Lead to Money: Aligning Finance with Sales and Marketing Processes

23
© Copyright 2014 The Sales Management Association. Sales Management Association Webcast 13 February 2014 Presented by Lead to Money: Aligning Finance with Sales and Marketing Processes #LeadToMoney
  • date post

    17-Oct-2014
  • Category

    Technology

  • view

    495
  • download

    0

description

We all agree that sales and marketing alignment is critical. Companies that have the two teams working together reap the rewards. But the "lead-to-money" process isn't fully optimized without integrating Finance's involvement. This webcast outlines how an optimized lead to money process combines the coordinated involvement of the Sales, Sales Operations, Marketing, and Finance departments in high-performing organizations. By aligning goals, effort, and support resources, firms can realize accelerated pipeline throughput, improved sales effectiveness, and see an increase in productivity.

Transcript of Lead to Money: Aligning Finance with Sales and Marketing Processes

Page 1: Lead to Money: Aligning Finance with Sales and Marketing Processes

© Copyright 2014 The Sales Management Association.

Sales Management Association Webcast

13 February 2014

Presented by

Lead to Money: Aligning Finance

with Sales and Marketing Processes

#LeadToMoney

Page 2: Lead to Money: Aligning Finance with Sales and Marketing Processes

About The Sales Management Association

Slide 2

© 2014 The Sales Management Association. All rights reserved.

A global, cross-industry professional association for sales

operations and sales management.

Focused in providing research, case studies, training, peer

networking, and professional development to our membership.

Fostering a community of thought-leaders, service providers,

academics, and practitioners.

Learn More: www.salesmanagement.org

Page 3: Lead to Money: Aligning Finance with Sales and Marketing Processes

Today’s Panelists

Slide 3

© 2014 The Sales Management Association. All rights reserved.

#LeadToMoney

Page 4: Lead to Money: Aligning Finance with Sales and Marketing Processes

© Copyright 2014 The Sales Management Association.

Sales Management Association Webcast

13 February 2014

Presented by

Lead to Money: Aligning Finance

with Sales and Marketing Processes

#LeadToMoney

Page 5: Lead to Money: Aligning Finance with Sales and Marketing Processes

Deloitte is recognized as a thought leader in the Customer Transformation space. Industry analysts continually rank Deloitte

among the top consulting firms year over year.

• Kennedy: #1 Global and Management Consulting

• Gartner: #1 Consulting Services Worldwide

• Kennedy and Gartner: #1 Customer Transformation

• Forrester: #1 Business Technology Transformation

About Deloitte’s Customer Transformation Practice

Functional:

• Sales Transformation – Developing “go to market” models with the right mix

of channels to acquire customers more effectively through the selling

process

• Marketing Transformation – Increasing brand value, maximizing return on

marketing investments, and improving the performance of marketing

organizations

• Customer Service Transformation – Defining the right service capabilities

to drive profitable growth while increasing the effectiveness of the service

management process

Foundational:

• Customer Experience – Delivering a consistent brand promise across touch

points that enables more value to be gained from customer relationships

• Customer Insights & Analytics – Developing a more heightened

understanding of customers to better focus resources and improve return on

investment

Deloitte provides the following cross-functional capabilities as part of its

Customer Transformation Market Offering:

Customer Transformation Framework

Recognition

Page 6: Lead to Money: Aligning Finance with Sales and Marketing Processes
Page 7: Lead to Money: Aligning Finance with Sales and Marketing Processes

Aligning Goals from Lead to Money #LeadtoMoney

Page 8: Lead to Money: Aligning Finance with Sales and Marketing Processes

Automating lead

management can

increase revenue

by 10% in an little

as 6 months.

Marketing Alignment #LeadtoMoney

Page 9: Lead to Money: Aligning Finance with Sales and Marketing Processes

The Lead Management Process

• Distribute lead to appropriate channel if not marketing driven sales lead

• Capture the lead

• Input and store the lead

• Define qualification rules

• Grade the lead

• Gather customer demographics and information to input into system

• Identify lead opportunity and associated product(s)

Lead Capture

Lead

Qualification

• Capture all information gathered during sales cycle

• Assign lead for follow-up or reject lead

• Input lead follow-up date and reminder

• Prioritize the lead based on potential

• Monitor and track the lead through stages of the sales cycle

• Alert when lead is not followed-up with

• Re-engage with lead to convert to business or close out of system

Lead Close or

Follow-Up

Lead Progress

Tracking

• Measure and pull analytics on the lead

• Segment leads based channel, campaign ID, product,

conversion time, etc.

Lead Analysis

Reporting

• Identify relevant campaign ID

• Input campaign ID into lead management system Identify

Campaign ID

Illustrative Lead Management Framework

The steps below are representative of the basic components of a lead management process and depict the

sequence of events that occurs to take a lead from origination to close.

#LeadtoMoney

Page 10: Lead to Money: Aligning Finance with Sales and Marketing Processes

Properly enabled sales

teams can achieve 5

hours of productivity

back a week.

Page 11: Lead to Money: Aligning Finance with Sales and Marketing Processes

Sales Executives on Sales Performance

1. Economist Intelligence Unit survey of senior sales

executives in “Developing an Effective Sales Process for

the Enterprise.”

2. Deloitte Strategic Sales Compensation Survey

Based upon reviews of sales performance and surveys of senior sales executives, there is a high level of

dissatisfaction with the ways in which their sales managers do their jobs and the general levels of

productivity sales managers are getting out of their reps.

Level of sales skills and techniques

retained without follow-up sales

management reinforcement and

coaching1

13%

Sales teams falling short of goals2

67%

Sales managers are satisfied with

their sales force’s productivity2

43%

Sales managers aren’t leveraging

processes and tools to support

their salespeople1

43% What sales execs

are saying:

#LeadtoMoney

Page 12: Lead to Money: Aligning Finance with Sales and Marketing Processes

Enablement Success Story: Leading Life Sciences

Organization

Situation

• Major Life Sciences company conducted a survey among sales reps to better understand where they spend their

time, the success of coaching efforts are and what additional training is needed

• On average reps were coached 13 hours a month, significantly above the best in class average, yet there was a

fairly low manager impact on sales success

Solution

• A closer look at sales coaching practices found that the overall quality of the coaching being done by sales

managers was well below average

• Sales Managers needed to shift focus to coaching techniques that were tailored to the individual, providing real

time feedback after sales calls, coaching reps based on actionable metrics and setting realistic and attainable

goals

• Training was put into place that “coached” the coaches on how to use their mentorship time effectively through

metrics and individualized techniques

Results

• 102% rep attainment to goal on average for highly effective coaches versus ineffective coaches seeing only

83% rep attainment to goal. Improvement in coaching quality as opposed to quantity significantly increases sales

rep attainment to their individual goals

• Reps with strong coaches were 70% more likely to STAY with the company than those with weak coaches who

were 63% more likely to LEAVE; this held true across the entire performance spectrum

#LeadtoMoney

Page 13: Lead to Money: Aligning Finance with Sales and Marketing Processes

Quoting Automation: A Game Changing Capability

Customer Engagement

Pro

du

cti

vit

y

• CPQ

Enablement

• Basic Tracking &

Reporting

• Opportunity

Management &

Automation

• Improved pricing capability

• Reduction in pricing and order errors

• Better product mix and cross-sell

• Improve quote turnaround time

• Improved pricing capability

• Reduction in pricing and order errors

• Better product mix and cross-sell

• Improve quote turnaround time

Sales Rep Enablement

Optimized Profits

Increased Revenue

Increased Quota

Attainment

Increased Lead

Conversions

Increased Deal

Size

Quoting automation is a critical part of enabling the sales force, optimizing profits, and improving customer

engagement.

Page 14: Lead to Money: Aligning Finance with Sales and Marketing Processes

Finance plays a key role

in sales capacity

planning – properly

optimized territories can

increase revenue by 5%.

Page 15: Lead to Money: Aligning Finance with Sales and Marketing Processes

Territory Planning Maturity Assessment

Obsolete Standard Best Leading

Ineffective manual

processes, poor data

quality, high error rates,

and little governance.

Awareness of large

gaps with some pockets

of effectiveness and

improvement efforts.

Automated and effective

processes, reliable and

accurate data, with KPIs

and controls in place.

Innovative and business

enabling processes with

enterprise data and best

in class systems in use

Process Data System

• Effectiveness

• Standardization

• Documentation

• Governance

• Compliance

• Quality

• Accessibility

• Standardization

• Governance

• Usability

• Scalability

• Supportability

• Architecture

Organizations will fall in one of the four levels of maturity defined below. Identifying the current state and

gaps is a critical first step to moving up the maturity curve.

Territory Management Considerations

Territory Management Levels of Maturity

#LeadtoMoney

Page 16: Lead to Money: Aligning Finance with Sales and Marketing Processes

Sales ops ensures productivity and performance –

streamlined processes and tools can give 5 hours of

productivity back to reps a week.

Page 17: Lead to Money: Aligning Finance with Sales and Marketing Processes

Quota & Propose Myths

Myth #1 The Q2O process is a back office function with minimal customer impact

Myth #2 The Quote to Order process is a standard, routine back office function

Reality The Q2O process is a critical customer touch point, especially with new business models and the consumerism of IT (i.e. every decision maker is a consumer).

Reality The complexity of sales arrangements and deals, the growth of global operations and the focus on customer responsiveness it forcing customers to view the Q2O process as a competitive advantage.

#LeadtoMoney

Page 18: Lead to Money: Aligning Finance with Sales and Marketing Processes

A Disconnect Between Sales Reps And The C-Suite

More than 50% of the organizations believe compensation / incentive management programs have an

impact on the sales behavior of the organization. Yet many organizations continue to manage / administer

their compensation programs, territories, and channels in spreadsheets and ineffective inbuilt solutions.

Source: CSO Insights: 2012 Sales Compensation and Performance study

Consistently Drives Precise Selling

Behavior, 4.90%

Generally Drives Precise Selling

Behavior, 51.20%

Minimal Impact on Selling Behavior,

24.40%

Do not Know, 19.50%

Page 19: Lead to Money: Aligning Finance with Sales and Marketing Processes

...And It’s Normally A Very Inefficient Process

Only 40% of the organizations believe that their error rate in variable compensation payments is less than

3%. Almost 20% of the organization are not even aware about the inaccuracies in their variable payments.

Organizations continue to lose significant amounts in overpayments without realizing the consequences

and financial impact

Inaccuracies in incentive payments leads to sales rep leads to disputes / double accounting and despair

leading to disengagement on sales rep

Source: CSO Insights: 2012 Sales Compensation and Performance study

<1%, 27.50%

1 - 2%, 15.00%

3 - 5%, 15.00%

6 - 8%, 5.00%

>8%, 17.50%

Do not Know, 20%

#LeadtoMoney

Page 20: Lead to Money: Aligning Finance with Sales and Marketing Processes

Disconnect is high, hence the opportunity is high

According to Deloitte’s 2013 Strategic Sales Compensation Survey, many sales executives feel that their

sales compensation management programs limit their ability to execute business strategies.

Plan review cycles are frequent

More than half of the oragnizations review comp

plans on at least an annual basis

Frequent changes to comp plans indicates that

sales leaders are continually searching for the

“right” incentives to drive desired behavior

Disconnect between Company stratgey and

sales objectives

45% of the execs are falling short of the goals

Sales stratgies are neither aligned nor well

defined for sales reps

Company strategy needs to be realigned

Sales Satisfaction levels are low

Over 50% of Sales Execs were unhappy with

sales productivity over the last 6 years

More than half of the respondents were

dissatisfied with thier Compensation Programs

Frequency of comp plan review

Levels of Satisfaction: Sales Productivity

Page 21: Lead to Money: Aligning Finance with Sales and Marketing Processes

#caldc3

5 Keynotes

50+ Breakout Sessions

1000+ Attendees

Speakers from

• Xirrus, RagingWire, nTelos, Juniper Networks, HealthNet, Cree

• Aberdeen, Forrester, Gartner

caldc3.com

Page 22: Lead to Money: Aligning Finance with Sales and Marketing Processes

Questions and Discussion

Slide 23

© 2014 The Sales Management Association. All rights reserved.

Enter your questions in the

“Questions” box on the right

hand side of the webinar

application window.

Did we run out of time before we got to your

question? Presenters can follow-up with you via

email. Feel free to submit more questions if

you’d like an offline response.

#LeadToMoney

Page 23: Lead to Money: Aligning Finance with Sales and Marketing Processes

© Copyright 2014 The Sales Management Association

Thank You.