beqom/telecom italia, presentation to e-reward conference | 12 may 2016

E-Reward Sales Compensation Conference

TIM Sales Compensation Evolution

London, May 12th 2016

Vincenzo Borrelli - Head of TIM Operational Incentives

2

What are we talking about?


Company overview

Commissioning introduction

The story of Commissioning

3

TIM is a leading Italian Telco, operating in several markets with more than 60 thousand employees Context and main figures


Italy Brazil Revenues (€)

~15 Bln € # Lines

~40 Mln # Employees

~52 k

Revenues (€)

~4,6 Bln € # Lines

~67 Mln # Employees

~13 k

2nd

Source: TIM official data (FY 2015)

1st

4

Sales commissioning activities are managed by the Sales department and are part of the channel strategy and operations Sales organization & Commissioning


Sales department

Channels strategy and operations

Sales Support Area Managers

Operational Incentives

5

An articulated set of actors interacts with the Commissioning function in order to finalize the channel & sales incentives strategy Sales Commissioning network


Operational Incentives Commercial

Planning

Sales Channels

leads

Administration, Finance &

Control

Information Technology

•  Sales objectives •  Compensation drivers

•  Finance and regulatory compliance

•  Forecasting •  Budget control

•  Data certification (compliant with audit)

•  Functionalities evolution

Input flow Output flow

•  Incentives management •  Payments communication

Sales Force

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The sales force has a complex and articulated structure, composed of different formats for stores, sales reps and telesales Sales force network


Stores

+ Sales Manager: 680

Sales reps.

D2D

Galleries- located

Other Agents

Telesales

Multibrand

Other partners Monobrand

Franchisee Owned Partner

(4G Retail)

Large distributors

67

15 11

34

2572

1331

219493

386

597

127

Wholly owned

22Sales Force network

5.620

agencies

stores

Telesales

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In order to effectively manage increasing complexity, Commissioning activities have been evolved over time through a set of improvements The TIM Commissioning story


…tomorrow

…today…

Some years ago… Complex and integrated

commissioning

Cross-channel & dynamic commissioning

Simple incentives

Enabled by beqom

Cross-compensation

Value-based

Multiple-Sales

PXQ metric

Manual calculation

Only Mobile

Fixed-Mobile

Threshold metrics

Numerous plans

Flexibility and quality

Reporting

powered by

8

powered by

Reporting

Complex and integrated commissioning


Simple incentives

Cross-compensation

Value-based

Multiple-Sales

Fixed-Mobile

Threshold metrics

Numerous plans


Some years ago…


…tomorrow

…today…

PXQ metric

Manual calculation Enabled by beqom

Only Mobile

9

At the early stage, Commissioning was managed by manually applying simple metrics Simple incentives


PxQ payment Only Mobile Manual calculation

Basic sales metric, «I pay for what you sell»

Sales channels focused on Mobile services

Calculations and payments manually managed

10

powered by

Reporting



Simple incentives

Cross-compensation

Value-based

Multiple-Sales

PXQ metric


…tomorrow

Some years ago…


Only Mobile

Fixed-Mobile

Threshold metrics

Numerous plans


…today…

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Aiming at managing the increasing complexity, TIM powered up the integration with beqom capabilities beqom capabilities


First capabilities implemented by Reporting & Monitoring: tracking of all rules and modifications to

compensation criteria to increase the Reporting & Monitoring’s perimeter

Collaboration: centralized source of information about consumer incentives and sharing of the folders to improve collaboration of the team

Advanced calculations: automated and simultaneous rules in order to effectively manage the increasing complexity

Flexibility: approach based on customized indicators requiring frequent configuration

BUSINESS REQUISITE CUSTOMIZATION SIMULATION OVERLAP GO LIVE

M1 M2 M3 M4 M5 M6 M7 M8 M9 Integration Timeline

9 months project

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Today's Commissioning manages a wide set of incentive plans, with sophisticated metrics and certified data Complex and integrated commissioning


Stores Sales Reps Telesales

Contractual PXQ

Extra-bonus / thresholds

Sell-in

ü > 100 incentives plans managed on bimonthly basis, by monitoring several metrics, among which:

•  number of acquisitions •  quality (e.g. instant

churn) & customer value

Certified data granted by IT systems

Reduced manual errors

Evolutions granted by indicators and recurring IT releases

ü

ü

Results and benefits In

cent

ives

Channels

Incentive categories for each channel

üSales Manager

F

M

Fixed services

Mobile services

F M

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Simple incentives

PXQ metric

Fixed-Mobile

Threshold metrics

Numerous plans



Today

Some years ago…


Only Mobile

Cross-compensation

Value-based

Multiple-Sales

Reporting

…tomorrow

powered by

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The future evolutions will embrace new sales dynamics, aiming at encouraging channels collaboration and the customer value Cross-channel and dynamic commissioning


Optimize Sales process and incentives

Maximize customer lifetime value

Boost Overall Sales Performance

Future evolutions Key benefits

Shared compensation

Multiple-Sales

Value-based

Incentives aggregation

!  Incentive distributed to all the channels participating to the selling process

! Bonus granted to channels which closed an articulated sale

!  Incentives calculated on the basis of a unique and cross-channel set of plans

! Bonus for channels which fully maximize the customer potential

powered by

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Evolution of reporting activities requires the effective communication of results to our Sales Partners Reporting evolution


Salesforce Communication Portal

Compensation Plan

Assignment

Overall Sales Performance of the period

Metrics for each sales operation

Historical Trend & Results Projection

!  Improve full monitoring of sales peformance

!  Maximize compensation transparency toward saleforce

!  Increase salesforce committment

Key benefits

Thank you Vincenzo Borrelli - Head of TIM Operational Incentives For further information: [email protected]

beqom/telecom italia, presentation to e-reward conference | 12 may 2016

Business