10 Updates
15 Hottest Sales Acceleration Technologies: Latest Research
Photo Credit: Forbes Business

15 Hottest Sales Acceleration Technologies: Latest Research

Apr 3 2014, 3:23pm CDT | by

This article comes from an interview with and original research led by James W. Phillips, Business Intelligence Analyst for my company, InsideSales.com, about a research study entitled “2014 Sales...

Filed under: news

 
 
 

16 weeks ago

15 Hottest Sales Acceleration Technologies: Latest Research

Apr 3 2014, 3:23pm CDT | by

This article comes from an interview with and original research led by James W. Phillips, Business Intelligence Analyst for my company, InsideSales.com, about a research study entitled “2014 Sales Acceleration Technology Market Size.”

The research will be formally released next week at The American Association of Inside Sales Professionals Leadership Summit in Chicago.

Sales Acceleration is defined in detail in a prior Forbes article entitled “What Is Sales Acceleration? Start By Picking Up Your Phone .” It outlines categories that include new and emerging software applications and services that fall under this new market category.

The 15 cloud-based categories listed are as they appear in the study:

  • Contract Technology
  • Data Visualization
  • Business Intelligence
  • Gamification
  • Presentation Technology, including Slide and Screen Share
  • Predictive Analytic Tools and Technology
  • Sales Intelligence Tools
  • Email (designed specifically for the sales function)
  • Fax
  • Sales Communication tools
  • Chat
  • Texting
  • Video technology
  • Voice technology
  • Social selling technology

In summary, sales acceleration means to increase the velocity of the sales process.

James gives some background, “Over the last 10 years, the sales industry has witnessed a disruption. Due to the innovation of Internet cloud-based business transactions and an upsurge in sales technology development, the sales profession is in a state of rapid modernization.”

He continues, “The ‘Sales Acceleration Technology’ industry is the business space between CRM and marketing automation which facilitates, and thereby accelerates, all processes pertinent to the sales pipeline.”

The study addresses the following questions:

  • How much spending is currently going towards sales acceleration technology in North America?
  • How much spending occurs per sales rep?
  • How big is this new market?
  • In what categories is the spending occurring?
  • What should we expect in the future about the growth of sales acceleration technology? 

James collected information from 439 companies for this study, which was segmented by type of sales function (retail, inside sales, outside sales) as well as size of company and industry.

U.S. Census data presents a total of 13.98 million sales reps in North America. Analyses through this research shows there are 8.357 million in sales people employee retail sales, and 5.622 million inside or outside sales professional sales reps.

Of this 54.4% or 3,064 million are inside sales (professional sales done remotely ), and 45.5% or 2,558 million are outside sales or field sales representatives.

By 2020 there will be over 6 million inside and outside salespeople in North America.

In the sample, companies allocate 3.5% of total budget towards sales acceleration technology, with spending ranging from 1% to 24%.

Given considerations of current sales rep adoption rates, North American businesses spend $2,280 per rep, per year, on sales acceleration technologies in the following allocation:

From the same Census and the sample data from this study, estimations are able to be made showing current spending in North America for sales acceleration technology to be $12.8 billion annually in the world of professional sales with the following by inside sales and outside sales:
/>

NOTE: This estimate is conservative by at least two accounts.  James omitted “Sales Training Technology” which could be considered a sales acceleration technology, and the entire category of spending for retail sales was not included. The $12.8 billion would increase to roughly $15.8 billion if Sales Training Technology were included.

Spending by industry varies widely, with Software and Education leading, and Finance and Telecom bringing up the rear.

Size of company, in this case by employee size, correlated to a massive difference in spending:

The next interesting item in the research is the assessment of four favorable business outcomes and the associated correlated patterns in sales acceleration technology spending by the following:

  1. Bigger deals
  2. Faster sales cycles
  3. Higher close rates
  4. Stronger overall company revenue

The average deal size in the sample was $12,500.

Again, the average spending per sales rep is $2,280 per year, but in companies with the largest 50% of deal sizes, the average spending is 89% larger, or $4,319 per sales rep per year.

NOTE: Greater sales acceleration technology spending does not necessarily cause bigger deal size, there is only a notable correlation from the sample data. The study goes into much greater detail with further regression analysis of this interesting correlation.

The average sales cycle in the sample is about 60 days.

Interestingly, the Communications and Intelligence technology received a greater proportion (28% more) of spending among companies with the fastest sales cycles, compared to the average.

From the companies surveyed, the average close rate is about 20%.

The four notable technologies correlated to higher close rates were Sales Communications, Data Visualization, Business Intelligence, and Voice technology.


Companies with higher than average close rates spent 17% more per sales rep than the average./>

Companies with average revenue over $3,000,000 had a 78% more being spent on sales acceleration technologies than the average with an average of $4,052 per rep versus the previously mentioned $2,280 per sales representative.

NOTE: This correlation is similar to the size of company by employee size section already mentioned, but now illustrated by company revenue.

The ends with the question to respondents about how their sales teams with grow or shrink over the next two years.

There was a promising increase of team sizes from an average of 12.8 reps in 2013, to a 45% increase of 18.5 reps in 2014, and a 41% increase to an average of 26.1 sales reps per team in 2015.

Sales acceleration principles and best practices are discussed in another Forbes article entitled, “27 Sales Acceleration Principles And Best Practices ” that should give additional insights into this expanding new area of technology.

Thanks again to James W. Phillips, and the Business Intelligence team at InsideSales.com for this research study. There is also more information on this study in an article done by Leo Dirr entitled “ Sales Acceleration Technology Spending: Special Report.

Author: Ken Krogue
Follow me on @kenkrogue| Follow me on Google+ />

 
Update
10

7 weeks ago

RM47mil KWSG contributions still unclaimed

Jun 9 2014 7:54am CDT | Source: Business Times Malaysia

KUALA LUMPUR: About RM47 million of contributions in the Teachers Provident Fund (KWSG) still remain unclaimed, the ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
9

7 weeks ago

Gold shop lost almost RM1mil

Jun 9 2014 3:50am CDT | Source: Business Times Malaysia

KANGAR: A gold shop owner lost almost RM1 million after after the safe on in his shop was broken ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
8

7 weeks ago

Motion to debate MAS losses in Dewan Rakyat rejected

Jun 9 2014 3:39am CDT | Source: Business Times Malaysia

KUALA LUMPUR: AN emergency motion to debate the losses incurred by Malaysia Airlines last year, amounting to RM1.2 billion was rejected by the Dewan R ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
7

7 weeks ago

MH370 Tragedy: Hisham: RM27.6 mil spent on 1st phase of SAR

Jun 9 2014 2:11am CDT | Source: Business Times Malaysia

KUALA LUMPUR: Malaysia spent some RM27.6 million in its first phase of the search operations for missing Malaysia Airline flight MH370, said Acting Transport Minister, Datuk ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
6

7 weeks ago

9.1m litres of diesel seized in a month

Jun 8 2014 1:11am CDT | Source: Business Times Malaysia

PUTRAJAYA: The Domestic Trade, Cooperatives, and Consumerism ministry has seized some 9.1 million litres of diesel and property worth RM58 million since mounting ‘Operasi Diesel Selatan’ in the s ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
5

7 weeks ago

Girl, 9, awarded RM2.78m compensation for medical negligence

Jun 6 2014 4:56am CDT | Source: Business Times Malaysia

KUALA LUMPUR: A nine-year-old girl who suffered brain damage during her birth at a government hospital was awarded over RM2.78 million in compe ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
4

7 weeks ago

Malaysia's total trade in April up 12pc

Jun 5 2014 11:52pm CDT | Source: Business Times Malaysia

KUALA LUMPUR: Malaysia's total trade in April 2014 rose by 12 per cent from a year ago to RM123.86 billion due to growing trading activities, International Trade and Industry Minister Datuk Seri Musta ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
3

7 weeks ago

Works Ministry to spend RM20m for upgrading works at 50 accident black spots

Jun 4 2014 11:35pm CDT | Source: Business Times Malaysia

JOHOR BARU: The Works Ministry will implement upgrading works at 50 accident prone locations in the country that have been identified this year invo ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
2

7 weeks ago

Najib launches loan scheme for Ramadan traders

Jun 4 2014 10:24pm CDT | Source: Business Times Malaysia

PUTRAJAYA: Prime Minister Datuk Seri Najib Razak today launches RM45 million Ramadan Ba ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 
Update
1

7 weeks ago

Residents bring up objection against Kidex to Suhakam

Jun 4 2014 4:49am CDT | Source: Business Times Malaysia

PETALING JAYA: A group of 20 Petaling Jaya residents held a meeting with the Human Rights Commission of Malaysia (Suhakam) over their objection against the proposed RM2.2 billion Kinrara Damansara Skyway (Kidex) today ...
Source: Business Times Malaysia   Full article at: Business Times Malaysia
 

 

Don't miss ...

 

<a href="/latest_stories/all/all/30" rel="author">Forbes</a>
Forbes is among the most trusted resources for the world's business and investment leaders, providing them the uncompromising commentary, concise analysis, relevant tools and real-time reporting they need to succeed at work, profit from investing and have fun with the rewards of winning.

 

blog comments powered by Disqus

Latest stories

Green spaces impact birth weight positively
London, July 29 (IANS) Where expecting mothers live can also have a bearing on the birth weight of their babies as researchers have found that mothers who live near green spaces deliver babies with significantly higher birth weights.
 
 
What makes you a pessimist?
London, July 29 (IANS) Cannot see thing turning out to be all right? A hyperactive habenula, half the size of a pea in the brain that tracks predictions about negative events, could be the key, a study suggests.
 
 
Russian space 'sex geckos' are safe for now
Moscow, July 29 (IANS) There is good news for the geckos aboard the Russian Foton-M4 space satellite meant to study the effects of microgravity on sex and reproduction.
 
 
This is why dogs sniff each other's butts
New York, July 29 (IANS) You may have witnessed this scene on the road quite often but the answer to why dogs sniff each other's butts is hidden in the chemical communication at the rear end.
 
 
 

Latest from the Network

Harpreet enters men's 25m rapid fire pistol finals, Vijay fails
Glasgow, July 29 (IANS) In a major set back, India's Olympic silver medallist Vijay Kumar failed to qualify for the men's 25-metre rapid fire pistol finals but Harpreet Singh made up for the disappointment by entering...
Read more on Sport Balla
 
Lea Michele to play single mum in biker drama
Los Angeles, July 29 (IANS) "Glee" star Lea Michele will make a guest appearance as a single mother in biker drama "Sons of Anarchy". The actress took to microblogging site Twitter.com Monday to announce her one-...
Read more on Celebrity Balla
 
Green spaces impact birth weight positively
London, July 29 (IANS) Where expecting mothers live can also have a bearing on the birth weight of their babies as researchers have found that mothers who live near green spaces deliver babies with significantly higher...
Read more on Apple Balla
 
What makes you a pessimist?
London, July 29 (IANS) Cannot see thing turning out to be all right? A hyperactive habenula, half the size of a pea in the brain that tracks predictions about negative events, could be the key, a study suggests. A...
Read more on Apple Balla
 
Rocket attack kills girl in Egypt's Sinai
Cairo, July 29 (IANS) A nine-year-old girl was killed and another girl was injured when a rocket hit their house in Egypt's restive Sinai peninsula, an official said Tuesday. The rocket was apparently targeted at a...
Read more on Politics Balla
 
India thrash Trinidad and Tobago 14-0 in CWG hockey
Glasgow, July 29 (IANS) The Indian women's hockey team came back strongly from a 0-3 defeat to New Zealand to thrash minnows Trinidad and Tobago 14-0 in their third Pool A match of the Commonwealth Games here. India...
Read more on Sport Balla
 
Six killed in attack on Pakistan politician's house
Islamabad, July 29 (IANS/EFE) At least six people, including a local political leader's brother, were killed Tuesday in an attack by an armed group in northwestern Pakistan, a police official said. The attack was made...
Read more on Politics Balla
 
Mick Jagger has birthday brunch
Sir Mick Jagger marked his 71st birthday with a family brunch. The Rolling Stones rocker was joined by eight people - including daughters Georgia May and Karis - at Hakkasan New York on Saturday (07.27.14) during a...
Read more on Celebrity Balla
 
Kiefer Sutherland wishes Freddie Prinze Jr well
Kiefer Sutherland wishes Freddie Prinze Jr. ''the best''. The 47-year-old actor insists he never had a problem with his former '24' co-star - who claims ''unprofessional'' Kiefer made him want to quit acting - and never...
Read more on Celebrity Balla
 
Taylor Schilling celebrates birthday
Taylor Schilling was serenaded by her castmates at her 30th birthday party at the weekend. The 'Orange is the New Black' actress was joined by several stars of the show, including Laura Prepon, Laverne Cox, Natasha...
Read more on Celebrity Balla