AGI Software Sales Benchmarking Overview 062310


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The Alexander Group\'s 2010 Sales Benchmarking Program for the Software Industry

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AGI Software Sales Benchmarking Overview 062310

  1. 1. High-Tech Sales Benchmarking Initiative High-Tech Sales Benchmarking Initiative High-Tech Sales Benchmarking Initiative Understanding and Optimizing Sales ROI Understanding and Optimizing Sales ROI Understanding and Optimizing Sales ROI Marc Metzner, Vice President Linda Mahoney, Vice President Account Manager for CA Technologies 203.905.5584 203.905.5582 © 2010 The Alexander Group, Inc.® 2777 Summer Street Suite 505 Stamford, CT 06905 203.975.9344 0 © 2010 The Alexander Group, Inc.®
  2. 2. High-Tech Sales Benchmarking Thank you for your interest in our Software Sales Benchmarking Initiative. We are confident you will find great value in understanding the approaches your peers are taking to enhance sales coverage, productivity, compensation, and selling/support roles. While each company’s data is kept confidential, you will receive a detailed Gap Analysis of your data against an aggregate view of participants, including trends, benchmarks and best practices. This analysis will cover a range of specific sales metrics, including 20 different sales cost components, 7 support-to- seller ratios, 15 sales time/activity categories, key sales productivity dimensions, and compensation designs,. For each metric, we will compare your personnel to peer companies and determine your best opportunities to improve productivity and execution. It is our experience that your Findings Report, along with your in-person Readout Session, will contribute significantly to such key sales objectives as: 1. Increasing sales productivity and growth 2. Building activity/time allocation “success profiles” for your key selling roles 3. Driving growth from new customers and new products 4. Maximizing cooperation across: Field Reps, Specialists, SEs, Renewal Reps, Inside Sales, and Partner Managers 5. Identifying and sharing winning coaching practices internally 6. Understanding which sales coverage approaches are most successful in the market We look forward to working closely with your team on this important initiative! Best Regards, Marc Metzner Vice President The Alexander Group, Inc.® 203-905-5584 1 © 2010 The Alexander Group, Inc.®
  3. 3. Who Is The Alexander Group? We specialize in go-to-market consulting and sales go-to- benchmarking…. Helping leaders improve sales strategy, structure, and execution. We bring experience, insights, frameworks, and best practice data… to collaboratively help executives make objective decisions and deploy programs that work. The majority of our consultants have sales or marketing experience…and must also achieve on-going certification on- across key go-to-market disciplines. go-to- Founded in 1985, AGI has worked with over 50% of the Fortune 1000….and conducted more sales transformation engagements than any other consultancy. 2 © 2010 The Alexander Group, Inc.®
  4. 4. What Services Does The Alexander Group Offer? Our Primary Business Over 1000 clients in 25 years >70% of the Fortune 500 Client work globally Focused on high margin businesses Consulting Defining Best in Class The Leadership Exchange Sales Cost BenchmarkingTM The Chief Sales Executive Sales Time BenchmarkingTM Forum Sales Pipeline Regional Forums & Summits Sales Alignment Executive Roundtables Sales Productivity & Sales Operations Clinics Enablement Research Events Peer-to-Peer Connections The Alexander Group, Inc. 3 © 2010 The Alexander Group, Inc.®
  5. 5. What Is High-Tech Sales Benchmarking? Today, many Hi-Tech sales forces are overwhelmed by information: Metrics exist for just about everything But many raise more questions than they answer Without a best practice context, most metrics aren’t actionable AGI’s Sales Benchmarking provides these key actionable insights and benchmarks: Detailed Gap Analysis, comparison of your sales data (eg: on productivity, cost, time, and comp) against thousands of job-matched rep and manager profiles at 35+ leading companies Findings Report, identification of your best opportunities to close gaps vs. best practice and vs. your strategy, as well as internal analysis of your data by region, top performers, and rep tenure High-Value Readout, in-person Readout to share data, insight, and your best opportunities with your team, including high-impact materials to drop into your management presentations Business-Case Ready Data, your Findings Report provides the powerful productivity and ROI building blocks for you to build compelling sales coverage business cases Unless your sales productivity analytics are “comparative” - put into context against Industry ‘best practice’ – they aren’t actionable 4 © 2010 The Alexander Group, Inc.®
  6. 6. Participants: Leading Companies Across Key Segments Illustrative Participants 5 © 2010 The Alexander Group, Inc.®
  7. 7. AGI Sales Benchmarking Will Enable You To… 1) Identify Your Best Opportunities To… 2) Apply Industry Best Practices To… • Increase revenue without headcount • Drive more SaaS and Cloud revenue • Reduce sales costs • Execute Vertical Strategies • Increase selling time • Leverage SW/HW Convergence • Improve focus on growth products • Manage C-Suite Buying • Reduce customer service time-traps • Optimize Generalist vs. Specialists • Improve sales manager coaching • Re-align your Sales Channel Mix • Improve collaboration across roles • Increase your Solution Selling 6 © 2010 The Alexander Group, Inc.®
  8. 8. AGI High-Tech Sales Benchmarking The Alexander Group, Inc.® is pleased to invite you to participate in the following initiatives: AGI High-Tech Sales Benchmarking Initiative IBM Sponsored Market Study Module Understanding and Optimizing Sales ROI Key Financial Drivers for Sales Incentive Planning DETAILED BENCHMARKING of where you stand against key MARKET STUDY of SW compensation and quota data: SW sales productivity and effectiveness benchmarks: ■ Trends in Actual and Planned Comp Expense Over Rev ■ Sales Coverage Approaches ■ Sales Incentive Budgeting processes ■ Sales Cost levels for 20 areas, adding to E/R ■ Quota Setting approaches ■ Sales Productivity levels by role and channel ■ Actual quotas for 6 platform roles ■ Sales Time Analysis by role, geo, and performance levels ■ Productivity Initiatives – what’s working? ■ Sales Compensation Design trends ■ Sales force turnover WHY PARTICIPATE? WHY PARTICIPATE? ■ Side by side Gap Analysis Report, with Customized ■ No cost for participation (IBM sponsored) but needs prompt Findings and Recommendations commitment due to timeline ■ In-house Workshop to present and discuss findings with ■ Exclusive, invitation-only study your Executive Team ■ Quick turnaround summary report for planning ■ Complimentary pass to the Chief Sales Executive Forum, November 8-10 7 © 2010 The Alexander Group, Inc.®
  9. 9. IBM Sponsored Software Industry Study Why Participate? No cost to participate, invitation-only survey Receive difficult to obtain actionable information related to sales force productivity including: Aggregate planned versus actual compensation costs (Base, incentives and SPIFFS) 2009 data will be collected and compared with revenue generated Actual quotas for 8 platform roles with a geographic breakdown (Americas, EMEA and AP) Basis for quota i.e., new business, renewal and total Distribution of performance relative to quota for the front line seller Layers of management; manager to seller ratios Actual and targeted turnover (voluntary and involuntary) Secure industry practices for the following: Sales incentive budget funding and process Sales quota allocation processes Relative to company goal – degree of over assignment Year over year increase / timeframe – 6 or 12 months Sales productivity initiatives – what worked / didn’t work Investment in new account acquisition Training expenditures 8 © 2010 The Alexander Group, Inc.®
  10. 10. Topics: Comparisons To Peers In Four Key Areas Key sales strategy trends 1. Sales Specialized roles (e.g., Specialists, Hunters, Coverage and KAMs) Structure Headcount ratios across key roles Role of channel partners Coverage Review Cost structure across 20 line items 2. Sales Cost of key sales support roles Investment / Sales investment gaps vs. industry Cost Rep turnover & career pathing costs Cost Analysis Sales productivity compared to peers Sales time compared to peers (2 roles) 3. Sales Internal and external best practices Productivity Quota levels, % of reps achieving quota Your high impact improvement opportunities Productivity Analysis Comp Plan approaches & measures 600% Commission vs goals/quotas 500% P ercen t of T arg et In cen ti ve 400% Excellence 4. Sales Comp Mechanics – threshold, caps, etc. 300% 200% Target Cap 2:1 Upside Design 100% Threshold Quota allocation processes 0% 0% 25% 50% 75% 100% 125% 150% 175% Attainment of Goal Overlay/specialist crediting Compensation Practices 9 © 2010 The Alexander Group, Inc.®
  11. 11. Process: Quick And Non-Disruptive Series Of Steps Sales Ops completes Sales Rep completes benchmarking questionnaire time survey Deliverable: Sales Leader In-house, interactive, conducts short read-out with interview on key leadership team issues 10 © 2010 The Alexander Group, Inc.®
  12. 12. Benchmarking Process (cont.) Evaluating Sales Coverage and Cost Evaluating Sales Time and Productivity Levels 1. You choose which two sales roles will be 1. During a phone-based survey interview, we evaluated based on your sense of the collect your initial coverage and cost data in challenges they face the survey template 2. Together with you, we adjust the survey 2. Once the remaining data is collected in the wording to reflect your terminology as survey template, we review the final version necessary together in a one-hour call…so AGI can make detailed notes to facilitate precise comparisons 3. You send out the survey announcement to your sales reps (AGI provides a pre-formatted, 3. AGI tabulates and evaluates the findings, data, editable, memo) with a link for reps to take the and prepares your Gap Analysis and survey Benchmarking Report. 4. Reps take the 12-minute web survey during the week that it’s open; we provide nightly participation updates AGI collects and evaluates the data, develops the report, and then provides your team with an interactive Findings Read-Out 11 © 2010 The Alexander Group, Inc.®
  13. 13. Deliverables: Interactive Readout And Comprehensive Report A comprehensive report will be prepared and presented to each participating company in an interactive Readout. It will include: Changing trends in sales coverage strategies and roles An accurate baseline of your current sales time, productivity, costs and sales capacity A detailed Gap Analysis, comparing you to industry best practices, and to your own sales strategy where you are ahead or behind on key metrics your best opportunities to improve sales execution and results Industry trends in sales compensation strategies Talent retention strategies and benchmarks Proven approaches to increase sales productivity Only aggregate information will be shared; all company-specific information will be held in the strictest confidence 12 © 2010 The Alexander Group, Inc.®
  14. 14. Complimentary Seat For The Chief Sales Executive Forum Benchmarking participants receive a complimentary seat to the 2010 Forum… … and to a Special Break-Out Session: Best Practices In Implementing Your Benchmarking Insights 13 © 2010 The Alexander Group, Inc.®
  15. 15. Timeline: To Improve Both Planning And Sales Execution May June July August Recruit Participants Data Collection and Analysis Report Development Readout Scheduling Deliver Reports 14 © 2010 The Alexander Group, Inc.®
  16. 16. Benchmarking Initiative: Scope Options Option 1: Assessment-Focused Option 2: Planning-Focused (Add-On Features To Option 1) 1. Gather data remotely through conference calls with Sales 1. Enhance benchmarking data with key stakeholder Ops and on-line Sales Rep time survey (10 min) perspectives… through rep “Ride-Withs”, Focus Groups, and interviews with important executives/stakeholders 2. Compare client data to peer companies, across the four 2. Develop the “story behind the numbers”….ie: the Rep’s key Sales data categories (see p. 5) view of the key productivity constraints & best improvement ideas 3. Conduct Gap Analysis vs industry benchmarks, vs best practices, and vs your sales strategies 3. Evaluate your Reps’ understanding of, and Rep commitment to key sales strategies and necessary sales behaviors 4. Define and evaluate key industry trends in sales coverage and tactics that impact your success (see p. 4) 4. Quantify and map out your internal Best Practices so they can be shared and coached across all your reps 5. Develop detailed Findings Report, covering industry trends, Gap Analysis, and your best opportunities for 5. Create customized Recommendations to enable you to improving productivity address your priority Sales execution challenges and productivity improvement opportunities 6. Deliver In-Person Readout to your Sales Leadership Team, and drive Interactive discussion of findings and 6. Develop a prioritized Implementation Roadmap, actions leveraging key survey findings, and change management best practices for speeding the adoption curve of desired sales behaviors 15 © 2010 The Alexander Group, Inc.®
  17. 17. Benchmarking Initiative: Scope Selection The Sales Benchmarking Initiative - Customizable Parameters: Roles Segments Regions 1. Sales Reps 1. Enterprise 1. US/North America 2. Key/National Accounts 2. Mid-Markets 2. EMEA Reps 3. Product Overlay 3. SMB 3. APAC Specialists 4. Inside Sales 4. Global Accounts 5. Partner Managers 5. Other 6. SEs 7. Sales Managers 8. Renewal Reps 9. Other 16 © 2010 The Alexander Group, Inc.®