2017 SALESTECH BENCHMARK SURVEY

Transcription

1 2017 SALESTECH BENCHMARK SURVEY COURTESY OF: 1

2 OPENING REMARKS The number of technology solutions available to sales organizations today is ever increasing. In the research that follows, Smart Selling Tools surveyed sales practitioners to find out adopted technology solutions, satisfaction level, usage, and tools being considered to be added in the near future. The results are intriguing. Of the 26 sales tool categories considered, only 2 are used by more than half of the organizations surveyed (CRM and Online Meeting tools). Another 2 are used by more than 40% (Lead List Building solutions and Esignatures). The rest are reportedly used by fewer than 25% of the respondents, with most categories in use by less than 15% of sales organizations. This suggests that sales teams are experimenting with a diverse array of tools to be competitive. With more than 500 sales solutions, it s difficult for buyers to know where to start, says Nancy Nardin, Founder and CEO of Smart Selling Tools. Knowing that more companies consistently favored 4 types of solutions should give great confidence that they are safe and natural bets for anyone s sales stack. So which ones are showing the most promise? Among the four tools that have the highest adoption, Esignatures earned the highest satisfaction rating of 4.0 or higher. Joining Esignatures in the top 4 for overall satisfaction are solutions for Sales Enablement, Dialers, and Video Selling. Whatever solutions teams are looking at, 46% say they intend to spend more on their Sales Tech Stack in For those looking to get value and results from their Sales Tech Stack, Esignatures appear to be a great bet. Read on to see the many other insights from the survey. 2

3 SALES TECH With close to 500 Sales Technologies according to our own count, there s certainly no lack of options. Indeed, the problem may be there are too many options. In what Barry Schwartz highlights so brilliantly in his book, The Paradox of Choice: Why Less is More, an abundance of choice increases anxiety and ultimately paralyzes us from making choices and induces uncertainty, doubt, and regret, when we do; it does not increase our sense of well-being. The problem of too much choice grows worse when multiple people are part of the decision-making process, as is the case in most B2B buying. If excessive choice is problematic, how can you whittle options down to a more manageable number? One way is to understand which sales technologies are most commonly used and which are being considered most. Every organization should make technology decisions based on their unique situation. However, knowing which technologies are most commonly used across all companies can give you confidence on where to start and which Sales Tech to consider next. 2

4 OVERVIEW TABLE OF CONTENTS 4 FUNDAMENTAL PILLARS OF A SALES STACK HIERARCHY FRAMEWORK SURVEY RESULTS KEY FINDINGS 3

5 OVERVIEW 5

6 OVERVIEW A sales stack is a collection of software solutions that support a sales organization s efforts to generate revenue. In this first annual Sales Tech Benchmark Survey, we identify the most commonly used sales technologies, and which are being considered most for the year ahead. This will give us a clear view of a typical sales stack. Over time, our goal is to track how Sales Tech usage evolves and whether, and how, it differs based on company, size, and industry. We ll also be able to demonstrate whether companies that experience significant revenue growth make use of a different set of technologies than those who have limited or no growth. 5

7 4 FUNDAMENTAL PILLARS OF A SALES STACK 7

8 THE 4 FUNDAMENTAL PILLARS Our research uncovered an unquestionable fact; there are four fundamental pillars of a sales stack CRMs ONLINE MEETINGS LEAD LIST BUILDING / DATABASE SERVICES ESIGNATURES These were the most favored solutions, in order, across all respondents. They were also the most favored set of solutions for companies of every size band, except for companies with 10,000 or more employees. In that case, CRMs, Online Meetings, and esignatures remained in the top 4, while Lead List Building fell to a 3-way tie for 6 th place. The fact that 4 solutions stand out so decisively as most favored should give you confidence in making a similar decision for your own sales stack. (see figure on next page for results) 8

9 PERCENTAGE OF RESPONDENTS USING EACH TECHNOLOGY TYPE 80% 76% 70% 68% 60% 50% 40% 46% 42% 30% 20% 10% 0% 21% 18% 18% 14% 12% 12% 12% 11% 11% 11% 10% 10% 10% 6% 6% 5% 5% 4% 4% 4% 4% 2% 9

10 HIERARCHY FRAMEWORK 10

11 SALES TECH HIERARCHY FRAMEWORK When we created the first overall SalesTech Landscape earlier this year, we segmented sales tools into 43 categories. Those categories were then sorted into one of 7 different essential capabilities needed to drive revenue. The 7 essential capabilities came from our Sales Stack Hierarchy framework (on page 11). Like Maslow s Hierarchy of Needs, the Sales Stack Hierarchy defines the most critical needs of selling (from a technology perspective). The 5 levels depicted in the following illustration (on the next page) are specific to a salesperson s role. 10

12 SALES TECH HIERARCHY FRAMEWORK The fundamental needs of sales teams matched to technology Do you have the technology that enables salespeople to create contracts in real time, generate quotes, capture signatures, and nowhere each contract is in the signature process? HOW TO CLOSE 4 5 SELL MORE & SELL AGAIN 3 Is there technology to nurture current customers, to up-sell and cross-sell and renew? WHY BUY & WHY FROM YOU Do you have the technology to enable sales reps to use digital content and other materials to align the buyer s needs with your solutions and to quantify and calculate ROI? Do salespeople have the technology to build interest and momentum, to get prospects to engage (have s opened and calls accepted), to know what works and why? Do they have ready access to relevant sales assets? WHEN & HOW TO ENGAGE 2 1 WHO TO SELL TO & WHY Do salespeople have technology to discover opportunities in the market, identify total available market, prioritize selling effort, target all decision influencers, and maintain and grow the database? 12

13 SALES TECH HIERARCHY FRAMEWORK However, we can t ignore the importance of managerial forecasting and functions like coaching and their impact on revenue. Therefore, the hierarchy is not complete without two additional essential elements that permeate through and affect all levels. 1. Managing, Forecasting, and Analyzing 2. Developing, Coaching, Onboarding, and Motivating These too, are critical functions that can be aided by technology. Companies tend to look for those that help with these 7 essential elements, whether they realize it or not. 12

14 SALES TECH HIERARCHY FRAMEWORK The fundamental needs of sales teams matched to technology Do you have the technology needed to roll-up the forecast quickly, dive deep into forecast movement, identify at-risk deals, coach the right people at the right time, and measure KPIs? 6 MANAGE, FORECAST, & ANALYZE DEVELOP, COACH, ONBOARD, MOTIVATE 7 Do you have the technology to automate skill-set assessment, record and share best practice skills, and onboard new reps to full performance quickly? 14

15 SURVEY RESULTS 15

16 CATEGORIES IN OUR SURVEY For our survey, we narrowed down 43 categories from our Sales Tech Landscape down to 26. Those 26 were chosen based on our knowledge of the marketplace. By excluding 17 categories we know to be less commonly used, we could keep the survey to a reasonable length. As it is, the survey took 11 minutes on average to take and our completion rate (the percentage of people who finished the survey to those who started) was 23%. We felt a lower completion rate was a worthwhile trade-off for capturing data on more, rather than fewer, types of Sales Tech. 15

17 CATEGORIES IN OUR SURVEY The 26 categories of sales solutions listed below in alphabetical order were presented to respondents in random. 1. Account & Opportunity Management 2. Buyer Portals 3. Contract Lifecycle Management 4. CPQ (Configure, Price, Quote) 5. CRM 6. Customer Lifetime Value 7. Dialers 8. esignatures 9. Forecasting Add-On 10. Inside Sales Platform 11. Learning Management 12. Lead List Building / Database Services 13. Meeting Schedulers 14. Next Gen Preso 15. Online Meetings 16. Predictive Account Targeting 17. Proposal Creation 18. Revenue/Renewal Management 19. Sales Call Recording 20. Sales Enablement 21. Sales Outreach 22. Sales Performance Compensation 23. Social Selling 24. Territory Management 25. Video Practice & Role Play 26. Video Selling 17

18 SALES TOOL SATISFACTION LEVELS Of the top 4 most popular solutions, only 1 (esignature) is rated a 4 or higher in satisfaction. Only 1 of all solutions (Next Gen Preso) had a satisfaction level below 3 stars (2.75). Overall satisfaction of all sales tools is HIGHLIGHTED SOLUTIONS ARE THE 4 MOST POPULAR SATISFACTION 1 5 (5 = MOST SATISFACTION) % LIKELY TO SWITCH VENDOR SATISFACTION 1 5 (5 = MOST SATISFACTION) % LIKELY TO SWITCH VENDOR SALES ENABLEMENT % DIALERS % VIDEO SELLING % ESIGNATURES % BUYER PORTALS % VIDEO PRACTICE & ROLE PLAY % INSIDE SALES PLATFORM % PROPOSAL CREATION % CRM % MEETING SCHEDULERS % CONTRACT LIFECYCLE MGMT % ONLINE MEETINGS % SALES OUTREACH % LEARNING MANAGEMENT % SOCIAL SELLING % SALES CALL RECORDING % FORECASTING ADD-ON % ACCT. & OPPT. MANAGEMENT % LEAD LIST BUILDING % SALES PERF. COMPENSATION % REVENUE/RENEWAL MGMT % CUSTOMER LIFETIME VALUE % CPQ % TERRITORY MANAGEMENT % PREDICTIVE ACCT. TARGETING % NEXT GEN PRESO % 18

19 SALES TOOL SATISFACTION LEVELS Respondents that use the Next Gen Preso, Sales Outreach, Lead List Building, Sales Call Recording, and Inside Sales Platforms are most likely to switch to new vendors in esignatures claim the highest satisfaction among the top 4 most popular solutions. esignature had the 4 th highest satisfaction ratings of all solutions. Furthermore, respondents are more likely to switch vendors for 22 of the 26 categories than they are likely to switch their esignature provider. 5 out of 10: Next Gen Preso users likely to switch vendors 4 out of 10: Sales Outreach users likely to switch vendors 3 out of 10: Inside Sales, Lead List Building, and Sales Call Recording users likely to switch vendors 18

20 SALES TOOL USAGE BY COMPANY SIZE Sales Tech usage is fairly consistent among companies of different sizes. However, there were some noticeable variances of usage by company size. Companies with less than 500 employees were more likely to use Meeting Schedulers, Sales Outreach, and Lead List Building solutions. On the other hand, companies with 500 or more employees were much more likely to use a Sales Performance Compensation, CPQ, and Learning Management solution than smaller companies. 19

21 SALES TOOL USAGE BY COMPANY SIZE 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 3% 14% 8% 14% 15% 6% 40% 45% 3% 4% 3% 12% 11% 12% 9% 12% 76% 78% 23% 6% 3% 12% 66% 73% 24% 16% 13% 27% 8% 14% 9% 14% 12% 12% 10% 16% 52% 33% 5% 25% 3% 6% 4% 2% 8% 27% 4% 8% 4% 4% 3% 0%

22 SALES TOOL USE AND CONSIDERATION We asked respondents which sales tools they were considering adding in A full 50% of those who don t currently use Social Selling are considering it for On the flip side, 80% of those not already using Dialers, do not plan on considering it in the year ahead. That s significant since just 10% of our respondents use Dialers currently. 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 53% 47% 82% 18% 74% 26% 66% 34% 68% 32% 75% 25% 64% 36% 58% 42% 66% 34% 66% 34% 76% 24% 55% 45% 56% 44% 64% 36% 50% 50% 72% 28% 57% 43% 55% 45% 65% 35% 67% 33% 73% 27% 68% 32% 74% 26% 73% 27% 59% 41% 69% 31% CONSIDERING USING NOT CONSIDERING USING 22

23 SALES TOOL USE AND CONSIDERATION Looking at smaller-sized companies, the Sales Outreach Campaign and Social Selling categories are coming on strong for 2018, as are Learning Management, Sales Enablement, and Proposal Creation Employees 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 48% 3% 15% 8% 25% 15% 21% 40% 31% 24% 3% 3% 33% 11% 35% 9% 13% 76% 26% 23% 20% 3% 66% 18% 24% 38% 13% 36% 8% 49% 27% 9% 33% 12% 39% 10% 18% 52% 29% 26% 32% 5% 3% 4% 23% 8% 24% 39% 33% 4% 4% 3% USING CONSIDERING USING 23

24 SALES TOOL USE AND CONSIDERATION We can see how actual usage for 2018 may be affected by comparing use/considering status of all tools. Several, including Forecasting Add On, Account & Opportunity Management, Proposal Creation, and Sales Performance Compensation are all vying for a top 4 position in Employees 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 33% 14% 18% 14% 16% 6% 16% 45% 31% 4% 24% 12% 29% 12% 45% 12% 16% 78% 31% 6% 29% 12% 18% 73% 27% 16% 15% 27% 35% 14% 20% 14% 49% 12% 41% 16% 20% 33% 29% 25% 25% 27% 6% 2% 22% 27% 29% 41% 24% 8% 4% 0% USING CONSIDERING USING 24

25 SPENDING ON SALES TOOLS More than half the respondents spent $125/user/month or less. The average spend across all respondents is $129/user/month. 5% 6% $0 - $83 13% 11% 2017 Spend per person/per month 37% $83 - $125 $126 - $167 $168 - $208 $209 - $250 29% $250+ A reasonable estimate for buying the 4 most commonly used tools: CRM, Lead List Building, Online Meetings, and esignatures, would be $190 per person/month. 25

26 SPENDING ON SALES TOOLS Will you spend more or less? SLIGHTLY LESS 6% 6% SIGNIFICANTLY LESS 2% 2% 12% 12% SIGNIFICANTLY MORE ABOUT THE SAME 46% 46% 2018 Spending Projections 34% SLIGHTLY MORE 34% 26

27 NUMBER ONE DRIVER OF SALES TECH SPENDING IN 2018 MIDDLE OF THE FUNNEL Likewise, MOFU is driving nearly twice the spend as BOFU. MOFU 23% 45% TOFU 12% BOFU TOP OF THE FUNNEL Nearly twice as many people reported that TOFU will drive their spend as those that said MOFU will drive spend. BOTTOM OF THE FUNNEL MANAGEMENT MGMT 11% 9% SD SKILLS DEVELOPMENT What s driving the increase in number of tools and spend? We asked which levels of the sales funnel are driving them to spend in The same percentage of respondents (46%) expect their spending to stay the same as those that expect to spend more. Only a small percent (8%) expect to spend less. 27

28 KEY FINDINGS 28

29 KEY FINDINGS Participants from the survey were almost exclusively B2B with a handful designating themselves as both B2B and B2C. Respondents from the high-tech industry accounted for the highest group with 38% of the responses. Manufacturers represented another 18%. The remaining 44% were from a variety of industries including healthcare, advertising, financial services, and telecom. Here is a summary of some of the study s key findings: The number of sales tools in use range from 2 to 20, while 4.5 is the average number of tools used across all respondents. There is a correlation between tool use and 3-year growth rate. Those respondents rating their 3-year growth at flat or declining used an average of 3.64 tools, moderate growth respondents used an average of 3.89, and significant growth respondents used an average of 5.71 tools. The Top Of The Funnel (TOFU) is driving 45% of the purchase consideration for (continued on next page) 28

30 KEY FINDINGS The Middle of the Funnel (MOFU) is driving 23% of the purchase considerations for Only 8% of respondents plan to reduce their spending on sales tools in More than half the respondents spent $125/user/month or less. The average spend across all respondents is $129/user/month. A hefty 50% of those who don t currently use Social Selling are considering it for Nearly half (47%) of those who don t currently use Sales Enablement are considering it for Sales Enablement, Dialers, Video Selling, and esignatures are the only solutions that have a satisfaction rating of more than 4 (on a scale of 1 5 with 5 being the highest satisfaction). Average satisfaction of all sales tools is Companies with 500 or more employees were much more likely to use a Sales Performance Compensation, CPQ, and Learning Management Solution than smaller companies. Companies with less than 500 employees were more likely to use Meeting Schedulers, Sales Outreach, and Lead List Building solutions. 29

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