Siebel Sales Best Practices - Individual Sales Execution 10-

The World’s Leading Provider of eBusiness Applications Software

Siebel Best Practices:Siebel Best Practices:Individual Sales ExecutionIndividual Sales Execution

Chuck DrakeChuck DrakeDirector, Product MarketingDirector, Product Marketing

[email protected]@siebel.com

mailto:[email protected]

The Execution ChallengeThe Execution Challenge

Non-Financial FactorsValued Most By Investors

Impact of a Strategy - Execution Gap95% of employees don’t understand company strategy50% of average employee’s time spent on non-productive work50% more likely to have turnover

Sources: “The Balanced Scorecard” David P. Norton;Arthur Andersen estimate: Corporate Strategy Board research;Measures That Matter,” Ernst & Young, LLP;Gates, Stephen, Aligning Strategic Performance Measures and Results

Percentage of Companies ThatCan Consistently Deliver on Strategy

>90%

<10%

Fewer than 1 company in 10 can consistently achieve the full

potential of its strategyRank Factors

1 Strategy Execution

2 Management Credibility

3 Quality of Strategy

4 Innovativeness

5 Ability to Attract Talented People

Unprecedented Focus on Sales ExecutionUnprecedented Focus on Sales Execution

Field Sales

Web Partners EmployeesCall Center

Economic Volatility

EnterpriseCompetitor



Consolidation

Fewer, StrongerCompetitors

BroaderGeography

MoreCustomers

LessHelp

HigherQuotas

Corporate Downsizing

Demand forResponsiveness

“Most Responsive”

“Best Solution”

“Best Product”

0%

20%

40%

60%

80%

100%

1992 1997 2002

Focus on Revenue Growth

OrganizationalComplexity

Channel Silos

Geographic Silos

Product Silos

Organizational Silos

The Scarcest Resource…The Scarcest Resource…

Field Sales


TIME

The Scarcest Resource…The Scarcest Resource…

Field Sales


PRIORITIZATION&

FOCUS

AGENDAAGENDA

A New Definition of Sales Execution

Lessons Learned from 3,000 Siebel Customers

Siebel Best Practices for Individual Sales Execution

Return on Investment: Customer Success Stories

Demonstration

A New Definition of Sales ExecutionA New Definition of Sales Execution

Field Sales


Sales Execution

Efficiency Effectiveness Teamwork

Sales Productivity Bell Curve

Number of Reps

Focus on Teamwork

Focus onFocus onEffectivenessEffectiveness

Focus onFocus onEfficiencyEfficiency

Sales Force SegmentationSales Force Segmentation

Limited Access to Information

Manual Tasks

Complex Internal Navigation

Inappropriate Prioritization & Focus

Limited Knowledge & Selling Skills

Low Quality Deliverables (Quotes, Proposals, etc)

Fragmented Communication & Collaboration

Inconsistent Processes & Methodology

Incentives Not Aligned

Teamwork

Effectiveness

Efficiency

BusinessImpact Inadequate

PipelineLow

Win RateLow AvgDeal Size

LongSalesCycle

LowCustomer

Sat

Sales Execution ChallengesSales Execution Challenges

$ (# Opportunities) * (Deal Size) * (Win Rate)(Length of Sales Cycle)

22% potential sales growth

5% improvementon every elementin the formula

(1+0.05) * (1+0.05) * (1+0.05)(1-0.05)

Revenue Growth & Sales ExecutionRevenue Growth & Sales Execution

Individual Sales Execution: Lessons LearnedIndividual Sales Execution: Lessons Learned

Prospect

Close

Identify

Propose

Qualify

Sales Cycle Plan

Research

Support

Coordinate

Report

Follow-Up

1 Selling “activities” are situational and iterative.

2 Focus on the MIDDLE of the CURVE.

Sales Force Effectiveness

RevenueContribution

Top 20%Low 20% Mid 60%

ReturnReturnOnOn

InvestmentInvestment


Responsiveness

Quote Complexity

Collaboration

Administrative Overhead

Communication

Best Practices

Customer“Face Time”

Coaching &Insight Empowerment

Information &Knowledge

3 Focus on EFFECTIVENESS not CONTROL.



“Most Responsive”

“Best Solution”

“Best Product”

• Accessibility • Understanding• Accountability• Consistency• Speed

4 Focus on tools that improve the customer experience.

ProductsViewed As

Commodities

TIME

5 Great sales people execute based on what they KNOW about a deal, not how they “feel” about a deal.

Compelling Event

Is There an Opportunity?Customer’s

Application or Project 1

Customer’sBusiness Profile2

Customer’sFinancial Condition3

5

Access to Funds4

Can We Win?Inside Support

Executive Credibility

Cultural Compatibility

Political Alignment

Informal Decision Criteria

11

12

13

15

14

Is It Worth Winning?Short-Term Revenue16

Future Revenue17

Profitability18

Strategic Value 20

Degree of Risk19

10

Can We Compete?Formal Decision Criteria 6

Solution Fit7

Sales ResourceRequirements8

Unique Business Value

Current Relationship9


Selling Knowledge & Information

Siebel Best Practices for Individual Sales ExecutionSiebel Best Practices for Individual Sales Execution

Sales Methodology

Segmentation& Coverage

AccountManagement

OpportunityManagement

QuoteManagement

Individual Sales Analytics

Field Sales




Sales Methodology


AccountManagement


QuoteManagement


Field Sales


The challenge with information is ACCESS, CURRENCY, & RELEVANCE

SalesSalesTeamTeam

CustomerCustomerInformationInformation

OrderOrderManagementManagement

Product Product InformationInformation

CompetitiveCompetitiveIntelligenceIntelligence

Integrated Selling KnowledgeIntegrated Selling Knowledge

SalesSalesTeamTeam

CustomerCustomerInformationInformation

OrderOrderManagementManagement

Product Product InformationInformation

CompetitiveCompetitiveIntelligenceIntelligence

SimplifiedSimplifiedNavigationNavigationOwnershipOwnership

MaintenanceMaintenance


The challenge with information is ACCESS, CURRENCY, & RELEVANCE


Channel PartnersChannel Partners

Web & EmailWeb & Email

Field Sales Field Sales

Call CenterCall Center

SellingSellingKnowledgeKnowledge

CustomerCustomerOpportunityOpportunityCompetitorCompetitorProductProductMarketingMarketing

Lexis Nexis IntegrationLexis Nexis Integration

ProductsProducts

Integrated Selling Knowledge: Mobility is CriticalIntegrated Selling Knowledge: Mobility is Critical

Field Sales Reps must be able to work IN THE FIELD

60,000,000

50,000,000

40,000,000

30,000,000

20,000,000

10,000,000

1999 2004

POSSecurityFleetField ServiceField SalesMobile Office

0

Source: Yankee Group—Handheld Market Heats Up

Explosive Growth in Mobile Users (50% CAGR through 2004)

Customer Responsiveness Demands MobilityCustomer Responsiveness Demands Mobility

Mobile SmartWeb Client

SmartWeb Client

Intranet/Internet

Voice Recognition

Handheld Client

Wireless Client

Intranet/Internet

Siebel Sales ROI @ Work in ManufacturingSiebel Sales ROI @ Work in Manufacturing

Dow Chemical Uses Siebel Sales to Improve Customer Service and Cut Costs

Leading provider of chemical, plastic, and agricultural products & services to various consumer markets

Needed solution to improve sales force productivity and customer information sharing

Sought automation of account and market plan processes

Over 1,000 users deployed on Siebel Sales Expanding to 2,200 users by end of 2001

Results:Reduced training costs for new reps by 50%Captured information from customer interactions

leads to improved service and targeted sellingImproved customer response time

“Siebel is like a one-stop shop. Everyone can view the same

information globally [across] the company. It can take a long time for a

new employee to catch up, but with Siebel software, the learning curve is

much quicker…

It used to take six to seven months for an employee to perform competently

in a new position, but with Siebel software we've documented that we

can cut that time in half.“

- Sherri Tarzwell, Sales ManagerDow Chemical



Sales Methodology


AccountManagement


QuoteManagement


Field Sales


Methodology Links Growth Strategy to RevenueMethodology Links Growth Strategy to Revenue

CorporateGrowth Strategy

IndividualSales Execution

Who?

What?

How?

TerritorySegmentation& Coverage

AccountPlans

OpportunityPlans

MarketStrategy

ProductStrategy

ChannelStrategy

Who?

What?

How?

$€£¥

Siebel Sales MethodologiesSiebel Sales Methodologies

Portfolio Management Process(1 Rep with Few Accounts) Target

AccountSelling

Channels & Alliances Management Process(Resellers & Partners)

Selling to Senior Executives

Enterprise Selling Process(Coverage Strategy = Multiple Reps on 1 Account)

Territory Management Process(1 Rep with Many Accounts)


AccountManagement


Business ImpactBusiness Impact

“In 2002, we expect a recognition by leading sales organizations, … to formalize, then mandate standardized sales processes throughout the sales enterprise as the precursor to technology. With the process in place, deployments of enabling CRM sales technologies will be readily adopted by sales people. The result will be improved sales productivity, visibility and collaboration as the sales enterprise functions as a cohesive team.”

CRM Sales in 2002 – Gartner’s Predictions, January 7, 2002, Gartner Group



Sales Methodology


AccountManagement


QuoteManagement


Field Sales


Account Segmentation ModelAccount Segmentation Model

HIGH

LOW HIGH

FuturePotential

Current Revenues

TT

$

T

$

T

$$

A A

BC

Account Coverage StrategyAccount Coverage Strategy

A B CBusiness Development

OpportunitiesManagement

Territory Marketing

Resource InvestmentHigh Low

Integrated Value Proposition

Partner Planning through CHAMPPartner Planning through CHAMP

PartnerCapabilities

OurCapabilities

Expanded Reach and Range

Expanded Customer Value



Sales Methodology


AccountManagement


QuoteManagement


Field Sales


Account Management

Selling to Senior ExecutivesSelling to Senior Executives

ExecutiveInvolvement

DefineObjectives

Initiate aProject

EvaluateProducts

Prove theConcept

Negotiateand Sign

Contracts Implement Measure

Results

Assess theProblem/

Opportunity

Understand Drivers Define Value Track Value

Typical Sales Cycle

Enterprise Selling ProcessEnterprise Selling Process

SegmentAccount

AnalyzeCurrent

Business

Identify“White Space”

Opportunity

Review &Implement

ManageRelationships

Market toAccount

CreateAccount Plan

Measure &Monitor ESP

Identifying the “White Space” OpportunityIdentifying the “White Space” Opportunity

Business Unit

Where?

Service Unit

Account

Territory

SIC Code

What?Product

A

Product

BService

1

Service

2

Offering

C

ESP Account PlanESP Account Plan

Critical Success Factors

Resource Requirements

Value Propositions

Executive Profiles

Value Map

Strategies & Action Plan

Account Goals & Objectives

Account Map

Revenue Forecast

Management Summary

Siebel Methodology @ WorkSiebel Methodology @ Work

“By providing first the Siebel methodology, then the enabling technology, we have enabled our Virtual Sales Teams to really virtual-team.”

Adrian Norton, Managing Director, Customer Relationship Management

at Compaq South Pacific

Implemented ESP, TAS and CHAMP with Siebel applications to 440 Major Account Managers in Australia and

Asia-Pacific region

Chose Siebel Systems to: • Improve the development, penetration and retention of major accounts Help “MAMs” do their job more efficiently Work more effectively with partners

Resulting in:“Our major account managers now do their job more efficiently and effectively. We are increasing our share of wallet in enterprise accounts. Both our employee and customer satisfaction have improved.”



Sales Methodology


AccountManagement


QuoteManagement


Field Sales


Opportunity ManagementOpportunity Management

Consistent Language & Standards

Assessment

Opportunity

Relationships

Competition

Process

Sales Stages

Milestones

Roles

Strategy

Value Prop

Positioning

Resources

OurSolution

CompellingEvent

UniqueBusiness

Value

CustomerMilestones Tactics

Siebel Sales Process MappingSiebel Sales Process Mapping

Project & Budget

Confirmed

Sponsor & Requirements

ConfirmedProof

AcceptedSigned

Contract

Opportunity Qualified

Executive Sponsorship

verifiedSolution Validated Win

Lead

Solution Proposed

Selling Stage Milestones, driven by Customer Evidence

Acceptance of Solution

Proposition Service & Satisfy

Qualify Align Propose Proof Close InstallProspect

10% 20% 40% 80% 100%

Close Probabilities

5%

2%

10%

5%

20%

10%

40%

20%

100%

100%

Competitive

Disadvantage

Advantage

@ Win Rate

@Risk

Expect

Target Account Selling: Assess the OpportunityTarget Account Selling: Assess the Opportunity

Compelling Event

Is There an Opportunity?Customer’s

Application or Project 1

Customer’sBusiness Profile2

Customer’sFinancial Condition3

5

Access to Funds4

Can We Win?

Inside Support

Executive Credibility

Cultural Compatibility

Political Alignment

Informal Decision Criteria

11

12

13

15

14

Is It Worth Winning?

Short-Term Revenue16

Future Revenue17

Profitability18

Strategic Value 20

Degree of Risk19

10

Can We Compete?

Formal Decision Criteria 6

Solution Fit7

Sales ResourceRequirements8

Unique Business Value

Current Relationship9

Mapping Relationships and InfluenceMapping Relationships and Influence

CEO

P B =

Senior VP

C T –

CFO

C B

Director of R&D

Director of Mfg.

Director of Information Controller

V B = C T X L $ = C $

VP Field Operations

Marketing Director

P R I R +

Senior VP Sales and Marketing

V B =

Consultant

Relationship StrategiesRelationship Strategies

Enemy Non-supporter Neutral Supporter Mentor

X – = +

Neutralize Motivate Leverage

Opportunity – Organization AnalysisOpportunity – Organization Analysis

Develop

Flanking

Defend

Frag

men

tFrontal

Competitive StrategiesCompetitive Strategies

Tactical ExecutionTactical Execution

P rove your value

R etrieve missing information

I nsulate against competition

M inimize your weaknesses

E mphasize your strengths

Best Practices Integrated into TASBest Practices Integrated into TAS

Siebel Methodology @ WorkSiebel Methodology @ Work

“Siebel’s sales methodology [TAS, ESP, SSE] has become our culture – not just a tool. It is the foundation for how we run our business and has given us insight into key metrics that allow us to follow the quality process of plan, do, check and act.”

Carmella Surdyk, Global VP, Sales Operations at

Level 3 Communications

Implemented TAS, ESP and SSE for the entire worldwide sales force

Chose Siebel Systems to: • Improve allocation of sales resources• Improve sales forecasting accuracy• Establish consistent global sales process• Provide “one view” of the customer

Resulting in:“We have experienced a 30% improvement in sales opportunities won. We are now positioned to make better business decisions proactively, given the increased accuracy and consistency of opportunity and market data.”



Sales Methodology


AccountManagement


QuoteManagement


Field Sales


Traditional Quote-to-Order ProcessTraditional Quote-to-Order Process

Needs Needs AnalysisAnalysis

Solution Solution DevelopmentDevelopment

Detailed Detailed ConfigurationConfiguration

Price Price QuoteQuote

OrderOrderFulfillmentFulfillment

Points of FailurePoints of FailureIncomplete Customer RequirementsIncomplete Customer Requirements

Unidentified Pre/Co-RequisitesUnidentified Pre/Co-Requisites

Incorrect Pricing or TermsIncorrect Pricing or Terms

No Cross-Sell / Up-SellNo Cross-Sell / Up-Sell

Mis-Communication with Mis-Communication with

Manufacturing, Shipping, & BillingManufacturing, Shipping, & Billing

Business ImpactBusiness Impact

$10

$300

$700

0

100

200

300

400

500600

700

Cost of Each Order

Perfect Order

Rejected Prior to Provisioning

Rejected After Provisioning

The "Perfect Order" in the Communications Industry

Automated Quote-to-Order ProcessAutomated Quote-to-Order Process

Needs Needs AnalysisAnalysis

Solution Solution DevelopmentDevelopment

Detailed Detailed ConfigurationConfiguration

Price Price QuoteQuote

OrderOrderFulfillmentFulfillment

Siebel eAdvisor

Siebel Product Catalog

Siebel eConfigurator

Siebel Quotes

Siebel Orders

Siebel Proposals, Presentations, & CorrespondenceSiebel Proposals, Presentations, & Correspondence

Automated Creation of Key Customer Deliverables

AccountAccount

OpportunityOpportunity

SolutionSolution

Pre-DefinedPre-DefinedTemplatesTemplates

“We are already seeing tremendous benefits from our Siebel eBusiness

applications. Our forecasting accuracy and speed have increased, and our

configuration process has improved significantly. ”

Barney Huang Senior Director, Business Development

Asyst Technologies

Siebel Sales @ Asyst TechnologiesSiebel Sales @ Asyst Technologies

Developed a global sales forecast process Centralized product and pricing

information Implemented Siebel Sales & eConfigurator

for mobile field sales and connected inside sales

3 month implementation

Results Shortened configuration cycle from 25

days to 2 days Accelerated price quoting from 10 days to

2 days Increased materials forecast accuracy by

50%

Asyst Technologies Dramatically Increases Sales Success

with Siebel eBusiness Applications



Sales Methodology


AccountManagement


QuoteManagement


Field Sales


Balancing Performance & Effectiveness MetricsBalancing Performance & Effectiveness Metrics

“Lagging Indicators” “Leading Indicators”

Effectiveness

By Geo, Product, and Customer Segment

Performance

AttainmentMargin

Market ShareWin Rate

Pipe CoverageSell Cycle LengthOpportunity Aging

Competitor Frequency

Average Days in Sales Stage

0 10 20 30 40

1

2

3

4

5

6

7

Days

Average Days in Stage

$0

$100

$200

$300

$400

$500

$600

>$1mm <$1mm

Total Pipeline

Pipeline by Deal Size Pipeline by Lead Quality



Sales Methodology


AccountManagement


QuoteManagement


Field Sales


Siebel Sales Industry LeadershipSiebel Sales Industry Leadership

Gartner Research: Managing Sales Opportunities:Second Half 2002 Magic Quadrant 15-Aug-2002

W. Close, B. Eisenfeld, J. Galvin, T. BergCompleteness of VisionCompleteness of Vision

PivotalPivotal

PeoplesoftPeoplesoft OracleOracle

SAPSAP

OnyxOnyxSalesLogixSalesLogix

FirepondFirepond

Amdocs/ClarifyAmdocs/Clarify

Abi

lity

to E

xecu

teA

bilit

y to

Exe

cute

SaratogaSaratoga

E.piphanyE.piphany

BaanBaan

JD EdwardsJD Edwards

Salesforce.comSalesforce.com

Gartner Review CriteriaSiebel Rating

Ease of use / Screen appeal Great

Core OMS Features Great

Integrated features for field and telesales beyond OMS

Many

Telesales / telemarketing features

Great

Mobile OMS sales features Great

Ability to produce positive OMS references

Great

Vertical OMS Solutions >20

Gartner Group AnalysisGartner Group Analysis

Gartner Research: Managing Sales Opportunities: Second Half 2002 Magic Quadrant 15-Aug-2002W. Close, B. Eisenfeld, J. Galvin, T. Berg

Vendor Ease of Use

Core OMS

Features

Telesales/ Telemktg Product

Mobile Sales

Features

Advanced OMS

Features

Field Sales / Telesales

References

Largest Mobile

ReferenceVertical

Solutions

Great Great Great Great Many Great 5,800 >20

Amdocs Fair Fair Good Fair Some Limited / Fair 140 1

E.Piphany Fair Good Limited Good Few Fair 275 0

Oracle Fair Good Fair Limited Many Limited / None

0 0

Peoplesoft Fair Good Limited Limited Many Limited / Fair 35 2

SAP Fair Good Fair Good Many Limited 300 4

Pivotal Good Good Limited Good Some Good 925 5

Onyx Fair Fair Limited Fair Some Good / Limited

90 12

Return on Siebel Investment – Industry MetricsReturn on Siebel Investment – Industry Metrics

RevenueGrowth

Customer RetentionIncrease

Employee Productivity

Gains

Customer Satisfaction

Increase

Automotive +8% +3% +16% +8%

Communications +13% +12% +18% +19%

Consumer Goods +13% +12% +18% +19%

Energy +8% +23% +19% +15%

Finance +7% +19% +17% +12%

Healthcare +5% +8% +10% +8%

Insurance +9% +11% +12% +19%

Life Sciences +18% +16% +25% +21%

Industry Average +11% +16% +19% +20%

Siebel Best Practices: Individual Sales ExecutionSiebel Best Practices: Individual Sales Execution

Key Questions to Consider

1. Have we implemented a common sales methodology across all sales channels?

2. Have we consolidated all of the information that a sales rep needs to do his/her job?

3. Are we improving the effectiveness of the sales rep in addition to their efficiency?

4. Are we providing a set of analytics to the sales rep that allows them to thoroughly understand their business?

5. Are we improving the customer’s experience with our sales force?

The World’s Leading Provider of eBusiness Applications Software

Siebel Best Practices:Siebel Best Practices:Individual Sales ExecutionIndividual Sales Execution

Chuck DrakeChuck DrakeDirector, Product MarketingDirector, Product Marketing

[email protected]

mailto:[email protected]

Documents

Siebel Sales Best Practices - Individual Sales Execution 10-