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Title: Raising the Bar: Selling Technology Services in a Competitive Market:
Benchmarks and Best Practices from Industry Leaders
Author: Julie Schwartz and Adnelly Reyes
Date Published: May 2005
Ref. Number: S005
Pages: 85

Description:

 

Selling technology services has always been a challenge. As the services business transforms into a solutions business, the challenge is compounded by increasing complexity. Buyers are more dispersed, more proactive, and more sophisticated. Most importantly, they want to work with services and solutions providers that understand their business issues and can guarantee measurable results. Selling in this new buyer reality requires substantially increased skills as well as new approaches to sales coverage, compensation, and collaboration.

Raising the Bar: Selling Technology Services in a Competitive Market provides in-depth data and analysis of how effectively companies across the technology and professional services industries are managing and measuring their services sales performance in the new buyer reality. Highlighting qualitative and quantitative data from 29 U.S.-based companies, the study is designed to help services marketers, business development, sales operations, and sales leaders:

  • Benchmark their sales practices and performances against industry averages and top performers
  • Explore best practices in selling technology services and solutions

The report includes detailed data on the following issues:

  • The sales organization (sales models, sales force size, turnover)
  • Account planning and management (customer penetration, team-based selling, marketing involvement)
  • Direct sales force productivity (sales yield and deal size, management ratios, time utilization, sales support and tools)
  • Sales performance (penetration rates, attach rates, customer renewal and retention, win rates, recurring revenue, lead conversion)
  • Sales costs and compensation (total costs, allocations, compensation, commisions and quotas)
  • Sales Training (training investment, time to productivity, skills, training delivery)

Key trends highlighted in the report include:

  • Technology services providers are increasing sales force hiring, looking especially for best-in-class consultative sales skills,
  • Sales organizations are investing more in training and evaluting sales competencies
  • The needs for globalization and standardization are prompting companies to focus on cross-organizational communication, goal alignment, and knowledge sharing
  • Team selling is increasing

Companies covered in the study include:

Computer Associates, CH2M HILL, CNT, Convergys, Diebold, Dimension Data, Eastman Kodak, Fujitsu Consulting, Getronics, Hitachi Data Systems, IBM, Juniper Networks, Lucent, Motorola, NCR Customer Services Division, NCR Retail Solutions Division, Northrop Grumman IT, OAO, PeopleSoft, QAD, Rainmaker Systems, Rockwell Automation, RSA Security, Software AG, Spherion, Sprint, Tektronix, Veritas, and Vertex.

Study Methodology

In July-September 2004, ITSMA collected qualitative and quantitative data from 29 IT companies. The data includes findings from in-depth telephone interviews with senior sales management and sales support executives on sales challenges, initiatives, and best practices. The study also includes extensive quantitative data from participants on such issues as sales organization, account planning and management, sales force productivity, sales performance, sales costs and compensation, and sales training.

Respondent Demographics

Industry  
Software vendors 24%
Computer and other systems vendors 24%
Professional services firms 21%
Network systems vendors 14%
Other 17%
   

This report is available free to companies that participated in the study.
Check here to see if your company participated

If your company did participate, select "Member Price" on the order form, and then select option "C" for payment at the bottom of the form. Write "Participating Company" in the text box.

 
This report is available for sale at member and nonmember prices.
See if your company is an ITSMA member
Download the Report Datasheet (including order form) PDF (210KB)
  Free DownloadDownload an Abbreviated Summary
Download Table of Contents PDF (142KB)
Email ITSMA for more information
 
 
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