3. Sales Management
A PROCESS for Team Success:
1. Set Goals
2. Execute on the Business
3. Monitor for Exceptions
4. Analyze and Adjust the Goals
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2010 3
4. Sales Management
How we’ve been doing it:
- Hire, some training & they’re off!
- Set up the carrots & sticks
- Reward the super stars
- Measure & punish quarterly
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2010 4
5. It’s Not Working!
Only 51.5% of Reps Sales teams coming up
Are Making Quota 12% short on over-all Plan
29.9% 31.3% 27.2%
No Decision Lost
Selling w/ Reps 21.6%
Coaching Reps
14.7%
Pipe / Forecast MGMT
44.8% 20.3%
Internal Meeting &
Won
15.8% Management Tasks
Other (Train / Travel)
Only 44.8% of Forecasted only 50% of Time
Deals Are Won Spent on Revenue GEN
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2010 5
6. Now It’s a 2.0 World
Can’t manage in a Sales 2.0 world using 1.0 techniques
- More data than ever, put it to work
- Use analytics to focus attention
- Make course corrections early and often
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2010 6
7. Dynamic Sales Management
Sales Management 1.0 vs. Sales Management 2.0
If sales management 1.0 is art, 2.0 is art informed by
science and better characterized by...
DETECT & CORRECT
Three questions:
1. What does the data say?
2. Should I be worried?
3. What should I do about it?
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2010 7
8. A Model for Detect & Correct
Track PIPELINE VELOCITY
Use pipeline velocity as a
framework for organizing
information to cut a path.
Monitor VARIANCE
Know what’s changed and
how that deviates from
expectation or plan.
Take ACTION
Ask questions that lead to
action–skills problem?
market? alignment?
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9. Pipeline Velocity
Deals x Win Rate x Deal Size
Selling time
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2010
11. Organizing Relevant Data
Deals Effected by...
- Marketing: Inbound, Outbound - Sales originated deals
Maximum number of deals set to
- Partner referrals - Undocumented deals
close in the period
- Uncovered territories, rep turnover - Expired deals (and quality issues)
Conversion Rate
Effected by...
Total Closed/Won deals in the - Loss rate: stage-based, competitor - Deferral rate, slippage
period relative to Deals - Win rate: stage-based conversions - Rep ‘effective coverage’ saturation
- Stalled deals by stage - Productivity, tenure, training, comp
Deals Size
Effected by...
Average value of Closed/Won - Product pricing - Rep portfolio (SMB/Enterprise)
deals in the period - Product mix - Declared market
- Discount levels, tendencies - Target customer profile
Selling Time
Effected by...
Average duration for Closed/Won - Stage duration, stage movement - Late stage “new” deals showing up
deals in the period - Expired deals, data quality - Close dates improperly set
- Repeated deferrals - Rep training, tenure
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2010
12. Questions Leading to Action
Sample Questions:
1. Behavior - are people well aligned
behind the goal with the right
incentives?
2. Skills - are there training,
productivity, ramp issues?
3. Market - has something happened
in the market to change the value
equation for our product?
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2010 12
13. Dynamic Sales Management in Action
1. DETECT the Problem 2. ASK the Questions 3. CORRECT (solve) the Issue
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2010 13
14. The Results
Implementing a DYNAMIC Sales Management Process
Together with strong leadership and effective coaching,
moving to a more Dynamic approach for Sales
Management will optimize resources, improve forecast
accuracy and accelerate revenue growth.
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2010 14
15. Cloud9 Enables Dynamic Sales Management
“Salesforce.com is perfect for managing accounts and
opportunities. We use Cloud9 to manage our people.”
“We Increased Revenue by $1.6M/year by Dan Solito, VP Global Sales Operations
delivering Cloud9 to the management team.” Avaya
Dave Fitzgerald, VP Sales
Brainshark
“Deploying Cloud9 to sales managers gave such an increase in CRM adoption,
we've now rolled it out to the entire sales, operations and finance teams.”
Daniel Fitzhugh, VP of Business Operations Myspace
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2010 15
16. What You Can Do Today
Call Cloud9, we can help
1. Calculate your Pipeline Velocity
2. Determine the Pipeline Velocity levels you need to succeed
3. Consider the best benchmarks for comparison
4. Determine who controls the Drivers
5. Focus on the Pipeline Velocity Drivers you control
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2010 16