Most Companies are Misdirecting Sales Technology Investments, According to New Aberdeen Group Report

Business Wire, July 7, 2004

BOSTON -- More than 70% of companies are misdirecting their spending on sales technology and need to realign their investments in a way that better integrates sales and marketing efforts and fosters a collaborative environment, according to a new report by Aberdeen Group.

According to the report, only a relatively small percentage of companies have seen their sales technology investments truly translate into higher sales or enhanced sales effectiveness. Instead, the study indicates that selling is increasingly becoming a team, rather than an individual, activity.

"With growth clearly back on the corporate agenda, the effectiveness of the sales force has reemerged on the business executive's radar screen," said Chris Selland, Aberdeen's vice president of sell-side research and author of the report. "The days of the 'lone wolf' star salesperson, if not already over, are numbered. Companies that collaborate well among sales, marketing, and the rest of the organization are far more effective."

The report, Sales Effectiveness: Helping Sales Sell, found that companies looking to improve their sales effectiveness should keep in mind the following:

--Companies want leads, but collaboration is critical.

--The debate over "hosted versus traditional" models is overhyped.

--Give sales management the reins -- and the budget

--Marketing should shrift from ad hoc to formalized processes

Sales Effectiveness draws from surveys of over 200 executives across executive, sales, marketing, and information technology management. Respondents were asked to evaluate how effective they believed their sales efforts were and to back up their perceptions with specific metrics.

To obtain a free copy of the report, please follow this link: www.aberdeen.com/ab_company/hottopics/saleseffectiveness/default.htm

About Aberdeen Group

Founded in 1988, Aberdeen Group is the trusted advisor to the Global 5000 for value chain strategies and technology advice. Through its continued benchmarking and analysis of value chain practices, Aberdeen offers a unique mix of research, tools, and services to help G5000 executives assess their value chain performance, develop improvement strategies, and select value chain solution partners.

Headquartered in Boston, Aberdeen has research and consulting divisions in Atlanta, GA; Chicago, IL; Palo Alto, CA.; and Fort Collins; CO.