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CallidusCloud Webinar: 5 Steps to Better Sales Performance Management
The document outlines five steps to enhance sales performance management, focusing on onboarding, territory and quota planning, coaching, compensation, and gamification techniques. It emphasizes the importance of proper hiring processes to avoid costly mis-hires and suggests using quantitative assessments and collaboration in recruiting. Additionally, it highlights the need for effective coaching and streamlined compensation structures to improve overall sales performance.
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CallidusCloud Webinar: 5 Steps to Better Sales Performance Management
- 1. 5 Steps toBetter Sales Performance Management September 10, 2014
- 2. Today’s Featured Speakers Dan Koellhofer Vice President, Product Management CallidusCloud dkoellhofer@calliduscloud.com Jennifer Kling Product Marketing Manager CallidusCloud jkling@calliduscloud.com
- 3. Pace of change •25% of goods and services shipped and sold in the last 10yrs Pace of Change Products & Services
- 4. Pace of Change– Broadcast Media Channel 1 Channel 2 Channel 3
- 5. Pace of Change- Communications
- 6. The pace ofchange is staggering. Are you keeping up?
- 7. Agenda On-boarding Effectiveterritory & quota planning Coaching and appraisals Compensation & rewards Gamification techniques
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- 9. What are badsales hires costing you? •Interview Costs •Training •Compensation •Lost business Opportunity •Negative Impact on Customers •Negative Effects on Morale 15 times base salary Reference: Dr. Bradford Smart, PHD; Publication Avoid Costly Mis-Hires >500k Cost of a bad hire
- 10. Do you hireyour problems? •Do you hire when you need new reps? •Do you hire who you “like”? -The sales “halo” effect!. •Do you hire the bottom 20% that most companies are just recycling. (Someone else's non-performer) •Do you hire someone who can sell you product vs. just themselves? •‘Poor fit to the job’ – one of the top five reasons for high sales turnover •Do you verify performance or Income? Verifying income is easy, but verifying performance is tricky. Reference: 2012 Sales Rep Hiring/Compensation Analysis 47% Companies that say their sales hiring needs improvements
- 11. The Secret RecruitingFormula 1.Begin with the end in mind 2.Use quantitative tests 3.Cast a wide net 4.Share and collaborate 5.Timing is everything
- 12. SalesSelector Solution 18% shorter time-to-hire 52% Shorter time-to-productivity •Quantitative Sales Test •Powerful Videos Interviews •Collaborate with Distributed Stakeholders
- 13. 42% CSO Insights,Sales Management Optimization Study 2014 Time is Money. >10months Time to become productive for new sales hire % Reps don’t make quota
- 14. 1. Pre-Boot CampTraining •Self-Service Product & Solution Training •Certification Testing 2. Boot Camp •1 Week Sales & Solution Training •Builds on Initial Training 3. Mentor Program •AE Assigned Sr. AE Mentor •Mentor Includes in Meetings/Calls 4. Performance Tracking •KPI’s Tracked & Monitored •Proactive Coaching in Weak Areas Accelerating the Time to Revenue for New Hires
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- 16. eLearning on AnyDevice
- 17. Effective Territory &Quota Planning
- 18. POLL: Do youhave a good idea of what each territory’s potential value is? ❏Yes ❏For some ❏No
- 19. Typical Quota Process •Forecast science •Technology limitations •Inadequate governance and process •Over and under assignment policies •Reliance on historical performance •Intuition stacking •Static hierarchies •Rigid / forced interlock •Opportunity disconnect from forecast •Gaming & agent influence in goal negotiation •Quota frequency FORECAST & GOAL LAYERS INPUTS QUOTA QUALITY INFLUENCERS Source: Accenture
- 20. How to Improvethe Process 1.Understand your current process 2.Understand territory previous performance 3.Understand territory values 4.Create territories based on value 5.Reconcile territory plan against overall corporate goals
- 21. How Technology CanHelp •Standardization & Automation •Data Analysis for Decision Making •Enablement •Tracking & Monitoring Through Data Analysis
- 22. Standardization and Automation •Systems Can Define & Support Standards •Must be Flexible •Support, Not Inhibit, Change •Automation •Workflow Processes •Communications •Supports Rapid Change #SalesTerritory
- 23. Data Analysis forDecision Support Data Supported Decisions: Bring different sets of data together to support the decision making process. •Historical data to support recurring revenue, account retention targets •Market data – market share, addressable market, product penetration – to support new business and growth targets •Pipeline data from CRMs to support both •Training and coaching to match capabilities #SalesTerritory
- 24. Simplify and StreamlineFinancial Planning
- 25. Easily Allocate Productsand Accounts to Territories
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- 27. Challenge •Companies lackof visibility into detailed sales performance metrics to support the sales management process •Without complete view into performance, sales managers are unable to understand individual and team strengths and weaknesses •Inefficient sales coaching and limited tools has led coaching to be the weakest competency of all front line sales managers
- 28. Why Coach SalesReps? Sales people who receive fewer than two hours of coaching per month achieve 90% of quota. Sales people who receive at least three hours of coaching per month achieve 107% of quota. Sales people who receive 2-3 hours of coaching per month achieve 92% of quota.
- 29. POLL: Does yourcompany follow a formal sales coaching process? ❏Yes ❏No ❏Every manager has their own process
- 30. Coaching Process? CSOInsights, Sales Management Optimization Study 2014
- 31. Top Performers SalesRep A Sales Development Plan: Sales Rep A
- 32. A recipe forsuccessful coaching and performance management Ingredients: •Sales Manager •Sales Rep •Process •Metrics Directions: •Align results with activities and skills •Evaluate existing team •Develop plan •Socialize Tips for meaningful coaching: •Timely •Objective •Accurate •Relevant •Individualized
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- 35. Challenge •Companies spendon average 11% of revenue on incentives and commissions •Gartner estimates that organizations that use spreadsheets and homegrown tools to pay out commissions, overpay by 5-12% annually •Low to no visibility to over-payments •Complex, opaque plans lead to lost time due to disputes and shadow accounting
- 36. #1 Desired Improvementto Compensation Program Source: World at Work & OpenSymmetry Sales performance and Technology Survey
- 37. Things to Consider •Simplify incentives structure •Remove layers and clauses that cause confusion •Saves time and money
- 38. POLL: How confidentare your sales reps in the accuracy of their commission payouts? ❏Very confident, no issues ❏Somewhat confident ❏Not at all confident
- 39. Opportunity to Modernize:Commissions Modernize with Compensation Management: •Commissions calculation automated •No need for separate tracking – track via mobile device •Minimal need for review and corrections •Eliminate over-payments
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- 42. Cash is NotAlways King Motivation beyond financial: •Intrinsic motivation •Extrinsic motivation •Achievement motivation
- 43. Top Motivators ofSales Success Source: Aberdeen Group
- 44. Popular Gamification Techniques •Leaderboard for transparency and recognition •Rewards for incentives •Group board for group incentives
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- 46. Incent Tactical, granularbehaviors with non- monetary gamification programs
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- 48. Questions? Dan Koellhofer Vice President, Product Management CallidusCloud dkoellhofer@calliduscloud.com Jennifer Kling Product Marketing Manager CallidusCloud jkling@calliduscloud.com