Reno, NV, August 16, 2008 --(PR.com
)-- 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.
“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.”
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.”
Best Practices for Integrating Sales Process into Consulting and Professional Services Organizations is available by request by contacting Sarah Licausi at (800) 506-2973 or firstname.lastname@example.org.
About Miller Heiman:
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, training and proprietary intellectual property. 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 its website.