Dynamic Sales Management
0 likes301 views
This document discusses dynamic sales management and introduces Cloud9 as a tool to enable it. It describes sales management 1.0 vs 2.0, with 2.0 characterized by detecting and correcting issues using data. A model is presented for tracking pipeline velocity and variance over time to organize relevant data. Key questions are provided to lead to corrective actions addressing potential behavior, skills, or market issues impacting sales. Case studies show how Cloud9 has helped companies increase revenue through dynamic sales management.
Dynamic Sales Management
- 1. Dynamic Sales Management Increase Pipeline Velocity, Forecast Accuracy & Revenue Swayne Hill CEO & Founder Cloud9 2010 1
- 2. The Sales Manager’s Job Leadership, Management & Coaching Cloud9 2010 2
- 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 Cloud9 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 Cloud9 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 Cloud9 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 Cloud9 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? Cloud9 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? Cloud9 2010 8
- 9. Pipeline Velocity Deals x Win Rate x Deal Size Selling time Cloud9 2010
- 10. Variance & Change Monthly Velocity Variance: Velocity Driver Variance !"#$%&'("#)*+,%)-+&(+#.%) !"#$%&'()*%+#,-#)."% How does the data vary from expectation *#$ ,-.$ /01$ 021$ /03$ 456$ 457$ +)#$ and, how has it changed over time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loud9 2010 10
- 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 Cloud9 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? Cloud9 2010 12
- 13. Dynamic Sales Management in Action 1. DETECT the Problem 2. ASK the Questions 3. CORRECT (solve) the Issue Cloud9 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. Cloud9 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 Cloud9 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 Cloud9 2010 16
- 17. Thank You! Cloud9 2010 17