Lead to Money: Aligning Finance with Sales and Marketing Processes
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Transcript of Lead to Money: Aligning Finance with Sales and Marketing Processes
© Copyright 2014 The Sales Management Association.
Sales Management Association Webcast
13 February 2014
Presented by
Lead to Money: Aligning Finance
with Sales and Marketing Processes
#LeadToMoney
About The Sales Management Association
Slide 2
© 2014 The Sales Management Association. All rights reserved.
A global, cross-industry professional association for sales
operations and sales management.
Focused in providing research, case studies, training, peer
networking, and professional development to our membership.
Fostering a community of thought-leaders, service providers,
academics, and practitioners.
Learn More: www.salesmanagement.org
Today’s Panelists
Slide 3
© 2014 The Sales Management Association. All rights reserved.
#LeadToMoney
© Copyright 2014 The Sales Management Association.
Sales Management Association Webcast
13 February 2014
Presented by
Lead to Money: Aligning Finance
with Sales and Marketing Processes
#LeadToMoney
Deloitte is recognized as a thought leader in the Customer Transformation space. Industry analysts continually rank Deloitte
among the top consulting firms year over year.
• Kennedy: #1 Global and Management Consulting
• Gartner: #1 Consulting Services Worldwide
• Kennedy and Gartner: #1 Customer Transformation
• Forrester: #1 Business Technology Transformation
About Deloitte’s Customer Transformation Practice
Functional:
• Sales Transformation – Developing “go to market” models with the right mix
of channels to acquire customers more effectively through the selling
process
• Marketing Transformation – Increasing brand value, maximizing return on
marketing investments, and improving the performance of marketing
organizations
• Customer Service Transformation – Defining the right service capabilities
to drive profitable growth while increasing the effectiveness of the service
management process
Foundational:
• Customer Experience – Delivering a consistent brand promise across touch
points that enables more value to be gained from customer relationships
• Customer Insights & Analytics – Developing a more heightened
understanding of customers to better focus resources and improve return on
investment
Deloitte provides the following cross-functional capabilities as part of its
Customer Transformation Market Offering:
Customer Transformation Framework
Recognition
Aligning Goals from Lead to Money #LeadtoMoney
Automating lead
management can
increase revenue
by 10% in an little
as 6 months.
Marketing Alignment #LeadtoMoney
The Lead Management Process
• Distribute lead to appropriate channel if not marketing driven sales lead
• Capture the lead
• Input and store the lead
• Define qualification rules
• Grade the lead
• Gather customer demographics and information to input into system
• Identify lead opportunity and associated product(s)
Lead Capture
Lead
Qualification
• Capture all information gathered during sales cycle
• Assign lead for follow-up or reject lead
• Input lead follow-up date and reminder
• Prioritize the lead based on potential
• Monitor and track the lead through stages of the sales cycle
• Alert when lead is not followed-up with
• Re-engage with lead to convert to business or close out of system
Lead Close or
Follow-Up
Lead Progress
Tracking
• Measure and pull analytics on the lead
• Segment leads based channel, campaign ID, product,
conversion time, etc.
Lead Analysis
Reporting
• Identify relevant campaign ID
• Input campaign ID into lead management system Identify
Campaign ID
Illustrative Lead Management Framework
The steps below are representative of the basic components of a lead management process and depict the
sequence of events that occurs to take a lead from origination to close.
#LeadtoMoney
Properly enabled sales
teams can achieve 5
hours of productivity
back a week.
Sales Executives on Sales Performance
1. Economist Intelligence Unit survey of senior sales
executives in “Developing an Effective Sales Process for
the Enterprise.”
2. Deloitte Strategic Sales Compensation Survey
Based upon reviews of sales performance and surveys of senior sales executives, there is a high level of
dissatisfaction with the ways in which their sales managers do their jobs and the general levels of
productivity sales managers are getting out of their reps.
Level of sales skills and techniques
retained without follow-up sales
management reinforcement and
coaching1
13%
Sales teams falling short of goals2
67%
Sales managers are satisfied with
their sales force’s productivity2
43%
Sales managers aren’t leveraging
processes and tools to support
their salespeople1
43% What sales execs
are saying:
#LeadtoMoney
Enablement Success Story: Leading Life Sciences
Organization
Situation
• Major Life Sciences company conducted a survey among sales reps to better understand where they spend their
time, the success of coaching efforts are and what additional training is needed
• On average reps were coached 13 hours a month, significantly above the best in class average, yet there was a
fairly low manager impact on sales success
Solution
• A closer look at sales coaching practices found that the overall quality of the coaching being done by sales
managers was well below average
• Sales Managers needed to shift focus to coaching techniques that were tailored to the individual, providing real
time feedback after sales calls, coaching reps based on actionable metrics and setting realistic and attainable
goals
• Training was put into place that “coached” the coaches on how to use their mentorship time effectively through
metrics and individualized techniques
Results
• 102% rep attainment to goal on average for highly effective coaches versus ineffective coaches seeing only
83% rep attainment to goal. Improvement in coaching quality as opposed to quantity significantly increases sales
rep attainment to their individual goals
• Reps with strong coaches were 70% more likely to STAY with the company than those with weak coaches who
were 63% more likely to LEAVE; this held true across the entire performance spectrum
#LeadtoMoney
Quoting Automation: A Game Changing Capability
Customer Engagement
Pro
du
cti
vit
y
• CPQ
Enablement
• Basic Tracking &
Reporting
• Opportunity
Management &
Automation
• Improved pricing capability
• Reduction in pricing and order errors
• Better product mix and cross-sell
• Improve quote turnaround time
• Improved pricing capability
• Reduction in pricing and order errors
• Better product mix and cross-sell
• Improve quote turnaround time
Sales Rep Enablement
Optimized Profits
Increased Revenue
Increased Quota
Attainment
Increased Lead
Conversions
Increased Deal
Size
Quoting automation is a critical part of enabling the sales force, optimizing profits, and improving customer
engagement.
Finance plays a key role
in sales capacity
planning – properly
optimized territories can
increase revenue by 5%.
Territory Planning Maturity Assessment
Obsolete Standard Best Leading
Ineffective manual
processes, poor data
quality, high error rates,
and little governance.
Awareness of large
gaps with some pockets
of effectiveness and
improvement efforts.
Automated and effective
processes, reliable and
accurate data, with KPIs
and controls in place.
Innovative and business
enabling processes with
enterprise data and best
in class systems in use
Process Data System
• Effectiveness
• Standardization
• Documentation
• Governance
• Compliance
• Quality
• Accessibility
• Standardization
• Governance
• Usability
• Scalability
• Supportability
• Architecture
Organizations will fall in one of the four levels of maturity defined below. Identifying the current state and
gaps is a critical first step to moving up the maturity curve.
Territory Management Considerations
Territory Management Levels of Maturity
#LeadtoMoney
Sales ops ensures productivity and performance –
streamlined processes and tools can give 5 hours of
productivity back to reps a week.
Quota & Propose Myths
Myth #1 The Q2O process is a back office function with minimal customer impact
Myth #2 The Quote to Order process is a standard, routine back office function
Reality The Q2O process is a critical customer touch point, especially with new business models and the consumerism of IT (i.e. every decision maker is a consumer).
Reality The complexity of sales arrangements and deals, the growth of global operations and the focus on customer responsiveness it forcing customers to view the Q2O process as a competitive advantage.
#LeadtoMoney
A Disconnect Between Sales Reps And The C-Suite
More than 50% of the organizations believe compensation / incentive management programs have an
impact on the sales behavior of the organization. Yet many organizations continue to manage / administer
their compensation programs, territories, and channels in spreadsheets and ineffective inbuilt solutions.
Source: CSO Insights: 2012 Sales Compensation and Performance study
Consistently Drives Precise Selling
Behavior, 4.90%
Generally Drives Precise Selling
Behavior, 51.20%
Minimal Impact on Selling Behavior,
24.40%
Do not Know, 19.50%
...And It’s Normally A Very Inefficient Process
Only 40% of the organizations believe that their error rate in variable compensation payments is less than
3%. Almost 20% of the organization are not even aware about the inaccuracies in their variable payments.
Organizations continue to lose significant amounts in overpayments without realizing the consequences
and financial impact
Inaccuracies in incentive payments leads to sales rep leads to disputes / double accounting and despair
leading to disengagement on sales rep
Source: CSO Insights: 2012 Sales Compensation and Performance study
<1%, 27.50%
1 - 2%, 15.00%
3 - 5%, 15.00%
6 - 8%, 5.00%
>8%, 17.50%
Do not Know, 20%
#LeadtoMoney
Disconnect is high, hence the opportunity is high
According to Deloitte’s 2013 Strategic Sales Compensation Survey, many sales executives feel that their
sales compensation management programs limit their ability to execute business strategies.
Plan review cycles are frequent
More than half of the oragnizations review comp
plans on at least an annual basis
Frequent changes to comp plans indicates that
sales leaders are continually searching for the
“right” incentives to drive desired behavior
Disconnect between Company stratgey and
sales objectives
45% of the execs are falling short of the goals
Sales stratgies are neither aligned nor well
defined for sales reps
Company strategy needs to be realigned
Sales Satisfaction levels are low
Over 50% of Sales Execs were unhappy with
sales productivity over the last 6 years
More than half of the respondents were
dissatisfied with thier Compensation Programs
Frequency of comp plan review
Levels of Satisfaction: Sales Productivity
#caldc3
5 Keynotes
50+ Breakout Sessions
1000+ Attendees
Speakers from
• Xirrus, RagingWire, nTelos, Juniper Networks, HealthNet, Cree
• Aberdeen, Forrester, Gartner
caldc3.com
Questions and Discussion
Slide 23
© 2014 The Sales Management Association. All rights reserved.
Enter your questions in the
“Questions” box on the right
hand side of the webinar
application window.
Did we run out of time before we got to your
question? Presenters can follow-up with you via
email. Feel free to submit more questions if
you’d like an offline response.
#LeadToMoney
© Copyright 2014 The Sales Management Association
Thank You.