How can Social Business increase your sales ? IBM Community Meeting, April 2012

1. IBM Collaboration Solutions
Community Meeting
Joyce Davis
April 2012 Community Facilitator
twitter.com/jadintx
© 2011 IBM Corporation

2. Join us in Lotus Greenhouse:
Agenda http://ibm.co/ics-community
 Special intro – live from SugarCON! Social Media
twitter.com/IBMSocialBiz
twitter.com/IBMSocialBizUX
facebook.com/IBMSocialBiz
facebook.com/IBMSocialBizUX
Larry Bowden Chuck Coulson Blog: ibm.com/blogs/socialbusiness
IBM SugarCRM
 Main topic
– How Can Social Business Increase As a member of the community:
Your Sales?  Build business relationships
 Receive recognition and visibility
 Gain technical knowledge
 Stay up-to-date
Christopher Lamb  Influence IBM's products and
IBM
strategy!
2 © 2011 IBM Corporation

3. Business Gets Social 2012
Replays available!
 Strategy in Action: Messaging and Collaboration with Ed Brill
 Mastering the Art of Social Application Development with Paul Bastide and Matt Broomhall
 Your Social Business advantage: using IBM Sametime to integrate telephony, audio and
video; tying people and customers together in powerful ways with David Price
 What's the Value of Social Analytics? with Pamela A. Evans
 Going Social in a world of Governance, Risk Management, and Compliance (GRC) with
Arthur Fontaine
 Ready, Set, Go! How IBM Lotus Domino XPages Became Mobile with Eamon Muldoon
and Tony McGuckin
 IBM Sametime Unified Telephony Lite: Communicating with Devices with Binh Q. Nguyen
To access these replays, visit:
http://www.LotusUserGroup.org/VUG.
3 © 2011 IBM Corporation

4. Live from SugarCON 2012!!
Larry Bowden
IBM Vice President
Web Experience Software
Chuck Coulson
SugarCRM Vice President
Business Development
4 © 2011 IBM Corporation

5. How Can Social Business Increase Your Sales?
Larry Bowden Christopher Lamb
IBM Vice President, IBM Program Director,
Web Experience Social CRM
Software
© 2011 IBM Corporation

6. The world is connected:
economically, socially and technically
employees customers partners
Self-forming teams Leading the Becoming on-demand
around fast moving conversations that define extensions of the
opportunities brands enterprise
6 © 2011 IBM Corporation

7. Social Business is transformative for sales, marketing and
customer service
“If companies ... interviews with
could increase Nearly 9 in 10 CEOs nearly 220 CRM
their customer of 'standout' decision makers,
companies, ranked adding social features
retention rates by getting closer to the
5%, they could and mobile access to
customer as the top CRM applications
grow their profits priority, a focus for
by 25% - 100%. - boosted the
the future. productivity of sales
Frederick - IBM Global Survey
Reichheld, The people by 26.4
of CEOs 2 percent.
Loyalty Effect 1 - Nucleus Research 3
1 Source: Reichheld, Frederick F., The Loyalty Effect: The Hidden Force Behind Growth, Profits and Lasting Value, Harvard Business School Press, 2001)
2 Source: IBM Institute for Business Value, Capitalizing on Complexity: Insights from the 2010 IBM Global CEO Study, May 2010
3 Source: Nucleus Research, Market Focus Report, The Value of Mobile and Social for CRM, March 2012
7 © 2011 IBM Corporation

8. Chuck Coulson
SugarCRM, VP, Business Development
8 © 2011 IBM Corporation

9. SugarCon 2012 Social Business Track
Tuesday, April 24 Wednesday, April 25
Social Selling: The IBM Social CRM Tools: What Makes Sense and
Transformation, Gary Burnette, IBM What Doesn’t, om Petrocelli, ESG
Social Selling: The ROI for Your Turbocharging Customer Service through Social,
Team, Chris Lamb, IBM Kate Leggett, Forrester Researc
Business development with the The Force Multiplier for Your Business, Dr.
power of LinkedIN and Natalie Petouhoff
SugarCRM, Dan Kraus, Leading
Results
CRM and Election 2012,Brent Next Steps In Building Social Businesses,
Leary, CRM Essentials Denis Pombriant, Craig Rosenberg, Brian
Vellmure
Expanding Your Social Business in
a Global Market, Jesus Hoyos,
Solvis Consulting
The Science of Relationship ,
Michael Wu, Lithium Technologies
© 2011 IBM Corporation

10. Transform from Sales Force Automation to Social Selling
Focus on management Focus on selling
10 © 2011 IBM Corporation

11. Characteristics of Top Sales People
Discover Engage
Understand their Know experts across
customers better the organization who
than the help him close deals
competition
Reach Act
Spend more time Focus on
with customers opportunities that
create the most
profit
11 © 2011 IBM Corporation

12. Discover - Understand your customers better than the competition
Know what customers are talking about and what they like and don't
like through sentiment analysis of social data
12 © 2011 IBM Corporation

13. Engage - Apply expertise from across the organization
Easy access to experts so you get customer questions answered
13 © 2011 IBM Corporation

14. Engage - Apply expertise from across the organization
Re-use best practices from other teams
14 © 2011 IBM Corporation

15. Act - Focus on accounts and opportunities that create the most profit
Use predictive analytic models to focus on the right deals and
recommend the best products and pricing
15 © 2011 IBM Corporation

16. Reach - Spend more time with customers
Collaborate with customers remotely with a rich set of social tools
16 © 2011 IBM Corporation

17. Reach - Spend more time with customers
Collaborate with customers remotely with a rich set of social tools
17 © 2011 IBM Corporation

18. Reach - Spend more time with customers
Collaborate with customers remotely with a rich set of social tools
18 © 2011 IBM Corporation

19. Reach - Spend more time with customers
Collaborate with customers remotely with a rich set of social tools
19 © 2011 IBM Corporation

20. IBM and SugarCRM Social Selling Software
Components
20 © 2011 IBM Corporation

21. Business Value Assessment
 Consultative approach to calculating ROI
 Four steps
– Day in the life demonstration
– Fact gathering
– Assumptions
– Math
21 © 2011 IBM Corporation

22. Day in the life demonstration
22 © 2011 IBM Corporation

23. Fact Gathering
E x a m p le Te c h n o lo g y F ir m
N u m b e r o f e m p lo y e e s 1000
N u m b e r o f s a le s p e o p le 100
A v e r a g e # d e a ls p e r y e a r 12
A v e r a g e d e a l s iz e $125K
In t e r n a l D i s c o u n t R a t e fo r 10%
in v e s t m e n t s
P r e -t a x p r o fit m a r g in 15%
A v e r a g e la b o r c o s t s V a r ie s b y r o le
YT Y in c r e a s e in la b o r c o s t s 4%
H a r d w a r e a n d s o ft w a r e c o s t s V a r ie s b y y e a r
Plus other operational data
23 © 2011 IBM Corporation

24. Assumptions
Your team makes the assumptions after seeing the demo
E x a m p le Te c h n o lo g y F ir m
T i m e s a v e d / d e a l f i n d i n g i n fo r m a t i o n a b o u t t h e 2 0 m in
a c c o u n t d u r in g p r o g r e s s io n c y c le
T im e s a v e d / d e a l fin d in g e x p e r t s a n d c o n t e n t d u r in g 2 0 m in
p r o p o s a l c y c le
T im e s a v e d / d e a l fin d in g e x p e r t s a n d c o n t e n t d u r in g 3 0 m in
p o s t p r o p o s a l c y c le
T im e s a v e d p e r d e a l r e -u s in g a b e s t p r a c t ic e s t e m p la t e 4 5 m in
T im e s a v e d p e r d e a l b y c o lla b o r a t iv e ly c r e a t in g n e w 3 0 m in
co n te n t
A d o p t io n r a t e s V a r ie s b y y e a r
You decide if time saving results in increase revenue or costs savings
24 © 2011 IBM Corporation

25. Math: Results for Example Technology Company
Year 1 Year 2 Year 3 Year 4
PV Cash Flow of Project Costs ($186,909) ($40,093) ($37,098) ($37,098)
PV Cash Flow of Project Benefits $75,661 $152,850 $218,854 $188,177
Net Cash Flow ($111,248) $112,758 $181,756 $151,079
Cumulative Cash Flow ($111,248) $1,510 $183,266 $334,345
25 © 2011 IBM Corporation

26. Math: Results for Example Technology Company
Year 1 Year 2 Year 3 Year 4
PV Cash Flow of Project Costs ($186,909) ($40,093) ($37,098) ($37,098)
PV Cash Flow of Project Benefits $75,661 $152,850 $218,854 $188,177
Net Cash Flow ($111,248) $112,758 $181,756 $151,079
Cumulative Cash Flow ($111,248) $1,510 $183,266 $334,345
NPV
Net Present Value of Opportunity $345,093
ROI
NPV of Project Costs ($290,449)
NPV of Project Benefits $635,542
ROI (IRR) 67%
26 © 2011 IBM Corporation

27. Math: Results for Example Technology Company
Year 1 Year 2 Year 3 Year 4
PV Cash Flow of Project Costs ($186,909) ($40,093) ($37,098) ($37,098)
PV Cash Flow of Project Benefits $75,661 $152,850 $218,854 $188,177
Net Cash Flow ($111,248) $112,758 $181,756 $151,079
Cumulative Cash Flow ($111,248) $1,510 $183,266 $334,345
NPV
Net Present Value of Opportunity $345,093
ROI
NPV of Project Costs ($290,449)
NPV of Project Benefits $635,542
ROI (IRR) 67%
$ 4 0 0 ,0 0 0 C a s h flo w a n d B r e a k e v e n
$ 3 0 0 ,0 0 0
$ 2 0 0 ,0 0 0
$ 1 0 0 ,0 0 0
$0
Y ear 1 Y ear 2 Y ear 3 Y ear 4
($ 1 0 0 ,0 0 0 )
($ 2 0 0 ,0 0 0 )
27 © 2011 IBM Corporation

28. Summary
 Social Business is transformative for sales, marketing and
customer service
 IBM and SugarCRM are investing in social business solutions
 Social Selling can deliver real results by focusing on sales
productivity
Link to more info on Social Selling
28 © 2011 IBM Corporation