calliduscloud webinar: 5 steps to better sales performance management

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5 Steps to Better Sales Performance Management September 10, 2014

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Recent opinions in leadership articles and blogs have made the statement that you can't necessarily motivate sales people - but you certainly can demotivate them by setting them up for failure. Leaner teams and tighter budgets require sales leaders to deploy coaching and motivation tactics that go beyond basic incentive plans. To stay competitive, best-in-class sales organizations are rolling out data-driven coaching plans paired with gamification. In this webinar, we will cover five areas to ensure your sales reps are set up for success - not failure. Hear about best practices in: - On-boarding - Effective territory & quota planning - Coaching and appraisals - Compensation and rewards - Gamification techniques

TRANSCRIPT

Page 1: CallidusCloud Webinar: 5 Steps to Better Sales Performance Management

5 Steps to Better

Sales Performance Management

September 10, 2014

Page 2: CallidusCloud Webinar: 5 Steps to Better Sales Performance Management

Today’s Featured Speakers

Dan Koellhofer

Vice President, Product Management

CallidusCloud

[email protected]

Jennifer Kling

Product Marketing Manager

CallidusCloud

[email protected]

Page 3: CallidusCloud Webinar: 5 Steps to Better Sales Performance Management

Pace of change

• 25% of goods and services shipped and sold in the last 10yrs Pace of Change

Products & Services

Page 4: CallidusCloud Webinar: 5 Steps to Better Sales Performance Management

Pace of Change – Broadcast Media

Channel 1 Channel 2 Channel 3

Page 5: CallidusCloud Webinar: 5 Steps to Better Sales Performance Management

Pace of Change - Communications

Page 6: CallidusCloud Webinar: 5 Steps to Better Sales Performance Management

The pace of change is staggering.

Are you keeping up?

Page 7: CallidusCloud Webinar: 5 Steps to Better Sales Performance Management

Agenda

On-boarding

Effective territory & quota planning

Coaching and appraisals

Compensation & rewards

Gamification techniques

Page 8: CallidusCloud Webinar: 5 Steps to Better Sales Performance Management

On-boarding

Page 9: CallidusCloud Webinar: 5 Steps to Better Sales Performance Management

What are bad sales

hires costing you?

• Interview Costs

• Training

• Compensation

• Lost business Opportunity

• Negative Impact on

Customers

• Negative Effects on Morale

15

times base salary

Reference: Dr. Bradford Smart, PHD; Publication Avoid

Costly Mis-Hires

>500k

Cost of a bad hire

Page 10: CallidusCloud Webinar: 5 Steps to Better Sales Performance Management

Do you hire your problems?

• Do you hire when you need new reps?

• Do you hire who you “like”? -The sales

“halo” effect!.

• Do you hire the bottom 20% that most

companies are just recycling. (Someone

else's non-performer)

• Do you hire someone who can sell you

product vs. just themselves?

• ‘Poor fit to the job’ – one of the top five

reasons for high sales turnover

• Do you verify performance or Income?

Verifying income is easy, but verifying

performance is tricky.

Reference: 2012 Sales Rep Hiring/Compensation Analysis

47% Companies that say

their sales hiring needs

improvements

Page 11: CallidusCloud Webinar: 5 Steps to Better Sales Performance Management

The Secret Recruiting Formula

1. Begin with the end in mind

2. Use quantitative tests

3. Cast a wide net

4. Share and collaborate

5. Timing is everything

Page 12: CallidusCloud Webinar: 5 Steps to Better Sales Performance Management

SalesSelector Solution

18% shorter time-to-hire

52% Shorter

time-to-productivity

• Quantitative Sales Test

• Powerful Videos Interviews

• Collaborate with Distributed

Stakeholders

Page 13: CallidusCloud Webinar: 5 Steps to Better Sales Performance Management

42% CSO Insights, Sales Management Optimization Study 2014

Time is Money.

>10months Time to become productive

for new sales hire

% Reps don’t make quota

Page 14: CallidusCloud Webinar: 5 Steps to Better Sales Performance Management

1. Pre-Boot Camp Training

• Self-Service Product & Solution Training

• Certification Testing

2. Boot Camp

• 1 Week Sales & Solution Training

• Builds on Initial Training

3. Mentor Program

• AE Assigned Sr. AE Mentor

• Mentor Includes in Meetings/Calls

4. Performance Tracking

• KPI’s Tracked & Monitored

• Proactive Coaching in Weak Areas

Accelerating the Time to Revenue for New Hires

Page 15: CallidusCloud Webinar: 5 Steps to Better Sales Performance Management

eLearning overview

Page 16: CallidusCloud Webinar: 5 Steps to Better Sales Performance Management

eLearning on Any Device

Page 17: CallidusCloud Webinar: 5 Steps to Better Sales Performance Management

Effective Territory & Quota

Planning

Page 18: CallidusCloud Webinar: 5 Steps to Better Sales Performance Management

POLL:

Do you have a good idea of

what each territory’s potential

value is?

❏ Yes

❏ For some

❏ No

Page 19: CallidusCloud Webinar: 5 Steps to Better Sales Performance Management

Typical Quota Process

• Forecast science

• Technology limitations

• Inadequate governance and process

• Over and under assignment policies

• Reliance on historical performance

• Intuition stacking

• Static hierarchies

• Rigid / forced interlock

• Opportunity disconnect from forecast

• Gaming & agent influence in goal negotiation

• Quota frequency

FORECAST & GOAL LAYERS INPUTS QUOTA QUALITY INFLUENCERS

Source: Accenture

Page 20: CallidusCloud Webinar: 5 Steps to Better Sales Performance Management

How to Improve the Process

1. Understand your current process

2. Understand territory previous performance

3. Understand territory values

4. Create territories based on value

5. Reconcile territory plan against overall corporate goals

Page 21: CallidusCloud Webinar: 5 Steps to Better Sales Performance Management

How Technology Can Help

• Standardization & Automation

• Data Analysis for Decision Making

• Enablement

• Tracking & Monitoring Through Data Analysis

Page 22: CallidusCloud Webinar: 5 Steps to Better Sales Performance Management

Standardization and Automation

• Systems Can Define &

Support Standards

• Must be Flexible

• Support, Not Inhibit,

Change

• Automation

• Workflow Processes

• Communications

• Supports Rapid Change

#SalesTerritory

Page 23: CallidusCloud Webinar: 5 Steps to Better Sales Performance Management

Data Analysis for Decision Support

Data Supported Decisions: Bring

different sets of data together to

support the decision making

process.

• Historical data to support recurring

revenue, account retention targets

• Market data – market share,

addressable market, product

penetration – to support new

business and growth targets

• Pipeline data from CRMs to support

both

• Training and coaching to match

capabilities

#SalesTerritory

Page 24: CallidusCloud Webinar: 5 Steps to Better Sales Performance Management

Simplify and Streamline Financial Planning

Page 25: CallidusCloud Webinar: 5 Steps to Better Sales Performance Management

Easily Allocate Products and Accounts to Territories

Page 26: CallidusCloud Webinar: 5 Steps to Better Sales Performance Management

Coaching & Appraisals

Page 27: CallidusCloud Webinar: 5 Steps to Better Sales Performance Management

Challenge

• Companies lack of visibility into detailed sales performance metrics to

support the sales management process

• Without complete view into performance, sales managers are unable to

understand individual and team strengths and weaknesses

• Inefficient sales coaching and limited tools has led coaching to be the

weakest competency of all front line sales managers

Page 28: CallidusCloud Webinar: 5 Steps to Better Sales Performance Management

Why Coach Sales Reps?

Sales people who receive fewer

than two hours of coaching

per month achieve 90% of quota.

Sales people who receive at least

three hours of coaching per

month achieve 107% of quota.

Sales people who receive 2-3

hours of coaching per

month achieve 92% of quota.

Page 29: CallidusCloud Webinar: 5 Steps to Better Sales Performance Management

POLL:

Does your company follow a

formal sales coaching

process?

❏ Yes

❏ No

❏ Every manager has their own

process

Page 30: CallidusCloud Webinar: 5 Steps to Better Sales Performance Management

Coaching Process?

CSO Insights, Sales Management Optimization Study 2014

Page 31: CallidusCloud Webinar: 5 Steps to Better Sales Performance Management

Top

Performers Sales Rep A

Sales Development Plan: Sales Rep A

Page 32: CallidusCloud Webinar: 5 Steps to Better Sales Performance Management

A recipe for successful coaching and performance

management

Ingredients:

• Sales Manager

• Sales Rep

• Process

• Metrics

Directions:

• Align results with activities and skills

• Evaluate existing team

• Develop plan

• Socialize

Tips for meaningful coaching:

• Timely

• Objective

• Accurate

• Relevant

• Individualized

Page 33: CallidusCloud Webinar: 5 Steps to Better Sales Performance Management

Dashboard Overview

Page 34: CallidusCloud Webinar: 5 Steps to Better Sales Performance Management

Compensation & Rewards

Page 35: CallidusCloud Webinar: 5 Steps to Better Sales Performance Management

Challenge

• Companies spend on average 11% of revenue on incentives and

commissions

• Gartner estimates that organizations that use spreadsheets and

homegrown tools to pay out commissions, overpay by 5-12% annually

• Low to no visibility to over-payments

• Complex, opaque plans lead to lost time due to disputes and shadow

accounting

Page 36: CallidusCloud Webinar: 5 Steps to Better Sales Performance Management

#1 Desired Improvement to Compensation Program

Source: World at Work & OpenSymmetry Sales performance and Technology Survey

Page 37: CallidusCloud Webinar: 5 Steps to Better Sales Performance Management

Things to Consider

• Simplify incentives structure

• Remove layers and clauses that cause confusion

• Saves time and money

Page 38: CallidusCloud Webinar: 5 Steps to Better Sales Performance Management

POLL:

How confident are your sales

reps in the accuracy of their

commission payouts?

❏ Very confident, no issues

❏ Somewhat confident

❏ Not at all confident

Page 39: CallidusCloud Webinar: 5 Steps to Better Sales Performance Management

Opportunity to Modernize: Commissions

Modernize with Compensation Management:

• Commissions calculation automated

• No need for separate tracking – track via mobile device

• Minimal need for review and corrections

• Eliminate over-payments

Page 40: CallidusCloud Webinar: 5 Steps to Better Sales Performance Management
Page 41: CallidusCloud Webinar: 5 Steps to Better Sales Performance Management

Gamification Techniques

Page 42: CallidusCloud Webinar: 5 Steps to Better Sales Performance Management

Cash is Not Always King

Motivation beyond financial:

• Intrinsic motivation

• Extrinsic motivation

• Achievement motivation

Page 43: CallidusCloud Webinar: 5 Steps to Better Sales Performance Management

Top Motivators of Sales Success

Source: Aberdeen Group

Page 44: CallidusCloud Webinar: 5 Steps to Better Sales Performance Management

Popular Gamification Techniques

• Leaderboard for transparency and recognition

• Rewards for incentives

• Group board for group incentives

Page 45: CallidusCloud Webinar: 5 Steps to Better Sales Performance Management

Benefits

Page 46: CallidusCloud Webinar: 5 Steps to Better Sales Performance Management

Incent Tactical, granular behaviors with non-

monetary gamification programs

Page 47: CallidusCloud Webinar: 5 Steps to Better Sales Performance Management

Summary

Page 48: CallidusCloud Webinar: 5 Steps to Better Sales Performance Management

Questions?

Dan Koellhofer

Vice President, Product Management

CallidusCloud

[email protected]

Jennifer Kling

Product Marketing Manager

CallidusCloud

[email protected]