1Cloud9 2010 1

Dynamic Sales Management

Tracey KaufmanSenior Director of Customer ExperienceOctober 2010

Increase Pipeline Velocity, Forecast Accuracy & Revenue

2Cloud9 2010

The Sales Manager’s Job

2

Leadership, Management & Coaching

3Cloud9 2010

Sales Management

3

1. Set Goals2. Execute on the Business3. Monitor for Exceptions4. Analyze and Adjust the Goals

A PROCESS for Team Success:

4Cloud9 2010

Sales Management

4

- Hire, some training & they’re off!- Set up the carrots & sticks- Reward the super stars- Measure & punish quarterly

How we’ve been doing it:

5Cloud9 2010

It’s Not Working!

5

Only 44.8% of Forecasted Deals Are Won

only 65% 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 51.5% of Reps Are Making Quota

Sales Teams Coming up 22% Short on Over-all Plan

CSO Insights, 2010

6Cloud9 2010

Now It’s a 2.0 World

6

Can’t manage in a Sales 2.0 world using 1.0 techniques

- More data than ever, get the right metrics and put them to work- Use analytics to focus attention- Proactively uncover risks and opportunities- Make course corrections early and often

7Cloud9 2010

Dynamic Sales Management

7

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?

8Cloud9 2010

Model for Detect & Correct

8

Dynamic PIPELINE MANAGEMENT

Use pipeline velocity as a framework for organizing information to cut a path.

Monitor VARIANCE & CHANGE

Know what’s changed and how that deviates from expectation or plan.

Take ACTION

Ask questions that lead to action–skills problem? market? alignment?

9Cloud9 2010

Take Action

9

Good Questions lead to the right action:

Talent – are the right people in the right roles?

Behavior - are people well aligned behind the goal with the right incentives?

Skills - are there training, productivity, ramp issues?

Market - has something happened in the market to change the value equation for our product?

Cloud9 201010

Deals x Conversion Rate x Deal SizeSelling time

Pipeline Velocity

Cloud9 201011

Pipeline Velocity DriversDeals

Maximum number of deals set to close in the period

Conversion Rate

Total Closed/Won deals in the period relative to Deals

Deals Size

Average value of Closed/Won deals in the period

Selling Time

Average duration for Closed/Won deals in the period

- Marketing: Inbound, Outbound- Partner referrals- Uncovered territories, rep turnover

- Sales originated deals- Undocumented deals- Expired deals (and quality issues)

- Loss rate: stage-based, competitor- Win rate: stage-based conversions- Stalled deals by stage

- Deferral rate, slippage- Rep ‘effective coverage’ saturation- Productivity, tenure, training, comp

- Product pricing- Product mix- Discount levels, tendencies

- Rep portfolio (SMB/Enterprise)- Declared market- Target customer profile

- Stage duration, stage movement- Expired deals, data quality- Repeated deferrals

- Late stage “new” deals showing up- Close dates improperly set- Rep training, tenure

Effected by...

Effected by...

Effected by...

Effected by...

12

Cloud9 2010

Pipeline Velocity Example

12

Deals x Conversion Rate x Deal SizeSelling time

How does the data vary from the benchmark and how has it changed over time?

13

Cloud9 2010

Dynamic Sales Management

13

2. ASK the Questions1. DETECT the Problem 3. CORRECT (solve) the Issue

14

Cloud9 2010

DETECT & CORRECT

14

• Determine which forecasted deals have changed and how

• Determine which forecasted deals are slipping and why

• Determine which reps need extra coaching/mentoring

• Coach reps on how to prioritize which accounts to pursue

• Assist reps in qualifying out low quality opportunities early

Be PROACTIVE:

Cloud9 201015

Monitor VARIANCE

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

Cloud9 201016

See WHAT’S CHANGED

Review pipeline changes (won, lost, adjusted), uncover exceptions, identify risks and develop next steps

17

Cloud9 2010

The Results

17

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.

18

Cloud9 2010

Cloud9 Enables Dynamic Sales Management

18

“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

“We Increased Revenue by $1.6M/year by delivering Cloud9 to the management team.”

Dave Fitzgerald, VP Sales

Brainshark

“Salesforce.com is perfect for managing accounts and opportunities. We use Cloud9 to manage our people.”

Dan Solito, VP Global Sales Operations

Avaya

19

Cloud9 2010

What You Can Do Today

19

Contact Cloud9, we can help

1. Measure the key pipeline velocity drivers for your business 2. Adjust your sales management processes to improve velocity drivers3. Use Analytics to inform your weekly meetings and 1:1 coaching sessions

20

Cloud9 2010 20

Thank You!

Cloud9 201021

Detect & Correct in ActionDeals

Maximum number of deals set to close in the period

Conversion Rate

Total Closed/Won deals in the period relative to Deals

Deals Size

Average value of Closed/Won deals in the period

Selling Time

Average duration for Closed/Won deals in the period

- Marketing: Inbound, Outbound- Partner referrals- Uncovered territories, rep turnover

- Sales originated deals- Undocumented deals- Expired deals (and quality issues)

- Loss rate: stage-based, competitor- Win rate: stage-based conversions- Stalled deals by stage

- Deferral rate, slippage- Rep ‘effective coverage’ saturation- Productivity, tenure, training, comp

- Product pricing- Product mix- Discount levels, tendencies

- Rep portfolio (SMB/Enterprise)- Declared market- Target customer profile

- Stage duration, stage movement- Expired deals, data quality- Repeated deferrals

- Late stage “new” deals showing up- Close dates improperly set- Rep training, tenure

Effected by...

Effected by...

Effected by...

Effected by...

Cloud9 201022

Meetings Informed by Analytics

• 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:

Cloud9 201023

Performance and Coverage

Compare current performance against quota and forecast

Drill into details

Cloud9 201024

Take ACTION

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, deferred and adjusted?

For the current quarter:

• Are 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?