7 steps to simplified sales management

2014 Sales Force Productivity Conference

15-17 September, Atlanta, Georgia

Sales Force Productivity

Conference 2014

7 Steps to Simplified Sales

Management

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Jennifer Kling

Product Marketing Manager

CallidusCloud


Jennifer Kling


CallidusCloud

[email protected]

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Pace of change

• 25% of goods and services shipped and sold in the last 10yrsPace of Change

Products & Services


Pace of Change – Broadcast Media

Channel 1Channel 2Channel 3


Pace of Change - Communications


The pace of change is staggering.

Are you keeping up?


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

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62%

Higher conversion rate

9%

More sales reps making quota

642%

Increase in revenue

Lead


Analyst Research

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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


Why Marketing Automation

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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)


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

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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


15%

Increase in revenue

10%

“Lost Opportunity” recovered

11%

Reduced admin time dedicated to

territory management

Planning


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

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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


Simplify and Streamline Financial Planning


Easily Allocate Products and Accounts to Territories


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

5hrs

A week saved

90%

Increase in retention

Enablement


Coaching


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


Why Coach Sales Reps?

Sales people who receive fewer

than two hours of coaching

per month achieve 90% of quota.

Sales people who receive at least

three hours of coaching per

month achieve 107% of quota.

Sales people who receive 2-3

hours of coaching per

month achieve 92% of quota.


Top Performers

Sales Rep A

Sales Development Plan: Sales Rep A


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 *


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


eLearning on Any Device


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


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


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


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


#1 Desired Improvement to Compensation Program

Source: World at Work & OpenSymmetry Sales performance and Technology Survey


Things to Consider

• Simplify incentives structure

• Remove layers and clauses that cause confusion

• Saves time and money


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


Cash is Not Always King

• Motivation beyond financial:

• Intrinsic motivation

• Extrinsic motivation

• Achievement motivation


Popular Gamification Techniques

• Leaderboard for transparency and recognition

• Rewards for incentives

• Group board for group incentives


Summary

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Lead to Money – the 7 Steps

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Q and A

Please remember to speak into

the microphone – we’re recording!

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Thank you!

15-17 September, Atlanta, Georgia

Sales Force Productivity

Conference 2014

54

Jennifer Kling


CallidusCloud

[email protected]

7 steps to simplified sales management

Documents