What Will The Sales Profession Look Like in 10 Years?

The correct answer:  It depends.  But for sure, it will change.

Thoughts about just how much things have changed started to formulate while watching a re-run of the film “In Pursuit of Happyness” (Will Smith, 2006).  As a backdrop, the film depicts the prominent investment rep boiler rooms of the 1990s.  It was a business that employed countless thousands of licensed investment reps all vying for control of employees’ retirement accounts.  The value of the portfolio was never an issue; times were good and those portfolios just continued to grow.  It was all about the relationships.  That’s all gone now.  The bubble has burst and almost every customer was burned.  Many of those companies have gone under or been merged out.  Consumer trust built on relationships between the seller and the buyer now need something more solid to stand on. “Business as usual” needs to be reinvented.

So, what will happen going forward?  I think it’s clear that consumer product companies will need to get closer to their customers.  Many of them threw their hats in the ring years ago and let the Walmart’s and Home Depots of the world do the heavy lifting.  Now, they are squeezed on margin and are frustrated that they can’t more directly control their futures.  I believe many of these companies will develop clearly defined direct channels to their customers.  General Motors has already started a test through Ebay in California to sell new cars directly to potential customers.  This is just the beginning.  Many other companies will continue to leverage technology to get their product in front of their target market at right place and at the right time.

B-2-B companies will also utilize technology and target marketing more effectively to sell their products and services.  These companies most likely will continue to maintain a mix of direct and channel sales.  The percentage of that mix will fluctuate from time-to-time, depending on business conditions.  Market share will be the leading indicator.  Additionally, expect some large-scale, third party sales agent companies to grow and flourish.  As has already occurred in banking, small niche organizations and the giants will survive.  The companies in the middle probably won’t.

In summary, it’s likely ten years from now, if current trends continue, direct sales forces will be at least 25% smaller than they are today.  On the other side of the coin, channel organizations could grow by more than 250%.  However, companies will push harder and harder for exclusive arrangements from their channel partners.  They will want more direct control of how their products and/or services are positioned to potential customers and how those accounts are managed.  On the other hand, expect channel players to seek larger commissions and a bigger piece of the pie from on-going maintenance or subscription contracts.

It remains to be seen how close to actual this maybe 10 years from now.  The only thing for sure is, there will be change.

Comments

[Debashish Brahma]

Hello,
You ROCK in your BLOG, I'm prepearing for a lecture to be given in Bangalore India , to one major IT & ITeS firm in India which has got over seas oporations, and mostly 85% of their revenues comes from overseas.It's all about solution Selling. Your Blog has been a great help to me. I'm indebted to you and I will surely mention you name in my Bibliography.
With Warm Regards,
Debashish Brahma