World Class Sales

Slide 1: WORLD CLASS SALES Best practices from the best companies

Slide 5: Globalization

Slide 6: Old Competitive Advantage

Slide 12: Commoditization

Slide 13: Commoditization

Slide 18: Copycatting

Slide 19: vs.

Slide 22: What’s Left?

Slide 23: Customer Experience

Slide 24: Can’t Clone Humans

Slide 25: Phone Tree Hell You end up here

Slide 27: What we Lack

Slide 33: =

Slide 35: USS Product USS Price

Slide 39: Why Now?

Slide 42: Old Career Advice

Slide 43: Old Career Advice

Slide 44: Old Career Advice

Slide 45: New Strategy

Slide 46: Sustained Competitive Advantage = World Class Sales

Slide 47: Zipf’s Law

Slide 48: 30%

Slide 49: 7%

Slide 50: 3%

Slide 51: $75 million

Slide 52: $11 million

Slide 54: St. Elsewhere

Slide 56: What are the key sales processes?

Slide 57: Only a dozen Account Planning Sales Methodology Technology Infrastructure Staffing Channel Optimization Talent Selection Compensation Planning Budgeting Expense Allocation Territory Design Sales Management Training

Slide 58: Strategic Benchmark Metrics Account Planning Sales Management Technology Infrastructure Customer Churn Rate Sales Quota Per Sale Sales Growth Rate Customer Lifetime Value Forecast Accuracy CRM/SFA System Utilization Customer Share Pipeline Ratio Lead Source System Utilization Mobile System Utilization Budgeting Sales Methodology Breakeven Point Sales Activities to Close a Sale Territory Design Gap to Goal Sales Cycle Length Close Rate Net Income per Sales Rep Sales Deal Size Customer Acquisition Cost Return on Sales Customers per Sales Rep Staffing Potential Leads per Sales Rep Channel Optimization Ramp Time to Full Sales Productivity Outside Sales Contribution Sales Rep to Sales Manager Ratio Training Outbound Lead Ratio Sales Rep to Sales Support Ratio Training Budget Training Hours per Sales Rep Compensation Planning Talent Selection Sales Quota Attainment Sales Turnover Rate Total Available Income Interview Pool Needed Variable Compensation Rate Sourcing Pool Needed Time to Backfill a Sales Rep Expense Allocation Cost of Advertising Cost of Marketing Cost of Sales Cost per Sales Rep

Slide 62: How do you Know?

Slide 63: Benchmarking

Slide 66: Sales Cycle Length (Days) 120 100 80 60 103 94 40 20 23 - Acme Benchmark World Class

Slide 67: Sales Management Overview (1.00 - Benchmark, 2.00 World Class) Sales Quota per Sales Rep ($K) 0.35 Forecast Accuracy (%) 1.08 Pipeline Ratio (#) 0.70 Sales Productivity Per Rep ($) 0.33 0.00 0.50 1.00 1.50 2.00

Slide 68: Strategic Benchmark Opportunities Account Planning - Training Budgeting 0.50 Territory Design 1.00 Channel Optimization 1.50 Technology 2.00 Compensation Planning Infrastructure Talent Selection Expense Allocation Staffing Sales Management Sales Methodology

Slide 69: Process Benchmark Territory Design Metrics  Account Maintenance Time  Leads  Sales Deal Size Allocation  Leads per Sales Rep  Sales Force Size  Accounts per Executive  Market Demand  Sales Force Size - Executive  Administrative Time Allocation  Market Growth Rate  Sales Headcount Increase  Breakeven Point  Market Share  Sales Manager Overhead Ratio  Close Rate  Market Share Gain  Sales Per Existing Customer  Cost per Appointment  Marketing to Sales Lead Follow  Sales Per New Customer Acquired  Customer Acquisition Cost up Compliance  Sales Productivity Per Rep  Customer Breakeven Point  New Business Sales Ratio  Sales Proposals per Sales Rep  Customer Churn Rate  New Customer Gain  Sales Quota per Executive  Customer Share  New Customer Sales  Sales Quota per Sales Rep  Customers  No Decision Deal Ratio  Sales Rep to Sales Manager Ratio  Customers per Sales Rep  Open Positions  Sales Rep to Sales Support Ratio  Deals Issued via RFP  Outbound Lead Ratio  Sales Turnover Rate  Direct Sales Lead Contribution  Outside Sales Close Contribution  Selling Time Allocation Rate Rate  Telemarketing Lead Contribution  Discount Levels  Pipeline Ratio Rate  Existing Customer Sales  Potential Leads per Sales Rep  Third Party Close Contribution  Inbound Lead Ratio  Quota Bearing Sales Force Size Rate  Inside Sales Close Contribution  Sales Activities to Close a Sale  Third Party Lead Contribution Rate  Sales Appointments per Sales Rate  Internet Lead Contribution Rate Rep  Traditional Marketing Lead  Lead Generation Time Allocation  Sales Calls per Sales Rep Contribution Rate

Slide 71: Mega Metrics Revenue Growth 40.0% 35.0% 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% Benchmark World Class Shareholder Return Return on Sales SG&A 20.0% 100.0% 25.0% 15.0% 20.0% 80.0% 15.0% 10.0% 60.0% 10.0% 40.0% 5.0% 5.0% 0.0% 20.0% 0.0% Benchmark World Class 0.0% -5.0% Benchmark World Class -10.0% Operating Income Benchmark World Class 30.0% 25.0% 20.0% 15.0% 10.0% 5.0% 0.0% Benchmark World Class

Slide 72: Either

Slide 73: or

Slide 75: Peering

Slide 76: Best Practices

Slide 77: Speed To Implementation

Slide 83: Hope

Slide 84: Future

Slide 85: Get started

Slide 87: www.salesbenchmarkindex.com Greg Alexander