that devoted to advertising. Furthermore, in most developed countries, about 10% of the working population has a commercial function.
A very skilled profession
Today, commercial activities in B2B markets are increasingly complex and require very sophisticated skills. Salespeople must, among other things, be intrinsically creative, have strategic analytic skills, strong interpersonal skills, business insight, international openness, and the ability master a number of technological tools (see also the column: "Commercial: a key function that has changed a lot ").
Global account managers, for example, must be able to analyze their markets and generate strategic information about clients in an increasingly digital and international context. They must also sell integrated offers rather than standardized products. Above all, they must be able to gain market share while increasing customer satisfaction. The sales person of today is nothing like the image of the sales person of yesterday. It is a high tech, high value, and high insight executive role.
Salespeople are crucial to the success of the firm. Without them, there is no customer relations, no signed contracts, and no sales. Leaders have every interest in relying on sales people who are in direct contact with customers (or users) and are therefore the most valuable capital of any company. By valuing and capturing the knowledge of salespeople, companies can detect growth opportunities, develop a convincing strategic discourse, and develop long-term customer commitment for a mutually beneficial relationship.
The
authors:
Cor Dubois
Vice President Global customers and
Head of Value Based Sales of Nokia, he works with large strategic clients
focusing on the development of growth strategies. Prior to joining
Alcatel-Lucent, he was Managing Director Europe at Market-Bridge (a strategy consulting
firm). He has also held senior management positions at Rothschild Americas and
Bertelsmann Music Group.
Dominique
Rouziès
Professor of
marketing, she holds the EDF Chair at HEC Paris. Her research focuses primarily
on strategic business management. In 2010, she and her co-authors received the
American Marketing Association's Award for Excellence in Business Research for
her article on Sales Compensation in Europe.
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