Sales Acceleration Technology Market Size Study. Executive Summary
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1 Sales Acceleration Technology Market Size Study Executive Summary
2 $495 for full report 1 No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as permitted under section 107 or 108 of the 1976 United States Copyright Act, without either the prior written permission of InsideSales.com. Requests for permission should be addressed to the Legal Department, InsideSales.com, 34 East 1700 South, Suite A113, Provo, Utah InsideSales.com All rights reserved, including the right of reproduction in whole or in part or in any form.
3 2014 SALES ACCELERATION TECHNOLOGY MARKET SIZE 2 ABOUT THE RESEARCH TEAM LEAD ROLES James W. Phillips, Lead Researcher James W. Phillips joined InsideSales.com in April 2013 as a Business Intelligence Analyst. In this role he is responsible for conducting research on company and industry level questions in order to promote InsideSales.com s position of innovation and leadership. Prior to InsideSales.com, James was a PhD student at Rice University where he conducted and published his own original research. Prior to his doctoral studies, he received his MS at Brigham Young University where he taught research methods undergraduate coursework and received several student awards as well as grant fundings. David Elkington, CEO and Co-Founder of InsideSales.com David Elkington has a rich background in technology, venture capital and corporate development. As CEO and Chairman, he has led InsideSales.com to consecutive % year-over-year growth rates, starting with the company s inception in David has been active in the evolution and definition of the inside sales industry and speaks regularly. He is co-author of the groundbreaking Lead Response Management industry study, done in conjunction with James Oldroyd, PhD (visiting Research Fellow at M.I.T.). David has co-authored articles that have appeared in Harvard Business Review, Kellogg School of Management, Forbes, and other academic and industry publications. He is recognized both locally and nationally as a leader and entrepreneur in the cloud computing and inside sales/remote selling spaces. Prior to InsideSales.com, David co-founded Integr8ted Technology Solutions, LLC, a leading e-business consulting and application development firm. Before Integr8ted, he co-founded and served as Director of Business Development for Everfill, Inc., an e-health distribution company, until the sale of the company. Prior to his entrepreneur years, David worked as a financial analyst for the investment bank firm of Deutsche Bank Alex Brown, in their Baltimore, MD, office. David has also held positions with Merrill Lynch and MiraQuest Capital (a healthcare technology venture capital firm). David serves on the board of ProvoTechX, on the advisory board of the American Association of Inside Sales Professionals (AA-ISP), and on the BYU CVLC advisory council. He has a background in computer science and holds a Bachelor of Arts degree in Philosophy from Brigham Young University, with minors in Business, Japanese, and Hebrew.
4 2014 SALES ACCELERATION TECHNOLOGY MARKET SIZE 3 Ken Krogue, President and Co-Founder of InsideSales.com Kenneth Krogue co-founded InsideSales.com in November 2004, where he currently leads the marketing, business development, consulting, education, implementation, and support departments. In this role, he is responsible for working with the Chairman and Chief Executive Officer to set the vision and strategy for the company, as well as overseeing all dayto-day sales and marketing operations. Ken brings more than 24 years of experience in sales, development, and marketing in both domestic and international markets. Prior to joining InsideSales.com, Ken was one of the original founders of UCN, now incontact (NASDAQ:SAAS), where he held a number of positions including Chief Operating Officer. Prior to incontact, he built and directed the inside sales division at FranklinCovey (NYSE:FC), a leading provider of time and life management training systems. Ken has received many industry awards including being recognized among the Top 25 Most Influential Inside Sales Professionals in 2010 and 2012 by the American Association of Inside Sales Professionals (AA-ISP). Ken is a weekly contributor to Forbes.com and an active thought leader in the inside sales industry. His personal blog is the top ranked blog in the world on the topic of inside sales. Ken speaks to audiences about twenty times a year around the country. He founded and served from 2010 to 2011 as the President of the Salt Lake City Chapter of AA-ISP. Ken attended the United States Naval Academy in Annapolis, MD, and earned a BS in Psychology from the University of Utah. SUPPORTING ROLES Mick Hollison, CMO James Dotter, VP of Finance Michael Plante, VP of Demand Generation William Krohn, Business Intelligence Manager Megan Strong, Business Intelligence Analyst, Team Lead Ben Warner, Business Intelligence Analyst Scott Humphries, Graphic Designer
5 2014 SALES ACCELERATION TECHNOLOGY MARKET SIZE SALES ACCELERATION TECHNOLOGY MARKET SIZE RESEARCH OVERVIEW Over the last ten years the sales industry has witnessed a rise in technology usage. In order to interact efficiently with potential clients and organize their efforts, sales personnel have come to rely upon a range of technologies. The segments of technology most relied upon include the CRM (Customer Relationship Management) and marketing automation industries. A CRM uses technology to organize the interactions between a company and its current and future customers, while marketing automation software aids in scheduling, tracking, and task automation. Businesses are generally aware of these two sectors of technology; however, an emerging area of technology focuses on linking these two in order to move sales processes even faster. The Sales Acceleration Technology industry is the focus of this report. Specifically, this report identifies the following: How much spending occurs toward sales acceleration technology in North America currently? How much spending occurs on a per-rep basis? What is the total addressable market (TAM) of the sales acceleration technology industry? SALES REPRESENTATIVES IN THE US According to U.S. Census information analyzed through InsideSales.com research, a total of million non-retail sales personnel currently work in the United States. These personnel work the sales pipeline in a number of roles, from lead qualifying, presenting and negotiating, to closing and maintaining new clients.
6 2014 SALES ACCELERATION TECHNOLOGY MARKET SIZE 5 SALES ACCELERATION TECHNOLOGY The technologies which sales personnel use to accelerate their sales processes draw from a range of companies and include the following categories: Contract Technology (e.g., EchoSign, DocuSign) Data Visualization and Business Intelligence (e.g., Tableau, Domo) Gamification (e.g., InsideSales.com, Hoopla, Bunchball) Presentation Technology, including Slide and Screen Share (e.g., WebEx, GoToMeeting, ClearSlide) Predictive Analytic Tools and Technology (e.g., InsideSales.com, Lattice Engines, KXEN, infer) Sales Quote and Proposal Tools (e.g., Apttus) Sales Intelligence Tools (e.g., Domo, Insideview, LinkedIn) (e.g., Yesware, ihance, ToutApp, Outlook, CRM integration) Fax Communication Chat (e.g., LivePerson, Boldchat) Texting (e.g., SMS Magic) Video (e.g., PGi, BlueJeans.com, Cisco) Voice (e.g., InsideSales.com, Five9, Velocify) Social (e.g., LinkedIn, FlipTop, Radian6) METHODOLOGY In order to identify the amount of spending for each of these segments of sales acceleration technology, InsideSales.com collected data from 282 companies. Of these, 132 offered the category-specific budget allocations for each of the sales acceleration technologies above. ANALYSIS In order to assess the size of the sales acceleration technology market, we first considered the degree of rep adoption for each of these technology segments in order to clarify the market penetration of each category. We calculated the total number of sales reps and the number of reps using each technology category in order to assess rep adoption percentage. We then totaled the average of each technology category and multiplied by its rep adoption percentage to give the most accurate portrayal of the status of each sales acceleration technology spending.
7 2014 SALES ACCELERATION TECHNOLOGY MARKET SIZE 6 SALES ACCELERATION TECHNOLOGY MARKET SIZE CURRENT SPENDING We find the current status of spending toward sales acceleration technology to be a sizeable portion of business expenditures overall. The following figure represents the categories of sales acceleration technology spending, as represented by the percent of sales technology budget. 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Spending by Technology Type BUDGET SUMMARY Given the considerations of current rep adoption rate, we estimate that North American businesses spend $2,280 per rep, per year on sales acceleration technology. In applying this expenditure to the total number of non-retail sales reps (5.622 million), we estimate the current spending for sales acceleration technology in North America to be $12.8 billion. By including an additional technology category for Sales Training Technology (e.g., CallidusCloud, TeamVisibility) a high estimate of the sales acceleration technology spending in North America would be $15.8 billion.
8 2014 SALES ACCELERATION TECHNOLOGY MARKET SIZE 7 TOTAL ADDRESSABLE MARKET In contrast to the aforementioned budget summary which accounts for the current rep adoption percentage of each sales acceleration technology category, an assessment of the total addressable market (TAM) would consider a 75% adoption percentage across all categories 1. The calculations of this potential market size are as follows: Assuming a 75% rep adoption rate, which is a measure of potential market size, we estimate that North American businesses would spend $6,790 per rep, per year on sales acceleration technology. Applying this TAM estimate to the current number of non-retail sales reps (5.622 million) we estimate the potential sales acceleration technology market size in North America to be $33.6 billion. 1 A standard of 75% rep adoption is used to describe total addressable market since several of the matured markets from our analysis showed an average 75% rep adoption (e.g., CRM, ERP, and data list services).
9 2014 SALES ACCELERATION TECHNOLOGY MARKET SIZE 8 SENTIMENT OF SPENDING MARKET OPTIMISM Our analysis of sales acceleration technology also included an assessment of the general sentiment of spending. We asked respondents if they felt their annual budget for sales technology was Too little, just right, or too much. These results revealed a surprising degree of optimism for future investment in sales acceleration technology. In the following figure, we notice that many respondents (36%) feel that their sales technology spending is Too little. This is an important finding that suggests market optimism and more desire of spending toward sales acceleration technology in the future. Sentiment of Sales Technology Spending 70% 60% 58% 50% 40% 36% 30% 20% 10% 0% 6% Too Little Just Right Too Much
10 2014 SALES ACCELERATION TECHNOLOGY MARKET SIZE 9 EXECUTIVE HIGHLIGHTS AND CONCLUSION RISE OF SALES ACCELERATION TECHNOLOGY Over the last decade, sales personnel have adopted a number of technologies to help accelerate business. We find that sales acceleration technology is a viable segment of spending, unique from CRM and Marketing Automation budgets. This report describes the current status of North American business spending toward sales acceleration technologies ($2,280 per rep, and $12.8 billion total), which considers current rep adoption rates. In estimating Total Addressable Market size (TAM), a potential market of $33.6 billion in North America is estimated. Additionally, we find that 36% of our respondents, which are comprised of business executives, feel that they spend too little on sales technology. This finding offers a bright outlook for future market trends of sales acceleration technology. THE FUTURE OF SALES ACCELERATION The current status of the market suggests that a number of companies compete for individual or small-group shares of the sales acceleration technology. Although some companies offer more than one technology, a company who can provide a comprehensive sales acceleration technology package will likely emerge as the leader in this emerging market. The future of sales acceleration technology will involve the combining, streamlining, and joint-optimizing of all technologies which benefit all phases of the sales pipeline.
11 2014 SALES ACCELERATION TECHNOLOGY MARKET SIZE 10 ABOUT INSIDESALES.COM The firm conducting this research is a sales acceleration technology company, InsideSales.com. While many companies offer some improvement to some steps of the sales sequence, InsideSales.com aims to streamline and accelerate all processes pertinent to sales by addressing the following: 1. Communication. Through software and dialing solutions, InsideSales.com allows reps to communicate most effectively through the sales sequence. 2. Gamification. Using a fun, interactive system of displaying work metrics, Insidesales.com technology helps address the human needs of the sales reps through a gamified work metric platform. 3. Predictive Analytics. Through analysis of millions of anonymized sales transactions, InsideSales.com now provides intelligent predictions of sales outcomes. In other words, the next lead is no longer random, rather, it is based on research most associated with successful business. 4. Data Visualization. Soon to be released technology will allow real-time data visualization in a user-friendly, 3D visualization which allows reps and managers to measure activity and intensify the sales process. For more information, please visit InsideSales.com.
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