Sales processes falter
The software and services industry is struggling to create new business due to current sales processes, according to a report by KPMG using data compiled by CSSA.
It reveals that the top priority of senior executives in 2002 is to win and create new custom, but it will be difficult unless the approach to sales and delivery is revised.
The survey of 51 CSSA members shows that 18% of customers provide half of the total revenues, and repeat business accounts for 64% of total revenues, indicating a heavy reliance on a small number of customers.
The report highlights key areas that software and services companies need to address in order to alter current sales processes, including more good quality trained sales staff, more focus on ROI for customers and a bigger budget for marketing and research.
Nick Talbot, head of KPMG’s software and services practice, said: “The demand for IT services is still there, it is just a matter of companies recognising how to meet these demands. By changing the sales process so that sales people are more delivery-focused, and delivery staff are more sales-focused, companies will offer a winning partnership that delivers real value to the customer.”