how best-in-class sales leaders create better forecasts and increase revenue

HOW BEST-IN-CLASS SALES LEADERS CREATE BETTER

FORECASTS AND INCREASE REVENUE

July 17, 2014

Enterprise-caliber Cloud BI

2

FEATURED SPEAKERS

Peter OstrowVP and Research Group Director; Customer Management, Sales EffectivenessAberdeen

Farnaz ErfanDirector, Product StrategyBirst

3

WEBINAR NOTES

Please send questionsusing the online interface

Attendees muted upon entry

4

AGENDA

• How Best-in-Class Sales Leaders Use Analytics to Turn Better Forecasts into Increased Revenue

• Why Birst for Sales Analytics?

• Q & A

CHASING THE CRYSTAL BALL

How Best-in-Class Sales Leaders Use Analytics to Turn Better

Forecasts into Increased Revenue

6

Takeaways

Sales effectiveness requires more than rip-and-replace

Willie Nelson was right all along

Learn from your cookies

Would a Vulcan make a good B2B salesperson?

Don’t forget the ketchup

7

Why we are here today

8

Why we are here today

9

What's keeping usawake at night?

10

What's keeping usawake at night?

11

Too often, the sales problemis a forecasting problem

12

Too often, the sales problemis a forecasting problem

44%

36% 35% 34%

23%

15%

0%

10%

20%

30%

40%

50%

Insufficientdata on

current dealsin the pipe

enteredby reps

Over-confidence,

“sand-bagging”

Lack ofmanager

enforcementof rep

data entry

Lack ofreps'

accountability

Inability tounderstandprobability

deals toclose

Inability toweight dealsby historicalperformance

Perc

enta

ge o

f res

pond

ents

n = 144

All companies

13

Too often, the sales problemis a forecasting problem

14

Too often, the sales problemis a forecasting problem

15

Can't we fix the forecast withbetter CRM adoption?

16

Can't we fix the forecast withbetter CRM adoption?

17

This is notsales enablement

18

CPQ

eSignature

Intelligence

Social

MobilePortals

Analytics

SPM

Gamification

Enablement

CRM cannot stand alone

19

Enter the data scientists

20

Best-in-Class Performance:Where do You Fit?

Definition of Maturity Class

Mean Class Performance 

Best-in-Class: Top 20%

of aggregate performance scorers

94% of customer retention rate 13.2% year-over-year growth in average net client

value; 75% showed improvement 11.6% year-over-year improvement in team

attainment of sales quota; 69% showed improvement

Industry Average: Middle 50% of aggregate

performance scorers

81% of customer retention rate 1.0% year-over-year growth in average net client

value; 23% showed improvement 0.3% year-over-year improvement in team

attainment of sales quota; 26% showed improvement

Laggard: Bottom 30% of aggregate

performance scorers

19% of customer retention rate 1.9 % year-over-year decrease in average net

client value; 8% showed improvement 0.7% year-over-year decrease in team attainment

of sales quota; 20% showed improvement

BlankblankBlankblankBlankblank

21

Early adoption = smarter selling

88%

61%

41%

22%

77%

59%

38%

14%10%

30%

50%

70%

90%

Customerretention

Repsachieving

quota

Leadacceptance

rate

Leadconversion

rate

Perc

enta

ge o

f Att

ainm

ent

n = 261

Data analytics applied to deal velocity All others

22

Aren't these tools just for geeked-out managers?

64%

56%

48%47%52%

38%

30%

40%

50%

60%

70%

Employees with need,desire for analyticalfunctionality, with

access to BI

Employees usinganalytics in a self-

service capacity

Users engaged withanalytical tools ona weekly or more

frequent basis

Perc

enta

ge o

f Res

pond

ents

n = 83

Leaders Followers

23

…Not if you can achieve results like these

60% 60%56%

44%

38%

47%

30%

40%

50%

60%

Speed ofdecision-making

Trust inunderlying

data

Reduction inresponse time

to customerrequests / inquiries

Perc

enta

ge i

ndic

atin

g 4/

5 on

1-5

sc

ale

n = 83

Leaders Followers

24

How does this stuff work?

25

How does this stuff work?

26

How does this stuff work?

27

What should I be doing?

28

Does forecasting accuracy matter?

47%

59%

74%

85%93%

43%52%

58%

71%

82%

38%

51%55%

67%70%

25%

40%

55%

70%

85%

100%

180 days 90 days 60 days 30 days Immediatelyprior

Accu

racy

of S

ales

For

ecas

t

n = 139

Best-in-Class Industry Average Laggard

29

What benefits will a moreaccurate forecast accrue?

61% 61%

45%

33%

46%42%

33%28%

45%

25%22% 21%

10%

20%

30%

40%

50%

60%

70%

Using forecastingprocess

to add extra resourcesto deals most likely

to close

Understanding whichopportunities are most/

least likely to close

Using forecasting process

to “walk away” from deals

least likely to close

Using forecastingprocess to identify

potential “nodecisions”

Perc

ent i

ndic

atin

g 4/

5 on

a 1

-5 s

cale

n = 139

Best-in-Class Industry Average Laggard

30

What benefits will a moreaccurate forecast accrue?

83% 78%

55%50%

59%

40%32%

25%

10%

30%

50%

70%

90%

Understandingcustomers'

businesschallenges

Retaining topsales talent

Sales forecastperceived as

accurate/trustworthy

by sr. management,entire company

Sales leaders useforecasting process

to coach reps

Perc

ent i

ndic

atin

g 4/

5 on

a 1

-5

scal

e

n = 139

Best-in-Class All others

31

What should I be doing?

39%

56%

6%

17%

60%

22%

0%

15%

30%

45%

60%

On-demand, alwaysavailable in real-time;

no need to actually“publish” a forecast

Daily tomonthly

Quarterlyor less often

Perc

enta

ge o

f Res

pond

ents

n = 139

Best-in-Class All others

32

Never forget who's in charge

33

What's in YOUR pipeline?

13%

38%31%

7%

22%

36%

0%

10%

20%

30%

40%

50%

We are a dominant providerin our market and have

achieved full penetration ofalmost all our accounts

We have very strongpenetration

in most of our accounts butcould still benefit from

additional up-sell or cross-sellrevenue

We have reasonable accountpenetration but are definitely“leaving money on the table”

Perc

enta

ge o

f Res

pond

ents

n = 104

Best-in-Class All Others

34

Don't be that guy.

35

Don't be that guy.

36

What about mobility?

37

Are we consumingor creating?

180

22%27%

8%14%

24%28%

34%

17%

9% 7%

30%

50%

11%6%

0%0%

10%

20%

30%

40%

50%

Remote salesactivity=content

consumption, i.e.seeing but rarely/never changing/

entering data

Occasionally manipulatesdata on prospects/

customers/proposalsremotely, mostlywaits for full lap/

desktop to change/enter data

Remote sellersequally “see”and “do” on

remotedevices

Frequently manipulatesdata on prospects/

customers/proposalsremotely, still

reserves activityfor office/home

Location/device isirrelevant; reps canperform virtuall/all

work via tabletor smartphone

Perc

enta

ge o

f Res

pond

ents

n = 246

Best-in-Class Industry Average Laggard

38

Takeaways

Sales effectiveness requires more than rip-and-replace

Willie Nelson was right all along

Learn from your cookies

Would a Vulcan make a good B2B salesperson?

Don’t forget the ketchup

THANK YOU

For more information on this and other topics, please visit aberdeen.com

Peter.ostrow@aberdeen.com

https://twitter.com/#!/peterostrow

http://www.linkedin.com/in/ostrowpeter/

WHY BIRST FORSALES ANALYTICS?

Enterprise-caliber Cloud BI

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ADVANCED ANALYTICS FOR BEST-IN-CLASS SALES LEADERS

• Pipeline Growth & Velocity

• Sales Performance & Win Rates

• Sales Forecasting & Predictions– E.g. Likelihood of deals that would close

• Exception Alerts– E.g. Deals that exceeded benchmarks for

x many days

– Missed step in the sales process

– A stage 5 deal that is missing a contract

– Opportunities without NDAs

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IN-APP EXPERIENCE, EMBEDDING ANALYTICS INSIDE SALESFORCE

• Higher adoption

• Better user experience

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ACCESS TO ANY INFORMATION, FOR ALL USERS• Complete view of customer

– Data from ….

– E.g. Leads generated from social media vs. sales-outbound

• Analytics on mobile for traveling sales reps

• All users, one data!

– Others who are not Salesforce users

– E.g. Members of Finance, Operations, Support, Partners, etc. without a SFDC user license

& more…

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Data Sources

BUILD A DATA-DRIVEN SALES ORGANIZATION

Challenges

– Outlook: forecast, quota, actual, predicated performance on 800+ sales reps

– Sales and product combined reporting and analytics

– Team performance on constantly changing territories

Results

– Sales performance ranking of reps, teams and regions on monthly, quarterly, and yearly basis – not possible within Salesforce

– 800 sales professionals | 1 forecast

– Sales management: saved ½ day a week

– TTV: 83 days

Why Birst?

– Multi-source analysis across Salesforce (sales data), SQL Server and Cognos TM1 (product data)

– Automatic detection of changing dimensions such as changing territories

– Pixel-perfect reporting with security rules already defined in Salesforce

“Earlier at D&B, we tried to build exec-level dashboards and we never achieved this success.”

Ted Mastalski

Leader of Global Solutions

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Data Sources

WIN CUSTOMERS BY PERSONALIZING PRODUCT RECOMMENDATION

Challenges

– Identifying growth opportunities with existing clients

– Empowering advisors to manage their businesses effectively

– Large volumes of historic data, but no insight

Results

– Predictive analytics to identify hidden opportunities. E.g. client with $2M in assets and no retirement plan

– 2500 financial advisors using Birst make data-driven product recommendations to sell the right products to the right clients

– Brokers with Birst gathered 2X more assets than other brokers

Why Birst?

– Speed of Deployment

– Ease of use

– Scalability

Commission DataBack Office

Operational Data

“Advisors using the tool are bringing in new assets at twice the rate of those who are not using it.”

Catie Tobin

Head of Business Development

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Data Sources

MASTER LEAD-TO-CASH TO DRIVE PROFITABILITY

Challenges

– Drive profitability by converting leads / trials faster

– Increase sales rep productivity

– Get faster insights to pipeline than manual reporting

Results

– Real time pipeline analysis – understanding usage, frequency and completed activities of trial accounts

– Reduce sales cycles

– Increase deal close rate

Why Birst?

– To go live quickly with a cloud deployment

– Self-service dashboards & mobile access

– Lead-to-cash across Marketo, Salesforce & Netsuite

– Customer-focused culture of Birst

“When we looked at the ease with which various BI solutions allow business users to construct, maintain, and add new sources to a data model, Birst blew everything else out of the water.”

Monique Herman

VP Business Operations

(Future)

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Data Sources

IDENTIFY TOP SALES MANAGERS TO RAPIDLY GROW A BUSINESS

Challenges

– Grow sales org rapidly by identifying top performing sales managers who can train new reps

– Understand customer lifetime value to determine where to focus marketing and sales efforts

– Quickly resolve pipeline bottlenecks

Results

– Analysis of best market segments & customers who would buy multiple time vs. once

– Pipeline analysis to understand whether bottlenecks are customer, product, rep or region related

– Revenue growth: 83%

– TTV: 39 days

Why Birst?

– Salesforce solution accelerator

– Analytic snapshots on Salesforce

“For about the same amount of time we were idle with the previous analytic tool, we found ourselves actually up and running with Birst”

Lori BushPresident & CEO

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Q&A

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LEARN MORE

• Download 2014 WOC Report

– Birst.com/wisdom2014

• Join us for a Live Demo

– Every Tues and Thurs @ 11:00 am PT/2:00 pm ET

– birst.com/livedemo

• Contact us

– info@birst.com

– (866) 940-1496 (or +1 415-766-4800)

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THANKS