uncover hidden insights in your sales ... - sales...
TRANSCRIPT
Uncover Hidden
Insights in Your Sales
Compensation Data
© Copyright 2015 The Sales Management Association. All rights reserved.
PAGE 2
© Copyright 2015 The Sales Management Association. All rights reserved.
SPEAKER
Paul PetersSenior Product Manager, ICM
IBM
Twitter: @p2peters
Email: [email protected]
LinkedIn: slsm.gt/peters
The evolution toward insights
About cognitive computing
Applied to Sales Compensation:— Exploring data using Watson Analytics— Insights to drive change
Q&A
Agenda
Paul Peters
Senior Offering ManagerIBM Sales Performance Management
► Sales Incentive Compensation is the linkbetween corporate strategy and customer-facing activity
► This business process is one of the lowest hanging fruit for savings and efficiencies
► Next generation sales forces will need to rely on data for competitive advantage
Our Point of View
“Typically, organizations begin with efficiency goals, then address
growth objectives, and lastly, design finely-tuned approaches to the
most complex business challenges.”
— IBM Institute for Business Value in collaboration with MIT Sloan Management Review
SPM Maturity Curve
Scaling a Market
Time
CHAOS pre-ICM
STABILIZE the operation
OPTIMIZE decisions & processes
SPM
Co
mp
eten
cy a
nd
Val
ue
Where is your company on this maturity curve?
Chaos pre-ICM
Stabilize the operation
Optimize decisions and processes
Question
Analytics can help sales leaders improve decisions about issues
such as sales strategy, sales force size and structure, and the
recruiting of sales talent
…(legacy) approaches can blindside sales forces with
undesired consequences in terms of sales force effort
allocation and financial risk.”
https://hbr.org/2014/09/sales-data-only-matters-if-it-helps-you-take-action/
“
1) Technology that the masses can use
2) Getting data organized
3) People not knowing the possibilities
What’s been lacking?
Cost of errors and commission overpayments were estimated at greater than $1 million per year
— Director of Compensation
“we didn't want to have to rely on IT services whenever we make changes….
…gives business users the ability to fully manage the compensation process without requiring deep technical skills”
— Chief Operating Officer, Wealth Management & Brokerage
“Managers can understand at a glancethe productivity of all of their associates”
“Management uses the information … to help drive training programs”
— Sr VP of Human Resources
Pay for Performance
YTD
Sal
es
YTD Quota Attainment
Boom Bust Analysis
20
13
Att
ain
men
t
2014 Attainment
Quota Distribution Top & Bottom Performers
Ranking
1234
Rep
MarilynAbdulSteveJian
Attainment
183%121%98%42%
# o
f R
eps
Quota Attainment %
Traditional Incentive Compensation Analytics
Information you might already possess. Have you ever correlated it?Watson Analytics and Cognitive Computing
Leverages Watson’s cognitive capabilities
Navigates natural language
Adapts and learns
Visualizes data
Delivers evidence based insights
► Sales by product, payee, territory and month
► Compensation: Plan type, payout by component, payee and month
► Territory hierarchy: city, state, region, country
► Payee hierarchy: payee, manager
► Time in role
► Tenure with company
► Performance rating
► Base salary
► Education
► Last employer
► HR survey info (How well do you understand the comp? Are you paid fairly? etc.)
► External demographics (household income, real estate values, etc.)
Information you might already possess. Have you ever correlated it?
Get data into the system
Drag a file into this area or browse to it Connect to you data from remote sources
Getting Started Workbooks
Sales Comp & Demographics
Operations Plan 2015
Marketing Campaign Analysis
All Data Sets
Marketing Campaign Analysis
Operations Plan 2015
Sales Comp & Demographics
Drag a file into this area or browse to it Connect to you data from remote sources
Getting Started Workbooks
Sales Comp & Demographics
Get data into the system
Ask a question in plain language
Which sales territories are the best?
How does Sales for Territory Reps compare by Region?
How does Sales for Territory Reps and compare by Region?
How does Sales for Territory Reps and by Region?
How does Sales for Territory Reps and by Region?
How does Sales for Territory Reps and by Region?
How is pay related to performance?
How does ProductSales for TerritoryReps compare by Region?
How does SalesUnits for TerritoryReps compare by Product?
How does Education for Payee compare by Region?
How does Avg. Sales for Payee compare by Region?
How does QuotaAttainment compare by Region?
Watson Analytics figures out potential paths to pursue
Which sales territories are the best?
How does Sales for Territory Reps compare by Region?
How is pay related to performance?
What is the grouping of YearlyRating for TerritoryRep
How does BaseSalarycompare by YearsInRole?
How does TotalComp for Payee compare by UnderstandPlan?
How does AvgSales for PlanType compare by AvgCalls?
What is the breakdown of QuotaAttainment by YearlyRating?
What predicts Yearly Rating?
Pay vs Performance
Top Predictors of Yearly Rating
What influences Yearly Rating?
Annual Rating Target 2 Target 3 Field Field FieldCustomerSat AverageDealSize AvgCalls AvgSale WorkLocation
Can you trust the data?
61EmployeeNumber
JobRole
Age
Gender
ManagerNumber
BaseSalary
QuotaAttainment
PlanType
ProductSales
ServicesSales
EducationField
EducationLevel
YearlyRating
YearsInRole
ManagerChanges
TrainingCourses2014
TotalWorkingYears
JobSatistfaction
SurveyUnderstandPlan
SurveyPaidFairly
AvgIncomeTerritory
PopulationInTerritory
Sales Comp and Demographics has 36 fields & 1470 records
Missing Values threshold is 50% Change
Pay vs Performance
Top Predictors of Annual Rating
What influences Annual Rating?
YearlyRating CustomerSat AverageDealSize AvgCalls AvgSale WorkLocation
Visualize the relationships easily
The decision tree shows how Yearly Rating is significantly influenced by
AverageDealSize and 9 other inputs
Statistical detail for those that want it
The t is statistically significant so reject the null hypothesis that the
Pearson correlation between Education and ProductSales equals 0.
Staff & Organize the
Team
Know Where to
Focus
Optimize the Sales Process
Manage the Sales
Team
Admin &
Control
What attributes contribute to purchase
Lead analysis & prioritization
Propensity to churn & upsell
Sales strategy optimization
Account team skills optimization
Funnel progression analysis
Sales rep alignment & motivation
Assign optimal targets
Tracking against targets
Forecasting— For accruals— For business
planning
Sales comp process reporting
Compliance reporting
Sales talent acquisition
Sales talent retention
Territory and coverage optimization
Where’s this all going?
Where would you be most likely to leverage Watson Analytics?
Coaching sales reps
Territory decisions
Hiring the right sellers
Designing effective comp plans
Forecasting sales results
Question
► Sales Incentive Compensation is the linkbetween corporate strategy and customer-facing activity
► This business process is one of the lowest hanging fruit for savings and efficiencies
► Next generation sales forces will need to rely on data for competitive advantage
Recap: Our Point of View
IBM Incentive Compensation Management video
http://www.youtube.com/watch?feature=player_detailpage&v=aKN0J3
BgdWo&list=PL9A0219D26EAD1D8B
PAGE 33
Please remember to speak into the
microphone - we're recording!QUESTIONS
© Copyright 2015 The Sales Management Association. All rights reserved.
Paul PetersSenior Product Manager, ICM
IBM
Twitter: @p2peters
Email: [email protected]
LinkedIn: slsm.gt/peters