Sales & Marketing Management - September/October 2008 - (Page 20)

cover story a six-year high at press time.“Obviously, we would prefer a strong economic environment with improving employment conditions, but ADP is fortunate that we have a portfolio of diverse offerings designed to help companies reduce their HR and payroll expenses,” Gleason says. The company also benefits from a business model in which 90% of revenues are recurring. The diversity of its product offerings have kept ADP’s products and services from being commoditized, but the focus on solution selling is what has maintained the business’ health through tough times. The company has always had a reputation as a stellar face-to-face sales organization (fielding more than 5,000 sales reps in the U.S. alone), but in 2005, ADP created a TeleSales division to increase market penetration and lower the overall cost of sales. ADP at a To make it all work, ADP manGlance agers have become adept at identifyFounded: 1949 ing the characteristics that make an NYSE Stock Symbol: individual a good salesperson. More ADP importantly, they’ve learned when Revenues: Nearly $9 and how to transition those quota billion in fiscal 2008 carriers and sales reps into effective Headquarters: sales leaders—a common problem Roseland, N.J. that most organizations face, and one that carries a high price tag if not Employees: Approximately 46,000 handled properly. worldwide “Companies with world-class sales #281 on 2008 Fortune operations realize the characteristics 500 list that make a sales rep successful are not necessarily the same ones that make a sales manager successful,” Gleason says. “Those organizations that can identify salespeople with the right personality traits and work ethic to become part of management—and just as importantly, have a plan in place to help transition them from one job to the other—are the ones that produce the best bottom-line results.” Selling the comprehensive solution While 80% of the Fortune 500 use at least one of ADP’s products or services (a number that includes 90% of the Fortune 100), small-to-medium businesses comprise the majority of the company’s customer base. Indeed, more than 400,000 of ADP’s clients fall into that category. Before ADP could sell its expanded portfolio of products and services, it needed customers (and prospective customers) to realize that more than payroll processing was available. That was done through awareness campaigns and the implementation of the TeleSales program. According to Gleason, large companies currently 20 have the greatest awareness of the breadth of ADP solutions. “We’ve spent a lot of time and effort to raise the visibility of our product portfolio, but with more than 585,000 clients across the globe, you can never say you’re perfect,” he says. “Still, we think we do a very good job of spreading the word, and we’re always working to improve the awareness of what ADP really can offer as a company.” If ADP hadn’t made the strategic decision more than 10 years ago to evolve beyond payroll processing, the company would be at a severe disadvantage in today’s solutions-oriented selling environment. “If we had continued to put all of our eggs in the payroll basket, we wouldn’t have gained the comprehensive understanding of our clients’ business challenges and the tools they need to meet them,” Gleason explains. “Because we now touch so many parts of their businesses, we use that knowledge to design a comprehensive solution that delivers a suite of products in the most cost-effective way possible.” To do that, ADP needed to be cost-effective in terms of the way it handled its sales operation. With a large field sales force acclaimed for its effectiveness in faceto-face sales, the company had to achieve deeper penetration into its customers’ businesses without letting the costs of its sales spiral out of control. That led to the creation of its TeleSales program three years ago. “John saw the need to have ADP’s field sales organization focus more on solution sales,” recounts Mary Donato, president of Applied Principles and an S&MM columnist who worked with Gleason to develop the TeleSales strategy and implementation plan. “At the same time, they needed a cost-effective approach to providing coverage to clients whose needs could be met with the traditional products. An integrated coverage model using field sales and TeleSales has worked extremely well. It’s provided clients with the face-to-face interaction on more complex solutions and knowledgeable, skilled salespeople on the less complex products. “TeleSales representatives hired by ADP have successful sales backgrounds and, typically, inside sales experience,” she continues. “An added benefit is that the TeleSales reps are generating quality leads for the field reps. It’s become a true partnership approach.” The success of the program speaks for itself. Last year, the TeleSales group delivered $81 million in net new revenue, up from $11 million three years ago. “One-year growth last year exceeded 130%,” Gleason explains, “so even though the TeleSales reps don’t drive to their appointments, we’ve ensured that they possess the same level of product knowledge and insight into customer needs as our field reps do.” www.salesandmarketing.com www.salesandmarketingmanagement.com SALES &MARKETING MANAGEMENT SEPTEMBER/OCTOBER 2008 http://www.salesandmarketingmanagement.com

Table of Contents Feed for the Digital Edition of Sales & Marketing Management - September/October 2008

Sales &�Marketing Management - September/October 2008 Contents Editor's Letter Brian Tracy University Smart Sales Sales Strategy Smart Marketing Marketing Strategy Smart Management Management Strategy The Low-Cost Sales Leader Why Sales Process Gets the Shaft Training Q&A Technology Making the Case for Travel (Part II) Travel/Meetings On the Road The Way I See It

Sales & Marketing Management - September/October 2008

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