Oil and Gas Technology and Service Organizations Should Consider a More Rigorous Sales Process - Marketing Watchdog Journal

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		September 2008, Issue 55

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Oil and Gas Technology and Service Organizations Should Consider a More Rigorous Sales Process
Results from "Breaking Tradition to Enhance Success in the Energy Industry," derived from the 2008 Miller Heiman Sales Best Practices Study

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.

Want more results?
For additional best practices that differentiate top-performing sales organizations in the energy industry, download "Breaking Tradition to Enhance Success in the Energy Industry."

Selling in a different industry? Download the study's executive summary or browse Miller Heiman's library of available industry reports.

"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."

Reevaluate Practice of Offering Price Concessions

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.

Implement a Rigorous Recruiting Process

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 than 20 to 25 years," O'Callaghan says. "These people are typically 45 to 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."

To learn additional practices that differentiate top-performing organizations in the energy industry, download "Breaking Tradition to Enhance Success in the Energy Industry," from the 2008 Miller Heiman Sales Best Practices Study. Selling in a different industry? Download the study's executive summary or browse our library of available industry reports.

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About Miller Heiman: The Sales Performance Company
For 30 years, Miller Heiman has brought precision to the art of selling through simple, yet powerful processes and tools to help drive performance, especially in complex selling environments. Miller Heiman publishes the award-winning Sales Performance Journal and conducts the world's largest annual research project on sales effectiveness, the Miller Heiman Sales Best Practices Study. This study reveals best practices, trends, issues, and opportunities in today's selling environment. As the thought leader in sales performance, Miller Heiman provides organizational sales process implementations that result in revenue predictability, clearer sales management communication, and best practice selling activities that can be replicated. Headquartered in Reno, Nevada, Miller Heiman has offices around the world and partners in over 20 countries. For more information, please call 877.552.1747.

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