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Miller Heiman Landmark Study Signals Improving Sales

Yet Few Companies are Prepared to Leverage Rebound

RENO, NV -  January 02, 2005  -   The economic recovery is improving the performance of sales organizations in virtually all industries, according to the 2005 Miller Heiman Sales Effectiveness Study. Yet the landmark research warns that only a small percentage of sales leaders have sales teams capable of taking full advantage of a rebounding market.

Of the more than 3,400 sales professionals surveyed, only 188 senior-level sales leaders truly capitalized on the market recovery. These leaders head winning sales organizations that did more than just grow sales revenues in 2004 - they also grew the average size of their deals and increased customer acquisition rates. The study reveals the top ten strategies and activities, which differentiate these winning sales organizations from other companies.

'A true competitive advantage in sales can only be achieved by committing to specific strategies associated with people, process, and performance,' said Sam Reese, Miller Heiman president. 'Most companies will benefit from the recovery. The more important question is how much distance they can put between themselves and their competition.'

The second annual sales effectiveness study is the most comprehensive and statistically valid research of its kind on sales trends, issues and challenges. Miller Heiman conducted the study in October and November of last year, surveying more than 3,400 sales leaders from 28 industries. The number of respondents represents a 50 percent increase from Miller Heiman's first annual survey in 2004.

The highlights are being released today. The full report will be available in March.

The study found that sales professionals undoubtedly were more optimistic than in recent years, as a higher percentage of those surveyed reported growing revenues, increased customer acquisition and a rising number of prospects.

Significant challenges remain, however. Respondents report that executive selling remains a substantial hurdle as buying decisions continue to move higher in customer organizations.

'The growing impact of executive buying decisions underscores the need for process-driven sales organizations,' said Reese. 'Sales people must have the necessary methodologies and skills to access executives and win their approval. This requires an understanding of how executives really make decisions. Sales organizations that take short cuts will fall behind their competitors.'

The study also indicates that there is little correlation between Customer Relationship Management (CRM) utilization and improved sales results. Respondents also noted that the challenges associated with CRM are acute, yet overcoming these hurdles is not a current priority. Significant challenges also exist in the areas of intense return-on-investment justification, commoditization, discounting, and longer sales cycles.

To learn more about the study, including the strategies differentiating the 188 winning sales organizations, contact Judith Hepburn at 775-827-4411.

About Miller Heiman: The Sales Performance Company

Miller Heiman is a global leader in sales performance solutions with more than 30 years of documented results. The company works with leading organizations to improve sales effectiveness through issue-based consulting and training. Headquartered in Reno, Nev., Miller Heiman has additional corporate offices in the United Kingdom and Australia and representation in more than 30 countries. For more information, contact 877.506.2973 or visit www.millerheiman.com.