1. Incorporating customer metrics into company metrics can prevent potential customer issues, provide proactive financial insights, and drive collaboration and team productivity. 2. Key customer metrics include customer satisfaction scores, percentage of revenue from new clients, percentage of referenceable clients, metrics to anticipate customer churn, and metrics to predict cash flow. 3. Sage Financials is a cloud accounting solution that provides powerful accounting, robust analytics and reporting, and a scalable platform to help businesses gain insights, drive efficiency and collaboration, and enhance productivity.

1. Making customer metrics part of your
company metrics
Morgan Rochofski, Sage Business Cloud Financials
April 25, 2018

2. © 2018 The Sage Group plc or its licensors. All rights reserved.
Sage by numbers
4/25/18 2
Market
• Growth of 6.6% in FY17*
• Sage Business Cloud growth of 83%
• 28% operating margin
• Market cap of c. $10bn
• Ecosystem of over
40,000 partners
• Over 28 Million people worldwide
(1 in 3 UK) paid by Sage Payroll
• Move $4.2 Trillion annually
through Sage software
• Market Leader in Canada, UK,
Ireland, Spain, France, Spain,
Switzerland, Poland and Africa
• Strong Presence in North America,
Germany, Asia and Brazil
• Presence in 23 countries
• Gartner Visionary
13,000
Global company with over
colleagues
Financials
$2.4bn
Organic revenue of
FY17
Customers
3 million
Over
Business customers worldwide

3. What’s keeping
business’s from
pursuing their
ambitions?
Low
Visibility
into financial &
customer data
Productivity
Losses
with time spent
on manual,
administrative
tasks
Uncertainty
about cash flow
shortages &
unpaid invoices
Operational
Silos
preventing
collaboration
Complexity
when expanding
the business

4. #1
Attracting and
retaining new
customers
Attracting new customers and keeping them happy are just
as important as growing revenue.

5. Key performance indicators
Sales
revenue
Customer satisfaction Net Promoter Score
Net profit
margin
Gross
margin
58% 14% 10%
Traditional business performance metrics
𝘅 Backward looking
𝘅 Not customer-focused
𝘅 Not able to forecast,
unless evaluating
historical data
𝘅 Difficult for individual
departments to gauge
contribution

6. ‘I’m going to lose 15lbs in 3 months. So, I need to lose 5lbs each month for the
next 3 months.’
You are what you measure
To lose 15 lbs in 3 months, I need to:
1. Balance calories in with calories out
2. Increase my target heart rate during
exercise
3. Maintain my body composition

7. Incorporating customer metrics into your company
metrics can:
Prevent potential
customer issues
Give you proactive
insights into your
financial health
Drive
collaboration and
team productivity

8. 43%
of revenue from
new clients
New client expansion is key to growth and profitability.
Source: Service Performance Insight Maturity Benchmark 2018

9. Acquiring the right customers
1. Analyze customer
profitability
Cost to serve:
• Direct expenses: consulting,
maintenance, etc.
• Cost to acquire/ cost of
sales
2. Identify profitable
customer groups
Analyze profitability by:
• Size, industry or location
• Types or frequency of
products and services
• Acquisition channel
3. Action this
information
• Target profitable segments
• Align, optimize acquisition
channels
• Package services and
products
• Who not to target

10. 89%
referenceable
clients
Leading companies are chosen based on referrals and high-
levels of customer satisfaction.
Source: Service Performance Insight Maturity Benchmark 2018

11. Anticipating customer churn
1. Build your
customer rosters
• By customer revenue
• Customer lifetime value
• Customer profitability
2. Measure key
indicators
• Projects at risk
• Average project overrun
• Work un-invoiced
• % of invoices rejected
• Last communication >30 days
3. Action this
information
• Reprioritize
• Build resolution plan
• Be proactive

12. 82%
of businesses fail
Source: U.S. Bank, Jessie Hagen, 2015.
Due to poor cash flow management and lack of
understanding of cash flow.

13. Predicting cash flow
1. Measure key
indicators
• Jobs in progress
• Sales opportunities
• % of sales on credit
• Inventory turnover
? ? ?
2. Build scenarios
? ? ?
• Identify impacts to free
cash flow
• Leverage historicals
3. Action this
information
• Reprioritize projects
• Renegotiate payment
terms
• Focus sales

14. 86%
blame lack of
collaboration
Source: Sage SMB Accounting Systems Survey, 2017
or bad communication for business problems and failures.

15. Building accountability

16. Key performance indicators
Work un-
invoiced
Average project overrun Best customers by Lifetime Value
Inventory
turnover
ratio
%Customers
contacted
this month58% 14% 90%
Business performance indicators

17. Building accountability

18. Incorporating customer metrics into your company
metrics can:
Prevent potential
customer issues
Give you proactive
insights into your
financial health
Drive
collaboration and
team productivity

19. Low
Visibility
into financial &
customer data
Productivity
Losses
with time spent
on manual,
administrative
tasks
Uncertainty
about cash flow
shortages &
unpaid invoices
Operational
Silos
preventing
collaboration
Complexity
when expanding
the business
Gain Powerful
Insights
Drive
Collaboration
& Efficiency
Enhance
Productivity
Instill more
Confidence
Drive more
Simplicity
How does help?

20. What is ?
A powerful cloud accounting solution built on the Salesforce platform for
businesses who need powerful accounting, robust analytics and accurate
reporting to lead, manage and grow their business.
Powerful accounting
that ensures
compliance and keeps
you productive
Robust analytics and
accurate reporting
that give you
financial certainty
A scalable platform
that grows with you
From Sage, the
global leader in SMB
accounting

21. Increase Productivity: Stay on
top of your finances with real-
time reports and metrics to
drive growth
Gain Insights: Track the performance
of your business and see how it’s
trending over time
Drive more simplicity:
Customizable dashboards
using a single source of
truth
Drive collaboration &
efficiency: Faster decision-
making with our Mobile apps;
Collaborate in real-time

22. Go beyond traditional accounting
Introduction to Financials
22
A powerful cloud accounting solution to lead, manage and grow your business
Banking & Bills
Financial Reporting &
Analytics
Inventory Management
Payments
Collaboration
Time Sheets
Invoicing and Billing
Budgets and Planning
Expenses
Productivity
Powerful core
accounting

23. Enterprise
ManagementAccounting Financials
Payments &
BankingPeople PayrollCloud Products
Marketplace Applications
Sage Developer Platform
Platform Services
APIs SDK Tools
Artificial
Intelligence
Pegg Bot
Framework
Collective
Intelligence
Natural
Language
Processing
Predictive
Analytics
Blockchain
Machine
Learning
Business Cloud

24. 1,000+ customers and growing…

25. Customer example: Thinscale
“I’ve been in companies where you spend days trying to get information out
of the business systems to present at management meetings. With Sage
Live you just run the reports and it’s there in real time.”
- Patricia McNeela, Head of Operations and Finance
• 15-20 day improvement in
working capital
• 75% efficiency improvement on
sales transaction processing
• 50% reduction in debt collection
times
• Sales people are 9% more
efficient in their use of time

26. The contents of this presentation were provided by the individual(s) and/or company listed on the title page.
The information and opinions presented in this presentation may not represent the positions, strategies, or
opinions of Sage. Unless explicitly stated, Sage is not responsible for the content herein and no endorsements
are implied.
© 2018 The Sage Group plc or its licensors. All rights reserved. Sage, Sage logos, and Sage product
and service names mentioned herein are the trademarks of The Sage Group plc or its licensors. All other
trademarks are the property of their respective owners.

27. © 2018 The Sage Group plc or its licensors. Sage, Sage logos, Sage product and service names mentioned herein are the trademarks of The Sage Group plc or its
licensors. All other trademarks are the property of their respective owners.
Thank you
Learn more about Financials
sage.com/financials