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Mingle Monday Event

June 20th, 2016

Sales Activity, Metrics and Compensation

AGENDA

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• Welcome and introductions

• Managing Sales Activities, Metrics, Compensation - Best Practices

• Exercise: Barriers & Drivers

• Recap

Our Focus is on Driving Your Business Growth

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MARKETINGDefine, develop,

communicate and deliver offerings that have value for

your customers

SALESBoosting commercial

performance enabling you to find, win and retain

customers

TRANSFORMATIONBuilding organizational focus,

capabilities and the necessary change to win more in the market

We Mind Your Business

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Build skills and capabilities Find growth

opportunitiesSet 2020 agenda

Coach sales team

Capture more value

Need extra resources for a

while

Boost performance

Need clear plans

Improve commercial processes

Need more leads

Need help on programs or

projects

Align teams and plans

Manage sales funnel betterGet value from

Social

Optimize profitability

Redefine organisation and

roles

Improve customer

management

Make customer experience work

Adopt CRM

We Mind Your Business

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INTERIM SERVICES

Specialist marketing and sales resources to fill organizational

gaps

CONSULTING SERVICES

Experts to define stragegy or manage projects/programs

TRAINING COACHING

Trainers or advisors to build capabilities of people and teams

EXPERT RESOURCING ACADEMYCONSULTING

Opportunistic

• Mission/Vision• Business Strategy• Commercial Planning• Sales & Marketing Alignment• Organisation Design• Change Leadership

• Sales Process• Account

Management• Sales

Management• Social Selling

Strategy & Transformation

Marketing (7P‘s) Performance

Sales Performance

EXPERT RESOURCING

Through our network of Seasoned ProfessionalsMarketing 7 P’s

Project ManagersBusiness Managers

Interim Management

Search & Recruitment

In Company Trajectories

Public Trainings

ACADEMY

Annual Marketing & Sales Performance

Summit

Periodic Events

Lectures & Webinars

Flexible Service Solutions To Help Drive Growth

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• Product/Portfolio Mgmt, NPD, Innovation• Promotion, Marcom, Direct Mktg, GTM• Pricing, value based pricing & profitability• Place, Channel, Indirect, Segments• People, Team, Organisation• Process, Customer Focus & Xp, CRM• Physical Environment, Sales/Staff

CONSULTING

Nurture Long Term Client Relationships

Household Names… Industry Leaders… as well as SME’s & Entrepreneurs…

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Minds&More Academy

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ACADEMY

Minds&More Academy

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ACADEMY

Minds&More Academy

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ACADEMY

AGENDA

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• Welcome and introductions

• Managing Sales Activities, Metrics, Compensation - Best Practices

• Exercise: Barriers & Drivers

• Recap

COMMON SALES PERFORMANCE CHALLENGES WE SEE

1. Sales visits, prospection, opportunity management activities not at target levels

i.e. Follow-up to lead activity is weak

Not executing the relevant sales activities

2. Lack of differentiation between high & low performers

3. Ineffective KPIs and Weak sales management

4. Sales reps too ‘comfortable’ with their income (incentives) and lack drive to get new business

5. Sales community or sales teamwork that is suffering

i.e. Sales people turnover

i.e. Not enough sharing, not leveraging power of the team

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Misalignment or missed

opportunities to support the

business goals and the business

strategy

Revenue

Customer Satisfaction

Market Share

Ramp-Up Time

IT Investment

Training Type

Coaching

Account Plan Completion

Tool Usage

Segment of Customer

Call Volume

Call Type

Up/Cross-Selling

Number of AccountsTime Allocation

Quota Achievement

Share-of-Wallet

Process Usage

Training Investment

Skill LevelTerritory Coverage

New/Existing CustomersCall Outcomes

Customer Retention

Deal Size

Prospect Type

New/Existing Product

Pipeline Size

METRICS: 306 PIECES OF CHAOS

Can we manage this metric?

Source: Vantage Point – Cracking Sales Management Code13

THE FOG STARTS TO CLEAR

Revenue

Customer Satisfaction

Market Share

Ramp-Up Time

IT Investment

Training Type

Coaching

Account Plan Completion

Tool Usage

Segment of Customer

Call Volume

Call Type

Up/Cross-Selling

Number of AccountsTime Allocation

Quota Achievement

Share-of-Wallet

Process Usage

Training Investment

Skill LevelTerritory Coverage

New/Existing CustomersCall Outcomes

Customer Retention

Deal Size

Prospect Type

New/Existing Product

Pipeline Size

Source: Vantage Point – Cracking Sales Management Code14

THREE TYPES OF METRICS

Business Result: A measure of the health (or success) of an organization.

Sales Objective: A measure of sales force performance.

Sales Activities: A measure of seller action or behavior.

Cannot be “managed”

Can only be influenced

Can be directly managed

AL

IG

N

A

R

O

Source: Vantage Point – Cracking Sales Management Code15

PREVALENCE OF SALES METRICS BY CATEGORY

28%

55%

17%

0%

10%

20%

30%

40%

50%

60%

Business Results Sales Objectives Sales Activities

Directly Manageable

R O A

Source: Vantage Point – Cracking Sales Management Code16

AGENDA

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• Welcome and introductions

• Managing Sales Activities, Metrics, Compensation - Best Practices

• Exercise: Barriers & Drivers

• Recap

QUESTION FOR YOU

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For those who changed their sales

compensation in recent years -

What were the drivers for change?

What were the factors you

considered when designing a

new/different sales compensation?

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3

Do you have clear metrics per

sales activities in your organization?

Which ones?

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QUESTION FOR YOU

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Do you have clear metrics per

sales activities in your organization?

Which ones?

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ENSURE LINK ACTIVITIES TO SUPPORT OBJECTIVES AND RESULTS

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IT Investment

Training Type

Coaching

Account Plan Completion

Tool Usage Call Volume

Number of Accounts

Call TypeTime Allocation

Process Usage

Training Investment

Prospect Type

Ramp-Up Time

Segment of Customer

New/Existing Customers

Share-of-Wallet

Skill Level

Up/Cross-SellingCall Outcomes

Customer Retention

Deal Size

New/Existing Product

Revenue

Customer Satisfaction

Market Share Quota Achievement

Pipeline SizeVolume

Business Results: Multi-dimensional outcomes that cannot be managed

Territory Coverage

Sales Objectives: Require consent and can be influenced

Sales Activities: Individual decisions that are highly manageable

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PREVALENCE – METRICS ACTIVITIES

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8% 6%

13%

23%

51%

0%

10%

20%

30%

40%

50%

60%

Making Sales Calls

WinningDeals

Growing Accounts

Mining Territories

Enabling Sellers

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COACHING MODEL

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E X E C U T E

AL

IGN

Execute the Activities in a management Rhythm, with structured Conversations

E X E C U T E

A R C

AlignResults,

Objectives, and

Activities

AL

IG

N

A

R

O

Continually assess performance against the expected Results

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QUESTION FOR YOU

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For those who changed their sales

compensation in recent years -

What were the drivers for change?

What were the factors you

considered when designing a

new/different sales compensation?

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3

Do you have clear metrics per

sales activities in your organization?

Which ones?

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SALES COMPENSATION

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2

25Source: 2015 CSO Insights

COMPENSATION

• Compensation needs to be designed to drive desired behaviors and aligned with the stage your business is in at the time

1. The customer acquisition plan

2. The customer success and retention plan

3. The sustainable growth plan.

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2

RESULTS FROM CSO STUDY

27Source: 2015 CSO Insights

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DRIVERS FOR COMPENSATION / INCENTIVE

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Company

Sales Force

Customer

When selecting a new incentive compensation plan, review for the impact on each:

Source: MHI Group

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EACH ARE IMPORTANT

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• Reward• Recognition• Sales• Job Satisfaction

• Product satisfaction

• Satisfied with salesperson

• Future sales

• Sales Volume• Profits• Retention of top

salespeople

Purchasing PowerChooses ActivityEstablishes Incentive

Plan(s)

“We made our financial goals”

“This company met our needs”, we will buy again!

“We made a good income”

Company Sales Force Customer

Results

Source: MHI Group

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IS THE PROBLEM ALWAYS THE COMPENSATION PLAN?

“NO!”

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THE SALES MANAGEMENT SYSTEM

Environmental Competitors

• Take a close look at your sales force effectiveness drivers

before assuming the issue is a compensation issue

Sales force effectiveness

driversSalespeople

Sales force activities

Customer Results

Company Results

Source: MHI Group 31

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DIAGNOSING SALES FORCE ISSUES

Sales force effectiveness drivers

Shapers• Recruiting / Training• Coaching• Culture• Compensation

Enlighteners• Customer Research• Target• Data & Tools / CRM System

Energizers• Leadership• Compensation• Motivation• Meaningful Work

Controllers• Performance Management• Communications – Vertical & Horizontal• Compensation

Definers:• Sales Strategy• Go-To-Market

Strategy• Sales Force Design

Sales Job Drivers

Salesperson Drivers

Source: MHI Group 32

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THE “3 C’S”

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Consistency

Carefully evaluate potential incentive plans for the following “before” selecting the best plan

Consequences

Compatibility

Source: MHI Group

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AGENDA

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• Welcome and introductions

• Managing Sales Activities, Metrics, Compensation - Best Practices

• Exercise: Barriers & Drivers

• Recap

RECAP

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MINDS&MORE ACADEMY

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