By Keith Bradt, owner and business development director, Kallan Sales Development
Manufacturers today are in a period of rapid innovation relative to how many of their organizational groups operate. They are leveraging advancements in technologies to influence their manufacturing strategies – driving more efficient methods and allowing them to remain competitive in the current economic climate. At the same time, within many of those same organizations, their sales teams are falling behind following legacy models that are no longer as effective as they need to be to build sustainable revenue growth.
Recent studies show that approximately 50% to 75% of manufacturing companies use some form of automation within their production operations. According to similar industry surveys, the adoption rate of production automation tools in injection molding typically is around 70% to 90%. However, the use of sales automation tools among many of those same manufacturers tends to be around 30% to 50%, with the adoption rate of sales automation tools in the injection molding sector following suit and often ranging from 20% to 40% (Chart 1).
This overwhelming disparity has not only helped to uncover operational detachment but, combined with the advancements in sales technology, it has further highlighted that for many manufacturers the sales process has not evolved into the modern discipline it needs to be.
Sales teams often remain tethered to outdated strategies, unable to match the pace of transformation seen in production and operations. While manufacturers are implementing technologies like AI, IoT and automation to streamline workflows and reduce inefficiencies, sales processes frequently rely on legacy systems, manual reporting and disconnected tools. This disconnect not only hinders sales productivity but also creates a misalignment between the operational improvements within the organization and the value communicated to potential customers. To bridge this gap, manufacturers must rethink their approach to sales – integrating data-driven insights, modern CRM systems and digital tools that align with the speed and intelligence of the broader manufacturing process.
The Evolution of the Modern Sales Process
The advancement in sales technology and access to AI-generated data has reshaped the landscape of the modern sales process. For years, the internet has created a dramatic shift in the balance of the buyer vs. seller relationship. It used to be that a seller had to push product or service information onto prospects and pull them through the sales process. Today, an audience has increased access to information and does more research initially during their buying process. So now, modern sales professionals, must guide prospects on their buying journey – helping them make informed decisions.
Because of this evolution, how sales professionals approach their audience in today’s market is very different. Cold calling is dead! – or, at least, less effective than it used to be. This is not to say “it does not work,” but it is not repeatable or predictable, which are key elements to accelerate revenue growth sustainably. These sales technology advancements have reduced the reliance on cold calling as a primary sales activity, shifting an increasing importance to activities such as inbound selling, outbound outreach and account management as the primary drivers in effective lead generation.
With the rise in importance of these activities, manufacturers are forced to rethink the structure of their current sales organizations. A clear understanding of the resources required to be most effective and how they are utilized is critical to success. Accompanied by an established sales process with stage-specific activities, clearly defined roles and responsibilities must be outlined in order to allow sales teams to operate more effectively.
Where Do We Go from Here?
It’s time to start applying standard work to sales and think of systems and technology as job roles within manufacturers’ sales and marketing organizations – much like robotics are thought of on the production floor. This does not mean that technology alone can replace functions of the sales teams, but it can drive efficiency and increase effectiveness which, in turn, increases sales productivity, fosters improved team performance and drives profitability.
Where Can This Apply Within an Organization?
Marketing and Client Development
At the front end of the client adoption process, marketing efforts can benefit from the use of technology in areas such as the development of automated lead nurturing and scoring. By identifying high-potential leads using predictive analytics, a sales organization quickly can identify the prospects that are more likely to become a client and where they are in their buying cycle. This ensures that the team is focusing on the right targets with the highest probability of converting to new business.
Why is focusing on the right leads important? According to Pipedrive, 34% of sales reps say that prospecting and lead qualification are their biggest challenges, and HubSpot reports that about 50% of sales reps’ time is wasted on unproductive prospecting.
Leveraging sales technology and artificial intelligence (AI) further, sales and marketing leaders can develop effective social media strategies that analyze metrics to provide insights that help to create tailored messaging based on customer activity and preferences. In turn, it will increase client engagement with a manufacturer’s brand. Why is this important? Research shows that most people only recall about 10% of what is said within 10 days of interaction. After calls, conversations or meetings, it is critical to have content provided that will support key discussion points or service value. To drive further efficiencies, many AI-based tools can create emails with the desired message and tone, and can use existing content to drive more content, such as using the information in a presentation for a blog post or pre-event email blast – saving hours (and dollars) on original content development.
Sales Process and Sales Operations
Using technology to structure, automate and manage the organizational sales process is hands down one of the most significant ways to have an immediate impact on revenue growth. According to LinkedIn, on average only 30% of a salesperson’s time is spent on selling activities. Typically, this results when the salesperson is having trouble with time management and does not know what to do next. For example, the salesperson spends too much time updating pipeline data or on unproductive activities that do not contribute to revenue generation. Sales technology can aid in these areas by creating automated workflows based on activities and tasks required to advance opportunities through the sales process, which – when structured to align with what is required to assist prospects through their buying journey – reduces the guesswork of what steps to follow when working to close new deals.
Sales technology not only optimizes how to sell, but it also elevates the level at which organizations use data to drive more educated business decisions. By leveraging technology, sales organizations can collect and organize customer data in a manner that allows them to analyze and identify patterns that lead to winning deals, utilize predictive analytic forecasting to monitor progress against established goals and automate report generation based on desired outputs. Also, by creating metrics that measure effectiveness, such as conversion timing between sales process stages, manufacturers are able to keep a pulse on the overall health of their sales organizations.
Talent Development
It is mentioned above that less than 20% of manufacturers provide ongoing training. An additional benefit to the building out of a sales technology strategy is the use of the data to enable sales organizations and to develop talent. By better understanding the health of sales organizations, manufacturers are able to more effectively identify training needs, improve specific selling skills where required, provide guidance and optimize each customer’s engagement. Based on predictive analytics, sales leaders can uncover specific challenges, such as prospecting or discovery, and personalize training programs based on individual performance to help improve specific skills. This also supports improved upfront client dialogue by having the ability to analyze individual sales performance, providing insights and feedback to help salespeople refine their approach.
Here is Where the Journey Begins!
In order to reap the benefits that sales technology can bring to a manufacturer, it must first establish a foundation built on structure, process and alignment in both its sales organization and overall organizational strategy, along with the technology chosen to use. Even if a sales organization is working today, is it good enough to help grow revenue at scale?
Frequently asked questions include: What are the first steps in implementing a new sales technology platform? What are the key factors to consider when choosing a sales technology platform? With limited resources, what should a manufacturer focus on first? How can this apply to a small team?
When manufacturers assess sales technology or automation, it is important they ask if there is a documented target audience, markets and personas. Also, do they have a clear understanding of the buying process for customers to use when selecting a new product or service? Is the sales process clearly identified and does the sales organization understand how the business currently organizes and manages data?
If the answer is no to one or more of these questions, manufacturers could start with four easy steps.
- Start with the most profitable customers to understand why the sales organization is successful. This will help define the target audience.
- Understand the buying process by learning how current customers make purchasing decisions.
- Clearly identify the sales process to outline the steps required within the sales organization to collect data, develop solutions and create proposals that will close deals.
- Evaluate what the business is doing to organize and manage data.
In summary, manufacturers that have implemented comprehensive sales technology initiatives put themselves in a position to let data be the driver of their actions. They are able to present information in a manner that allows them to analyze their data, not just report on it, and translate it into actionable plans that can be managed, measured and utilized by their field sales teams. They can use historical data like lead conversion success, average deal size, profitability and product or industry alignment to highlight opportunities that fit a certain profile in which they have the highest probability of winning. This allows them to focus their sales teams on areas where there is a higher probability of success and determine the balance needed to win deals while maintaining profitability. It also puts sales leaders in a position to effectively develop and coach their teams, enabling them to be more successful.
Through Kallan Sales Development, Keith Bradt works with manufacturing organizations to provide a tailored approach to drive the efficiency of the sales process, sales enablement and accountability for top-line revenue growth. Holding a Bachelor’s in Engineering and a Master of Business Administration focused on sales leadership and the management of information systems, combined with more than 20 years of experience in manufacturing, product design, application engineering and technical sales, Bradt can help translate the complex nature of a manufacturing organization into a sustainable sales growth strategy.
More information: www.kallansalesdev.com
