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Sales Analytics & Performance Tracking

Tracey KaufmanSr. Director of Customer ExperienceOctober 2010

Better decisions that drive consistent, predictable behavior & results

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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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Did You KNOW...

Source: CSO Insights: May 2010

Only 44.8% of Forecasted Deals Are Won

50% of Time Spent on Revenue GEN

Selling w/ RepsCoaching Reps

Internal Meeting & Management Tasks

Other (Train / Travel)

Pipe / Forecast MGMT

27.2%

15.8%20.3%

21.6%

14.7%

Won

LostNo Decision31.3%29.9%

44.8%

Only 23% of Firms have a Dynamic Sales Mgmt. Process

Only 51.5% of Reps Are Making Quota

Only 78.5% of Plan Attainment is Accomplished

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Which MEANS...

45% use CRM to Manage Sales Forecasts

You’re missing out on REVENUE

Use Core CRM System

Use SpreadsheetsUse Sales Analytics

Other

CRM isn’t ENOUGHSupports business NOT management processes&

Source: CSO Insights: May 2010

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The Solution: SALES ANALYTICS

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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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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 cause3. Develop and execute a plan to

impact business results

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Sales Analytics KPIs

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Four Key METRICS Groups

Customer

Pipeline

Activity CRM Adoption3

1

2

4

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Pipeline Management Best Practices

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Dynamic and repeatable sales management process1

Performance management informed by Analytics2

Predictable models3

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Running a Weekly Sales Meeting

• 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?

Ask YOURSELF:

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Performance and CoverageCompare current performance against quota and forecast

Drill into details

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What’s ChangedReview pipeline changes (won, lost, adjusted), uncover exceptions, identify risks and develop next steps

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Period-to-Period Comparison

Do Q/Q comparison, identify risk areas & make course corrections to refocus resources

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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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Using Historic Data

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• 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

For Predictable Models

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INCREASE Bottom Line Revenue & Predictability

Improve Pipeline Velocity:(# of deals) x (win conversion rate) x (avg. deal size)

Average selling time in days

Pipeline Velocity

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Activity Tracking

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Sales Performance = Activity x Proficiency

BENEFITS:• Improved Sales Manager and Rep

alignment

• 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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CRM Adoption

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• # logins/week, consistency, histogram–usage patterns

CHALLENGES:• CRM adoption is inconsistent

• 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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Customer Metrics

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• Total Current Customers- by customer group–marketing segments

• New Customers- volume, value, reason, referral

• Renewal Customers- volume, value, reason

• Reference Customers- volume, value, reason, referral

• Customer Status- active, in-active

• Customer Loyalty- promoter, satisfied, detractor

• Critical Customers- volume, value, status, reasons

• Customer Lifetime Value- revenue & marketing contribution, cost

DO YOU KNOW:• How many customers you acquire

and lose every quarter and why?

• Revenue and key drivers of repeat business?

• What % of your customers are referenceable?

• What % of your new business comes from referrals?

• Which customers are dissatisfied and why?

• Overall cost to acquire and support your customers?

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Cloud9 Pipeline Accelerator

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Results You Can Expect

“Adaptable companies with a dynamic sales process reported 30% higher forecasted deal conversion

rates than average”2010 CSO Insights Report

Potential of 10% increase in revenue via improved sales pipeline/funnel management

2007 McKinsey study

VELOCITY & REVENUE Improvements

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C9 Customer Success Stories

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Forecast accuracy improved by 50% resulting in better

resource allocation

Increased forecasted deal closure by 5% resulting in

$400K per quarter

Returned 80 hours per quarter in selling time back to

Sales Management

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Thank You