Measuring the ROI of Your Sales Performance Initiative (Messaging Matters webinar series)

MESSAGING MATTERS WEBINAR SERIES Measuring the ROI of Your Sales Performance Initiative How to take the guesswork out of whether your messaging and training investments are working© 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.

What if other professions didn’t bothertesting and analyzing results?

“Sales training initiatives need to be integrated withdiligent and auditable process designed to measureresults 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

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.© 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.

December 15, 2011 Beyond ROI, Inc. • www.getBeyondROI.com. • 469-‐200-‐8027

ASTD State of the Industry Reports ASTD Study #1 ASTD Study #2 100% 100% 91.3% 80% 74% 80% 60% 60% 53.9% 40% 31% 40% 22.9% 20% 14% 20% 8% 7.6% 2.1% 0% 0% Level 1 Level 2 Level 3 Level 4 Level 5 Level 1 Level 2 Level 3 Level 4 Level 5 Reaction Learning Behavior Results ROI Reaction Learning Behavior Results ROI 2004 Study Notes: Included 213 organizations representing the 2005 Study Notes: Included 18 Fortune 500 companies broadest range of size and industry. Considered by ASTD to accurately participating in ASTD’s Benchmarking Forum. These represent “the U.S. norm.” organizations represent the largest and most complex global learning organizations. Companies measuring at “Level 5 ROI” were included in the category “Level 4 Results.” © 2011 Beyond ROI, Inc. • www.getBeyondROI.com Page 15

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 © 2011 Beyond ROI, Inc. • www.getBeyondROI.com Page 23

The Science: What do we measure? Cause Eﬀect “How much is Linked to… “How much does it used?” it help?” Leading Indicators (surveys) Lagging Indicators (your metrics)   use of 19 Power Messaging skills,   Success Stories – with actual processes, and tools customers   use of marketing tools, resources   Pipeline growth   5 coaching activities   Performance against plan   9 support and reinforcement   Deal size, Margin, Volume, etc. activities © 2011 Beyond ROI, Inc. • www.getBeyondROI.com Page 25

What about the “Lagging Indicators?” Cause Eﬀect “How much is Linked to… “How much does it used?” it help?” Leading Indicators (surveys) Lagging Indicators (your metrics)   use of 19 Power Messaging skills,   Success Stories – with actual customers processes, and tools   Pipeline growth   5 coaching acKviKes   Performance against plan   9 support and reinforcement   Deal size, Margin, Volume, etc. acKviKes © 2011 Beyond ROI, Inc. • www.getBeyondROI.com Page 32

Lagging Indicators: 64% Provided Success Stories (59 of 92 participants) Percepons 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?” © 2011 Beyond ROI, Inc. • www.getBeyondROI.com Page 33

Reality Check®: Success Story Summary 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. Number Closed New Impact of Power Messaging Total Factored of Stories Business Opportunies on Success 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 © 2011 Beyond ROI, Inc. • www.getBeyondROI.com Page 34

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 conservave 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. © 2011 Beyond ROI, Inc. • www.getBeyondROI.com Page 35

Comparisons: Leading and Lagging Indicators Cause Eﬀect “How much is Linked to… “How much does it used?” it help?”   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? © 2011 Beyond ROI, Inc. • www.getBeyondROI.com Page 36

82% return (92 of 112) Comparison #1: by Coaching . . . PowerView Queson: “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.” © 2011 Beyond ROI, Inc. • www.getBeyondROI.com Page 37

Comparison #1: Coaching and Skill Applicaon 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). © 2011 Beyond ROI, Inc. • www.getBeyondROI.com Page 38

Comparison #1b: Coaching and Skill Applicaon 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). © 2011 Beyond ROI, Inc. • www.getBeyondROI.com Page 39

Comparison #2: by Skill Applicaon . . . Number of ParKcipants “Low “High Adopters” Adopters” 0% 25% 50% 75% 100% “Never” “Rarely” “SomeKmes” “Frequently” “Always” © 2011 Beyond ROI, Inc. • www.getBeyondROI.com Page 40

Comparison #2: Skill Applicaon 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). © 2011 Beyond ROI, Inc. • www.getBeyondROI.com Page 41

Comparison #3: Skill Applicaon and New Opportunies 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). © 2011 Beyond ROI, Inc. • www.getBeyondROI.com Page 42

Comparison #4: Skill Applicaon and Pre/Post Quota Achievement Research Queson: “Does higher Power Messaging usage signiﬁcantly correlate with higher Monthly Quota Achievement, when compared Pre vs. Post training?” Leading Indicators: Lagging Indicators: ApplicaKon of 19 Power Messaging skills, Pre/Post monthly Quota Achievement tools, and process for 68 parKcipants  Individual averages for 68 parKcipants for the  Pre-‐training: four months, Feb-‐May FY12 applicaKon of 19 skills  Post-‐training: ﬁve months, June-‐Oct FY12  Overall individual applicaKon scores ranged from a  Test Metric: phased, monthly performance low of 41% to a high of 100% for revenue (50% weighKng) and margin (50% Comparison groups (independent variables) weighKng) vs. quota per month -‐ 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.) © 2011 Beyond ROI, Inc. • www.getBeyondROI.com Page 43

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 © 2011 Beyond ROI, Inc. • www.getBeyondROI.com Page 44

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 © 2011 Beyond ROI, Inc. • www.getBeyondROI.com Page 45

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 Beyond ROI, Inc. • www.getBeyondROI.com Page 46

THANK YOU! Additional Questions Join us on LinkedIn to continue the conversation http://www.linkedin.com/groups?about=&gid=4101593 Webinar Recording Available on www.corporatevisions.com/events© 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 Discussion Panelists: February 28, 2012 San Francisco, CA April 25, 2012 Scott Watson Susan McGinnis Boston, MA Beyond ROI, Inc Philips Respironics March 22, 2012 Chicago, IL Complimentary Registration Tim Riesterer Corporate Visions, Inc. Peter Ostrow Aberdeen Group http://win.corporatevisions.com/ROIRoundtables.html© 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.

Measuring the ROI of Your Sales Performance Initiative (Messaging Matters webinar series)

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