Philip Bourne May 6 th, 2010 Chairman -CEdMA

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1 Company LOGO Maximising Sales Channel Performance A Practical guide to improving performance of internal and external sales channels Philip Bourne May 6 th, 2010 Chairman -CEdMA

2 Know your level of involvement Your role, your responsibility? Your budget / ownership responsibility? Your level / sphere of influence? Your accountability?

3 ( Individual Exercise ) #1 Role Responsibility Budget ownership level Sphere of influence Accountability Training Manager; Sales Manager, Marketing Manager Software product training; maximising market coverage, P&L; revenue; bookings; NPS Direct Training staff sales; Product sales allocation fees; Sales management; SPIFFs; QBRs Account Management planning Full ownership or budget sponsor 1. Take 5 minutes 2. Assess your personal level of involvement or pair up 3. Complete the 5 sections

4 Be clear on the sales channels available to you... Enterprise Account Managers Product sales specialists Territory Account Managers Inside sales Global Services Education sales Education Customer Care Sales Engineers Direct Channels Marketing Take a clear view on the role of marketing Partner Account Managers Resellers Distributors Alliance Partners Education Partners Training Resellers Service Partners VARs Indirect Channels

5 And recommended Sales Approach by channel Each offering type targeted to specific direct sales profile Training Passport or equivalent Enterprise Sales/Trng.sales Consultative Sale Executive Target Large Enterprise Training Courses Inside Sales Reps/Trng.sales Transactional Sale Technical Target Good for Midmarket/SMB E-Learning No Touch/Inside Sales / SMB Easy Purchase Decision Requires no/little sales involvement Suitable for all markets * Drive new sales behaviour - quota / incentive to sell to RTM requirements and value of attaching to product / customer type

6 To drive sales performance what part should Marketing play? Technical Support Calls Lead generation Awareness Leverage Product Marketing Assessment Tool Validation Qualified Leads

7 Including how to engage & drive sales traction Communicate & Engage Plan & Monitor Sales tools Sales operations Incentives QBR Quota allocation Sales cadence Enablement Account Planning

8 Take full advantage of all enablement & sales tools environments Value Value to Sales = NPS & minimised post sales activity Playbooks Cheat sheets Quotation Tools Training Alignment Product / Solution campaigns Key Initiatives

9 Incentives & Quota Allocation linkage Align to key initiatives Incentives Steer clear of competitive incentives Quota allocation Lock in during fiscal planning phase Plan Code Plan Type Geo Pay Mix Element Weighting Element 1 Accl 1 Element 2 Accl 2 PRODUCT SALES - ALL 60/40 75/25 Product Bookings as 4Education Bookings 2 Sales Plan #1 Specialists designated on individual plan detail Know who in the organisation has Education Quota

10 Account planning & QBR Account Planning Customer Business Assessment Technology and relationship selling schedule Sales Cadence Pipeline & DeRISCC reviews Distributed selling ( non hockey stick ) QBR Customer all channels access review Corrective action planning Key initiative / campaign alignment

11 DeRISCC Improved sales performance and efficiency by linking OM with DeRISCC De R I S C C Decision Criteria (and Compelling Event) o What is the business pain, what is the reason for customer s investment? o What are their formal and informal decision criteria? ROI (Unique Business Value) o The valid business reason why the customer will invest in our solution. o Is there a defined value proposition, linked to a compelling event? Implication (of not buying) o What is the cost/business pain to the customer of not investing? o What is the result of no action? Sign-off Process (Milestones in Buying Process) o Is there budget? o What are the steps involved in the customer s buying process? Competitive Strategy o Is there a competitor? o If so, what is our strategy against them? Champion (Inside Support) o Who are the key contacts? Do we have a champion? o What are the politics of the deal Inside support, executive credibility, political alignment?

12 Sales operations 1. Attachable / Penetrable Deals: Deals with >$50k product or consulting (as appropriate) 2. Active Attach / Penetration: Live deals between 50% and 90% (inc) Live snapshot at date 3. Closed Attach / Penetration: Closed won deals at 100% Total within specified time period 4. Attach Rate: No. deals as % or count of the total no. of addressable deals Line item on same opportunity Plays a major role in assessing & steering improved sales performance 5. Penetration Rate: US$ value as % of total addressable market US$ values based on attach (above - line item on same opportunity)

13 Booking & Revenue ($K ) Managing Indirect Channels sales performance > $500k pa 50/ 50 > $100k pa 60 / 40 > $50k pa 70 /30 Emerging Growth Mature Legend: OTM = Other Training methods ILT = Instructor Led Training 80 / 10 refers to OT/ILT Management: Emerging = Low opps; align to product sales Growth = Medium opps; align to specialist sales Mature = Solid opps; align to Education group * Support as per Direct Channels 13

14 (Group ) Exercise #2 Sales Channels Product sales Telesales Distributor Training Products to be Training Credits Public courses WBT sold Custom courses WBT Sales method Consultative Value $50k+ Transactional Value up to $30K Target market Enterprise Accounts SMB Leveraged channel partners Market involvement Awareness Support call follow up Influential & partner account management $1K - $5K Resellers Sales Enablement Playbook Focussed training sessions Cheat sheets Quotation Tools SKU product offering drop downs None Quota 2 out of 3 bucket accelerator No quota relief Value NPS +7 CSAT improvement Improved product adoption Consolidates solution sell Security Product campaign alignment Incentives SPIFF $1K for Q attainment $50K security products Account Planning All Enterprise Accounts Top 2 accounts per sales rep Quarterly Business Top 100 accounts reviews Sales Cadence Top Deal attach reviews Monthly distributed selling Pipeline x 3 DeRISCC Sales Operations management Attach rate 1. Take the work done from individual exercise #1 2. Align with attendees with similar roles ( Sales, Marketing, Training Managers ) 3. Discuss & complete your channel offerings & mode of selling 4. Select one as the group model

15 Thanks Thank You...

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