Colin Robinson Principal Customer Success Manager CPQ … · Title: Benefit Finder Author:...

Copyright © 2016 Oracle and/or its affiliates. All rights reserved. | Oracle Confidential – Restricted

KPI’s

Colin Robinson Principal Customer Success Manager – CPQ Feb 7, 2018

Copyright © 2016 Oracle and/or its affiliates. All rights reserved. |

Oracle Benefits with CPQ Cloud – aka KPI’s !!!

2x Increase in average

deal velocity

2x Improvement in

sales rep, channel

managers and

customer

satisfaction

4x Reduction in NPI

effort by

empowering the

business without IT

2 weeks Quarterly increase

in sales time by

eliminating black

out periods

9x Increase in sales

rep self-service

quoting

10x Improvements in

order accuracy

thanks to guided

selling

2


Typical Key Performance Indicators for CPQ

• Relate to 5 general management categories

– Sales Funnel • Example: Average Quote-to-Order Cycle Time

– Sales Proposal • Example: Average # of Iterations of a Sales Proposal or Quote

– Sales/Quota Performance • Example: Average Deal Size or Contract Value

– Partners • Example: Partners as % of Total Revenue

– System / User Performance • Example: Action Processing Time

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Suggested KPIs : Sales Funnel Management

Metric Baseline Current Target Targeted

Improvement %

Average Quote-to-Order Cycle Time [Insert value] [Insert value] [Insert value] 20%

Average Time-to-Quote [Insert value] [Insert value] [Insert value] 20%

% of Opportunities Quoted [Insert value] [Insert value] [Insert value] 15%

Quote-to-Close Ratio [Insert value] [Insert value] [Insert value] 10%

Metric Description: • Average Quote-to-Order Cycle Time is the average elapsed time (across all quotes) from creating the initial quote until when an order is placed by the customer. It provides the average timeline from a customer’s intent to buy until an order is placed with the company. • Average Time-to-Quote is the average elapsed time (across all quotes) from when the quote is initially requested until when the quote was provided to the customer. • % of Opportunities Quoted measures the percentage of opportunities for which formal quotes are generated during a specific time period. • Quote-to-Close Ratio measures the percentage of formal quotes that translate into an actual sale deal for a specific time period.


Average Quote-to-Order Cycle time

Helps firms track and assess the efficiency of the advanced stage sales processes.

A streamlined quote-to-order process can enable companies to increase their revenue velocity, and it is the precursor to the order-to-cash process.

• StepStone reduced quote-to-order time from 2 days to 20 minutes

• GE achieved a 30% reduction in Average Quote-to-Order Cycle Time and improved business intelligence

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Average Time-to-Quote

Provides an indication of the time it takes for a company to generate and provide the quote to the customer after it has been requested. Research shows that 35% to 50% of sales go to the vendor that responds first. Therefore, generating a faster quote can be the difference in beating out a competitor.

• ADP increased quote throughput by approximately 2.5x—by reducing the time it takes to create a quote for the company’s products from hours or weeks to just 5 to 20 minutes

• Thomson Reuters decreased their quote time from 3-7 days to 30 minutes by eliminating the need for manual quotes



Average Deal Size or Contract Value

Helps firms gain valuable insights into performance, including:

1. How effective the sales team is at bundling or up-selling additional products and services

2. How effective the sales team is at avoiding discounts.

• AGCO reduced quote-to-order time, leading to increase in up-sell of optional products and improved sales by implementing Oracle CPQ Cloud.



Great, so how do we get this information?

• Collaborative effort, will require Business/IT/Sales to work together

– Generally requires a ‘mash-up’ of reporting systems, or a full fledged BI tool that does this for you

– CRM / CPQ / ERP systems should all have some ability to either export data, or generate reports

• CPQ provides several tools that can help with tracking KPI’s.

– Reporting Manager

– Performance Logs / REST API

– User / Usage Reports

– CSM Adoption Metrics



Lets take a look at some options…

• Show demo’s of current CPQ functionality

• Investigate each KPI management category – Discuss the specific KPI’s

– Define additional KPI’s as needed – Use the Post It’s on table

• Discuss options for ‘measuring’ each metric

• Reference helpful resources


Copyright © 2017, Oracle and/or its affiliates. All rights reserved. |

CPQ Tools



CPQ Tools

•Reporting Manager –Transaction Manager

• Usage Reports

• CSM Metrics

• Performance API’s

• BI Tools –Data Cube Exports


Suggested CPQ KPI’s



Suggested KPIs : Sales Funnel Management


Improvement %

Average Quote-to-Order Cycle Time [Insert value] [Insert value] [Insert value] 20%

Average Time-to-Quote [Insert value] [Insert value] [Insert value] 20%

% of Opportunities Quoted [Insert value] [Insert value] [Insert value] 15%

Quote-to-Close Ratio [Insert value] [Insert value] [Insert value] 10%

Metric Description: • Average Quote-to-Order Cycle Time is the average elapsed time (across all quotes) from creating the initial quote until when an order is placed by the customer. It provides the average timeline from a customer’s intent to buy until an order is placed with the company. • Average Time-to-Quote is the average elapsed time (across all quotes) from when the quote is initially requested until when the quote was provided to the customer. • % of Opportunities Quoted measures the percentage of opportunities for which formal quotes are generated during a specific time period. • Quote-to-Close Ratio measures the percentage of formal quotes that translate into an actual sale deal for a specific time period.


Suggested KPIs : Sales Proposal Management


Improvement %

Average Number of Iterations of a Sales Proposal or Quote

[Insert value] [Insert value] [Insert value] 10%

Customer Contract Renewal Rate [Insert value] [Insert value] [Insert value] 10%

Contract or Proposal Generation Error Rate [Insert value] [Insert value] [Insert value] 10%

Quote Accuracy [Insert value] [Insert value] [Insert value] 20%

Metric Description: • Average Number of Iterations of a Sales Proposal or Quote is the number of iterations salespeople need to go through to get the quote correct and how the customer wants it. • Customer Contract Renewal Rate is the rate at which customers renew their contracts during a specific period of time. • Contract or Proposal Generation Error Rate measures the percentage of contracts or sales proposals that contain errors during a specific time period. • Quote Accuracy is the percentage of total quotes that were completely correct and error-free during a specific period of time.


Suggested KPIs : Sales or Quota Management


Improvement %

% of Sales Reps Achieving Quota [Insert value] [Insert value] [Insert value] 10%

Average Deal Size or Contract Value [Insert value] [Insert value] [Insert value] 15%

Metric Description:

• % of Sales Reps Achieving Quota is the percentage of individual sales reps that met or exceeded their sales target during the measured time period.

• Average Deal Size or Contract Value is the average amount of each agreement (or contract) that is closed during a specific time period.


Suggested KPIs : Partner Management


Improvement %

Partners as % of Total Revenue [Insert value] [Insert value] [Insert value] 10%

Partner Revenue Growth [Insert value] [Insert value] [Insert value]

Revenue per Partner [Insert value] [Insert value] [Insert value]

Partner Generated Leads [Insert value] [Insert value] [Insert value]

Partner Deal Close Rate [Insert value] [Insert value] [Insert value]

Metric Description: • Partners as % of Total Revenue measures the percentage of total revenue that is generated through channel partners during a specific time period.


Suggested KPIs : System / User Performance


Improvement %

% of Users Assigned [Insert value] [Insert value] [Insert value] 20%

% of Users Logging In [Insert value] [Insert value] [Insert value] 20%

Transaction Volume [Insert value] [Insert value] [Insert value] 15%

Action Processing Time [Insert value] [Insert value] [Insert value] 10%

Average Integration Response Time [Insert value] [Insert value] [Insert value] 10%

% of Reps Quoting via CPQ [Insert value] [Insert value] [Insert value] 100%


Suggestions on how to track your KPI’s



Sales Funnel – KPI tracking – it takes a village!

• Average Quote-to-Order Cycle Time – Generally requires information from CPQ & backend Order systems

– Integration between systems can make this much easier

• Ex: Order system writes back to CPQ the ‘Ordered’ date to each transaction

• Average Time-to-Quote – Can be tracked directly in CPQ via Reporting Manager using calculated values from each transaction

• % of Opportunities Quoted – Requires CRM to report on Opportunity fields, CPQ can help by writing values/mapping to Opportunity fields

• Quote-to-Close Ratio – Generally requires CRM to report on Opportunity field ‘status’ against quote on that Opportunity.



Sales Funnel – Examples/Demo’s/Resources

• Reporting Manager

• Usage – Cloud Connect Webcasts

• Engaging your CPQ Sales Users and Increasing Adoption

• Managing your CPQ Program

• Performance Logs – Query By Example in UI

– REST API Resources

– Qlik Sense Desktop or other BI tool

• Cloud Connect Webcast - Our Two Cents: Tips and Tricks for Configure Price and Quote Administration



Sales Proposal – Lean on CPQ

• Average Number of Iterations of a Sales Proposal or Quote – Depending on CRM/CPQ setup, CPQ can easily handle ‘Versioning’ of Quotes. The reporting manager can be used

to show quotes that have been revised/versioned.

– If multiple quotes are created off the same opportunity, the reporting manager in CPQ can also be used in conjunction with Excel to filter by Opportunity ID against transactions.

• Customer Contract Renewal Rate – Generally this would be tracked in CRM or wherever the account data/subscription details resides.

• Contract or Proposal Generation Error Rate – Ideally this is tracked prior to CPQ adoption, and this information is used to set up the Doc Designer.

– Contract Negotiation would allow the tracking of iterations/revisions via the Reporting Manager

• Quote Accuracy – Generally speaking, this is one of the benefits of using a configurator. Comparing quote revisions may help here.



Sales Proposal – KPI tracking – Lean on CRM / CPQ tools

• % of Sales Reps Achieving Quota – Rep Quota can be protected information, depending on many factors

• Average Deal Size or Contract Value – Use the reporting manager per rep, filtering on the final step/status in the quoting process.



Partner Management – Challenging

• Partners as a % of Total Revenue – Reports can be used in CPQ as long as the filters are defined properly

• Partner Revenue Growth – Reporting manager can be used to show total revenue over time, again, filters are key

• Revenue Per Partner – Reporting Manager, filter on Partner and quote status

• Partner Generated Leads – CRM

• Partner Deal Close Rate – CRM



System / User Performance – KPI tracking

• % of Users Assigned

• % of Users Logging In

• Transaction Volume • CSM’s can provide this data

• Action Processing Time – ‘Performance REST API’ can be used to chart/track information

• Average Integration Response Time – Utilize the ‘Logtime’ function in BML to write out to Performance REST API

• % of Reps quoting via CPQ – Generally requires CRM to report on Opportunity field ‘status’ against a field set by CPQ on opportunity



System / User Performance – Examples/Demo’s/Resources

• CSM Metrics

• Usage Reports

• Performance Logs – Query By Example in UI

– REST API Resources

– Qlik Sense Desktop or other BI tool

– Cloud Connect Webcasts

• Refactoring for Speed and Maintenance

• Our Two Cents: Tips and Tricks for Configure Price and Quote Administration



Appendix



CSM Metrics



Doubled Transaction Volume between May – December

What’s the Revenue associated with those transactions?


Total Commerce Transactions

0

5000

10000

15000

20000

25000

30000

35000

Tota

l Co

mm

erc

e T

ran

sact

ion

s


Decline in total transactions

What is expected?

Can you explain why this may be Positive?


Total Commerce Transactions

0

200

400

600

800

1000

1200

Tota

l Co

mm

erc

e T

ran

sact

ion

s


40% of users logged in – November

When is EOQ?


Internal Logins per Month

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

0

200

400

600

800

1000

1200

% o

f U

sers

Lo

gge

d In

# o

f Lo

gin

s (i

n t

ho

usa

nd

s)


Not Exactly as clear in this example …

When is EOQ?


Internal Logins per Month

62%

64%

66%

68%

70%

72%

74%

76%

78%

80%

0

50

100

150

200

250

300

350

% o

f U

sers

Lo

gge

d In

# o

f Lo

gin

s (i

n t

ho

usa

nd

s)


Can you explain the dips?

Why does adoption matter?


Licenses vs Licenses Assigned %

88%

90%

92%

94%

96%

98%

100%

102%

4600

4800

5000

5200

5400

5600

5800

6000

# o

f Li

cen

ses


What do we see here?

What’s your user reconciliation policy?

How many users should be assigned?


Licenses vs Licenses Assigned %

86%

88%

90%

92%

94%

96%

98%

100%

102%

0

500

1000

1500

2000

2500

# o

f Li

cen

ses


Help Articles

• Oracle Support Document 2204336.1 (How To Display the Approval Time on a Quote) can be found at: https://support.oracle.com/epmos/faces/DocumentDisplay?id=2204336.1

• Oracle Support Document 2039197.1 (How To Report on Number of Line Items per Quote) can be found at: https://support.oracle.com/epmos/faces/DocumentDisplay?id=2039197.1


https://support.oracle.com/epmos/faces/DocumentDisplay?id=2204336.1




Sales Funnel – KPI tracking – Resources/Demos

• How To Create a Calculated Column in Reports - can be found at: https://support.oracle.com/epmos/faces/DocumentDisplay?id=1660326.1 – Calculated Columns Use Case: Percentage of Total Fees - can be found at:


– Calculated Columns Use Case: Changes in Revenue - can be found at: https://support.oracle.com/epmos/faces/DocumentDisplay?id=1660328.1









Performance REST API

• Uses

– Track Key Performance Indicators (KPIs)

– Identify user trends

– Highlight areas where performance may be an issue

• QBE (Query By Example) – Available in 2016 R1

• Queries use MondoDB Syntax to refine the results

• Root Query – No filtering – https://SITENAME/rest/v1/performanceLogs/

• Sample Query w/filters – Activity after date for a user – …performanceLogs/?q={$and: [{eventDate:{$gte: '2016-09-01'}}, {login:{$eq: 'TESTUSER'}}]}

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