the sales structure webinar: what should next year's org chart look like

Welcome to today’s session….

October 13, 2011

“Sales Resource Planning – What Should Next Year’s Org

Chart Look Like”

Logistics for today’s call….All attendee’s will be on “silent” mode during

the presentation.Please utilize the “Questions” feature to ask

questions; simply type in your question and press enter.

At the conclusion of the presentation, the moderator will facilitate the “Question & Answer” session utilizing the “Questions” feature.

Send a copy of the presentation to youAdditional questions can be sent directly to:

John.Staples@salesbenchmarkindex.com

Selling Methodologies – Have you accommodated recent changes in your buyer’s behavior?Thursday, November 10th , 20111:00 p.m. Central30 minutesRegister at www.salesbenchmarkindex.com

Sales Benchmark Index will….

Join us for our next Webinar….

John StaplesToday’s Guest…..

Principal at SBIPrior to SBI, held Executive

Leadership positions at NeuStar, Telcordia Technologies, Fluor Corp and CCC Network Systems

Industry thought leader with more than 25 years of business experience, including B-to-B field sales, sales management, and sales operations

Overview Goal Questions you need to answer Structure Models Territory Potential Selling Capacity – Market Demands Inside and/or Key Accounts Time Study Shift & Lift Results / benefit Takeaway actions

Back

Structure goal

Align the level of effort, time and cost to the best opportunities

Sales Structure questions

1. Have you performed a territory potential analysis?

2. Have you matched selling capacity to market demand?

3. Should you be leveraging inside sales or a key account program?

4. When was the last time you performed a sales resource time study?

5. Are your sales roles and responsibilities corrupted?

Back

Structure OptionsTop 1%

Develop

Long Tail

Securities &

Investing

Institutional

Private Mkts

Banking & Credit

Consumer

Investment

Accounting &

Consulting

Strategic

Boutique

Big 5 Acct

Firms

Advertising & Comm

Agencies

PR Firms

Govt

Pharma

Commercial

Tier Geography

Industry/Market

Algo Investment Banker

Venture Source

Newswires FX Factiva

PRCC WatchlistAnti

Corruption

Activity

Hunter

Farmer

ProductBuying Roles

VP Corp Comm

Dir Complianc

e

VP Global FX

Mkt Data Dir

VP Trading

Dir PR

Hybrid

Territory Potential

Potential / Segmentation

Revenue Segment % Revenue Customers Segment % Customers8,813,592,941 A (>20M) 66% 446 A (>20M) 10%2,173,612,147 B (5-20M) 16% 466 B (5-20M) 11%1,016,232,974 C (2-5M) 8% 606 C (2-5M) 14%1,342,112,767 D (<2M) 10% 2,808 D (<2M) 65%

13,345,550,829 Total 4,326

Segment Accounts by revenue contribution or potential

Opportunity to introduce a Key Account Program and Inside Sales?

Selling Capacity – Market DemandData Input fieldsCalculated fields

DeltaA B C Total Direct (A, B, C) Inside (D) Total

Number of Customers 322 791 1,362 2,475 773 1,809 2,581 106 Total Revenue 4,532 5,833 2,587 12,951 12,486 1,433 13,919 968 Total Reps 19 11 25 55 34 12 46 (9)

Total Hours per Rep 2,000 2,000 2,000 2,000 2,000% Selling Time 40% 40% 40% 70% 70%Selling Hours per Rep 800 800 800 1,400 1,400Total Selling Hours 15,200 8,800 20,000 44,000 47,600 16,800 64,400 20,400 Non-Selling Hours per Rep 1,200 1,200 1,200 600 600Total Non-Selling Hours 22,800 13,200 30,000 66,000 20,400 7,200 27,600 (38,400)

Customers per Rep 16.9 71.9 54.5 45.0 23.3 155.6 56.1 11 Revenue per Rep 239 530 103 235 367 119 303 67 Hours per Account 47.2 11.1 14.7 17.8 60.1 9.0 - Hours per Touch 4.0 4.0 4.0 4.0 2.7 0.8 4.0 Touches per Account 11.8 2.8 3.7 4.4 22.5 12.0 -

Total Cost 3,160$ 2,075$ 4,158$ 9,394$ 5,807$ 1,108$ 6,915$ (2,478)$ Cost per Rep 166$ 189$ 166$ 171$ 171$ 92$ 150$ (20)$

Total Margin 337$ 81$ 222$ 641$ 563$ 105$ 668$ 28$ Margin per Rep 18$ 7$ 9$ 11$ 17$ 9$ 13$ 1$

Customer Segmentation Sizing Model

Current Channels Future Channels

Selling Time Analysis

Segment # Custs Rev (M) % Custs % Rev Hrs/Cust Hrs/Touch Touch/Cust Total Hrs % HoursA (>20M) 140 8,855 7% 68% 144 6 24 20,160 33%B (5-20M) 233 2,387 11% 18% 48 2 24 11,184 18%C (2-5M) 763 1,020 36% 8% 24 2 12 18,312 30%D (<2M) 986 855 46% 7% 12 1 12 11,832 19%

Analyze Selling Hours vs. Customer Value

Key Account / Inside Sales?

Sales Force Time Study

49.4% Non-Selling time

Which selling activities can we make more efficient?

Return on selling time63% of revenue from 6% of customersBottom 70% of customers make up 10% of revenue

15

6% 9%

15%

70%

% Total Customers

63%18%

8%10%

% Total Revenue

How much sales force time is spent on the 70% of customers that should be invested in the top 6%?

> $24K Customers < $24K Customers-20%

0%

20%

40%

60%

80%

100%90%

10%

56%

44%

-3%-9%

Rep Time Allocation by Customer Group

% Revenue Rep Time Allocation YoY Revenue Inc/Dec

38% of Accounts

• Smaller accounts consume selling time from larger accounts

44% of time spent on accounts only yielding 10% of revenue

Smaller Accounts continue to shrink (-9%) despite time investment

Productivity Opportunity

Role Corruption

13

3

6

5

30

4

4

8

2

7

5

18

11

15

4

8

10

6

4

23

8

0 10 20 30 40 50 60

Prospecting

Obtaining trials/keys for customers

Obtaining miscellaneous documentation for customers

Coordinating responses from product teams for customer questions

Managing billing issues

Managing open support issues

Updating salesforce.com and other sales forecasting system activity

Top Choice

Second Choice

Third Choice

59% of reps report managing support issues

79% of reps cite inefficient time managing billing issues

Structure needs to focus sales on selling activities

Shift & LiftShift non-selling activities to lower cost

resources or eliminate themMove up market, lift the direct & key

account resources up market to higher potential clients

Add lower cost Insides Sales reps to support lower tier customers

Adjust Key Account resources to increase wallet share within programs

Results / Benefits

Increased annual available selling hours by 17,500

Increased selling time from 42% to 71%Lowered cost of sales by $4.7M annually

Takeaway actionsDo you connect territory penetration and potential

to sizing needs? Are the number of accounts in sales territories

based on selling capacity? Have you calculated breakeven cost & economic

contributions of an incremental sales rep? Should you deploy Inside sales or a Key Account

Program? Do you have the right sales manager or support

ratios? Are sales roles and responsibilities well defined? Is the sales structure aligned to the sales strategy?Do you have the A players necessary?

Sign-up for a free sales resource planning consultation by: E-mailing info@salesbenchmarkindex.com

Send a copy of presentation to you Additional questions can be sent directly to:

John.Staples@salesbenchmarkindex.com

Selling Methodologies – Have you accommodated recent changes in your buyer’s behavior?

Thursday, November 10th , 2011 1:00 p.m. Central 30 minutes Register at www.salesbenchmarkindex.com

Thank-You for attending…

Further interest….

Sales Benchmark Index will….

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