In ‘Is Sales Enablement just Lipstick on a Knowledge Management Pig?’ Gerhard Gschwandtner (@gerhard20) asked “What Exactly Are Sales Enablement Vendors Selling?”. Please make sure you see all the comments on the original post (from July 29, 2009) as a lot of the parties mentioned in the post responded. To address some of the gaps Gerhard identified in the text quoted below, Jeanne Hellman has written a case study of “implementing Sales Enablement in a complex, global company”. Contact her if you would like to get a copy.
“The noble purpose of Sales Enablement companies is to help sales organizations save time finding relevant information, create and organize sales content and create quick access to all experts across the enterprise.
It makes total sense. Salespeople can win more deals if they are better prepared. To back up this theory, IDC research shows that 33% of unsuccessful deals could have been won if the salesperson had been better informed or acted more client-oriented.
An even more important issue is the growing amount of time that salespeople spend searching for information to answer customer questions. What if a program could give salespeople exactly what they need to know so that they can transform information-chasing time into customer-chasing time? It all makes sense. I can picture the sales-enablement software programmers being obsessed with sales efficiency and sales effectiveness. But let’s take a look how the sales enablement vendors are selling their solution to you, the sales leader.
Vendor Pitches or Marketing Glitches?
Savo promises, “Never sell alone!” Does that hit a hot button for you? I don’t know many lonely salespeople. On another part of the SAVO site I read, “Clone top performers.” Excuse me! Why not promise, “Clone your Swiss bank account”?
Kadient’s Website isn’t shy about pitching the exact same theme on their home page: “What if all of your salespeople could sell like your top performers?” The promise continues, “With Kadient’s on-demand sales enablement application, you arm your sales team with the knowledge, messages and strategies they need to win at every stage of the customer’s buying cycle.” If they found the key to winning at every stage, how come Kadient isn’t a hugely successful company?
iCentera bills itself as a sales enablement company. Their pitch is a model of modesty: “Sales Enablement maximizes your sales organization’s ability to communicate through a central messaging vehicle.” The key benefit: “Close more business through more knowledgeable sales people.”
N-tara.com created a special sales enablement site with this teaser copy: “Ever feel like your salespeople don’t get it?” Here is the pitch: “N-tara’s sales enablement solutions equip your sales force with engaging, customer-ready content that is timely, relevant and in context to your customer’s needs.” The best part of their site is a “Guide to Enlightened Conversations”. It is engaging, interactive and it makes a lot of sense.
BizSphere is a European sales enablement vendor located in Wiesbaden, Germany, with offices in Toronto. The pitch: “Do you want your sellers to minimize preparation time and maximize quality time with your clients?” The key benefits: close more deals, increase average deal size, shorten your sales cycle. It is a clear and concise pitch.
Another vendor in the space is Salesforce.com which offers a competing solution to their AppExchange partners Kadient and SAVO.
What Do The Industry Analysts Say About Sales Enablement?
Technology vendors often seek out the help of industry analysts, who lend a helping hand (for a small fee) with objective research that can help sales leaders choose among the competing solutions. When you go to the Websites of sales enablement vendors, you’ll see the same references to IDC and Forrester Research. On November 13th, 2008, Forrester conducted a teleconference entitled, Strategic Sales Enablement. For a $250 fee you could listen to their insights. The analysts defined sales enablement as
“a strategic, ongoing process that equips all client-facing employees with the ability to consistently and systematically have a valuable conversation with the right set of customer stakeholders at each stage of the customer’s problem-solving life cycle.”
If you want to decide for yourself if the paying attendees got their money’s worth, download the ppt at no charge (you need to sign in though).
Not to be outdone, IDC created a very insightful presentation in January of this year. Their definition of sales enablement:
“The delivery of the right information to the right person at the right time and in the right place, to assist moving a specific sales opportunity forward.”
IDC is a bit more generous with their Sales Enablement wisdom. They posted their ppt on Slideshare.com. They scored more than 1,600 views to date.
Gartner defines sales enablement as
“[providing] the sales force with communications programs and tools to drive activity and enhanced productivity.”
On one side we have vendor hype, on the other side we have analyst reasoning. What does this add up to so far? The vendors write the music, the analysts sing the theme song: Here is the category, here are the vendors, here is who is cool, and here is who made it to the magic quadrant.
Here Is What’s Missing:
Analysts don’t tell you that reality is always a step or two ahead of their definitions.
Analysts don’t analyze the economic realities of a sales enablement solution. There are no ROI studies nor objective research that compares the effectiveness of SAVO vs. Kadient vs. iCentera.
Analysts don’t create user studies that tell you more about the information infrastructure, the flaws with the search functions, the project abandon rate by vendor, the average user acceptance, the obsolescence factor of the data, the amount of information that’s missing just because nobody knows where all the useful data is located, the amount of time it takes to train (and retrain) salespeople, or the enduser satisfaction level with the graphical interface (some of the designs are an insult to the eye).
The vendors want you to believe that their sales enablement tools allow you to harness the collective intelligence of your sales organization. It sounds great, but who in the world can define and measure what that means? How do we know what best practices can positively influence sales productivity? Who decides what not to make available (due to security issues)? Most salespeople can’t write coherently, and most of the top salespeople can’t articulate what makes them successful. So how do we really capture sales intelligence?
What’s the real cost of running a sales enablement solution? Is there a need for editorial staff to help create and edit content, to set up template standards and apply them?
How much of a company’s “best practices” and sales intelligence is reusable? If I am a salesrep, getting ready for a presentation to Boeing in Seattle, and I download a presentation that one of my peers created for Airbus, how much data can I reuse, and how much do I have to create from scratch?
Sales enablement companies are NOT too savvy when it comes to social media. Search for Kadient on Twitter – zero results. iCentera has 43 followers, SAVO has 391, BizSphere is the leader with 441 followers. [Post was written on 07/29/2009]
The point is this: Social media tools allow people to connect with lightning speed. If Jill in Jackson wants a ppt presentation on jackhammers, I can tweet and send her a link in seconds.
Here is my biggest concern:
Sales enablement companies seem stuck in the “delay economy,” while Twitter is moving information management into the real-time economy.
How Future-Proof Is Sales Enablement?
“What sales incentives are best for salespeople age 20-30?” Someone in England, who said, “Technology, like iPods.”
Please read the comments and leave your own comment on the original post.