A Sales Benchmark Index presentation of Sale Strategy. Creating performance conditions to win.

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www.salesbenchmarkindex.com/ info@salesbenchmarkindex.com 1-888-556-7338
Sales Strategy: Creating Performance
Conditions to Win
Are you ready to be world class?

2. Sales Strategy Research Results:
Creating Performance Conditions to Win
1 Compensation Programs
2 Organizational Models
3 Lead Generation Programs
4 Selling Methodologies
5 Modeling Segment Potential

3. Compensation Programs:
Best Practice Exercise
1.
1
Total target cash compensation is set at the 60th percentile of labor market
competitors of a pre-identified list of companies.
2. Pay mix is no less than 85/15 and no greater than 50/50.
3. There are no more than 3 performance measures, one of which will be a
sales production measure.
4. No measure is worth less than 15% of the pay program.
5. At least 60% and no more than 75% of reps exceed quota.
Back

4. Current Current Current Total Benchmark Benchmark Benchmark
Base (Ave) Bonus (Ave) Comp Base OTE Pay Mix
$199K $270K
VP Sales $150,000 $150,000 $300,000 76/24
$154K - $244K $191K - $349K
New-National Sales $85K $110K
$79,781 $27,643 $107,424 77/23
Executive $75K - $90K $108K - $166K
Existing-National $85K $135K
$79,781 $27,643 $107,424 63/37
Sales Executive $75K - $90K $108K - $166K
$125K $220K
VP Media Sales $125,000 $25,998 $150,998 57/43
$87K - $134K $119K - $221K
$99K $131K
Sales Manager NA NA NA 75/25
$81K - 116K $100K - $162K
Client Development $81K $108K
71,147 $19,941 $91,088 75/25
Consultant $72K - $90K $82K - $134K
$81K $91K
Sales Engineer NA NA NA 90/10
$73K - $91K $75K - $107K
Client Services $105K $115.5K
$103,000 NA $103,000 90/10
Executive Director $92K - $118K $99K - $131K
Client Services $68K $75K
$69,105 NA $69,105 90/10
Director $62K - $74K $69K - $81K

5. Role: Inside Sales Rep
Assumptions
Average yearly revenue per customer (within 24 month window), if any assigned $50,000
Average deal size of the net new customer $250,000
#SQOs per ISR per year (includes named pipeline prospects) 30
Close rate for new logo opportunities 10%
Deals closed per ISR per year 3
Territory
Named customers (for 24 month post-deal period), if any assigned 0
Named pipeline prospects 2
Sales-qualified opportunities generated by the Lead Gen Specialist 30
Total # of accounts = 32
Projected Revenue
0 Existing customers X $50,000 per customer = $0
3 Now logo customers X $250,000 per customer = $750,000
Total = $750,000
Quota
Quota $600,000
Quota-to-total compensation ratio 10.00
Compensation
Total compensation $60,000
Base % 50%
Variable % 50%
Base salary $30,000
Variable component $30,000

6. Organizational Models:
Best Practice Exercise
1. We have matched selling capacity (total selling hours) to market
demand (total market potential).
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2. The type of rep needed is determined by the role the customer
wants the rep to play when conducting a transaction.
3. Territory potential determines quota assignment.
4. Our best reps are in the territories with the most potential.
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7. Customer Segmentation Analysis
• 63% of volume and 52% of gross margin from 6% of customers
• Bottom 70% of customer make up 10% of volume and 16% of margin
% Total Volume % Total Customers
10% 6%
9% 18%
18% 15%
63% 70%
A (>20M gal) B (5-20M gal) A (>20M gal) B (5-20M gal)
C (2-5M gal) D (<2M gal) C (2-5M gal) D (<2M gal)
How much sales force time is spent on that 70% of customers that should
be invested in the top 6%?

8. Customer Segmentation Analysis
Segment # Custs Vol (M) GM ($M) % Cust % Vol % GM Hrs/Cust Hrs/Touch Touch/Cust Total Hrs % Hours
A
139 8,473 $335 6% 63% 52% 192 4 48 26,688 43%
(>20M gal)
B
233 2,381 $129 9% 18% 20% 48 2 24 11,184 18%
(5-20M gal)
C
369 1,117 $75 15% 8% 12% 24 2 12 8,856 14%
(2-5M gal)
D
1,734 1,374 $101 70% 10% 16% 9 0.75 12 15,606 25%
(<2M gal)
Align Selling Hours w/ Customer Value (Volume & Profit)

9. REALIGNED COUNTRY SALES STRUCTURE
Geo Manager
Pro Services Pre-Sales
Sales Manager Sales Manager
Manager Manager
Pre-Sales Pre-Sales
Trainers (3) Direct Sales Direct Sales Inside Sales Inside Sales
Consultant Consultant
Implementaion Pre-Sales Pre-Sales
Direct Sales Direct Sales Lead Gen Lead Gen
Consultants (32) Consultant Consultant
Major Account Customer Acct
Managers (4) Direct Sales Field Marketing
Rep Manager
Admins (5) Channel Rep Sales Admin Sales Admin
• Changes
Support Staff
(16) – Add a Major Account Rep to the sales team
– Further reduction in the number of Direct Sales Reps (number is TBD) to reflect higher comp, bigger territory, and focus on hunter role
– Reduce Pre-Sales headcount number (number is TBD)
– Reduce Direct Sales Rep

10. Lead Generation Programs:
Best Practice Exercise
 The definition of a lead is determined by Buyer Personas.
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 We understand the # of leads generated, and their quality score,
for each demand generation $ spent.
 We have a defined process to move from an inquiry-lead-
opportunity-customer.
 We understand the volume required at each funnel stage to make
the number.
 We have made the switch from outbound to inbound marketing.
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11. Persona: Company Profile and Fit AWARENESS CONSIDERATION PREFERENCE
PREFERENCE
Focus Verticals and Employee Count:
Manufacturing, Retail, Transportation, Professional & Buyer Buyer Buyer
Financial Services (300 – 5000 employees) • Do I have a problem? • Can I ignore this? • How long will it take to get this
• How does this problem relate to • Is there a quick fix? fixed?
Indicators of high likelihood of pain, strong fit
achieving my goals? • Can I fix it myself? • How much of our time do I need to
• Old legacy in-house ERP and T&A systems • How painful is the problem? • Do I need help? put towards it?
• In-house manual systems and processes • Who does the problem impact – • What are my choices if I need help? • How do I know the fix will work?
• Hourly workforce that is decentralized, unionized, departments, users, employees, • How should I evaluate alternatives? • How disruptive will it be?
• Growing/shrinking, leadership change, merger/acq decision makers? • How will others on my purchasing • How much will it cost?
• Facing heavily regulation with govt customers • What are my peers doing? committee evaluate alternatives? • What impact will it have?
Buying criteria: • What happens if it doesn’t work?
• Increased productivity, Compliance, User
experience, business case, systems integration,
employee satisfaction I Cant… I Want… Key Messages
HR SVP/EVP (Most senior person) • Receive advanced notification and • Ease of use solution for • Increase employee engagement
visibility to compliance issues employees, limited training resulting in higher satisfaction
Responsibilities: Benefits,
• Get visibility or access to historical required • Ensure compliance with
Payroll, recruiting, compensation,
data to manage compliance issues • An early warning alert and automated HR and pay policy
performance management
• Identify root cause of performance historical view of compliance enforcement that supports
Focus: HR compliance, employee and productivity issues. challenges and issues workers and workplace
engagement/culture, productivity, accountability • Maximize the productivity of my • ALL: Access to data that helps me • High user adoption, reduced
workforce maximize return on employee training and fewer errors with BIC
Role in purchase: Always a key influencer and may • ALL: Balance staffing requirements investment (Productive/Efficient) user experience
be drive the evaluation. Evaluates employee and employee schedule preference • ALL: third party validation and
engagement, staffing levels, and compliance. proof of financial justification
Operations COO • Get the reports I need to compare • Ease of use solution for employees, • Integrated solution resulting in
profitability of plants/stores. limited training required improved accuracy (no re-key) and
Responsibilities: Delivers on the • Identify root cause of performance • To reduce costs of managing my speed (no latency)
promise of the organization and productivity issues. workforce • Decreases administrative time
(product/service) • Maximize workforce productivity • Deliver highest quality at the lowest Improve customer service and
Focus: Optimal productivity and efficiency. Seeking • Receive advanced notification and cost in shortest time product quality while reducing
Quality, Cost savings and Speed. Process driven to visibility to labor expense leakage • An early warning alert and historical costs by changing the way labor is
achieve customer satisfaction. • Model workforce changes and see view of compliance challenges and deployed and scheduled
how they impact KPI’s issues • Cloud solution is scalable and
Role in purchase: User Buyer, must work with the • Schedule the right people, right configurable, with an upgrade path
CFO to fund a WFM solution. place, right time that is automated and no cost
• Get the reports I need to compare • To reduce costs of managing my • Self-funding investment, clear ROI
Finance CFO (delegates to Controller)
profitability of plants/stores. workforce • Flexibility of solution to meet the
Responsibilities: Delivers bottom
• Receive advanced notification and • To drive out costs and enable current and future needs of my
line numbers for the organization.
visibility to labor expense leakage incremental revenue generation evolving company
Financial performance reporting,
and compliance issues • Better align corporate performance
forecasting revenue, budgeting and
indicators with employee activities
cost control
• Cloud solution is scalable and
Focus: Financial performance and productivity.
configurable, with an upgrade path
Always looking for ways to increase profitability.
that is automated and no cost
Role in purchase: Approver/Economic Buyer

12. Lead Generation =
Demand Generation + Lead Management
Lead Generation
Sources Lead Management Stages
Webinars
Awareness Consideration Engagement Intent Opportunity
Email
Campaigns
Direct Mail
Web
MCL MQL SAL SQL
Outbound
Calling
Events
Exit Criteria

13. Waterfall Exercise – Future State US HR/Payroll
Lead Sourcing
6,400,000
2%
128,051 MCLs Assumptions
3% • Marketing contribution of 25%
of total $40m rev goal
Conversion Rates
3,842 MQLs
– 118 deals x $85k = $10m
25%
• Avg. sale SOV $85k
960 SALs • Conversion rates of average b2b
lead gen teams with sound
49%
process
471 SQLs
IMPLICATION – Opportunities are
25% nurtured across a broader qty of MCLs
118 Deals with more qualified leads coming
through to the sales reps.

14. Selling Methodologies:
Best Practice Exercise
1. We understand the Buyer’s Journey.
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2. Our sales methodology has been redesigned and mapped to
the new buyer’s journey.
3. The new sales methodology has defined stages, activities, job
aides, and buyer driven exit criteria.
4. Our SFA system facilitates the adoption of the sales
methodology.
5. Forecasting accuracy exceeds 80%.
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15. Sales Process:
Misaligned Exit Criteria
Sales Cycle
Determining Confirming
Opportunity Confirming Finalizing
Prospecting Differentiated Value and Negotiating Closed
Identified Vision Match Mutual Plan
Problems Power
Sales Exit Criteria
First Meeting Pain, Timeline, Discovery, Demo, Reference Close Call
Decision Schedule Summary of Called, Complete,
Criteria, SOE Demo Findings Activant Ask Order
Preferred,
Proposal Review
Needs Explore Resolve
Catalyst Purchase
Recognition Options Concerns
Recognize Clear Vision of Solution Preferred Solution Risks Considered Issue Order
Buyer Exit Criteria
Problem Identified
Buying Cycle

16. Sales Cycle Length --- Includes Stage Reversal ---
Worst Case Stage Duration
200
180
160 2X Best Case duration until
140 Negotiating Stage
120
100 Closed-No Decision
Closed-Lost
80
Closed-Won
60
40
20
0
Prospecting Opportunity Determining Confirming Vision Confirming Vision Finalizing Mutual Negotiating Final State
Identified Differentiated Match and Power Plan
Problems
Worst Case Duration
Determining Confirming Confirming
Opportunity Finalizing
Prospecting Differentiated Vision Value and Negotiating Final State Total Duration
Identified Mutual Plan
Problems Match Power
Closed - No Decision 75 126 86 87 51 61 30 40 556
Closed - Lost 116 187 106 75 57 35 15 15 606
Closed - Won 44 90 97 84 43 42 16 13 429
* Note: Duration for a Stage is the days from Previous Stage to current stage plus days from next stage back to current stage

17. Modeling Segment Potential:
Best Practice Exercise
1.
2.
We use a customer-driven segmentation approach.
We use an activity-driven segmentation approach.
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3. We use a cost-driven segmentation approach.
4. We have tested the validity of these methods:
– Named accounts- high value targets
– Industry- verticals with high propensity to buy
– Sales Frontier- peak performance replication
– Metro Compression- geographic density
– Territory re-balancing happens at least once per year
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18. Opportunities by Region (strategic & tactical)
• Targeted NL Beachhead Region/Countries
• Complete view of potential: in SFDC and other
• 163 NPC Deals + 33 NPG, Main, and Direct
• Potential is built off a 3 year run rate
Europe:
Beachhead Potential = $42M
NPC Oppt = 5
NPG Oppt = 35
NPAC: $600M
Middle East:
Oppt coming up for
Beachhead Potential = $16M
Renewals
NPC Oppt = 6
NPG Oppt = 19
APAC:
Beachhead Potential = $23M
CALA:
Africa: NPC Oppt = 8
Beachhead Potential = $42M
Beachhead Potential = $26M NPG Oppt = 49
NPC Oppt = 6
NPC Oppt = 8
NPG Oppt =22
NPG Oppt = 38

19. Number Portability Opportunity Timing
• Consider Timing of when allocating Resources • Strategic – Transactional (>25M subs)
• NPC Sales Cycle up to 2 years • Tactical – RTU/License (<25M subs)
Timing of NP Opportunities
Count of Country Fiscal Year
Territory 2012 2013 2014 2015 Total
Africa 1 2 3 2 8
Strategic 1 1
Tactical 2 3 2 7
Asia Pacific 1 3 2 2 8
Strategic 2 2 1 5
Tactical 1 1 1 3
CALA 3 1 2 6
Strategic 2 2
Tactical 1 1 2 4
Europe 2 3 5
Strategic 2 2 4
Tactical 1 1
Middle East 4 1 1 6
Tactical 4 1 1 6
Total 9 8 11 5 33

20. How to Get Started?
Phase 1 Phase 2 Phase 3
Determine Sales
Assess Sales Force
Force Maturity
Prioritize Possible
Conduct Sales
Conduct Discovery Remediation Present Findings
Benchmark
Actions
Means Results
1. Exec Interviews Assess Sales 1. Capture Current State
Identify Key
2. Mystery Shopping Performance 2. Show End State
Drivers to improve
3. Documentation Drivers Possibilities
4. Metric Data 3. Make Recommendations
5. Customer Survey 4. Quantify Impact
Performance Drivers
6. Sales Rep Survey
1. Channel Management 8. Sale Management
7. Sales Rep DILO
2. Compensation Planning 9. Sales Performance
8. Expert Panel Management
3. Key Account Management
4. Lead Generation 10. Sales Process
5. Quota Setting 11. Sales Strategy
6. Sales Force Structure 12. Talent Management
7. Sales Force Size 13. Territory Design

21. Learn More
Contact us to hear the rest of the story...
Email - info@salesbenchmarkindex.com
Phone - 1-888-556-7338
Web: http://www.salesbenchmarkindex.com/
Whitepaper: http://www.salesbenchmarkindex.com/sales-
strategy-download/
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