measuring the roi of your sales performance initiative (messaging matters webinar series)
DESCRIPTION
Corporate Visions and guest, Scott Watson, from the leading research company, Beyond ROI, examine how the best companies are getting believable results measurements from their sales training investments.TRANSCRIPT
© 2011 Corporate Visions, Inc. All rights reserved. Corporate Visions, Power Messaging, Power Positioning and Be Different. Where It Counts. Your Message. are registered trademarks or trademarks of Corporate Visions, Inc. All other trademarks are the property of their respective owners.
MESSAGING MATTERS WEBINAR SERIES
How to take the guesswork out of whether your messaging and training investments are working
Measuring the ROI of Your Sales Performance Initiative
What if other professions didn’t bother testing and analyzing results?
“Sales training initiatives need to be integrated with diligent and auditable process designed to measure results to be considered among the elite.”
Dave Stein, ES Research
The Art of Winning an Unfair Game
If you can measure the wind… you can measure your training results
© 2011 Corporate Visions, Inc. All rights reserved. Corporate Visions, Power Messaging, Power Positioning and Be Different. Where It Counts. Your Message. are registered trademarks or trademarks of Corporate Visions, Inc. All other trademarks are the property of their respective owners.
Scott Watson Founder of Beyond ROI, Inc.
Since 1994, Scott Watson has designed and implemented 800+ assessment and measurement projects with Fortune 500 companies such as Cisco Systems, SONY, ExxonMobil, IBM, AT&T, Verizon, Hewlett-Packard, and Accenture.
Beyond ROI, Inc. • www.getBeyondROI.com. • 469-‐200-‐8027
December 15, 2011
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Live Webinar Audience Poll Results
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ASTD State of the Industry Reports
2004 Study Notes: Included 213 organizations representing the broadest range of size and industry. Considered by ASTD to accurately represent “the U.S. norm.”
Companies measuring at “Level 5 ROI” were included in the category “Level 4 Results.”
2005 Study Notes: Included 18 Fortune 500 companies participating in ASTD’s Benchmarking Forum. These organizations represent the largest and most complex global learning organizations.
ASTD Study #1
31% 14% 8%
74%
0% 20% 40%
60% 80%
100%
Level 1 Reaction
Level 2 Learning
Level 3 Behavior
Level 4 Results
Level 5 ROI
ASTD Study #2
53.9%
22.9% 7.6% 2.1%
91.3%
0% 20%
40% 60%
80% 100%
Level 1 Reaction
Level 2 Learning
Level 3 Behavior
Level 4 Results
Level 5 ROI
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Bersin Research: Most Valuable Measures?
Page 17 © 2011 Beyond ROI, Inc. • www.getBeyondROI.com © 2010 Beyond ROI, Inc. • www.getBeyondROI.com
What is Measured Now?
Bersin & Associates © November 2006
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Desired vs. Actual Measurement…
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Is there funding for measurement?
82% say, “We should spend more – or much more on measurement”
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Live Webinar Audience Poll Results
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“You’ve always known that well designed
well implemented training can
change lives and grow the business…”
Now you can prove it.®
Page 22 © 2011 Beyond ROI, Inc. • www.getBeyondROI.com
Who do we work with? Over 800 assessment and measurement projects completed with…
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Why measure Power Messaging?
Reason #1: Capture Business Results from Power Messaging – how are we growing people? – how are we growing the business?
Reason #2: Accountability for Execution – for actually using new knowledge, skills, and process – for manager involvement
Reason #3: Feedback for Coaching to Power Messaging – simple – relevant – actionable
Page 24 © 2011 Beyond ROI, Inc. • www.getBeyondROI.com
Live Webinar Audience Poll Results
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The Science: What do we measure?
Effect “How much does
it help?” Linked to…
Cause “How much is it used?”
Leading Indicators (surveys) use of 19 Power Messaging skills,
processes, and tools use of marketing tools, resources 5 coaching activities 9 support and reinforcement
activities
Lagging Indicators (your metrics) Success Stories – with actual
customers Pipeline growth Performance against plan Deal size, Margin, Volume, etc.
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A clear picture of Power Messaging applica\on . . .
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How do we get them to be honest?
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RealityCheck Success Story . . .
Coaching and Support
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Leading Indicators: How much are they using it?
Overall Power Messaging ApplicaKon: 70.1% (excluding Coaching)
82% return (92 of 112)
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Leading Indicators: Most used Power Messaging skills?
82% return (92 of 112)
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Leading Indicators: Least used Power Messaging skills?
82% return (92 of 112)
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What about the “Lagging Indicators?”
Effect “How much does
it help?” Linked to…
Cause “How much is it used?”
Leading Indicators (surveys)
use of 19 Power Messaging skills, processes, and tools
5 coaching acKviKes
9 support and reinforcement acKviKes
Lagging Indicators (your metrics)
Success Stories – with actual customers
Pipeline growth
Performance against plan
Deal size, Margin, Volume, etc.
Page 33 © 2011 Beyond ROI, Inc. • www.getBeyondROI.com
Lagging Indicators: 64% Provided Success Stories (59 of 92 participants)
Percep\ons of Value in the Success Story: “Overall, how much did your use of the principles, tools, and skills from Power Messaging contribute to your SUCCESS in this parKcular sales situaKon?”
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Reality Check®: Success Story Summary
Number of Stories
Closed Business
New Opportuni\es
Impact of Power Messaging on Success
Total Factored Value
4 $9,200,000 $11,450,000 “made all the difference” -‐ 100% $20,650,000
21 $19,718,000 $69,600,000 “made a significant difference” -‐ 75% $66,988,500
19 $21,250,000 $51,790,000 “made some difference” -‐ 50% $36,520,000
3 $1,250,000 $2,500,000 “made a lidle difference” -‐ 25% $937,500
1 $0 $200,000 “made no difference, or worse” -‐ 0% $0
48 $51,418,000 $135,540,000 $125,096,000
Financial Impact: A total of $51,418,000 in closed business and $135,540,000 in new potential business was reported in 48 success stories with specific examples of how Power Messaging was used in the sales process.
Page 35 © 2011 Beyond ROI, Inc. • www.getBeyondROI.com
Reality Check®: Success Story Summary
How were Success Stories captured? Similar to a behavioral interview, the RealityCheck success stories enable parKcipants to provide a single specific example of a Kme when they used Power Messaging with an actual customer.
What do the numbers mean? Success Stories are simply a way to LINK applicaKon and results. Because we asked about only one opportunity per parKcipant, these totals do NOT represent the full impact of the Power Messaging program.
Totals were gathered according to these conserva\ve standards:
If a range of values was provided in the success story, we used the lowest number (e.g., one parKcipant reported “35K -‐ 100K closed” then $35,000 was counted). If we did not see clear evidence of the Power Messaging principles, skills, and strategies in the RealityCheck™ success stories, the revenue was NOT included. We encourage you to do a “spot check” on a handful of success stories to verify the closed and potenKal revenue amounts provided by parKcipants to verify accuracy.
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Comparisons: Leading and Lagging Indicators
Effect “How much does
it help?” Linked to…
Cause “How much is it used?”
Comparison #1 – How does coaching impact Power Messaging usage? Comparison #2 – How does higher Power Messaging usage correlate with larger sales? Comparison #3 – How does higher Power Messaging usage correlate new opportunities?
Page 37 © 2011 Beyond ROI, Inc. • www.getBeyondROI.com
Comparison #1: by Coaching . . .
PowerView Ques\on: “Your mastery of Power Messaging skills and principles will conKnue to improve over Kme, especially when you apply them regularly with a helpful coach, and take advantage of the available reinforcement content.”
82% return (92 of 112)
Page 38 © 2011 Beyond ROI, Inc. • www.getBeyondROI.com
Comparison #1: Coaching and Skill Applica\on Basis for Comparison: Coaching Activity (5 items) compared to each participant’s application of Power Messaging skills (19 items). Both scales run from 0-100% of the time.
Statistical Significance: The relationship between manager involvement and skill usage is statistically significant, where Student’s T-test = 6.119, confidence interval of p < 0.028 @ 84 d.f. (two-tailed test, type 1 error, 95% confidence interval).
Page 39 © 2011 Beyond ROI, Inc. • www.getBeyondROI.com
Comparison #1b: Coaching and Skill Applica\on Basis for Comparison: Coaching Activity (5 items) compared to each participant’s application of Power Messaging skills (18 items). Both scales run from 0-100% of the time.
Statistical Significance: The relationship between manager involvement and skill usage is statistically significant, where Student’s T-test = 6.638, confidence interval of p < 0.01 @ 86 d.f. (one-tailed test, type 1 error).
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0% 25% 50% 75% 100%
“Always” “Never” “SomeKmes” “Rarely” “Frequently”
Num
ber of ParKcipants
“Low Adopters”
“High Adopters”
Comparison #2: by Skill Applica\on . . .
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Comparison #2: Skill Applica\on and Closed Business Basis for Comparison: We compared participants with “above” vs. “below average” application of 19 Power Messaging skills to closed business, as captured in in 48 Success Stories.
Statistical Significance: The relationship between skill usage and closed business is statistically significant, where Student’s T-test = 3.426, confidence interval of p < 0.002 @ 28 d.f. (two-tailed test, type 1 error, 95% confidence interval).
Page 42 © 2011 Beyond ROI, Inc. • www.getBeyondROI.com
Comparison #3: Skill Applica\on and New Opportuni\es Basis for Comparison: We compared participants with “above” vs. “below average” application of 19 Power Messaging skills to new opportunities, as captured in in 48 Success Stories.
Statistical Significance: The relationship between skill usage and new opportunities is statistically significant, where Student’s T-test = 4.882, confidence interval of p < .01 @ 44 d.f. (two-tailed test, type 1 error, 95% confidence interval).
Page 43 © 2011 Beyond ROI, Inc. • www.getBeyondROI.com
Comparison #4: Skill Applica\on and Pre/Post Quota Achievement
Research Ques\on: “Does higher Power Messaging usage significantly correlate with higher Monthly Quota Achievement, when compared Pre vs. Post training?”
Leading Indicators: ApplicaKon of 19 Power Messaging skills,
tools, and process
Individual averages for 68 parKcipants for the applicaKon of 19 skills Overall individual applicaKon scores ranged from a low of 41% to a high of 100% Comparison groups (independent variables) -‐ High Appliers: use PM >75% of the Kme (20 ea.) -‐ Medium Appliers: 65-‐75% of the Kme (25 ea.) -‐ Low Appliers: <65% of the Kme (23 ea.)
Lagging Indicators: Pre/Post monthly Quota Achievement
for 68 parKcipants
Pre-‐training: four months, Feb-‐May FY12 Post-‐training: five months, June-‐Oct FY12 Test Metric: phased, monthly performance for revenue (50% weighKng) and margin (50% weighKng) vs. quota per month
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Comparison #4: How “Big” is the difference? Basis for Comparison: We compared participants with Low, Medium, and High application of 19 Power Messaging to Pre/Post Monthly Quota Achievement.
Graph 14: Skill Application and Pre/Post Change in Monthly Quota Achievement
Page 45 © 2011 Beyond ROI, Inc. • www.getBeyondROI.com
Comparison #5: What difference does Coaching make? Basis for Comparison: We compared participants who reported Low, Medium, and High coaching activity to Pre/Post Monthly Quota Achievement.
Graph 15: Coaching Activity and Pre/Post Change in Monthly Quota Achievement
Page 46 © 2011 Beyond ROI, Inc. • www.getBeyondROI.com
Comments: How will Power Messaging impact your Career?
“Power Messaging (Corporate Visions) is not just a course that you take like a SPIN selling or any other sales course we have all taken. This is something that if you truly embrace it will change not only you, but your customers and anyone you deal with in life. I am not the same Account Manager I was before this course and I am on a different Career path than I was before (In a Good Way).”
“Best training and program we have ever had and used - very practical and relevant. Can only make me a better salesperson.”
“It has definitely made me a better sales rep in the eyes of my customers. Larger sales. I feel it was the best applicable training I have received in 5 years.”
“It just creates a whole new way of thinking as I prepare for and execute meetings with customers. I think it helps us think outside the box and position ourselves different that our competition in life and sales. I think it helps us see the whole picture in all that we do.”
© 2011 Corporate Visions, Inc. All rights reserved. Corporate Visions, Power Messaging, Power Positioning and Be Different. Where It Counts. Your Message. are registered trademarks or trademarks of Corporate Visions, Inc. All other trademarks are the property of their respective owners.
Webinar Recording Available on www.corporatevisions.com/events
Additional Questions Join us on LinkedIn to continue the conversation http://www.linkedin.com/groups?about=&gid=4101593
THANK YOU!
© 2011 Corporate Visions, Inc. All rights reserved. Corporate Visions, Power Messaging, Power Positioning and Be Different. Where It Counts. Your Message. are registered trademarks or trademarks of Corporate Visions, Inc. All other trademarks are the property of their respective owners.
Executive Roundtables Spring Tour 2012 Measuring the ROI of Sales & Marketing Alignment Initiatives
Two-hour regional executive roundtables
February 28, 2012 San Francisco, CA
April 25, 2012 Boston, MA
March 22, 2012 Chicago, IL
Scott Watson Beyond ROI, Inc
Tim Riesterer Corporate Visions, Inc.
Susan McGinnis Philips Respironics
Peter Ostrow Aberdeen Group
Complimentary Registration http://win.corporatevisions.com/ROIRoundtables.html
Discussion Panelists: