Main Insight Event 2016 “Driving Successful Sales In Software Companies: From Theory to Practice’’ Sales strategy, sales operations, sales improvement tools and practical case example. Paleisstraat 6, 2514JA, Den Haag Tel: +31 (0)70 324 3433 www.main.nl
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Main Insight Event 2016
“Driving Successful Sales In Software Companies: From Theory to Practice’’
Sales strategy, sales operations, sales improvement tools and practical case example.
Paleisstraat 6, 2514JA, Den Haag
Tel: +31 (0)70 324 3433
www.main.nl
Timetable
Chairman of the day: Pieter van Bodegraven (Partner Main Capital)
14.30-15.00 Welcoming reception
15.00-15.10 Opening Main CapitalCharly Zwemstra Managing Partner
15.10-15.40 Achieving Sales Excellence Simon Kucher & PartnersHayri Culum Sr. Director Benelux
15.40-16.10Using Sales Improvement Tools to accelerate Sales Performance
Xactly Insights™: Unique and Growing Empirical Data Set
11 Yearsof Data from a
Cross Section of
Industries
Anonymized
and
Aggregated
2 BillionTransactions
per Month
$16 Billionin Incentive
Payments in the
Last Two Years
Business Case Impact
Optimize
COMPAREUse industry benchmarks to reveal the truth about how comp
plans stack up compared to peer companies. Pay
competitively!
PERFORMANCEDiscover how reps perform compared to the rest of the
industry.
ATTRACT AND RETAINLearn how incentives are tied to attracting and retaining top
sales performers.
Xactly Insights: Who is on your sales team?
Women’s average total compensation equals 83% of the men.
83%
Sales Performance
Quota attainment by women
Quota attainment by men
67%
70%
Source: Xactly Insights™Xactly Confidential Information
Xactly Corporation is not obligated to develop; and does not guarantee delivery, of any software with the features and functionality discussed in the product roadmap included herein. All future features and functionality are unspecified and delivered on a when-and-if-available basis.
Business Case Impact
Automate
MITIGATE ERRORSSignificantly reduce costly errors associated with
manual processes.
REDUCE ADMINAlleviate pressure on resource constrained
compensation team and allow them to be more
strategic.
REDUCE RISKEnable traceability, audit, forecast, accruals and single
source of truth for data.
>85% of businesses use spreadsheets or
homegrown systems to calculate incentives
$800B paid annually to sales
people in the U.S. alone
Significant error rates
associated with spreadsheets
Nearly 30 million sales people
in the U.S. and E.U.
The Current Paradigm Results In
Lost productivity due to lack
of visibility and rep shadow
accounting
Rep turnover due to lack of
trust in the system
Business Case Impact
Motivate
MOBILEKeep reps engaged with their incentives in real-time.
ALIGNMENTEnsure your incentives align with your business goals
and improve rep quota attainment.
REDUCE SHADOW ACCOUNTINGBy eliminating reps’ mistrust in their commissions
system, they can spend more time selling.
Gallup: State of the Global Workplace Report (Worldwide)
Engaged
Not Engaged
Actively Disengaged
63%
13%
24%
Gallup Global Survey of the Workplace Employee Engagement is at risk!
• You will see spikes in revenue for whatever the measurement period is.
• Combine monthly and quarterly goals with the annual numbers to help smooth the revenue cycle.
0%
5%
10%
15%
20%
25%
1 2 3 4 5 6 78
910
1112
RE-THINK YOUR QUOTA ATTAINMENT GOALS
65%74%
62%72%
Saas (SMB) Saas (LE) Software (SMB) Software (LE)
COSTS MONEYO v e r - C o m p l i c a t i n g
1
2
3
4
5Quota Attainment vs Measures on a plan
Team Credit ing 25% pay 20 or more
VP NA
Area Director
West
Regional
Manager West
Area DirectorEast
Regional Manager East
Acct Manager
1
Acct Manager
2
Acct Manager
3
Acct Manager
4
VP SC’s
Director
SC West
SC Manager
West
Director
SC East
SC Manager
East
SC 1 SC 2 SC 3 SC 4
COSTS MONEYO V E R C R E D I T I N G
TURNOVER IS COMING
BUILDING THE HUNTER PLAN
Conduct a salary survey to set target pay.
How much of the target pay should be variable?
Pick metrics to base rewards on
that meet corporate goals, focusing
on the most important one.
Build in accelerators to ensure continuous stretch
targets
Calculate how much you’ll spend as a % of sales if
everyone makes quota, or if half make 200% and
half make nothing.
USING FARMER’S FOR FUN AND PROFIT
Make sure you know what line items in a transaction reflect
the appropriate renewal and up-sell revenue the Farmer
owns.
Don’t assign quota based on things the Farmer
does not control. How much will the Farmer make
if the renewal rate stays the same?
What periods should you track? If all of renewals
are at year-end, a monthly quota does not make sense.
Is there room for customer abuse?!
Calculate total payouts as a percent of total renewals at
different renewal levels – worth the cost?
Incent the Right Behaviors
Tactic
al
Stra
teg
ic
“Our users love Xactly, they love the interface, they love the ability to get information on their mobile devices, and the ability to produce results with a much higher level of accuracy.”
“Now we have the ability to scale phenomenally over what we used to do, so my requirement to devote future resources to this has been incredibly minimized.”
FINAL CHECKLIST
Motivate in the now: real-time visibility and easily accessible data access.
Tailor incentives based on team roles. Balance individual rewards with team
recognition. Leverage numerous forms of variable
compensation including commissions, bonuses, MBO’s, contests, and SPIFs.
Use analytics to identify the behavior that is being “rewarded.”
Pay early, pay often, pay accurately.
Erik W. CharlesVice President, Product MarketingXactly Corporationt: 01 949 439 3555w: xactlycorp.come: [email protected]: @erikchaz
Timetable
Chairman of the day: Pieter van Bodegraven (Partner Main Capital)
14.30-15.00 Welcoming reception
15.00-15.10 Opening Main CapitalCharly Zwemstra Managing Partner
15.10-15.40 Achieving Sales Excellence Simon Kucher & PartnersHayri Culum Sr. Director Benelux
15.40-16.10Using Sales Improvement Tools to accelerate Sales Performance
17.00-17.30Scaling from 10m to 100m in revenues. Best practices in setting up efficient Sales Operations
AchieversGreg Brown Chief Revenue Officer
17.30-19.00 Networking drinks
Main Capital
Create Business Value with Complex Technology
Johan Wolthuis
Philips Healthcare Manufactures systems for
imaging, radiation oncology and patient
monitoring as well as providing information
management and resuscitation products
4000 employees and distributors use Sofon as
Global Catalogue & Quoting platform integrated
with Salesforce and SAP on Microsoft Azure
Cloud (started 2016)
About Philips Healthcare
What did we solve at Philips Healthcare
• From Products to Solution for their customers
• Flexible System to adjust to rapid changing Market
Requirements
• High quality output to Customer
• Relevant information in the right place, at the right
time to the right person
• Stable Product Catalogue for Sales, Flexible for
Supply chain, Correct for ordering from Factory
• 5 Minutes to create initial Commercial Quote
• Multi level Approval Process for technical
validation and margin control
CUSTOMER CENTRICITY IS A STRATEGY
CUSTOMER CENTRICITY AFFECTS ALL ASPECTS OF A BUSINESS
CUSTOMER CENTRICITY IS THE ULTIMATE WEAPON
TO BEAT COMPETITION
WHAT IS OUR DEFINITION OF
WINNING?
• WIN TRUST• MEET AND BEAT EXPECTATIONS
• BE IN CHARGE OF THE SALES PROCESS• SPEED UP THE SALES CYCLE
• SET THE DECISION MAKING CRITERIA• OUR USP’S IN THE LEAD
LISTENING IS EASY
…IF YOU KNOW WHAT YOU WANT TO FIND OUT
Start with a clean Sofon Business Model
Result the Sofon Business Model
PROBLEMATICIMPORTANT
Opportunities
Winners
Non-issues
Expected
CONCLUSION ONE
NOT DELIVERING AN EXPECTEDPISSES OFFA CUSTOMER
CONCLUSION TWO
ONE CAN LOSE A CASEBY NOT FULFILLING ONE SINGLE EXPECTED
CONCLUSION THREE
ONE CAN LOSE A CASEBY NOT FULFILLING ONE SINGLE EXPECTED
ONE CAN KILL A COMPETITORBY LEAVING ANUNEXPECTED EXPECTED
CONCLUSION FOUR
ONE CAN LOSE A CASEBY NOT FULFILLING ONE SINGLE EXPECTED
ONE CANNOT LEAVETIME BOMBS IF ONEDOES NOT HAVE THE GUTSTO GO IN FIRST
CONCLUSION FIVE
LEADERS GO FIRST
ONE CAN LOSE A CASEBY NOT FULFILLING ONE SINGLE EXPECTED
THINK ABOUTTURNING
USP’S INTOTIME BOMBSFOR COMPETITION
THERE IS NO EXCUSE FOR BEING BORING
NON-ISSUES CAN KILL A DEAL
IT IS ALL ABOUT PSYCHOLOGY
GRABTHEGOLDFISH
People will not read all the tekst that is on your slides. They will get lost andyou will loose their attentions and as such you will loose them. You are notpresentening to impress people with a few hundred words on each and everyslide. When people want to read, they will take a book, I guess. What is yourpupose? Do you want your audience to read each and every word on yourslide? Than waht do you do? Shut up? How long? Do you wait for the signs? Or do you read each and every word yourself? What do you try to tell youraudience by doing so? That you think that they can not read? Do you want them to think that they are idiots? Maybe you may consider that pictures maysay more than a thousand words? And that by speaking he words that are noton the slide you might have a conversation? Talking about conversations? Do you talk to your friends making use of long and extensive tekst that you have written on a piece of paper to help the conversation? I cannot believe that. We simply cannot listen and read at the same time. Make a choice. No, you do not have to make a choice. There is no choice. You are presenting. That is, bydefinition: speaking. Hence, your audience is there to listen. Audience. Youcan highlight your message by a few words, not necessarely those that youspeak, and you can illustrate the things you are talking about using pictures, but please do ever never write too many wordson each slide unless you want to make the simple statement that too many words never do whatever youwanted to prove. Like we do on this slide. By the way there is no bottle of champagne waiting for those that are able to read this text while listening towhat I am saying as this is not a contest.
People will not read all the tekst that is on your slides. They will get lost andyou will loose their attentions and as such you will loose them. You are notpresentening to impress people with a few hundred words on each and everyslide. When people want to read, they will take a book, I guess. What is yourpupose? Do you want your audience to read each and every word on yourslide? Than waht do you do? Shut up? How long? Do you wait for the signs? Or do you read each and every word yourself? What do you try to tell youraudience by doing so? That you think that they can not read? Do you want them to think that they are idiots? Maybe you may consider that pictures maysay more than a thousand words? And that by speaking he words that are noton the slide you might have a conversation? Talking about conversations? Do you talk to your friends making use of long and extensive tekst that you have written on a piece of paper to help the conversation? I cannot believe that. We simply cannot listen and read at the same time. Make a choice. No, you do not have to make a choice. There is no choice. You are presenting. That is, bydefinition: speaking. Hence, your audience is there to listen. Audience. Youcan highlight your message by a few words, not necessarely those that youspeak, and you can illustrate the things you are talking about using pictures, but please do ever never write too many wordson each slide unless you want to make the simple statement that too many words never do whatever youwanted to prove. Like we do on this slide. By the way there is no bottle of champagne waiting for those that are able to read this text while listening towhat I am saying as this is not a contest.
HELP THEM SEE WHAT YOU ARE SAYING
NEVERCOMPLICATE
AVOID TOO MANY OPTIONS
• Customer centricity• Disruptiveness• Define the winners• Dialogue• Support the customer in
buying, not selling
Timetable
Chairman of the day: Pieter van Bodegraven (Partner Main Capital)
14.30-15.00 Welcoming reception
15.00-15.10 Opening Main CapitalCharly Zwemstra Managing Partner
15.10-15.40 Achieving Sales Excellence Simon Kucher & PartnersHayri Culum Sr. Director Benelux
15.40-16.10Using Sales Improvement Tools to accelerate Sales Performance