TiE Institute Session

“Lead Generation to Closure - Managing a

Sales Pipeline”Sales Pipeline”

23rd March, 2012

Silver Oak, India Habitat Centre, New Delhi

Kamal Mansharamani

Managing Director

AlmaMate Info Tech

www.almamate.in

Table of Contents

• Sales as a predictable process

• Metrics to monitor sales performance

• CRM Tools

• Building & Managing a Sales Team• Building & Managing a Sales Team

• Incentivizing and motivating the sales team

2

Sales as a predictable

process process

ContactsCampaigns

Terminology

OpportunitiesLeads

Accounts

4

Leads

Opportunities

Need Analysis

Value Proposi

Identify Decision Proposal

Negotiation

Typical Sales Cycle

Leads unities

10%

Analysis

20%

Proposition

50%

Decision Makers

60%

Proposal

75% ation

90%

5

Order

Won/Lost

Need to create a Sales Cycle best suited for your business

1. Prospect – Above the funnel

2. Qualify - BANT– Budget

– Authority

– Need

– Time-frame

3. In the Funnel: Cover the bases

Sales Funnel

– Contact different Buying Influencers while developing a Coach

– Identify Results desired by each Buying Influencer

– Continually reassess sales picture including competitive threats

4. Best Few: Close order– Quiet period after customer has selected you

– End tasks such as signing agreements, PO etc.

Priority sequence to avoid Roller coaster or dry funnel� 4, 1, 2, 3

6

Source: Miller Heiman

PROSPECT (Lead)

QUALIFY (Active)

Data suggests a

potential fit

Data suggests a

possible order

About each sales

objective, not

each customer

Sales Funnel

COVER THE BASES

CLOSE ORDER

(Closure)

Data verifies a

possible order

Clearly defined

next steps

About your

selling cycle (top

to bottom)

You work the

funnel and have

sales objectives

in every stage all

of the time

7

Source: Miller Heiman

Sales pipeline by stage

8

Sales closure by month

Deal Size * Probability

Metrics Metrics

• 100% First Presentations

• 80% Needs Analysis

• 52% Formal Presentations

Sales Pipeline Analysis

11

• 52% Formal Presentations

• 44% Decisions Pending

• 26% Negotiations

• 16% Close Order

Typical B2B Sales numbers

• Count of lead companies

• Lead to opportunity conversion

• Average days from lead to opportunity

• Average age of open opportunity

Health of the funnel

• Average days from lead to close

• Average opportunity amount

• Average number of opportunities

• Lead to close conversion ratio

12

CRM ToolsCRM Tools

• Manage your contacts and customer

activities

• Share a single 360-degree view of your

customers

• Personalize new and ongoing customer

What CRM Systems do

• Personalize new and ongoing customer

interactions to cost-effectively acquire,

nurture, and retain good customers

14

Key Components of CRM

• Marketing Automation

– Campaign Planning

– Campaign Execution

– Campaign ROI

• Sales Force Automation

– Lead Generation

– Lead Conversion– Lead Conversion

– Sales Cycle

• Services and Support

– Case/Request Logging

– Case/Request Closure

– Self Service

• Field Service

– Field Rep Tracking

– Inventory Management

15

� Salesforce

� Siebel

� Few Open Source CRM Tools

– vTiger CRM

CRM Vendors

– OpenCRX CRM

– SugarCRM

– Concursive CRM

– Zurmo CRM

16

Generating Leads Example of lead Generation

Lead Management

E-Mail Campaigns

Execute & monitor e-mail

17

Website Integration

Execute & monitor e-mail

campaigns from within

Vtiger CRM

Trade Shows/Conventions

Meet new customers and demo your

products

Lead Management - Creating new Lead

18

A lead can directly be converted to a Account without re-entering the

details

Converting Leads

19

Track all accounts and related contacts, opportunities, cases, and other details from a

common repository

Account Management

20

• Track all contacts and related opportunities, cases, activities, and other details from a

common repository

• Synchronize contacts with Microsoft® Outlook®

Contact Management

21

• Track all sales potential/Opportunity end-to-end in a sales cycle

• Associate potential/Opportunity with accounts, contacts, activities, and other modules to

have a better visibility on the opportunities

Potential/Opportunity Management

22

• Pre-build reports for sales force automation

• Sales pipeline analysis by stage

• Monthly Sales pipeline analysis, Sales opportunities by lead source

Reports and Dashboards

23

Lead Conversion %Converted Leads

Reports and Dashboards

24

Lead Conversion %Converted Leads

by Month

Closed Business by MonthTop 10 Deals

Building & Managing

Sales TeamsSales Teams

• Recruitment

•Management

• Development

Building & Managing Sales Teams

• Development

• Incentive Structures

26

• When to hire

– Specially for International sales

• How to hire

– References

Recruitment

27

• Review quality of funnel

–Additions in the funnel

–Number of opportunities

–Deal Size

Management

–Deal Size

–Velocity of funnel

• Churn the funnel

–Remove deadwood

28

• Assess performance of

sales by reviewing the

quality of funnel

• Review the movement

within stages to

Development

• 100% First Presentations

• 80% Needs Analysis

• 52% Formal Presentations

• 44% Decisions Pending

• 26% Negotiations

• 16% Close Orderwithin stages to

understand reason for

struggle

• Support by addressing

concerns

29

• 16% Close Order

• Variable pay linked to performance

– Revenue

– Gross margins

– New client acquisition

– Order book

Incentive structures

– Order book

• Typically 30% to 50% pay variable

• Desired salary on achieving target

• Kicker on over achievement

• Gated at 70% performance30

40

50

60

Incentive Structure

Sales Target: 1M

Salary: 100K

Variable: 30%

Gate: 70%

Kicker: 1.25

0

10

20

30

0.25M 0.5M 0.70M 1.0M 1.5M

Incentive

Kicker

31

Kicker: 1.25

Thank You

AlmaMate Info Tech Private Limited

H 52, Sector 63, Noida 201307National Capital Region – India+91 120 4787878www.almamate.in