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Oil and Gas Technology and Service Organizations Should Consider a More Rigorous Sales Process
Study Reveals Best Practices and Opportunities for Sales Organizations in the Global Petroleum Industry
RENO, NV -
August 14, 2008 -
A recently released report on the oil and gas industry reveals opportunities for these companies to extend their recent increases in highly profitable revenue through key operational changes. Breaking Tradition to Enhance Success in the Energy Industry, derived from the 2008 Miller Heiman Sales Best Practices Study, discusses why the industry's traditional approach to sales may not be sufficient to sustain their current success.
According to the report, these organizations are 46 percent less likely than respondents from other industries to agree that they get comparable value when they give price concessions. "In a culture with strong customer relationships, many salespeople don't evaluate what they get in return when providing a service to their customers," said Mickey O'Callaghan, an independent sales consultant who specializes in improving sales productivity in energy organizations. "Salespeople fear losing a 10 or 15-year relationship." O'Callaghan said that this weakness has the potential to decrease profits, and could be detrimental if demand for oil and gas products decreases. The report also revealed that this industry is in need of a more rigorous hiring and on-boarding process. O'Callaghan said that this is likely due to the maturity of the industry, and a longer-than-average tenure for salespeople. "Most salespeople in the industry have been in the business more 20 to 25 years," O'Callaghan says. "These people are typically 45-60 years of age, and are likely nearing retirement. A strong process for recruiting and hiring will be necessary to ensure that these companies maintain a productive sales force after their current salespeople have moved on." Breaking Tradition to Enhance Success in the Energy Industry can be downloaded here. 
"It has become imperative for these companies to commit substantial time and resources to developing an effective sales process," said Sam Reese, president and CEO of Miller Heiman. "This industry has gotten by in the past with a simple relationship sales model. With recent market changes, a shift in the demographics of the employment base and increased commoditization, the old approach is becoming less and less effective."
About Miller Heiman: The Sales Performance Company
Miller Heiman is the proven leader and innovator in sales execution with more than 30 years of helping businesses grow profitable sales by increasing their close rates, lowering the cost of sales and reducing the length of the sales cycle. The company’s common framework of easily repeatable methodologies, combined with a tradition of research and thought leadership, helps firms of all sizes win complex sales. Miller Heiman is a worldwide leader in sales performance with programs in 20 languages and corporate offices in the United States, the United Kingdom and Australia. For more information, visit www.millerheiman.com.
