siebel sales best practices - individual sales execution 10-
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The World’s Leading Provider of eBusiness Applications Software
Siebel Best Practices:Siebel Best Practices:Individual Sales ExecutionIndividual Sales Execution
Chuck DrakeChuck DrakeDirector, Product MarketingDirector, Product Marketing
cdrake@siebel.comcdrake@siebel.com
The Execution ChallengeThe Execution Challenge
Non-Financial FactorsValued Most By Investors
Impact of a Strategy - Execution Gap95% of employees don’t understand company strategy50% of average employee’s time spent on non-productive work50% more likely to have turnover
Sources: “The Balanced Scorecard” David P. Norton;Arthur Andersen estimate: Corporate Strategy Board research;Measures That Matter,” Ernst & Young, LLP;Gates, Stephen, Aligning Strategic Performance Measures and Results
Percentage of Companies ThatCan Consistently Deliver on Strategy
>90%
<10%
Fewer than 1 company in 10 can consistently achieve the full
potential of its strategyRank Factors
1 Strategy Execution
2 Management Credibility
3 Quality of Strategy
4 Innovativeness
5 Ability to Attract Talented People
Unprecedented Focus on Sales ExecutionUnprecedented Focus on Sales Execution
Field Sales
Web Partners EmployeesCall Center
Economic Volatility
EnterpriseCompetitor
EnterpriseCompetitor
EnterpriseCompetitor
Consolidation
Fewer, StrongerCompetitors
BroaderGeography
MoreCustomers
LessHelp
HigherQuotas
Corporate Downsizing
Demand forResponsiveness
“Most Responsive”
“Best Solution”
“Best Product”
0%
20%
40%
60%
80%
100%
1992 1997 2002
Focus on Revenue Growth
OrganizationalComplexity
Channel Silos
Geographic Silos
Product Silos
Organizational Silos
The Scarcest Resource…The Scarcest Resource…
Field Sales
Web Partners EmployeesCall Center
TIME
The Scarcest Resource…The Scarcest Resource…
Field Sales
Web Partners EmployeesCall Center
PRIORITIZATION&
FOCUS
AGENDAAGENDA
A New Definition of Sales Execution
Lessons Learned from 3,000 Siebel Customers
Siebel Best Practices for Individual Sales Execution
Return on Investment: Customer Success Stories
Demonstration
A New Definition of Sales ExecutionA New Definition of Sales Execution
Field Sales
Web Partners EmployeesCall Center
Sales Execution
Efficiency Effectiveness Teamwork
Sales Productivity Bell Curve
Number of Reps
Focus on Teamwork
Focus onFocus onEffectivenessEffectiveness
Focus onFocus onEfficiencyEfficiency
Sales Force SegmentationSales Force Segmentation
Limited Access to Information
Manual Tasks
Complex Internal Navigation
Inappropriate Prioritization & Focus
Limited Knowledge & Selling Skills
Low Quality Deliverables (Quotes, Proposals, etc)
Fragmented Communication & Collaboration
Inconsistent Processes & Methodology
Incentives Not Aligned
Teamwork
Effectiveness
Efficiency
BusinessImpact Inadequate
PipelineLow
Win RateLow AvgDeal Size
LongSalesCycle
LowCustomer
Sat
Sales Execution ChallengesSales Execution Challenges
$ (# Opportunities) * (Deal Size) * (Win Rate)(Length of Sales Cycle)
22% potential sales growth
5% improvementon every elementin the formula
(1+0.05) * (1+0.05) * (1+0.05)(1-0.05)
Revenue Growth & Sales ExecutionRevenue Growth & Sales Execution
Individual Sales Execution: Lessons LearnedIndividual Sales Execution: Lessons Learned
Prospect
Close
Identify
Propose
Qualify
Sales Cycle Plan
Research
Support
Coordinate
Report
Follow-Up
1 Selling “activities” are situational and iterative.
2 Focus on the MIDDLE of the CURVE.
Sales Force Effectiveness
RevenueContribution
Top 20%Low 20% Mid 60%
ReturnReturnOnOn
InvestmentInvestment
Individual Sales Execution: Lessons LearnedIndividual Sales Execution: Lessons Learned
Responsiveness
Quote Complexity
Collaboration
Administrative Overhead
Communication
Best Practices
Customer“Face Time”
Coaching &Insight Empowerment
Information &Knowledge
3 Focus on EFFECTIVENESS not CONTROL.
Individual Sales Execution: Lessons LearnedIndividual Sales Execution: Lessons Learned
Individual Sales Execution: Lessons LearnedIndividual Sales Execution: Lessons Learned
“Most Responsive”
“Best Solution”
“Best Product”
• Accessibility • Understanding• Accountability• Consistency• Speed
4 Focus on tools that improve the customer experience.
ProductsViewed As
Commodities
TIME
5 Great sales people execute based on what they KNOW about a deal, not how they “feel” about a deal.
Compelling Event
Is There an Opportunity?Customer’s
Application or Project 1
Customer’sBusiness Profile2
Customer’sFinancial Condition3
5
Access to Funds4
Can We Win?Inside Support
Executive Credibility
Cultural Compatibility
Political Alignment
Informal Decision Criteria
11
12
13
15
14
Is It Worth Winning?Short-Term Revenue16
Future Revenue17
Profitability18
Strategic Value 20
Degree of Risk19
10
Can We Compete?Formal Decision Criteria 6
Solution Fit7
Sales ResourceRequirements8
Unique Business Value
Current Relationship9
Individual Sales Execution: Lessons LearnedIndividual Sales Execution: Lessons Learned
Selling Knowledge & Information
Siebel Best Practices for Individual Sales ExecutionSiebel Best Practices for Individual Sales Execution
Sales Methodology
Segmentation& Coverage
AccountManagement
OpportunityManagement
QuoteManagement
Individual Sales Analytics
Field Sales
Web Partners EmployeesCall Center
Selling Knowledge & Information
Siebel Best Practices for Individual Sales ExecutionSiebel Best Practices for Individual Sales Execution
Sales Methodology
Segmentation& Coverage
AccountManagement
OpportunityManagement
QuoteManagement
Individual Sales Analytics
Field Sales
Web Partners EmployeesCall Center
The challenge with information is ACCESS, CURRENCY, & RELEVANCE
SalesSalesTeamTeam
CustomerCustomerInformationInformation
OrderOrderManagementManagement
Product Product InformationInformation
CompetitiveCompetitiveIntelligenceIntelligence
Integrated Selling KnowledgeIntegrated Selling Knowledge
SalesSalesTeamTeam
CustomerCustomerInformationInformation
OrderOrderManagementManagement
Product Product InformationInformation
CompetitiveCompetitiveIntelligenceIntelligence
SimplifiedSimplifiedNavigationNavigationOwnershipOwnership
MaintenanceMaintenance
Integrated Selling KnowledgeIntegrated Selling Knowledge
The challenge with information is ACCESS, CURRENCY, & RELEVANCE
Integrated Selling KnowledgeIntegrated Selling Knowledge
Channel PartnersChannel Partners
Web & EmailWeb & Email
Field Sales Field Sales
Call CenterCall Center
SellingSellingKnowledgeKnowledge
CustomerCustomerOpportunityOpportunityCompetitorCompetitorProductProductMarketingMarketing
Lexis Nexis IntegrationLexis Nexis Integration
ProductsProducts
Integrated Selling Knowledge: Mobility is CriticalIntegrated Selling Knowledge: Mobility is Critical
Field Sales Reps must be able to work IN THE FIELD
60,000,000
50,000,000
40,000,000
30,000,000
20,000,000
10,000,000
1999 2004
POSSecurityFleetField ServiceField SalesMobile Office
0
Source: Yankee Group—Handheld Market Heats Up
Explosive Growth in Mobile Users (50% CAGR through 2004)
Customer Responsiveness Demands MobilityCustomer Responsiveness Demands Mobility
Mobile SmartWeb Client
SmartWeb Client
Intranet/Internet
Voice Recognition
Handheld Client
Wireless Client
Intranet/Internet
Siebel Sales ROI @ Work in ManufacturingSiebel Sales ROI @ Work in Manufacturing
Dow Chemical Uses Siebel Sales to Improve Customer Service and Cut Costs
Leading provider of chemical, plastic, and agricultural products & services to various consumer markets
Needed solution to improve sales force productivity and customer information sharing
Sought automation of account and market plan processes
Over 1,000 users deployed on Siebel Sales Expanding to 2,200 users by end of 2001
Results:Reduced training costs for new reps by 50%Captured information from customer interactions
leads to improved service and targeted sellingImproved customer response time
“Siebel is like a one-stop shop. Everyone can view the same
information globally [across] the company. It can take a long time for a
new employee to catch up, but with Siebel software, the learning curve is
much quicker…
It used to take six to seven months for an employee to perform competently
in a new position, but with Siebel software we've documented that we
can cut that time in half.“
- Sherri Tarzwell, Sales ManagerDow Chemical
Selling Knowledge & Information
Siebel Best Practices for Individual Sales ExecutionSiebel Best Practices for Individual Sales Execution
Sales Methodology
Segmentation& Coverage
AccountManagement
OpportunityManagement
QuoteManagement
Individual Sales Analytics
Field Sales
Web Partners EmployeesCall Center
Methodology Links Growth Strategy to RevenueMethodology Links Growth Strategy to Revenue
CorporateGrowth Strategy
IndividualSales Execution
Who?
What?
How?
TerritorySegmentation& Coverage
AccountPlans
OpportunityPlans
MarketStrategy
ProductStrategy
ChannelStrategy
Who?
What?
How?
$€£¥
Siebel Sales MethodologiesSiebel Sales Methodologies
Portfolio Management Process(1 Rep with Few Accounts) Target
AccountSelling
Channels & Alliances Management Process(Resellers & Partners)
Selling to Senior Executives
Enterprise Selling Process(Coverage Strategy = Multiple Reps on 1 Account)
Territory Management Process(1 Rep with Many Accounts)
Segmentation& Coverage
AccountManagement
OpportunityManagement
Business ImpactBusiness Impact
“In 2002, we expect a recognition by leading sales organizations, … to formalize, then mandate standardized sales processes throughout the sales enterprise as the precursor to technology. With the process in place, deployments of enabling CRM sales technologies will be readily adopted by sales people. The result will be improved sales productivity, visibility and collaboration as the sales enterprise functions as a cohesive team.”
CRM Sales in 2002 – Gartner’s Predictions, January 7, 2002, Gartner Group
Selling Knowledge & Information
Siebel Best Practices for Individual Sales ExecutionSiebel Best Practices for Individual Sales Execution
Sales Methodology
Segmentation& Coverage
AccountManagement
OpportunityManagement
QuoteManagement
Individual Sales Analytics
Field Sales
Web Partners EmployeesCall Center
Account Segmentation ModelAccount Segmentation Model
HIGH
LOW HIGH
FuturePotential
Current Revenues
TT
$
T
$
T
$$
A A
BC
Account Coverage StrategyAccount Coverage Strategy
A B CBusiness Development
OpportunitiesManagement
Territory Marketing
Resource InvestmentHigh Low
Integrated Value Proposition
Partner Planning through CHAMPPartner Planning through CHAMP
PartnerCapabilities
OurCapabilities
Expanded Reach and Range
Expanded Customer Value
Selling Knowledge & Information
Siebel Best Practices for Individual Sales ExecutionSiebel Best Practices for Individual Sales Execution
Sales Methodology
Segmentation& Coverage
AccountManagement
OpportunityManagement
QuoteManagement
Individual Sales Analytics
Field Sales
Web Partners EmployeesCall Center
Account Management
Selling to Senior ExecutivesSelling to Senior Executives
ExecutiveInvolvement
DefineObjectives
Initiate aProject
EvaluateProducts
Prove theConcept
Negotiateand Sign
Contracts Implement Measure
Results
Assess theProblem/
Opportunity
Understand Drivers Define Value Track Value
Typical Sales Cycle
Enterprise Selling ProcessEnterprise Selling Process
SegmentAccount
AnalyzeCurrent
Business
Identify“White Space”
Opportunity
Review &Implement
ManageRelationships
Market toAccount
CreateAccount Plan
Measure &Monitor ESP
Identifying the “White Space” OpportunityIdentifying the “White Space” Opportunity
Business Unit
Where?
Service Unit
Account
Territory
SIC Code
What?Product
A
Product
BService
1
Service
2
Offering
C
ESP Account PlanESP Account Plan
Critical Success Factors
Resource Requirements
Value Propositions
Executive Profiles
Value Map
Strategies & Action Plan
Account Goals & Objectives
Account Map
Revenue Forecast
Management Summary
Siebel Methodology @ WorkSiebel Methodology @ Work
“By providing first the Siebel methodology, then the enabling technology, we have enabled our Virtual Sales Teams to really virtual-team.”
Adrian Norton, Managing Director, Customer Relationship Management
at Compaq South Pacific
Implemented ESP, TAS and CHAMP with Siebel applications to 440 Major Account Managers in Australia and
Asia-Pacific region
Chose Siebel Systems to: • Improve the development, penetration and retention of major accounts Help “MAMs” do their job more efficiently Work more effectively with partners
Resulting in:“Our major account managers now do their job more efficiently and effectively. We are increasing our share of wallet in enterprise accounts. Both our employee and customer satisfaction have improved.”
Selling Knowledge & Information
Siebel Best Practices for Individual Sales ExecutionSiebel Best Practices for Individual Sales Execution
Sales Methodology
Segmentation& Coverage
AccountManagement
OpportunityManagement
QuoteManagement
Individual Sales Analytics
Field Sales
Web Partners EmployeesCall Center
Opportunity ManagementOpportunity Management
Consistent Language & Standards
Assessment
Opportunity
Relationships
Competition
Process
Sales Stages
Milestones
Roles
Strategy
Value Prop
Positioning
Resources
OurSolution
CompellingEvent
UniqueBusiness
Value
CustomerMilestones Tactics
Siebel Sales Process MappingSiebel Sales Process Mapping
Project & Budget
Confirmed
Sponsor & Requirements
ConfirmedProof
AcceptedSigned
Contract
Opportunity Qualified
Executive Sponsorship
verifiedSolution Validated Win
Lead
Solution Proposed
Selling Stage Milestones, driven by Customer Evidence
Acceptance of Solution
Proposition Service & Satisfy
Qualify Align Propose Proof Close InstallProspect
10% 20% 40% 80% 100%
Close Probabilities
5%
2%
10%
5%
20%
10%
40%
20%
100%
100%
Competitive
Disadvantage
Advantage
@ Win Rate
@Risk
Expect
Target Account Selling: Assess the OpportunityTarget Account Selling: Assess the Opportunity
Compelling Event
Is There an Opportunity?Customer’s
Application or Project 1
Customer’sBusiness Profile2
Customer’sFinancial Condition3
5
Access to Funds4
Can We Win?
Inside Support
Executive Credibility
Cultural Compatibility
Political Alignment
Informal Decision Criteria
11
12
13
15
14
Is It Worth Winning?
Short-Term Revenue16
Future Revenue17
Profitability18
Strategic Value 20
Degree of Risk19
10
Can We Compete?
Formal Decision Criteria 6
Solution Fit7
Sales ResourceRequirements8
Unique Business Value
Current Relationship9
Mapping Relationships and InfluenceMapping Relationships and Influence
CEO
P B =
Senior VP
C T –
CFO
C B
Director of R&D
Director of Mfg.
Director of Information Controller
V B = C T X L $ = C $
VP Field Operations
Marketing Director
P R I R +
Senior VP Sales and Marketing
V B =
Consultant
Relationship StrategiesRelationship Strategies
Enemy Non-supporter Neutral Supporter Mentor
X – = +
Neutralize Motivate Leverage
Opportunity – Organization AnalysisOpportunity – Organization Analysis
Develop
Flanking
Defend
Frag
men
tFrontal
Competitive StrategiesCompetitive Strategies
Tactical ExecutionTactical Execution
P rove your value
R etrieve missing information
I nsulate against competition
M inimize your weaknesses
E mphasize your strengths
Best Practices Integrated into TASBest Practices Integrated into TAS
Siebel Methodology @ WorkSiebel Methodology @ Work
“Siebel’s sales methodology [TAS, ESP, SSE] has become our culture – not just a tool. It is the foundation for how we run our business and has given us insight into key metrics that allow us to follow the quality process of plan, do, check and act.”
Carmella Surdyk, Global VP, Sales Operations at
Level 3 Communications
Implemented TAS, ESP and SSE for the entire worldwide sales force
Chose Siebel Systems to: • Improve allocation of sales resources• Improve sales forecasting accuracy• Establish consistent global sales process• Provide “one view” of the customer
Resulting in:“We have experienced a 30% improvement in sales opportunities won. We are now positioned to make better business decisions proactively, given the increased accuracy and consistency of opportunity and market data.”
Selling Knowledge & Information
Siebel Best Practices for Individual Sales ExecutionSiebel Best Practices for Individual Sales Execution
Sales Methodology
Segmentation& Coverage
AccountManagement
OpportunityManagement
QuoteManagement
Individual Sales Analytics
Field Sales
Web Partners EmployeesCall Center
Traditional Quote-to-Order ProcessTraditional Quote-to-Order Process
Needs Needs AnalysisAnalysis
Solution Solution DevelopmentDevelopment
Detailed Detailed ConfigurationConfiguration
Price Price QuoteQuote
OrderOrderFulfillmentFulfillment
Points of FailurePoints of FailureIncomplete Customer RequirementsIncomplete Customer Requirements
Unidentified Pre/Co-RequisitesUnidentified Pre/Co-Requisites
Incorrect Pricing or TermsIncorrect Pricing or Terms
No Cross-Sell / Up-SellNo Cross-Sell / Up-Sell
Mis-Communication with Mis-Communication with
Manufacturing, Shipping, & BillingManufacturing, Shipping, & Billing
Business ImpactBusiness Impact
$10
$300
$700
0
100
200
300
400
500600
700
Cost of Each Order
Perfect Order
Rejected Prior to Provisioning
Rejected After Provisioning
The "Perfect Order" in the Communications Industry
Automated Quote-to-Order ProcessAutomated Quote-to-Order Process
Needs Needs AnalysisAnalysis
Solution Solution DevelopmentDevelopment
Detailed Detailed ConfigurationConfiguration
Price Price QuoteQuote
OrderOrderFulfillmentFulfillment
Siebel eAdvisor
Siebel Product Catalog
Siebel eConfigurator
Siebel Quotes
Siebel Orders
Siebel Proposals, Presentations, & CorrespondenceSiebel Proposals, Presentations, & Correspondence
Automated Creation of Key Customer Deliverables
AccountAccount
OpportunityOpportunity
SolutionSolution
Pre-DefinedPre-DefinedTemplatesTemplates
“We are already seeing tremendous benefits from our Siebel eBusiness
applications. Our forecasting accuracy and speed have increased, and our
configuration process has improved significantly. ”
Barney Huang Senior Director, Business Development
Asyst Technologies
Siebel Sales @ Asyst TechnologiesSiebel Sales @ Asyst Technologies
Developed a global sales forecast process Centralized product and pricing
information Implemented Siebel Sales & eConfigurator
for mobile field sales and connected inside sales
3 month implementation
Results Shortened configuration cycle from 25
days to 2 days Accelerated price quoting from 10 days to
2 days Increased materials forecast accuracy by
50%
Asyst Technologies Dramatically Increases Sales Success
with Siebel eBusiness Applications
Selling Knowledge & Information
Siebel Best Practices for Individual Sales ExecutionSiebel Best Practices for Individual Sales Execution
Sales Methodology
Segmentation& Coverage
AccountManagement
OpportunityManagement
QuoteManagement
Individual Sales Analytics
Field Sales
Web Partners EmployeesCall Center
Balancing Performance & Effectiveness MetricsBalancing Performance & Effectiveness Metrics
“Lagging Indicators” “Leading Indicators”
Effectiveness
By Geo, Product, and Customer Segment
Performance
AttainmentMargin
Market ShareWin Rate
Pipe CoverageSell Cycle LengthOpportunity Aging
Competitor Frequency
Average Days in Sales Stage
0 10 20 30 40
1
2
3
4
5
6
7
Days
Average Days in Stage
$0
$100
$200
$300
$400
$500
$600
>$1mm <$1mm
Total Pipeline
Pipeline by Deal Size Pipeline by Lead Quality
Selling Knowledge & Information
Siebel Best Practices for Individual Sales ExecutionSiebel Best Practices for Individual Sales Execution
Sales Methodology
Segmentation& Coverage
AccountManagement
OpportunityManagement
QuoteManagement
Individual Sales Analytics
Field Sales
Web Partners EmployeesCall Center
Siebel Sales Industry LeadershipSiebel Sales Industry Leadership
Gartner Research: Managing Sales Opportunities:Second Half 2002 Magic Quadrant 15-Aug-2002
W. Close, B. Eisenfeld, J. Galvin, T. BergCompleteness of VisionCompleteness of Vision
PivotalPivotal
PeoplesoftPeoplesoft OracleOracle
SAPSAP
OnyxOnyxSalesLogixSalesLogix
FirepondFirepond
Amdocs/ClarifyAmdocs/Clarify
Abi
lity
to E
xecu
teA
bilit
y to
Exe
cute
SaratogaSaratoga
E.piphanyE.piphany
BaanBaan
JD EdwardsJD Edwards
Salesforce.comSalesforce.com
Gartner Review CriteriaSiebel Rating
Ease of use / Screen appeal Great
Core OMS Features Great
Integrated features for field and telesales beyond OMS
Many
Telesales / telemarketing features
Great
Mobile OMS sales features Great
Ability to produce positive OMS references
Great
Vertical OMS Solutions >20
Gartner Group AnalysisGartner Group Analysis
Gartner Research: Managing Sales Opportunities: Second Half 2002 Magic Quadrant 15-Aug-2002W. Close, B. Eisenfeld, J. Galvin, T. Berg
Vendor Ease of Use
Core OMS
Features
Telesales/ Telemktg Product
Mobile Sales
Features
Advanced OMS
Features
Field Sales / Telesales
References
Largest Mobile
ReferenceVertical
Solutions
Great Great Great Great Many Great 5,800 >20
Amdocs Fair Fair Good Fair Some Limited / Fair 140 1
E.Piphany Fair Good Limited Good Few Fair 275 0
Oracle Fair Good Fair Limited Many Limited / None
0 0
Peoplesoft Fair Good Limited Limited Many Limited / Fair 35 2
SAP Fair Good Fair Good Many Limited 300 4
Pivotal Good Good Limited Good Some Good 925 5
Onyx Fair Fair Limited Fair Some Good / Limited
90 12
Return on Siebel Investment – Industry MetricsReturn on Siebel Investment – Industry Metrics
RevenueGrowth
Customer RetentionIncrease
Employee Productivity
Gains
Customer Satisfaction
Increase
Automotive +8% +3% +16% +8%
Communications +13% +12% +18% +19%
Consumer Goods +13% +12% +18% +19%
Energy +8% +23% +19% +15%
Finance +7% +19% +17% +12%
Healthcare +5% +8% +10% +8%
Insurance +9% +11% +12% +19%
Life Sciences +18% +16% +25% +21%
Industry Average +11% +16% +19% +20%
Siebel Best Practices: Individual Sales ExecutionSiebel Best Practices: Individual Sales Execution
Key Questions to Consider
1. Have we implemented a common sales methodology across all sales channels?
2. Have we consolidated all of the information that a sales rep needs to do his/her job?
3. Are we improving the effectiveness of the sales rep in addition to their efficiency?
4. Are we providing a set of analytics to the sales rep that allows them to thoroughly understand their business?
5. Are we improving the customer’s experience with our sales force?
The World’s Leading Provider of eBusiness Applications Software
Siebel Best Practices:Siebel Best Practices:Individual Sales ExecutionIndividual Sales Execution
Chuck DrakeChuck DrakeDirector, Product MarketingDirector, Product Marketing
cdrake@siebel.com
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