DNBi Credit Enabling Sales | D&B

Credit Enabling Sales - D&B Confidential & Proprietary Information

Credit Enabling Sales

Presented by:Robert Porreca D&B – Dun & BradstreetJune 26, 2014

Credit Departments as drivers of profitable growth

2Credit Enabling Sales - D&B Confidential & Proprietary Information

Today’s Discussion

Prescreen and enable instant decisions to shorten the sales cycle

Reduce credit holds and find upsell opportunities

Optimize and segment your portfolio to find the profile of your best customers

3Credit Enabling Sales - D&B Confidential & Proprietary Information

What are Credit Professionals Saying?

“Credit People need to be as interested in growing the business as the salespeople are”

“I look for ways to sell more product, being creative and finding ways to make the sale when traditional credit extension methods are not realistic”

“Every time we set up a new account, we send a letter explaining the credit line/terms, we also attach a flier highlighting the products being featured that month”

“We create a “good pay” list, customers who pay on time and underutilize their limits, then we give this to sales to solicit additional business”

“I am a sales person, I sell credit offerings to keep them engaged”

“A customer centric operating model leverages account level expertise along with providing sales a single point of contact”

Source: Credit Today; NACM Elevator Speech Contest

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Is the trend of “Credit Enabling Sales” real?

Source: Key Issues Study, The Hackett Group, 2014 CFO Agenda

Strategic Financial Priorities

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Prescreen and Enable Instant Decisions to Shorten the Sales Cycle

1

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Prescreen and shorten the sales cycle by…

Prescreening accounts that meet your criteria for acceptance

Enabling sales to get an instant answer directly from the CRM system you use today

Allowing customers to submit an order online and be instantly notified of their acceptance

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Making content available when and where sales need it

Business Insight

Risk Prescreen

Firmographic Data

Real-time Location

Information & Nearby

Companies

Industry Information

Integration with Custom Data

Sources

Additional Contacts

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Which prospects are worth speaking to?

Help sales reps quickly determine the potential of the prospect

Create status indicators using your own or third party

data

Sales reps can qualify prospect based on creditworthiness

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Enable sales to get an “instant answer” right from the CRM they work in everyday

CreditManager

SalesPerson

DecisionEngine

1 Sales submit credit application in SFDC

3

Credit Application is automatically decisioned

Credit Applications that require manual review is decisioned by credit manager

4Sales user gets the decision automatically in SFDC

2 Sales user confirms the company matched

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Shorten the sales cycle by enabling customers, sales or service to submit via an “online application”

Enable both 1) New customers, as well as 2) Returning Customers

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Deliver back an “instant” answer to improve efficiency and customer satisfaction

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2

Reduce Credit Holds and Find Upsell Opportunities

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Reduce Credit holds and find upsell opportunities by…

Taking a proactive approach to reduce credit holds

Using a risk based approach to identify accounts for upsell or cross sale

Understanding total corporate family exposure to determine service levels, resource allocation and cross sell/up sell potential.

Monitoring portfolio risk to adjust polices so you are not leaving money on the table

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Targeting accounts nearing or over their credit limit provides a proactive approach to reduce credit holds

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Target incremental revenue opportunities by looking at score trends, focus on the accounts moving in the right direction.

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Segment customers based on external risk in addition to how they are paying you

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Use corporate family ownership to identify your biggest and customers, so you can retain and grow them by ensuring appropriate service levels and resourcing

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You can also use corporate family ownership to identify companies related to your customers, where no current sales exist

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Then look to see how the overall portfolio risk is shifting over time, ensure your polices are not leaving money on the table

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3Optimize and Segment Your Portfolio to Find the Profile of Your Best Customers

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Optimize and Segment your Portfolio by…

Creating a 360 degree view of your customers by combining all internal data with external third party insight

Segmenting your customer base by risk and opportunity to build a profile of your best customers to enable better targeting.

Understanding M&A activity to identify new growth opportunities

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Create a 360 degree view by cleansing, integrating and enriching data from across the company

Your Disparate Internal Databases

IntegratedCustomer Information

Gorman, Inc.123 Elm St.

Bethlehem, PA 18025Chuck Smith, President

Mary WorthVP, Marketing

123 Elm St.Bethlehem, PA 18025

Customer Relationship Management

CustomerServiceSystem

Gorman PlasticsP.O. Box 111

Bethlehem, PA 18055Chris White, Controller

Third-PartyInformation

A/RSystem

IntegratedCustomer Information

OPTIMIZEDCUSTOMERDATABASE

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Matching the right internal records is critical, to help determine which records across your data systems represent the same commercial entity

Acct # 123456Legal Name: ABC, Inc.Tradestyle: Alpha PlasticsAddress Postal: P.O. Box 111Bethlehem, PA 18055Address Physical: 123 Elm St. Bethlehem, PA 18025Phone: 610 882-7600SIC: 5411-0202, 5541-9901Primary Contact: Charles Smith, President- - - - - - - - - - - - - - - - - - - -

Year Started: 1961Employees: 35Additional Contacts: Mary Worth, VP MarketingParent: ABC Enterprise, Inc.Number of Family Members: 3Viability Rating: 2 1 C GPAYDEX: 79

- - - - - - - - - - - - - - - - - - - -

Finance ID: OX20PH Warehouse ID: A595660662CRM ID: 001200000000wXgAAI $3,000 credit limit$1,100 outstanding and 12 days past dueProduct code A on 7/2013Product code B on 9/2011SMB channel customerLast touch point on 6/2013

A.B.C.123 Elm St.Bethlehem, PA 18025(SIC) 5411-02Chuck Smith, President- - - - - - - - - - - - - - - - - - - - ID: OX20PH$3,000 credit limit$1,100 outstanding and 12 days past due

Fin

ance

Alpha PlasticsP.O. Box 111Bethlehem, PA 18055Chuck Smith, President610 882-7600- - - - - - - - - - - - - - - - - - - - ID: A595660662Product code A on 7/2013Product code B on 9/2011

War

eho

use

Charles Smith 123 Elm St.Bethlehem, PA 18025(SIC) 5541-99215 882-7600- - - - - - - - - - - - - - - - - - - - ID: 001200000000wXgAAISMB channel customerLast touch point on 6/2013

CR

M

Single, more intimate and actionable view of your customer

Hypothetical customer data from three of your source systems

Consolidated identity profile with unique id and various names and addresses

Enriched with things we know

Paired with things you know

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Now create a “Best Customer” profile

Best-Customer Profile:Industry: Plastics Manufacturer

Company Size: >100 employees

Years in Business: >10 Years

Geography: Northeast

PAYDEX: 80–100

Financial Stress Score: <3

Commercial Credit Score: <3

Prospects Your Best Customer

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Industry – Prospecting profile component

Perform an segmentation analysis by industry to generate a “best” customer profile for new business opportunities.

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Geography – Prospecting profile component

Perform a segmentation analysis by geography to generate a “best” customer profile for new business opportunities.

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Number of Employees – Prospecting profile component

Perform a segmentation analysis by business size to generate a “best” customer profile for new business opportunities.

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Years In Business – Prospecting profile component

Perform a segmentation analysis broken down by number of years in business to generate a “best” customer profile for new business opportunities.

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Now create a “Best Customer” profile

Best-Customer Profile:Industry: Plastics Manufacturer

Company Size: >100 employees

Years in Business: >10 Years

Geography: Northeast

PAYDEX: 80–100

Financial Stress Score: <3

Commercial Credit Score: <3

Prospects Your Best Customer

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Today’s Discussion

Prescreen and enable instant decisions to shorten the sales cycle

Reduce credit holds and find upsell opportunities

Optimize and segment your portfolio to find the profile of your best customers

To learn more visit

www.dnb.com/dnbi