calliduscloud 7 steps to simplified sales management with sma wrapper
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Sales Management ChallengesTRANSCRIPT
2014 Sales Force Productivity Conference
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15-17 September, Atlanta, Georgia
Sales Force Productivity
Conference 2014
7 Steps to Simplified Sales ManagementJennifer KlingProduct Marketing ManagerCallidusCloud
2014 Sales Force Productivity Conference
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Jennifer Kling
Product Marketing Manager
CallidusCloud
2014 Sales Force Productivity Conference
Pace of change
• 25% of goods and services shipped and sold in the last 10yrsPace of Change
Products & Services
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Pace of Change – Broadcast Media
Channel 1Channel 2Channel 3
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Pace of Change - Communications
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The pace of change is staggering.Are you keeping up?
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Sales Management Challenges
• Not enough leads or not enough quality leads
• Territories aren’t properly balanced, planning process is manual
• Reps spend too much time searching for content, responding to information requests
• Sales coaching is reactive – not proactive
• Not enough training, or too much inadequate training
• Average deal size is down, not enough cross-sell and up-sell
• Quotes and contracts take too long to prepare and approve internally
• Reps spend too much time disputing commissions
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Lead to Money – the 7 Steps
62%
Higher conversion rate
9%
More sales reps making quota
642%
Increase in revenue
Lead
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Analyst Research
75%of all inquiries will be made online by 2015
32%of brands are spending less on outbound marketing to focus on content for inbound
62%less per lead than outbound leads
Inbound leads cost
40%of reps say they need better leads
28%want to accelerate their pipelines
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Why Marketing Automation
Companies that excel at lead nurturing generate 50% more sales ready leads at 33% lower cost. (Source: Forrester Research)
Businesses that use marketing automation to nurture prospects experience a 451% increase in qualified leads. (Source: The Annuitas Group)
Companies that automate lead management see a 10% or greater increase in revenue in 6-9 months. (Source: Gartner Research)
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What’s in it for Sales?
• Daily Lead Reports in their inbox
• Alerts and notifications on lead activity in real time
• Reps can run trackable, hyper-targeted campaigns
• Integrates tightly with CRM and other sales tools
• Reps can schedule individual HTML emails with tracking
• Reps can schedule and publish posts to social media
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Persistence
Over 30% of leads are never contacted at all.
By just making a few more call attempts, sales reps can experience up to a 70% increase in contact rates.
Source: Insidesales.com
2014 Sales Force Productivity Conference
15% Increase in revenue
10% “Lost Opportunity” recovered
11% Reduced admin time dedicated to
territory management
Planning
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Territory & Quota Challenges
• The data needed to accurately value territories is either nonexistent or spread across several systems and spreadsheets
• Changes in sales teams are frequent throughout the year and adjusting is difficult and slow
• Quota setting and territory definition is cumbersome and time consuming
• Reps sit idle while territories are defined and distributed
2014 Sales Force Productivity Conference
How to Improve the Process
1. Understand your current process
2. Understand territory previous performance
3. Understand territory values
4. Create territories based on value
5. Reconcile territory plan against overall corporate goals
2014 Sales Force Productivity Conference
Simplify and Streamline Financial Planning
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Easily Allocate Products and Accounts to Territories
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How Technology Can Help
• Standardization & Automation
• Data Analysis for Decision Making
• Allocate by product, account, and/or geography
• Tracking & Monitoring Through Data Analysis
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19%Quota increase
90%Reduction in content
5hrsA week saved
90%Increase in retention
Enablement
2014 Sales Force Productivity Conference
Coaching
2014 Sales Force Productivity Conference
Challenge
• Companies lack of visibility into detailed sales performance metrics to support the sales management process
• Without complete view into performance, sales managers are unable to understand individual and team strengths and weaknesses
• Inefficient sales coaching and limited tools has led coaching to be the weakest competency of all front line sales managers
2014 Sales Force Productivity Conference
Why Coach Sales Reps?
Sales people who receive fewerthan two hours of coaching
per month achieve 90% of quota.
Sales people who receive at leastthree hours of coaching per
month achieve 107% of quota.
Sales people who receive 2-3hours of coaching per
month achieve 92% of quota.
2014 Sales Force Productivity Conference
Top Performers
Sales Rep A
Sales Development Plan: Sales Rep A
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Example
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Learning
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42% * CSO Insights, Sales Management Optimization Study 2014
Time is Money.
>10months Time to become productive for new sales hire*
% Reps who don’t make quota *
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1. Pre-Boot Camp Training
• Self-Service Product & Solution Training• Certification Testing
2. Boot Camp
• 1 Week Sales & Solution Training• Builds on Initial Training
3. Mentor Program
• AE Assigned Sr. AE Mentor• Mentor Includes in Meetings/Calls
4. Performance
Tracking
• KPI’s Tracked & Monitored• Proactive Coaching in Weak Areas
#SalesQuota
Accelerating the Time to Revenue for New Hires
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eLearning on Any Device
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Collaboration and Knowledge Source
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Challenges
• Overwhelmed by volume of marketing and sales content and their constantly changing nature
• Almost impossible for sales personnel to locate, track, and deliver these assets and provide consistent sales processes and company messaging
• Too many platforms for business users to manage – all with unique logins
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What is the impact?
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Best In Class Practices
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Example of a Best-in-Class Company
• Internal communication for prescriptive selling, SME videos, product launch, and more
• 70,000 customer Plays resulting in $255 million revenue• 260 trainings for nearly 4,000 sales reps
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Playbooks and Sell Sheets by Solution
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104%
Bigger average deal size
28%
Faster sales cycles
26%
More reps hitting quota
17%
More leads converted
Quotes & Proposals
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Quotes & Proposals Challenges
• Average deal size is too low, not enough cross-sell and upsell, too much discounting
• Approval process is manual – email, phone calls, etc.
• Reps spend too long assembling quotes and producing proposals reducing productivity. McKinsey states reps spend only 50% of their time selling
• Selection, pricing and order errors delay the sales cycle and reduce deal profitability – on average 50% of quotes have errors
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Do you hear these statements from your reps?
I struggle to match solutions to needs
I am under constant pressure to increase deal size
My spreadsheet always has old pricing
I spend too much time collating and copying
I am constantly hammered for mistakes I make
I am always waiting on someone else
I need to be more productive
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Proposals – Put your best foot forward!
• Simplify different sales types including new sales, renewals, and upgrades.
• Use automated side-by-side comparisons and product specifications.
• Highlight up-sell, cross-sell, and other opportunities to maximize deal sizes.
• Produce high-quality proposals, contracts, license agreements, and RFPs.
• Leverage approved product data and diagrams, case studies, and other content.
• Reduce excessive discounts and protect margin.
• Save time with automatically approved compliant quotes.
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CLM
73%Customer renewal rate
22%Reduced contract turn
around time
25% Shorter sales cycle
5.6%Fewer contract errors
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Contracts Challenges
• Contracts built off-line
• Sales acts as go between customer and legal
• Contracts are signed manually
• No central repository
• No ability to automatically track renewals
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Best Practices to Consider
• Gather all stakeholders
• Identify top priorities/issues
• Determine business requirements
• Outline current processes
• Outline desired process
• Streamline approval process to eliminate unnecessary steps
• Determine timelines
• Have a change management plan
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5% Reduced Compensation Spend
8-10%
Reduced Overpayments
40%Reduced Disputes
90% Reduced Shadow Accounting
1-3%Revenue Per User Increase
Incentives
2014 Sales Force Productivity Conference
Challenge
• Companies spend on average 11% of revenue on incentives and commissions
• Gartner estimates that organizations that use spreadsheets and homegrown tools to pay out commissions, overpay by 5-12% annually
• Low to no visibility to over-payments
• Complex, opaque plans lead to lost time due to disputes and shadow accounting
2014 Sales Force Productivity Conference
#1 Desired Improvement to Compensation Program
Source: World at Work & OpenSymmetry Sales performance and Technology Survey
2014 Sales Force Productivity Conference
Things to Consider
• Simplify incentives structure
• Remove layers and clauses that cause confusion
• Saves time and money
2014 Sales Force Productivity Conference
Opportunity to Modernize: Commissions
• Commissions calculation automated
• No need for separate tracking – track via mobile device
• Minimal need for review and corrections
• Eliminate over-payments
2014 Sales Force Productivity Conference
Cash is Not Always King
• Motivation beyond financial:
• Intrinsic motivation
• Extrinsic motivation
• Achievement motivation
2014 Sales Force Productivity Conference
Popular Gamification Techniques
• Leaderboard for transparency and recognition
• Rewards for incentives
• Group board for group incentives
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Summary
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Lead to Money – the 7 Steps
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Q and A
Please remember to speak intothe microphone – we’re recording!
2014 Sales Force Productivity Conference
Thank you!
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15-17 September, Atlanta, Georgia
Sales Force Productivity
Conference 2014
Jennifer Kling
Product Marketing Manager
CallidusCloud