idc’s 2013 trends, benchmarks, and essential guidance for technology sales organizations

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IDC’s 2013 Trends, Benchmarks, and Essential Guidance for Technology Sales Organizations

IDC Exclusive Webcast: Annual Sales Productivity Benchmarks Study

September 27, 2012

May 3, 2023

© IDC For Internal Use Only. Not for Distribution without IDC Permission.

Sales Advisory Service: Technology Sales Productivity Study Webcast

Michael GerardVP, Sales Advisory

Practice

2

Look for these boxes which indicate additional resources for Sales Advisory Service clients

Thursday, September 27: 2013 Sales Strategies

A View into the Current Buying Environment 2013 Guidance for Sales and Sales Operations Executives Productivity Benchmarks and Trends Additional Resources

Irina ZvagelskyResearch Analyst,

Sales Advisory Practice

May 3, 2023


Sales Leadership Board Mtg.

IDC Team

Sales & Mktg. Taxonomy

Source of Data, Insight and Guidance for Today’s Webcast

Sales Productivity Benchmarks

Database (2012 update)

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Best Practice Studies Next Gen. Sales Ops. Sales Methodology Account Planning Sales Measurement Sales Coaching Sales Enablement Custom Intelligence for Sales

May 3, 2023


Today’s Marketing and Selling Environment – What’s Different?

Larger buying teams means more people to “sell” to– 2010: 5 People– 2011: 6 people– 2012: 7 people

Longer Buying Cycles– 2010: 5 months– 2011: 5.2 months – 2012: 5.4 months

Buyers are more knowledgeable, more connected - and busier!

40% to 50% of the buying decision is made before your potential buyer even says “hello” to your sales

rep. Refer to “The IT Buyer Speaks” webcast, www.idc.com , #WC20120913

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The good news?. . .

How are Sales Folks Doing with Buyers in this New Environment?

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Over ½ of buyers who switched vendors during the past year did so as a result of their newer vendor being more diligent and reliable to their needs.

Our best vendors help us solve problems. . . . “Interact more with our internal teams at a functional level to understand where our pain points are, and provide solutions to improve our revenue & profitability."

Buyers are inundated: “Much of my commute home is “delete, delete, delete,…”

There is opportunity to differentiate and move ahead of your competition

May 3, 2023


How Do Sales Teams Need to Evolve?

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Sales Needs to: Add more value to the

individual buyer:– Communicate a vision;– Be a trusted advisor.

Pre-90s 90s 2000s 2010+

IT’S ALL ABOUT...

IT’S ALL ABOUT...

THE BUYERME

Selling Focus

Product Solution Company’s business need(s)

Individual buyer’s business & professional needs

Knowledge Transfer

Collateral (hard copy)

Trans-parencies

1 to Many Web Site

Collateral (soft copy)

PowerPoint

Sales enablement

Targeted Web content

Rapid Customer enablement

Customized workspace

Interaction Snail mail In-Person Phone

Email Mobile

Conference call

Mobile Text

Instantaneous or asynchronous Social media Telepresence

Leverage new channels to learn, prepare, interact. . . Intelligent Interaction

Provide relevant and focused knowledge and insight for the individual buyer and the buying team

May 3, 2023


The Pathway to Productivity: IDC’s 2012 Guidance for Sales Executives

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Source: IDC's Sales Productivity Benchmarks Database

IDC’s Sales Performance Matrix

Sales Success in 2013 Yes, you still need a Next Gen. Sales

Operations team Track and analyze sales investment,

prioritize Refocus investment into sales

methodology Optimize your sales pipeline

management process (SPM) Better enable sales reps

May 3, 2023


A Quick Level Set: Our Focus is on Impacting an Organization of 100s or 1000s of sales folks

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% Quota Attainment

# Sa

les

Rep

s at

Quo

ta L

evel

Up or Out Include in planning Learn from them

Instill process to help these folks succeed

ABC

May 3, 2023


The Next Generation Sales Operations Team

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ExecutiveSales Mgmt.

Regional Sales Mgmt.

DirectSales.

Prof.Services

IndirectSales.

Field Sales Support

Business Technical

SalesAdmin.

Sales Operations

Sales Programs

Sales Strategy &Planning

SalesForecasting

SalesAnalytics

SalesCompensation

Quote toOrder

Next Gen. Sales Operations

SalesEnablement

Sales Automation

New

ClassicSales Operations

Next GenerationSales Operations

Target SO Staff Levels: 8-12%; 1/4 to 1/3 CoE team

The Next Generation Sales Operations Team (IDC Document #224122)

May 3, 2023



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Continue to build the next generation sales operations team

Refocus investment into sales methodology

Optimize your sales pipeline management process (SPM)

Better enable sales reps

May 3, 2023


What is a “Sales Methodology”

A sales methodology is a consistent set of sales processes that are executed by individuals and sales teams across the organization in order to optimize sales productivity, maximize quota attainment for sales teams, and maximize revenue and profit for the company. Each sales process consists of: A taxonomy of applicable terms Roles and responsibilities of key parties A set of activities A set of metrics enabling tracking of the success of the process and managing

its continuous improvement.

Common Components

Sales management and coaching Opportunity/pipeline management

Forecasting Sales call planning

Sales Stages Demand generation & mgmt.

Account Planning Territory Planning

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May 3, 2023


The Value of Having and Using a Sales Methodology in the Organization is High

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“Disagree”

“Agree”

Best Practices in B2B Sales Methodologies (IDC #236236)

The Good News. . . Most agree that sales methodologies are critical to success! . . . “Enabling me to:– Achieve or exceed

individual or team quota– Increase opportunity

conversion rates– Improve forecasting”

Q: How much do you agree with the following statements about the use of sales methodology in your organization.

* IDC’s Sales Investment and Productivity Benchmarks Database

The Good News. . . Most agree that sales methodologies are critical to success! . . . “Enabling me to:– Achieve or exceed

individual or team quota– Increase opportunity

conversion rates– Improve forecasting”

The Bad News. . . – At least 1/3rd of sales reps

are still not using a sales methodology on a regular basis*; and

– The average organization uses at least 2 to 3 sales methodologies

Source: IDC's 2012 B2B Sales Methodology Study (n=100)

1

2

3

4

5

"Critical to our success"

"Primarily for operational ef f iciency"

"For complex deals/accounts"

"Only for some reps"

"No value"

Rat

ing

May 3, 2023



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May 3, 2023


Sales Pipeline Management Defined

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The activities executed by sales and sales operations personnel to, as rapidly as possible, progress opportunities along the pipeline toward closure. SPM begins once sales accepts a Marketing Qualified Lead

(MQL) by classifying it as a Sales Qualified Lead (SQL) or when sales creates a lead and considers it sales qualified.

The Sales portion of the overall customer creation process

Typically broken down into a series of stages that may/may not be allocated to different sales roles (e.g., telesales, inside sales, outside sales, etc.)

Intimately tied to the forecasting process

Automated by the biggest single area of sales technology investment: CRM and related solutions

May 3, 2023


The Bigger Picture:The IDC Customer Creation Framework

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1. Buyer-centric2. Integrated marketing

and sales3. “Smart”: Data-driven

Conduct the Digital Dialog

Conduct the Interpersonal

Dialog

BUYER COMMUNICATION

Exploration Stage

Evaluation Stage

Purchase Stage

BUYER’S JOURNEY

Sales Pipeline Management

Process

Marketing’s Lead Management

Process

Buy

“Raised Hand”

Agree to be Pursued

Best Practices in Sales Pipeline Management (#TBD-October);Pipeline Metrics in Appendix

May 3, 2023


Impact on Sales Productivity

Pervasive use of SFA data to support strategic decisions and tactical guidance (i.e., coaching)

Highly evolved executive and sales rep level dashboards and reporting

Data and function integration across groups

Enterprise-wide data & process standards

Next gen. sales operations team in place

Sales aligned with marketing across a continuous customer creation process

Fully leveraging SFA Data:High level of integration a/c functional areas

SFA used to automate forecasting Management level reporting in wide use;

basic rep-level reporting “Stealth” SFA eliminated Strong data standards

(e.g., sales stage def.) evolving

Next gen. sales operations team taking shape, providing foundation for more improved reporting and data integration

Sales/marketing alignment on lead handoff

Data-Driven Sales Management:Data used to run the business

IDC’s Sales Pipeline Management Maturity Model

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Mat

urity

of S

ales

Pip

elin

e M

anag

emen

t Pro

cess

Reps enter data but do not use SFA for opportunity management

Mgmt uses SFA for basic pipeline insight

“Stealth” SFA (Excel) still in use Weak standards for data input Basic sales operations support Poor marketing and sales alignment

Traditional SPM:Transaction Oriented

Best Practices in Sales Pipeline Management (#TBD-October)

May 3, 2023



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Buyer Insight: Most Valued Resources When Making IT Decisions

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Q: As part of your pre-purchase IT product or solution-related activities, please indicate the relative importance of the following on your decision-making process by using a pool of 100 points.

n = 204* Vendor Content: e.g., Collateral, white papers, case studies, webcasts, product information, other information available on their web site**Refer to IDC’s Sales and CMO Advisory Research

0 10 20 30 40

Other

Interaction with vendors' corporate executives (e.g., CEO, COO)

Interaction with sales representatives

Consumption of vendor content*

Interaction with vendors' technical teams (e.g., engineers, CTO)

Distribution of a pool of 100 points

May 3, 2023


Buyer Insight: Most Valued Content When Making IT Decisions

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Q: What types of vendor content do you most value during the IT investment decision process?

n = 204

0 10 20 30

Other

Customer Case Studies

Vision/Thought Leadership

Competitive Comparisons

Industry Trends

Peer/Customer References

Product/service Reviews and Test Results

Product Demo or Proof of Concept

Product features

Financial Justification/ROI

% of Participants

May 3, 2023


How are we Doing to Enable Sales Reps with the Most Valued Resources?. . .

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Q: On average, how long does it take for a sales rep to find the following types of information within your organization? Check 1 for each category.


Product Information

Customer Purchase & Service History

Best Fit Pre-Sale Individual

ROI Related Sales Assets

0% 10% 20% 30% 40% 50% 60% 70% 80%

% of Respondents

1 week + 1-5 days 4-8 hours <1/2 day

May 3, 2023


14 Attributes of a Best-in-Class Sales Enablement Strategy

Accountability SE function in marketing Next generation sales

operations team

Relevant and Valuable Intelligence Content and asset

lifecycle Content review board Customer intelligence for

sales Staff: SMEs, curators,

moderators

Sales Readiness Sales process integration Deployment strategy (e.g.,

marketing, training) Regional enablement

Technology Content management

system Sales enablement

platform(s) Social for sales

Feedback Sales and customer

feedback process Performance measurement

SalesEnablement

Contact IDC for Details for each Area

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Source: IDC’s 2013 Sales Enablement Strategy PowerPoint

Contact IDC for an on-site “2013 Sales Enablement Strategy Session” (free for clients)

May 3, 2023


Track and Analyze Sales Investment:

IDC’s Sales Productivity Benchmarks & Trends

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May 3, 2023


Sales Productivity Scorecard (1/2)

AttributeKey Performance Indicator (KPI, Current FY)1,2 All IT Vendors Trend/Guidance

Sales Investment

Sales Budget Ratio (sales spend/revenue) 8.6% Know what you spend, as well as how you spend it

Sales Investment Change (most recently closed to current fiscal year)

4.1% Keep pace with revenue growth at a min; increase support infrastructure

Sales Staff Efficiency

Sales Staff Spend KPI(staff spend as a % of total sales spend)

79% Do leverage external resources

Sales Reps’ Time Allocation(% of sales reps’ time spent on: Customer Interaction / Prep. Time / Lead Mgmt./Admin. Time)

47%:20%:

10%:19%

Increase the “quality” of customer interactions(55%:20%:15%:10%)

Sales Support Staff KPI (support staff as a % of total sales staff)

44% Increased vs. ‘11; Increased support yields greater productivity and customer satisfaction

T&E (travel and entertainment) per Sales Staff $17,500 Better Leverage Collaboration Technology and Evaluate Coverage Models

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1 IDC's Sales Productivity Benchmarks Database (weighted average KPIs based upon current FY at survey completion)2 IDC’s Worldwide Sales and Marketing Taxonomy, 2012: A Blueprint for Cost Control

May 3, 2023

© IDC For Internal Use Only. Not for Distribution without IDC Permission.For Internal Use Only. Not for Distribution without IDC Permission.

SalesSalesProductivityProductivity

IDC’s Sales Productivity Framework

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Refer to “Notes Page” and Appendix for additional details.

SALES OPERATIONS

CustomerIntelligence

SalesEnablement

Talent Management

SalesManagement

Sales Methodology

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May 3, 2023


Sales Productivity Scorecard (2/2)

AttributeKey Performance Indicator (KPI, Current FY)1 Insight/Guidance

Sales Productivity Levers

Talent Management 30% of companies lack a formal, new rep on-boarding process (53% is role specific vs. generic training, and should be higher)

15% sales staff turn-over (7% increase over ‘11)

Sales Management/ Methodology Adoption rate of a common sales methodology = 74% (18% increase y/y)

18% of a first line sales managers’ time is spent coaching sales reps (needs to be higher)

Customer Intelligence CI Maturity Score: 4.1/10 (Decreased in ‘12)

Ability to obtain and leverage:

– Share of wallet information: 3.9/10

– Role-based intelligence : 3.8/10

Sales Enablement Quality of marketing and sales assets: 5.6/10

Most sales reps rely on digital files as well as calling or emailing an individual as part of sales enablement

Sales Operations Maturity2

Sales Operations Staff Level

(sales operations staff as a % of total sales staff)

Average = 10.2%

Target: 8-12%, with 1/4 to 1/3 represented by a COE team2

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1 IDC's Sales Productivity Benchmarks Database (weighted average KPIs based upon current FY at survey completion)2 Refer to “The Next Generation Sales Operations Team” (IDC Doc.#224122)

May 3, 2023


0% 10% 20% 30% 40% 50%

Sales Program and Other

Sales Administration

Sales Overlay

Indirect Sales

Sales Management

Sales Operations

Field Sales Support

Direct Sales

% of Total Sales Employees

Resource Allocation: Global Sales Staff Levels and Allocation as a Starting Point

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Q: Please allocate your sales employees into the following functions:

Source: IDC's Sales Productivity Benchmarks DatabaseContact IDC regarding our Sales Resource Assessment model

0% 10% 20%

Inside Sales

SMB Accounts

Enterprise Accounts

Global/Named Accts.

May 3, 2023


Optimizing Sales’ Time in Front of Customers

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3 Focus Areas:Talent Management – Customer Intelligence – Sales Enablement

IDC Target: 55:20:15:10

Q: On average, what % of time do your sales reps spend on the following:

*Total of Face-to-Face and FacelessSource: IDC's Sales Productivity Benchmarks Database

0%

10%

20%

30%

40%

50%

Direct Customer Interaction*

Preparing for Customer Interaction

Administrative Time Territory/Lead Development

Other:

Average quality of time spent is 4.9/10! [2012 Sales Barometer]

May 3, 2023


The Most Relevant Customer Intelligence is Not Getting to the Sales Organization

Best Practices in Customer Intelligence for Sales (IDC #224520) & Ask for your free IDC Sales Executive Portfolio review

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Q: Please score the following CI components within the context of the sales organization: (1 = major gaps exist today; 10 = very minor gaps exist today which are being addressed through continuous improvement processes)


3.8

3.9

4.9

6.1

6.2

6.9

1 2 3 4 5 6 7 8 9 10

Role-based Intelligence

Share of Wallet Information

Competitive Intelligence

Purchase & Relationship History

General Customer Data

Customer Satisfaction Data

Score

May 3, 2023


Sales Enablement: Access and Effectiveness of Internal Information

Free On-Site Sales Enablement Strategy Session for clients

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Q: How do sales reps access internal information in preparation for customer engagements? (Please allocate 100 points to these channels.)


Digital asset files

Calling or emailing an individual

Discussions during internal

sales calls

Formal training

Social media (e.g., Chatter, Yammer, etc.)

Video Other0

10

20

30

40

Allo

cate

d Po

ints

Access Effectiveness

First Year as #1

May 3, 2023


Sales Enablement: Insight into Existing and Planned Platform Capabilities

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Q: Does your sales enablement portal (i.e., the main portal through which your sales reps access marketing and sales related content):

Source: IDC's Sales Productivity Benchmarks DatabaseAsk for IDC’s ebook “In Pursuit of Effective Sales Enablement”

0% 20% 40% 60% 80% 100%

Tie Usage to Revenue

Map content by sales stage and/or opportunity

Intergrate with SFA

Rate content (including comments)

Enable connection to SMEs

Enable rep connection through social media

Filter by Role

Measure Usage

Allow reps to post content

Current Ability Planned within 12 mo. Not Planned

May 3, 2023


Suggested Next Steps After this Webcast. . .

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IDC’s Sales Advisory Service:An Extension of your Sales Operations & Strategy Team

Share this insight with your team– Forward this PowerPoint deck to them– Have IDC present this insight as part of your next sales operations

and sales executive meeting (no charge for clients) Leverage insight and benchmarks data to build and

communicate your 2013 sales strategy plan Tap into additional Sales Advisory Service resources (in

Appendix) Utilize the Sales Advisory Service team to bullet-proof your plans

and activities Attend the next Sales Operations Leadership Meeting in Boston,

Oct. 16-17

May 3, 2023


IDC’s EAG Is a Top Provider of Sales and Marketing Advice to Technology Leaders

IDC Executive Advisory Group provides sales and marketing executives with critical insights and research-based information to plan investments, prepare operations, mobilize resources, and measure results. We help our clients: Set competitive sales and marketing

budgets Organize sales and marketing staff for

optimal performance Implement “high ROI” sales and marketing

practices Identify key programs and campaigns that

tie to organization and corporate goalsWe are the industry standard for marketing and sales investment benchmarking

32

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IDC Sales Advisory Service: 2012 Deliverables Schedule

33

= In Progress: Contact us to participate

Annual Sales Productivity Benchmarking Study (Sept 2012)– Telebriefing & slides– Sales Productivity

Planner (Sept 2012)

Sales Operations Best Practices & Insight

Leadership Board Meetings & Events

Sales & Marketing Automation

Worldwide Sales & Marketing Taxonomy (Oct 2012)

Custom Sales Benchmarking Analysis

Sales Barometer Study (March, 2012)– Telebriefing & slides

Best Practice Studies– Preparing Sales

Managers to Become Coaches (May 2011)

– Social Collaboration for Sales (March 2012)

– Sales Methodologies (Aug 2012)

– Sales Pipeline Management (September 2012)

Insight Reports – 2012 Buyer Experience

Study (September 2012)– Next Generation Sales Ops

Team Update (Fall 2012)– Sales Enablement at

Oracle & Toshiba– A Cohesive Sales &

Marketing Strategy– Top Action Items for a New

VP of Sales

Best Practice Studies

Sales Leadership Board Meetings– Feb 29-Mar 1 2012,

San Jose, CA– June 5-6 2012,

Santa Clara, CA– October 16-17, 2012,

Boston, MA

Events– Directions 2012 (March 7

San Jose CA & March 13, Boston)

Telebriefings– Results of 2012 Sales

Barometer– Social Collaboration for

Sales Enablement (May 2012)

Hot Topic Peer-to-Peer Calls– CRM Replacement (April

2012)

IDC Sales Automation Framework

User Summit Updates– SAVO– Eloqua– SFDC– Oracle

Pulse Surveys– Sales Enablement

(ongoing)

UnlimitedAnalyst Inquiry

Extensive Research Library

May 3, 2023


Custom Sales Productivity Benchmarking Analysis: Top Level Analysis thru Detailed Productivity Components

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Efficiency Effectiveness Staff and Program Mix

Attribute KPI ClientTarget Group

Sales Investment

SBR 11% 9%

Investment Change 2% 8%

Sales Staff Efficiency

Sales Staffing KPI 85% 75%

Sales Rep Time Allocation

55:15:10:20

60:20: 10:10

Support Staff KPI 45% 35%

T&E per Staff $25,000 $12,000

+Client

TargetGroup

Sample Data

Gap Analysis, Recommendations and Essential Guidance

Custom Sales Productivity Benchmarking AnalysisSales Performance Matrix

May 3, 2023


IDC’s Sales Operations Leadership Board Meetings

Board Model 3 meetings per year, 2 days each 25-30 attendees per meeting Titles: Sales and Sales Ops. Executives Format: research review, interactive

discussion, problem-solving, networking

Attendees Feedback >70% indicate actionable results from

meetings “content and discussion facilitation are

excellent” “we were able to express our opinions

openly and with confidentiality. I rarely have this environment with my peers”

Why do clients come? Get external perspective Problem-solve with peers Network Client-driven research Attendee case studies

SLBBoard*

Sample Topics (board-driven) Sales Operations Processes Sales Performance Measurement Sales Enablement First Line Sales Manager Practices

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* partial attendee list

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May 3, 2023


Sales Advisory Service: Customized Client Presentations

36

sales

May 3, 2023


Sales Advisory Service: Currently Available Published Research on www.IDC.com

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Sales and Sales Operations Best Practice Series Best Practices in B2B Sales Methodologies (IDC #236236, Aug. 2012) Social Collaboration for Sales: Cutting through the Hype (IDC #233340, Feb. 2012) Leveraging Sales Enablement to Improve Sales Productivity: A Best Practice Case Study

at T-Systems (IDC #232490, Jan. 2012) Sales Enablement - 90% Process, 10% Technology: A Best Practice Case Study of Sales

Enablement at Oracle (IDC #230546, Oct. 2011) Best Practices in Preparing Sales Managers to be Coaches (IDC #227923, April 2011) Best Practices in Sales Performance Measurement: A Focus on Productivity (IDC

#226727, Feb. 2011) Best Practices in Customer Intelligence for Sales (IDC #224520, Sept. 2010) Best Practices in Account Planning (IDC #223295, May 2010) Best Practices in Sales Enablement – Marketing Content and Asset Management (IDC

#219418, Aug 2009) The State of the Art in Sales Enablement: An Intensive Study of Current Practices (IDC

#219182, Aug 2009) Best Practices in Sales Performance Improvement: The Role of the First Line Sales

Manager (IDC #218087, April 2009) Best Practices in Sales Performance Improvement: Global Inside Sales Strategies (IDC

#216773, February 2009)

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Investment and Productivity Foundation Studies IDC’s 2012 B2B Sales Barometer Highlights (IDC #WC20120322, Mar. 2012) IDC’s Worldwide Sales and Marketing Taxonomy, 2012: Guidelines for Cost Control and

Resource Allocation (IDC #231252, Nov. 2011) IDC’s 2012 Sales Investment and Productivity Planner: Trends, Benchmarks, and

Essential Guidance for Tech Sales Organizations (IDC #230919, Oct. 2011) 2011 Technology Sales Barometer: A Year of Stabilization (IDC #228071, May 2011) Content Management and Sales Enablement Survey Results (IDC #225701, Dec. 2010) IDC’s 2011 Trends, Benchmarks and Essential Guidance for Technology Sales: Sales

Productivity Benchmarks Study (IDC#225089, Sept. 2010) 2010 Tech Sales Barometer: Maintaining the Momentum for Productivity Improvements

(IDC#222485, April 2010) Sales Enablement 3.0: A Transformation of Sales Enabled by a Transformation of

Marketing (IDC #218546, June 2009) 2009 Tech Sales Barometer: Remaining Optimistic in a Down Economy (IDC #216889,

March 2009)Buyer(Customer) Research

The Buyer Speaks: IDC’s 2011 Buyer Experience Survey – Guidance for Sales and Marketing (IDC #228987 July 2011) (annual study)

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Sales Insights Customer Enablement for Sales Reps: Helping Your Champion to Succeed (IDC #236471, Aug. 2012) IDC’s Sales Operations Quiz (IDC #236148, July 2012) Sales and Marketing Leadership Meeting Highlights, June 5 and 6, 2012: Sales Rep Panel, Sales

Enablement, Pipeline Management, IT Buyer Insight, and SFA Optimization (IDC 235656, July 2012) Increasing Sales Productivity Through Innovative Technology: A Case Study of SAP’s Deployment of

iPads (IDC 233842, April 2012) IDC Sales Leadership Board Meeting Notes, February 29 and March 1, 2012: B2B Sales

Methodologies, 2013 Sales Operations Planning, Sales Operations and IT Alignment, and the RFP Process (IDC 233678, April 2012)

Top Action Items for a New VP Sales (IDC 232588, Jan. 2012) Vendor Profile: Qvidian Sales Enablement Playbooks and Proposal Automation (IDC 231889, Jan.

2012) What’s Killing the Traditional Funnel? (IDC 232490, Jan. 2012) Oct, 2011, Sales & Marketing Leadership Meeting Highlights: Customer Panels, Sales Enablement,

Lead Management and IDC Productivity Benchmarks (IDC #231281, Nov. 2011) The Sales Enablement Vendor Space Heats Up (IDC #229339, July 2011) IDC Sales Leadership Board Meeting Notes, May, 2011: 2012 Sales Operations Planning, Social

Media for Sales and The Buyer Speaks (IDC #228452, May 2011) IDC Sales Leadership Board Meeting Notes: Feb 15 and 16, 2011 (IDC #227269, March 2011) Clouds Filled the Sky, But the Mood Was Sunny and Full of Chatter at Salesforce.com’s Eight Annual

Dreamforce Conference (IDC #226676, Jan. 2011) Update: The Savo User Summit 2010 (IDC #225593, Nov. 2010)

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Events (PowerPoint presentations) Best Practices in B2B Sales Methodologies Companion Presentation (IDC #236367, Aug. 2012) IDC Sales Leadership Board Meeting Presentations: June 5-6, 2012 (contact [email protected] for a

copy) IDC’s 2012 B2B Sales Barometer Highlights (IDC #WC20120322, Mar. 2012) A Cohesive Sales and Marketing Strategy: Real Key Performance Indicators to Assess your

Investment and Process Alignment (IDC #WC20111208, Dec. 2011) IDC's 2012 Sales Investment and Productivity Planner: Trends, Benchmarks, and Essential Guidance

for Technology Sales Organizations (IDC #230919, Oct. 2011) IDC's Trends, Forecast, and Essential Guidance for BtoB Sales: 2011 Sales Barometer (IDC

#227697, Mar. 2011) Best Practices for Customer Intelligence for Sales – Companion Presentation (IDC #225791, Nov.

2010) IDC’s 2011 Trends, Benchmarks, and Essential Guidance for Technology Sales Organizations (IDC

#225089, Sept 2010) The Next Generation Sales Operations Team – Companion Presentation (IDC #224354, July 2010) IDC Sales Leadership Board Meeting Presentations: May 25 and 26, 2010 (contact

[email protected] for a copy) IDC’s Third Annual Buyer Experience Study – Guidance for Sales & Marketing (IDC #TB20100422,

April 2010) Sales & Marketing Strategies for 2010: Key Success Factors for Growth (IDC #TB20100318, March

2010) IDC 2010 Directions – Track 1: Three Recipes for Sales Success (IDC #DR2010_T1_MG, March

2010)

May 3, 2023

© IDC For Internal Use Only. Not for Distribution without IDC Permission. 41

The Executive Advisory Group

Irina ZvagelskyResearch Analyst, Sales [email protected] Phone: 305-351-3060

Rich VancilGroup Vice PresidentExecutive Advisory [email protected]: 508-935-4327

Michael GerardVice PresidentEAG and Sales Advisory [email protected]: 508-988-6758

Sam MelnickResearch Analyst, CMO Advisory [email protected]: 508-935-4492

Gerry MurrayResearch Manager, CMO Advisory [email protected]: 508-988-7974

Henry MorrisExecutive Sponsor/[email protected]: 508-935-4266

Wendy PembertonSales [email protected]: 816-569-1286

Kathleen SchaubResearch Vice PresidentCMO Advisory [email protected]: 925-999-9839

Jason CunliffeConsulting [email protected]: 305-351-3037

Scott McLarnonGVP [email protected]: 508-935-4392

Tina RiainConsulting [email protected]: 508-935-4563

Mary MenendezSr. Inquiry [email protected]: 508-935-45-85

mailto:[email protected]

May 3, 2023


Appendix

IDC’s Sales Productivity Framework

IDC’s Sales Automation Roadmap

Additional Data Output from IDC’s 2012 Sales Productivity Study

Pipeline Definitions

42

May 3, 2023


Just a Sample of IDC’s Latest Sales Advisory Service Research on www.IDC.com

43

CustomerIntelligence

IDC’s Annual Technology Buyer Experience Study – Guidance for Sales Teams (www.idc.com)

Best Practices in Customer Intelligence for Sales (IDC #224520)

Social Collaboration for Sales: Cutting through the Hype (IDC #233340)

Sales Enablement : A Best Practice Case Study at T-Systems (IDC #232490)

Sales Enablement - 90% Process, 10% Technology: Oracle Case Study

2013Sales Enablement Strategy Session (free on-site session for clients)

SAP’s Deployment of iPads (IDC #233842)

The State of the Art in Sales Enablement (IDC #219182)

SalesEnablement

Best Practices in Sales Pipeline Management (TBD-October)

Best Practices in B2B Sales Methodologies (IDC #236236)

Executive Sponsor Program Strategies (IDC#225024)

Best Practices in Account Planning (IDC #223295)

KSFs for Launching and Best Leveraging Your CRM Application (IDC#224737)

Sales Methodology

Best Practices in Preparing Sales Managers to be Coaches (IDC #227923)

The Role of the First Line Sales Manager (IDC #218087)

The Next Generation Sales Operations Team (IDC#224122)

Talent Management

IDC’s 2013 Sales Investment Planner – Benchmarking your Investment and Productivity

Top Action Items for a New VP Sales (IDC 232588)

Best Practices in Sales Performance Measurement: A Focus on Productivity (IDC #226727)

Best Practices in Global Inside Sales Strategies (IDC #216773)

SalesManagement

May 3, 2023


Develop a Sales Automation Roadmap

44

IDC Sales Automation Framework

Strategic Planning

Sales Compensation

Forecasting & Account Planning

Customer Intelligence

Content and Asset Management

Sales Force Automation

List Management

Internal and External Communications

Proposal & Quote Processing

Strategic

Planning Talent

Management

Forecasting &

Acct. Planning

Customer

Intelligence

Sales

Enablement

Analysis &

Reporting

CategoriesSales

Workflow

Pipeline

Management

Telemktg. &

Telesales

On-

Prem

ise

Hos

ted

App

licat

ion

On

Dem

and

Brainshark, Citrix GoToMeeting, Clearslide, Ribbit, Webex

Callidus, Xactly, Varicent, Authoria

Microsoft, Oracle, SalesLogix, SF.com, SAP

Hoovers, Jigsaw, LinkedIn, SalesGenie, ZoomInfo

SFA apps., Altus, iCentera, Kadient, SAVO

Google, IBM Cognos, Lattice Engines, SAP BusinessObjects,

SAS, Stratascope

Microsoft

Revegy, Right90, SAS

BigMachines

Source: IDC Sales Advisory Service

May 3, 2023


Additional Data Output from IDC’s 2012 Sales

Productivity Study

45

May 3, 2023


IDC’s Sales Productivity Benchmarking Survey Demographics

~$200B in revenue represented by participating companies

Data directly from sales and sales operations executives

No data provided on a company-specific basis

No duplicate responses

46

(n=33, Ave. Revenue >$5B)Source: IDC’s Sales Productivity Benchmarks Database

% of Companies by Sector % of Companies by Revenue

% of Revenue from Direct Sales vs. Indirect Sales

Direct Sales65%

Indirect Sales35%

Hardware45%

Software28%

Services27%

< $500M18%

$500M-$999M18%

$1.0B-$2.9B15%

$3.0B-$9.9B36%

>$10.0B12%

May 3, 2023


Allocation of Sales Program Expenses

47

Q: Please allocate your sales organization's total program expenses across the following categories by the end of your current fiscal year:


0 10 20 30 40 50

Other

Telesales Programs/Lead Development

Competitive Programs

Sales Training

Channel/Alliance Partner Programs

Sales Automation Expenses

Travel & Entertainment Expenses

% of Total Program Expense

May 3, 2023


Distribution of Sales Force by Quota Attainment

48

Q: How will your company or group's sales force (both direct and indirect sales) be distributed along the following quota ranges by the end of your current fiscal year?


Below 50% of quota

50-79% of quota

80-94% of quota

95-105% of quota

106-120% of quota

Over 120% of quota

0

5

10

15

20

25

30

35

% o

f Com

pany

or G

roup

’s S

ales

For

ce

May 3, 2023


Sales Rep. Skills Assessment

49

10

9

8

7

6

5

4

3

2

1

Average Rank

We do not have a "standard" sales rep assessment process.

We have a formal skill-set assessment process and reps are assessed at least once a year.

5.6 We have a "standard" sales-rep assessment process; however, its use across the organization is extremely inconsistent.


Q: Which of the following describes your sales rep skill-set assessment process? (i.e., to develop a skill-set improvement plan)

May 3, 2023


Sales Rep. Skills Assessment Attributes

50


Q: On which attributes do you assess sales rep skill-sets? Please allocate 100 value points within the options below.

Selling Skills Product Knowledge

Industry Knowledge

Sales Management

Skills

Ability to Leverage Internal

Company Resources

Financial Capabilities

Other0

5

10

15

20

25

30

35

40

45

Valu

e Po

ints

May 3, 2023


Sales Rep Training Per Year

51


Q: Please indicate the total number of weeks of training that each sales rep. receives per year.

In-person (e.g., classroom)

Remote (i.e., on-line) Other Total0

1

2

3

# of

Wks

per

Yea

r

May 3, 2023


First Line Sales Managers Activities

52


Q22. Please estimate what % of First Line Sales Managers' time is spent on the following activities:

Visiting clients with their sales reps

Coaching sales reps

Administrative Time

Pipeline monitoring

and management

Sales forecasting

Visiting clients without their sales reps

Other 0

5

10

15

20

25

% o

f FLS

Ms’

Tim

e

May 3, 2023


The Importance of the First Lines Sales Manager and a Culture of Sales Coaching

53

10

9

8

7

6

5

4

3

2

1Average

Rank

We have a formal sales manager coaching process and related tools and training; and it’s supported by management

We do not have a culture of sales coaching. Sales managers focus solely on quota and do not spend time coaching their sales team.

5.1We have a “standard” sales manager coaching process; however, its use and supportis inconsistent.

Study: Best Practices in Preparing Sales Managers to be Coaches, IDC Doc #227923 (including Xerox & Amdocs Case Study)

Q: Which of the following best describes whether you have a “culture of sales coaching”?


Questions to Address . . .

Who’s accountable for your coaching strategy?

Have you defined core competencies for sales managers?

Are you creating a culture of “coaching” vs. “inspection”?

What role is sales enablement playing in the success of FLSMs and their teams?

What rewards do you have in place to support cultural change?

May 3, 2023


Level of Forecast Accuracy

54


Q: Approximately how accurate are your sales forecasts at each stage prior to the end of a typical selling or reporting period? (select one measurement per stage):

30 Days Prior

60 Days Prior

90 Days Prior

0% 10% 20% 30% 40% 50% 60% 70%

% of Respondents90%+ accuracy 80-89% accuracy 70-79% accuracy Less than 70% accuracy

May 3, 2023


Sales Reps’ Ability to Access the Right Resources for your Customers

55


Q: On average, how long does it take for a sales rep to find the following types of information within your organization? Check 1 for each category.

Customer Success Story

Customer Purchase & Service History

Product Information

ROI Related Sales Assets

Best Fit Pre-Sale Individual

0% 10% 20% 30% 40% 50% 60% 70%

% of Respondents

1 week + 3-5 days 1-2 days 4-8 hours 1-4 hours Under 1 hour

May 3, 2023


Level of Customer Intelligence Maturity

56

10

9

8

7

6

5

4

3

2

1

Average Rank

4.1

No high quality CI across the sales organization and/or the sales organization does not leverage it well.

Great CI and it is being consistently used and leveraged across the sales organization.

We have good CI; however, its use across the sales organization is extremely inconsistent.


Q: Please indicate the level of maturity of CI across your sales organization:

May 3, 2023


How is CI currently accessed?

57


8.1

10.2

20.4

26.3

35.0

0 10 20 30 40

Other

A business or customer intelligence team that gathers and maintains info. for sales reps

Multiple customer databases accessible directly by sales reps

Individual sales reps' information sources

One unified online portal accessible directly by sales reps

May 3, 2023


Quality of Marketing and Sales Assets For Sales Rep

58

10

9

8

7

6

5

4

3

2

1

Average Rank

Marketing and sales assets are out-of-date, not relevant to customers, and/or difficult to understand and leverage

Assets are highly relevant to our customers and have been a key success factor in our sales' productivity and ultimate success

Asset quality is significantly better than in prior years, however, much improvement remains to impact sales

5.6


Q: Please indicate the quality of marketing and sales assets that are availability to sales reps?

May 3, 2023


IDC’s Marketing and Sales Pipeline Taxonomy

59

Targets Targets include the total number of individuals included in an outreach marketing (e.g., email, events)

Responses Prospect names and related information collected through various marketing activities (e.g., email, events)

Contacts Responses that have been determined to be “real” individuals (information may also be appended to these contacts)

Marketing Qualified Leads (MQLs)

Contacts that have met specific criteria indicating that they are ready to move on to the next stage in the customer creation process (e.g., BANT — Budget, Authority, Need and Timing). Ideally these leads will have a score attributed to them by marketing based upon past interaction and activity.

Sales Qualified Leads (SQLs)

Sales has accepted the MQLs, including agreeing to actively pursue these leads within the sales process (i.e., probability for closure = 20% to 49%)

Opportunities SQLs have been determined to have the potential for the deal closure within a certain period of time (i.e., probability for closure = > 50%)

Won Deals Opportunities that have signed a contract

IDC segments leads in terms of ‘Value’ accounts and ‘Volume’ accounts

Value Accounts Value Accounts are large named accounts with 1000 or more employees

Volume Accounts Volume Accounts are SMB accounts with fewer than 1000 employees

May 3, 2023

© IDC For Internal Use Only. Not for Distribution without IDC Permission. 60

2012 Pipeline Conversion Benchmarks

6501

120

69

20

4

2

1

1Rounded2 Value Accounts (over 1000 employees)

“How many leads do we

need?”

Targets

Responses

Contacts

Marketing Qualified Leads

Sales Qualified Leads

Opportunities

Deals2

18.5%

57.3%

29.1%

20.4%

44.4%

57.1%

Source: IDC’s 2012 Sales Productivity Benchmarks Database and IDC’s 2012 Tech Marketing Benchmarks Database

Areas improved over 2011 rates

May 3, 2023


2012 Pipeline Velocity Benchmarks

Targets

Responses

Contacts

Marketing Qualified Leads

Sales Qualified Leads

Opportunities

Deals2

3.51

3.4

2.4

1.3

4.8

2012:19 Months

1Months a lead spends at this pipeline stage2 Value Accounts (over 1000 employees)Source: IDC’s 2012 Sales Productivity Benchmarks Database and IDC’s 2012 Tech Marketing Benchmarks Database

2011:19 Months

The Time it Takes to“Create a Customer”

61

3.7

idc’s 2013 trends, benchmarks, and essential guidance for technology sales organizations

Documents