1. Sales Analytics & Performance Tracking
Better decisions that drive consistent, predictable behavior & results
Tracey Kaufman
Sr. Director of Customer Experience
October 2010
Cloud9 2010 1

2. What We’ll Cover
• Why sales analytics are critical to
your business success
• Sales Analytics best practices -
what metrics to track
• How to determine the right set of
metrics to track for your business
• What the data tells you and how it
can help you manage and coach
your team
• How to use analytics to tell the
difference between “good” and
“bad” profits
Cloud9 2010 2

3. Did You KNOW...
Only 51.5% of Reps Are Only 78.5% of Plan Only 23% of Firms have a
Making Quota Attainment is Accomplished Dynamic Sales Mgmt. Process
27.2%
29.9% 31.3% Selling w/ Reps 21.6%
No Decision Lost Coaching Reps
14.7%
Pipe / Forecast MGMT
44.8% 20.3%
15.8%
Won Internal Meeting &
Management Tasks
Other (Train / Travel)
Only 44.8% of Forecasted 50% of Time Spent on
Deals Are Won Revenue GEN
3
Cloud9 2010 Source: CSO Insights: May 2010

4. Which MEANS...
You’re missing out on REVENUE & CRM isn’t ENOUGH
Supports business NOT management processes
Other
Use Sales Analytics
Use Spreadsheets
Use Core CRM System
45% use CRM to Manage
Sales Forecasts
4
Cloud9 2010 Source: CSO Insights: May 2010

5. The Solution: SALES ANALYTICS
BENEFITS:
• Improve sales effectiveness,
productivity and cycle times
• Understand and adapt to change in
time to impact quarterly results
• Discover relationships and patterns
to improve revenue predictability
• Drive improved sales rep performance
• Identify which rep behaviors are
reinforced by process and incentives
• Gain greater visibility to key drivers of
customer loyalty
5
Cloud9 2010

6. Measuring the Right Stuff
• More data isn’t always better –
need actionable information
• Do the “so what’ test – ask
yourself: “What would I do
differently if I had this information?”
3 Steps:
1. Interpret and assess the results
using historical benchmarks
2. Investigate negative results to
understand root cause
3. Develop and execute a plan to
impact business results
Cloud9 2010 6

7. Sales Analytics KPIs Four Key METRICS Groups
1 Pipeline
2 Activity
3 CRM Adoption
4 Customer
7
Cloud9 2010

8. Pipeline Management Best Practices
Dynamic and repeatable
1 sales management process
Performance management
2 informed by Analytics
3 Predictable models
8
Cloud9 2010

9. Running a Weekly Sales Meeting
Ask YOURSELF:
• Where are we now–are we on
track?
• Where are we going–do we have
sufficient coverage to make our
number?
• What’s changed–how does our
progress compare to prior
periods?
9
Cloud9 2010

10. Performance and Coverage
Compare current performance against quota and forecast
Drill into details
10
Cloud9 2010

11. What’s Changed
Review pipeline changes (won, lost, adjusted), uncover exceptions, identify risks and develop next steps
11
Cloud9 2010

12. Period-to-Period Comparison
Do Q/Q comparison, identify risk areas & make course corrections to refocus resources
12
Cloud9 2010

13. 1:1 Coaching Example
Look at last quarter’s results:
•Are your reps entering a high % of deals
late in the quarter or doing post quarter
cleanup?
•What % of their committed deals were
won, lost and deferred, adjusted?
For the current quarter:
•Is there a high percentage of expired
deals?
•Are there a lot of stale deals that haven’t
been managed? Should they be closed?
•Are Activities being updated regularly?
13
Cloud9 2010

14. Using Historic Data For Predictable Models
• Assess business and team
performance and predict future
results by using historical
benchmarks, patterns and trends
Examples:
• Evaluate pipeline health
• Assess forecast accuracy
• Evaluate overall performance
• Identify top & under-performing
reps, channels & products
• Highlight rep behavior /skills issues
• Understand sales mix
14
Cloud9 2010

15. Pipeline Velocity
INCREASE Bottom Line Revenue & Predictability
Improve Pipeline Velocity:
(# of deals) x (win conversion rate) x (avg. deal size)
Average selling time in days
15
Cloud9 2010

16. Activity Tracking
BENEFITS:
• Improved Sales Manager and Rep
alignment
Sales Performance = Activity x Proficiency
• Increased visibility enables
informed and concrete coaching
• Enables identification of best
practice steps for winning a deal
• Supports cross-functional
collaboration and hand-offs
16
Cloud9 2010

17. CRM Adoption
CHALLENGES:
• CRM adoption is inconsistent
• # logins/week, consistency,
• histogram–usage patterns
Sales reps don’t like using CRM
systems – view it as “big brother” &
takes time away from selling
• Result is lack of visibility and
confidence in the data
BEST PRACTICES:
• Implement a combination of
“carrot” and “stick” incentives
• Use data during 1:1 coaching
sessions – reinforces value
• Change conversation from “what
happened?” to developing a plan
17
Cloud9 2010

18. Customer Metrics
•
DO YOU KNOW:
Total Current Customers
•
- many customers you segments
Howby customer group–marketingacquire
and lose every quarter and why?
• New Customers
- volume, value, reason, referral
Revenue and key drivers
• • Renewal Customers of repeat
business?value, reason
- volume,
• Reference Customers
• What % ofvalue, reason, referral are
- volume, your customers
referenceable?
• Customer Status
- active, in-active
• What % of your new business
• Customer referrals?
comes from Loyalty
- promoter, satisfied, detractor
• • Critical Customers dissatisfied
Which customers are
- volume, value, status, reasons
and why?
• Customer Lifetime Value
•
- revenue & marketing contribution,
Overall cost to acquire and cost
support your customers?
18
Cloud9 2010

19. Cloud9 Pipeline Accelerator
Cloud9 2010 19

20. Results You Can Expect
VELOCITY & REVENUE Improvements
Potential of 10% increase in
“Adaptable companies with a revenue via improved sales
dynamic sales process reported 30% pipeline/funnel management
higher forecasted deal conversion 2007 McKinsey study
rates than average”
2010 CSO Insights Report
20
Cloud9 2010

21. C9 Customer Success Stories
Increased forecasted deal
closure by 5% resulting in
$400K per quarter
Returned 80 hours per
quarter in selling time back to
Sales Management
Forecast accuracy improved
by 50% resulting in better
resource allocation
21
Cloud9 2010 21

22. Thank You
Cloud9 2010 22