Lead to Money: Aligning Finance with Sales and Marketing Processes

Transcription

1 #LeadToMoney Sales Management Association Webcast Lead to Money: Aligning Finance with Sales and Marketing Processes 13 February 2014 Presented by Copyright 2014 The Sales Management Association.

2 About The Sales Management Association A global, cross-industry professional association for sales operations and sales management. Focused in providing research, case studies, training, peer networking, and professional development to our membership. Fostering a community of thought-leaders, service providers, academics, and practitioners. Learn More: The Sales Management Association. All rights reserved. Slide 2

3 Today s Panelists #LeadToMoney 2014 The Sales Management Association. All rights reserved. Slide 3

4 #LeadToMoney Sales Management Association Webcast Lead to Money: Aligning Finance with Sales and Marketing Processes 13 February 2014 Presented by Copyright 2014 The Sales Management Association.

5 About Deloitte s Customer Transformation Practice Customer Transformation Framework Deloitte provides the following cross-functional capabilities as part of its Customer Transformation Market Offering: Functional: Sales Transformation Developing go to market models with the right mix of channels to acquire customers more effectively through the selling process Marketing Transformation Increasing brand value, maximizing return on marketing investments, and improving the performance of marketing organizations Customer Service Transformation Defining the right service capabilities to drive profitable growth while increasing the effectiveness of the service management process Foundational: Customer Experience Delivering a consistent brand promise across touch points that enables more value to be gained from customer relationships Customer Insights & Analytics Developing a more heightened understanding of customers to better focus resources and improve return on investment Recognition Deloitte is recognized as a thought leader in the Customer Transformation space. Industry analysts continually rank Deloitte among the top consulting firms year over year. Kennedy: #1 Global and Management Consulting Gartner: #1 Consulting Services Worldwide Kennedy and Gartner: #1 Customer Transformation Forrester: #1 Business Technology Transformation

6 Sales Transformation Framework #LeadtoMoney Descriptions External Forces: Five sets of external forces can affect an organization s sales transformation efforts: the market landscape, competitive pressures, customer needs and expectations, technology, and product lifecycles Go-to-Market Strategy: The strategy to direct and organize sales and channel resources to deliver a unique value proposition to the market Partner & Channel Management: The policies, processes, and systems used to establish and manage relationships with distribution partners and channels Sales Process and Execution: The processes and tools used to plan, optimize, and penetrate target customer segments People: The strategies and programs used to plan, develop measure, and reward the sales organization Enabling Technology Infrastructure: The provision of tools to support and enable sales execution; and the enablement of the sales organization through effective management of technology, data, reporting, and pay Sales Adoption: The discipline of continuous improvement achieved by an organization s ability to align leadership and initiative, engage employees and customers, reinforce values collaboration, and manage outcomes Impacts: Effective sales transformation efforts bring tangible benefits, including growth and profitability, improved market share, productivity and differentiation, and sustained performance

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8 Aligning Goals from Lead to Money #LeadtoMoney

9 Marketing Alignment #LeadtoMoney Automating lead management can increase revenue by 10% in an little as 6 months.

10 The Lead Management Process #LeadtoMoney The steps below are representative of the basic components of a lead management process and depict the sequence of events that occurs to take a lead from origination to close. Illustrative Lead Management Framework Identify Campaign ID Identify relevant campaign ID Input campaign ID into lead management system Lead Capture Lead Qualification Lead Close or Follow-Up Lead Progress Tracking Lead Analysis Reporting Distribute lead to appropriate channel if not marketing driven sales lead Capture the lead Input and store the lead Define qualification rules Grade the lead Gather customer demographics and information to input into system Identify lead opportunity and associated product(s) Capture all information gathered during sales cycle Assign lead for follow-up or reject lead Input lead follow-up date and reminder Prioritize the lead based on potential Monitor and track the lead through stages of the sales cycle Alert when lead is not followed-up with Re-engage with lead to convert to business or close out of system Measure and pull analytics on the lead Segment leads based channel, campaign ID, product, conversion time, etc.

11 Properly enabled sales teams can achieve 5 hours of productivity back a week.

12 Sales Executives on Sales Performance #LeadtoMoney Based upon reviews of sales performance and surveys of senior sales executives, there is a high level of dissatisfaction with the ways in which their sales managers do their jobs and the general levels of productivity sales managers are getting out of their reps. 67% Sales teams falling short of goals 2 What sales execs are saying: 43% Sales managers aren t leveraging processes and tools to support their salespeople 1 43% Sales managers are satisfied with their sales force s productivity 2 13% Level of sales skills and techniques retained without follow-up sales management reinforcement and coaching 1 1. Economist Intelligence Unit survey of senior sales executives in Developing an Effective Sales Process for the Enterprise. 1. Deloitte Strategic Sales Compensation Survey

13 Enablement Success Story: Leading Life Sciences Organization #LeadtoMoney Situation Major Life Sciences company conducted a survey among sales reps to better understand where they spend their time, the success of coaching efforts are and what additional training is needed On average reps were coached 13 hours a month, significantly above the best in class average, yet there was a fairly low manager impact on sales success Solution A closer look at sales coaching practices found that the overall quality of the coaching being done by sales managers was well below average Sales Managers needed to shift focus to coaching techniques that were tailored to the individual, providing real time feedback after sales calls, coaching reps based on actionable metrics and setting realistic and attainable goals Training was put into place that coached the coaches on how to use their mentorship time effectively through metrics and individualized techniques Results 102% rep attainment to goal on average for highly effective coaches versus ineffective coaches seeing only 83% rep attainment to goal. Improvement in coaching quality as opposed to quantity significantly increases sales rep attainment to their individual goals Reps with strong coaches were 70% more likely to STAY with the company than those with weak coaches who were 63% more likely to LEAVE; this held true across the entire performance spectrum

14 Quoting Automation: A Game Changing Capability Quoting automation is a critical part of enabling the sales force, optimizing profits, and improving customer engagement. Sales Rep Enablement Productivity Opportunity Management & Automation Basic Tracking & Reporting CPQ Enablement Increased Revenue Increased Quota Attainment Increased Lead Conversions Increased Deal Size Customer Engagement Optimized Profits Improved pricing capability Reduction in pricing and order errors Better product mix and cross-sell Improve quote turnaround time Improved pricing capability Reduction in pricing and order errors Better product mix and cross-sell Improve quote turnaround time

15 Finance plays a key role in sales capacity planning properly optimized territories can increase revenue by 5%.

16 Territory Planning Maturity Assessment #LeadtoMoney Organizations will fall in one of the four levels of maturity defined below. Identifying the current state and gaps is a critical first step to moving up the maturity curve. Territory Management Levels of Maturity Obsolete Standard Best Leading Ineffective manual processes, poor data quality, high error rates, and little governance. Awareness of large gaps with some pockets of effectiveness and improvement efforts. Automated and effective processes, reliable and accurate data, with KPIs and controls in place. Innovative and business enabling processes with enterprise data and best in class systems in use Territory Management Considerations Process Data System Effectiveness Standardization Documentation Governance Compliance Quality Accessibility Standardization Governance Usability Scalability Supportability Architecture

17 Sales ops ensures productivity and performance streamlined processes and tools can give 5 hours of productivity back to reps a week.

18 Quota & Propose Myths #LeadtoMoney Myth #1 The Q2O process is a back office func<on with minimal customer impact Reality The Q2O process is a cri<cal customer touch point, especially with new business models and the consumerism of IT (i.e. every decision maker is a consumer). Myth #2 The Quote to Order process is a standard, rou<ne back office func<on Reality The complexity of sales arrangements and deals, the growth of global opera<ons and the focus on customer responsiveness it forcing customers to view the Q2O process as a compe<<ve advantage.

19 A Disconnect Between Sales Reps And The C-Suite More than 50% of the organizations believe compensation / incentive management programs have an impact on the sales behavior of the organization. Yet many organizations continue to manage / administer their compensation programs, territories, and channels in spreadsheets and ineffective inbuilt solutions. Do not Know, 19.50% Consistently Drives Precise Selling Behavior, 4.90% Minimal Impact on Selling Behavior, 24.40% Generally Drives Precise Selling Behavior, 51.20% Source: CSO Insights: 2012 Sales Compensation and Performance study

20 ...And It s Normally A Very Inefficient Process #LeadtoMoney Only 40% of the organizations believe that their error rate in variable compensation payments is less than 3%. Almost 20% of the organization are not even aware about the inaccuracies in their variable payments. ü Organizations continue to lose significant amounts in overpayments without realizing the consequences and financial impact ü Inaccuracies in incentive payments leads to sales rep leads to disputes / double accounting and despair leading to disengagement on sales rep Do not Know, 20% <1%, 27.50% >8%, 17.50% 1-2%, 15.00% 6-8%, 5.00% 3-5%, 15.00% Source: CSO Insights: 2012 Sales Compensation and Performance study

21 Disconnect is high, hence the opportunity is high According to Deloitte s 2013 Strategic Sales Compensation Survey, many sales executives feel that their sales compensation management programs limit their ability to execute business strategies. Sales Satisfaction levels are low ü Over 50% of Sales Execs were unhappy with sales productivity over the last 6 years ü More than half of the respondents were dissatisfied with thier Compensation Programs Levels of Satisfaction: Sales Productivity Plan review cycles are frequent ü More than half of the oragnizations review comp plans on at least an annual basis ü Frequent changes to comp plans indicates that sales leaders are continually searching for the right incentives to drive desired behavior Frequency of comp plan review Disconnect between Company stratgey and sales objectives ü 45% of the execs are falling short of the goals ü Sales stratgies are neither aligned nor well defined for sales reps ü Company strategy needs to be realigned

22 5 Keynotes 50+ Breakout Sessions Attendees Speakers from Xirrus, RagingWire, ntelos, Juniper Networks, HealthNet, Cree Aberdeen, Forrester, Gartner caldc3.com #caldc3

23 Questions and Discussion Enter your questions in the Questions box on the right hand side of the webinar application window. Did we run out of time before we got to your question? Presenters can follow-up with you via . Feel free to submit more questions if you d like an offline response. #LeadToMoney 2014 The Sales Management Association. All rights reserved. Slide 23

24 Thank You. Copyright 2014 The Sales Management Association