1. Sales Analytics & Performance Tracking
Better decisions that drive consistent, predictable behavior & results
Tracey Kaufman
Sr. Director of Customer Experience
October 2010
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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
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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
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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
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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
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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
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7. Sales Analytics KPIs Four Key METRICS Groups
1 Pipeline
2 Activity
3 CRM Adoption
4 Customer
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8. Pipeline Management Best Practices
Dynamic and repeatable
1 sales management process
Performance management
2 informed by Analytics
3 Predictable models
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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?
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10. Performance and Coverage
Compare current performance against quota and forecast
Drill into details
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11. What’s Changed
Review pipeline changes (won, lost, adjusted), uncover exceptions, identify risks and develop next steps
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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?
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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
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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
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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
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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
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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?
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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
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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
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