Sales Reporting and Analytics. Scott Miller May 19, 2015

Transcription

1 Sales Reporting and Analytics Scott Miller May 19, 2015

2 Sales Operations Overview Pricing Contracting Reporting/Analytics Compensation/Crediting Deal Review Reconciliation Staffing/Headcount Identify Selling Opportunities Training/Best Practices Lead Generation System Selection/Implementation Sales Process Design Quota Determination Sales Forecasting RFP s Territory Design Support Enable Achieve In the absence of a sales operations organization (e.g., young companies), the sales people are tasked with sales operations functions which contaminates the sales job and takes away productivity.

3 Sales Reporting & Analytics Hot Topic

4 Sales Reporting & Analytics Overview Dynamic Marketplace The combination of an increasingly complex world, the vast proliferation of data, and the pressing need to stay one step ahead of the competition has sharpened focus on using sales reporting and analytics. Organizations need to unlock info in CRM systems to help analyze pipeline and sales force productivity while shortening sales cycles. This information enables sales teams to understand performance, pursue opportunities, and accelerate pipeline with up to the minute insight. Opportunity Business intelligence-enabled sales reporting allow sales management to monitor and act on individual opportunities, more accurately forecast current and future period bookings, and understand the drivers that distinguish won vs. lost deals. Executives can use graphical dashboards to quickly access actual sales performance vs. corporate targets and sales management forecasts. Marketing users can analyze lead progression through each stage of the sales cycle to quantify the effectiveness and revenue impact of marketing efforts. Goal Effective Sales Analytics efforts will lead the development and execution of launching a formal and extensive sales reporting and analytics program aimed at transforming a sales organization into a best practices leader. Gain Insight The goal is to transform data into information, and information into insight. Carly Fiorina, HP Senior leaders wonder whether they are getting full value from the massive amounts of information they already have within their organizations. New technologies collect and present more data than ever before yet many organizations are still looking for better ways to obtain value and insights from their data while becoming marketplace leaders. Stop wondering!! Get full value from data!!

5 Positive Impact on Sales Question: What are the benefits of launching a dedicated Sales Analytics initiative? Answer: Many. EOG meetings have submissions of new, valuable KPI s resulting from this proactive reporting and analytics culture Standardize metrics and measuring parameters across entire organization Discover insights that would go unrealized without intensive reporting/analytics Replace generalizations with concrete data as data is sliced to reveal trends and purchasing triggers Identify easily top and bottom performing products/regions/managers/reps Identify pipeline shortcomings well in advance of discoveries of last-minute shortages Eliminate numerous time-consuming manual processes while freeing up resources for value-added work Ensures accuracy and consistency through standardizing reporting and analytics Allow senior company leadership to monitor the health of the business in real time Eliminate multiple versions of the truth by creating single centralized repository Empower management with fingertip access to key sales metrics and figures Prove value as educational resource used during onboarding for new employees Work with internal partners cross-functionally while providing consistent reporting and analysis Yield positive results on the P&L by reducing/eliminating excessive costs while also yielding increased revenues Guides future staffing expectations (e.g., services personnel for software company) Allows for alignment with marketing. Can launch initiatives to drive pipeline when future quarter(s) pipeline is short. Helps with employee development by determining training that might be required

6 Report Samples Managing Your Business Forecasting Pipeline Other EVP s SVP s, VP s, AVP s EVP s, SVP s Current Quarter Consolidated File Forecast Accuracy Loss Deal Analysis Weekly Variance Reporting Revenue Reporting Bookings by Composition Reporting vs Budget and Past Periods Pipeline Review / Control Book Historical Conversion Rates Deal Age Analysis Forecast Category Historical Analysis Deal Count per Region Graphing of Products/Regions/Categories Stage Reporting Large Deal Tracking Pipeline Conversion per Rep Quota Coverage Region/State Analysis Pipeline Value Factor (PVF) Reporting Executive KPI Dashboards EVP Regional Dashboards T&E and T&E Productivity T&E Scorecards by Leader/Type Rep Productivity Actual vs Budgeted Bookings P&L Reporting

7 Analytic Reporting Possibilities PIPELINE CHALLENGED DEALS a) Analyze % Commit, % BC, % Pipeline per region/product group/rep a) Slipped deals b) Pipeline with deal count and avg deal size. Show actuals as well. See who's in/out of range. b) Stuck opportunities c) Trace deals in/out of pipeline weekly -- lost, push to next qtr, etc. c) Stale opportunities (e.g., not touched/edited in a while) d) Rep pipeline trending d) Deals moved out of quarter/forecast since prior week e) Win/lost/pushed deals identified per rep e) Sales stage analysis in relation to count of days remaining in quarter and avg time per stage f) Avg duration per stage per region/product group/rep f) Get avg days to close per rep/business and compare to forecast/pipeline to see how realistic g) Changes in pipeline from week to week per rep g) Flag Commit deals for which we're not VOC yet and also that are in Engage or Discover (risk) h) Weekly new forecast/pipeline deals per rep h) Flag Best Case deals that are still in Engage or Discover (risk) i) Regionalized pipeline growth per product group j) Quarterly pipeline by rep k) Sales stage progression -- trending of movement between each stage -- velocity OTHER l) % and $ movement between stages & timing averages of each stage a) Activities (e.g., meetings, demos, etc.) (in relation to closed business) m) deal count & $'s in each stage by qtr -- volume & value b) T&E -- productivity, scorecards (by rep, by type, by month, etc.) n) Conversion rate -- volume (deals closed vs forecasted per month per region (e.g., PRO)) c) Lost deal analysis including analysis of stage/events when lost (e.g., after demo). o) Conversion rate -- value (conversion % as in bookings vs pipeline at start of month/qtr) d) R3-month pipeline p) YTD SOC and quarterly pipeline levels month view. Tie in close % assumptions/projections. e) RFP's (tie into SFDC opportunities -- win ratio as well) q) YTD SOC vs quota and pipeline coverage for remaining quota f) Discounting per product group and per rep PREDICTIVE/INTERACTIVE AD HOC a) Low, medium, high projections per rep (based on historical rates, pipeline levels, etc.) a) E.g., -- why South sales stronger than East and West b) What-if scenarios (e.g., close rate %, pipeline values, etc.) c) For rep to hit quota, need x % Commit, x % BC, x % Pipeline d) Prediction based on historical close % and pipeline levels (e.g., PRO) e) Regression for predictive purposes (historical pipeline/bookings used to predict)

8 Value of Strong Sales Analytics Program

9 Need for Analytics Beyond Reporting Data Information Insights Suzy Jones is the sales rep for 50% of our bookings forecast this quarter ($303k of the $605k) While the $605k in forecast exceeds our budget of $550k, several considerations call risk to exceeding $550k budget: 3 of Suzy s 4 forecasted deals have pushed from the forecast during the past 2 quarters The $76k average of Suzy s 4 forecasted deals significantly exceeds her $25k deal size for her average historical closed deals From a predictive perspective, when applying the reps historical conversion rates to the current snapshot of pipeline volume, a $422k bookings quarter is predicted

10 Best Practices Gap Analysis Current State Future State Current Qtr Past Qtr s Current Qtr Future Qtr s Currently, bookings reporting and investigation examines the current quarter. The focus is on maximizing bookings for the current quarter. Reactive rather than proactive approach to reporting and examining data and trends. Manual intervention and subjectivity contribute to forecasting process. Push more than pull approach to reporting, as reports and analytics are pushed onto the sales force. Best practices enables companies to: learn from past sales performance while deriving numerous valuable insights into the business. closely monitor and manage the pipeline in order to ensure that future funnel of business is healthy and plentiful Proactive rather than reactive approach to monitoring and examining the health of the business. Technology will be leveraged during the forecasting process, as manual submissions of data and information will be curtailed. Pull more than push approach to obtaining data, as personnel can pull data themselves while slicing and dicing the data however they see fit. Gap Need team responsible for launching reporting and analytics capabilities to those resembling best practices. Determine reports to regularly produce while assigning owners and deciding on distribution channel. Enhance reporting currently in place while introducing additional, value-adding analytics and reporting. Identify audience for extended reporting capabilities while determining gaps according to them. Consider whether BI tool, consisting of dashboards, analysis, and reporting aimed towards easy, agile, and robust interactive analysis, can add value.

11 T&E ROI of Sales Reporting and Analytics ROI-centric businesses focus on maximizing the lifetime value of their customers. The key is to put data in context and translate it into meaningful ley performance indicators (KPI s). Numbers need to be transformed into information and insights that can be put to immediate use instead of relying on further interpretation or leaving them to languish due to uncertainty. Returns from the efforts would be numerous, and they include: (1) Forecast Accuracy (2) T&E -- $$$$$ s Date Data-driven forecast Sales leadership forecast Monthly actual bookings Data-driven variance Sales leadership variance 7/11/ % 65% 8/9/ % 60% 9/13/ % 80% 10/10/ % 61% 11/7/ % 61% 1,600,000 1,400,000 1,200,000 1,000, , Monthly T&E Time spent on a prospect immune to sales pitch is time wasted. Improved forecasting accuracy will be appreciated by finance, marketing, legal, management, etc. Eliminates volatility swings in realized versus expected bookings PROBLEM: Need tighter controls around forecasting SOLUTION: Welcome data-driven forecasting to provide insights Almost 600k range between low month ($977k) and high month ($1.529M). Lack of compliance with T&E policies about 20% of spend is out of policy. Level of visibility into T&E spend is minimal Successful monitoring program will allow savings to directly hit bottom line!! PROBLEM: Need formal reporting program for T&E SOLUTION: SVP s will manage T&E reporting as P&L s are pushed to region level Costs of program include investing in value-add resources Returns of program include potential millions of dollars in terms of increased bookings and reduced costs. Also includes transformation to intelligent enterprise, one that uses analytics in a sophisticated manner to produce actionable insights from the flood of data available to it and whose insights lead to wise decisions.

12 Best Practices Example Question How much pipeline is required for a pipeline to be considered healthy? Usual Answer 3.0x Assume your budget for a quarter is $100. A healthy pipeline will have at least $300 in pipeline (green) A borderline pipeline will have between $200 and $300 (yellow) A risky pipeline will have less than $200 (red) Why $300 (3.0x) is the target $125 (43%) may push from the quarter to the next quarter or later $100 (33%) may lose to a competitor $75 (25%) may get won in quarter Also, $20 may get created and closed in quarter o A pipeline of >= $300 is targeted when budget is $100

13 Would You Rather.. Assume Q4 of year. D Company ABC Company XYZ D $75M pipeline $30M pipeline D $25M budget $6M budget D 2 of 8 reps already exceeded quota 7 of 8 reps already exceeded quota D 35% of pipeline in final 2 stages 75% of pipeline in final 2 stages

14 Sample Deliverables

15 72 Closed Deal Analysis 31

16 Conversion Rate Prediction Method

17 Questions? Scott Miller