Commercial HVAC/R Manufacturers Lack Guided Selling: Cincom Report
Despite selling complex engineer-to-order products that are challenging to sell, none of the commercial HVAC/R manufacturers that responded to a recent Cincom survey stated that they had true predictive guided selling systems.
This is according to a 2009 Cincom research report based on a national survey to sales and IT executives that sheds light on how these commercial HVAC/R (heating, ventilation, air conditioning and refrigeration) manufacturing organizations are managing their businesses for increased efficiency and effectiveness.
“Long sales cycles, highly unique customer requirements, accuracy in pricing, configuration and manufacturing execution—these all combine to make this industry one of the most complex in managing the sales process,” says Louis Columbus, co-author of the report. “A truly predictive guided selling system is one of a handful of tools that help simplify this process.”
None of the commercial HVAC/R manufacturers that responded to a recent survey stated that they had true predictive guided selling systems.
The research also showed that 27% of HVAC/R manufacturers have real-time availability of catalog content, pricing and sales data, including integration to engineering specifications and drawing—indicating this may be a best practice.
Lack of Dealer Tracking
Most commercial HVAC/R manufacturers use an indirect sales force in whole or in combination with a direct sales force. Yet none of those surveyed rely on advanced analytics and lead escalation in regard to opportunity tracking to ‘learn’ which channel partners can deliver the best sales performance by each type of lead. As a result, HVAC/R manufacturers are leaving money on the table in terms of understanding their customers and channel partners more effectively, and serving them more profitably as a result.
None of the commercial HVAC/R manufacturers surveyed rely on advanced analytics and lead escalation in regard to opportunity tracking to ‘learn’ which channel partners can deliver the best sales performance by each type of lead.
“The HVAC/R industry is the most demanding in terms of accurately communicating complex product information and knowledge throughout its distributor, dealer and partner networks,” says Columbus. “Relying on manually based processes constrains the ability to sell, and over time, steals profits from HVAC/R manufacturers. Automating pre-sales, sales and post-sales processes has proven to make a direct contribution to profitability in this industry.”
However, when it comes to measuring and managing the sales plan, 27% extensively use analytics and dashboards to optimize processes. This is 14% above a composite benchmark of similar industries.
For a copy of Cincom’s “2009 HVAC/R Equipment Industry Survey Report,” visit http://www.cincom.com/hvac.
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Filed Under: guided selling
About the Author: Donna Hedge Burns is a public relations specialist for Cincom Systems, who specializes in ERP, product configuration and other smart guided selling technologies.