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Fixing Forecast Accuracy: Joint Webinar with Sales Management Association

The document discusses improving forecast accuracy in sales through insights and methodologies from various experts and surveys. It emphasizes the importance of understanding ideal customer profiles, utilizing effective sales processes, implementing appropriate tools, providing coaching, and relying on analytics to achieve better forecasting outcomes. Key recommendations include aligning forecasts with buyer behavior and leveraging metrics for better sales strategies.

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COPYRIGHT © REVEGY, INC. // PROPRIETARY AND CONFIDENTIAL Fixing Forecast Accuracy The quest for the holy grail of sales confidence!
COPYRIGHT © REVEGY, INC. // PROPRIETARY AND CONFIDENTIAL Tim Braman Revegy, Inc. VP of Corporate Strategy
COPYRIGHT © REVEGY, INC. // PROPRIETARY AND CONFIDENTIAL Deal Outcomes – Forecasted Deals Only CSO Insights, Inc. 2013 Sales Performance Survey 48.6% 47.4% 46.5% 27.3% 26.1% 24.2% 46.8% 30.3% All Companies Use CRM
COPYRIGHT © REVEGY, INC. // PROPRIETARY AND CONFIDENTIAL Poll What tool do you use for forecasting? - SFA (Salesforce, Microsoft, Oracle, SAP, etc.) - SFA plus Excel - SFA plus Forecasting Analytics tool - Excel only - Other
COPYRIGHT © REVEGY, INC. // PROPRIETARY AND CONFIDENTIAL Today’s Agenda
COPYRIGHT © REVEGY, INC. // PROPRIETARY AND CONFIDENTIAL
COPYRIGHT © REVEGY, INC. // PROPRIETARY AND CONFIDENTIAL
COPYRIGHT © REVEGY, INC. // PROPRIETARY AND CONFIDENTIAL The Smartest Guys in the Room •Sirius Decision – Jim Ninivaggi •CSO Insights – Jim Dickie •Forrester – Scott Santucci •Aberdeen – Peter Ostrow
COPYRIGHT © REVEGY, INC. // PROPRIETARY AND CONFIDENTIAL Context for Today’s Discussion $$$
COPYRIGHT © REVEGY, INC. // PROPRIETARY AND CONFIDENTIAL It Isn’t Easy… Challenges with Forecast Accuracy Our target market is EVERYONE! Tactical vs. Strategic SolutionBuyers Engage Later
COPYRIGHT © REVEGY, INC. // PROPRIETARY AND CONFIDENTIAL Poll What is your biggest problem with forecasting - No common language/process - Sales Representative forecasting skill/knowledge - Lack of insight to customer behavior - Lack of Management inspection/coaching - Don’t have appropriate tools - Other
COPYRIGHT © REVEGY, INC. // PROPRIETARY AND CONFIDENTIAL 46.8%
COPYRIGHT © REVEGY, INC. // PROPRIETARY AND CONFIDENTIAL What is “Good” Forecast Accuracy - Top 20% 66% 76% 80% 84% 90 Days 60 Days 30 Days Immediate Aberdeen Group : “Sales Forecasting Research Benchmark” - On-time? - Amount ok?
COPYRIGHT © REVEGY, INC. // PROPRIETARY AND CONFIDENTIAL Why care about Forecast Accuracy? Quota Attainment Sales Cycle Reduction  17%  10% Top 20%  3%  0% 6%  7% Middle 50%Bottom 30% Aberdeen Group : “Sales Forecasting Research Benchmark”
COPYRIGHT © REVEGY, INC. // PROPRIETARY AND CONFIDENTIAL Forecast with Confidence – The Five Pillars
COPYRIGHT © REVEGY, INC. // PROPRIETARY AND CONFIDENTIAL Forecast with Confidence – The 5 Pillars 1. Ideal Customer/Qualify
COPYRIGHT © REVEGY, INC. // PROPRIETARY AND CONFIDENTIAL Who is your ideal Customer?
COPYRIGHT © REVEGY, INC. // PROPRIETARY AND CONFIDENTIAL Ideal Customer/Qualify Case Study: GE Finance • 3X win rate increase • 10,000 New Harvard Business Review, The New Science of Sales Force Productivity
COPYRIGHT © REVEGY, INC. // PROPRIETARY AND CONFIDENTIAL Ideal Customer – Qualify the timing Win Rate 17% CSO Insights, 2013 Global Sales Performance Optimization Study
COPYRIGHT © REVEGY, INC. // PROPRIETARY AND CONFIDENTIAL Forecast with Confidence – The Five Pillars 2. Sales Process
COPYRIGHT © REVEGY, INC. // PROPRIETARY AND CONFIDENTIAL Stage (SFA-%) Identify (Lead – 0%) Qualify (D – 25%) Develop (C – 50%) Proof (B – 75%) Close (A – 90%) Objective Is this a prospect? Is there an Opportunity? How do we help? Prove our Value Get Ink! Critical Success Factors • Validate customer’s current business challenges and key initiatives • Understand customer’s landscape and our potential partners • Determine key stakeholders, evaluation criteria and decision-making process • Develop latent pain /use Challenge/provocatio n message • Conduct initial executive meeting • Confirm executive commitment and critical success factors • Identify competitive landscape • Determine potential solution fit • Develop initial sales strategy with account team & management • Conduct discovery workshop • Develop our unique value propositions (UVP) • Confirm solution fit with key stakeholders • Create solution presentations and demonstrations • Test / Refine the solution presentation with our Coach • Present OUR solution to key decision makers • Integrate implementation, training and support teams • Provide references or conduct POC • Submit value-centric proposal • Confirm final decision process and timing • Gain customer commitment and finalize legal agreements / timelines • Obtain internal approvals • Process Contract/Purchase Order • Conduct transition meeting with Professional Services and support teams Sales Process
COPYRIGHT © REVEGY, INC. // PROPRIETARY AND CONFIDENTIAL DiscoveryQualification Solution Development Short List Selected Qualified Opportunity Signed Agreement Solution Aligned with Customer Needs Selected as one of FinalistsDemand Generation StageGoalDefinitionToolsMilestones Sales Process • BDR pre-qualifies from marketing campaigns. • BDR and AE prioritize Top Prospects • BDR sets up further qualification and discovery calls. • BDR and AE identify key stakeholders • Contact prospects and customers to qualify budget process, time-frame, decision-makers and influencers, decision/ procurement process. • Team gathers information to understand customer’s objectives. • Further qualification of key decision-makers/ stakeholders, buying criteria and technical requirements. • Professional Services engaged. • AE works with team to develop the solution • Create customer-centric demonstration • Conduct demonstration/presentation • Create proposal and customer • Review proposal with key stakeholder • Validate Short List • AE and team make final proposal adjustments • Conduct necessary ‘Proof’ activities • Reconfirms customer’s decision and procurement process. • Negotiate Business Terms • Gain internal stakeholder approvals (legal and finance) • Manage customer procurement cycle • Identify potential risks • Obtain contract signature and Purchase Order • Territory Plan • Account Plan • Ideal Customer Profile • Marketing Campaigns • Value Message • Qualification Checklist • Whiteboard • Call Plans • Whiteboard • Overview Presentation • Win/Call Plans • Value Map • Joint Evaluation Plan • Demo Scripts or Standard Presentation • Opportunity Win Plan • Value/Relationship Map • Proposal Templates • Joint Evaluation Plan • Opportunity Win Plan • Value Map • Statement of Work • Contracts • Statement of Work • Implementation Plan • Lead generated by BDR, AE and/or AM • Or, Marketing scores the lead (0%) • Opportunity identified • Or evaluation is underway • Project is funded • Value Map Completed • CSF’s confirmed with executive • Demonstration/Presentation delivered • Proposal reviewed with executives • Notification of short list • Proposal submitted • Proof conducted • Decision pending • Verbal commit • Contracting process identified • Agreement on contract terms and conditions Pipeline Upside Commit Lead Understand Requirements 0% 5% 20% 40% 75% 90%
COPYRIGHT © REVEGY, INC. // PROPRIETARY AND CONFIDENTIAL Your Sales Process in SFA
COPYRIGHT © REVEGY, INC. // PROPRIETARY AND CONFIDENTIAL So What’s the Problem…
COPYRIGHT © REVEGY, INC. // PROPRIETARY AND CONFIDENTIAL Start with Sales Process Closed Qualify Discover Develop Solution Propose Negotiate Sales Stages
COPYRIGHT © REVEGY, INC. // PROPRIETARY AND CONFIDENTIAL Add Best Practice Activities Collaborate on the Evaluation Steps! Do we have Access? How will the Customer Measure Value? Which Stakeholders Vote on the Final Decision?
COPYRIGHT © REVEGY, INC. // PROPRIETARY AND CONFIDENTIAL Collect the Reward! Closed Qualify Discover Develop Solution Propose Negotiate Sales Stages Sales Process Win Rate No Process 38% Semi-Formal 46% Formal 48% Dynamic 52%
COPYRIGHT © REVEGY, INC. // PROPRIETARY AND CONFIDENTIAL Align with Buying Process Awareness of Issue Prioritize Explore Possible Solutions Evaluate Vendors Select Vendor Negotiate Buyer Stages StartClosed Qualify Discover Develop Solution Propose Negotiate Sales Stages
COPYRIGHT © REVEGY, INC. // PROPRIETARY AND CONFIDENTIAL Test Progress with Evidence ClosedStart RFP/RFI Issued Presentation/ Demo Request Short Listed Legal Review Pilot Web/Social Activity
COPYRIGHT © REVEGY, INC. // PROPRIETARY AND CONFIDENTIAL Why implement process? Aligns to Customer Buy Cycle Win Rate Poor 43% Average 47% Excellent 60% CSO Insights, 2013 Global Sales Performance Optimization Study
COPYRIGHT © REVEGY, INC. // PROPRIETARY AND CONFIDENTIAL Forecast with Confidence – The Five Pillars 3. Sales Tools
COPYRIGHT © REVEGY, INC. // PROPRIETARY AND CONFIDENTIAL Build a Plan – Begin with the end in mind Receive ValueDeployDeliverSign Contract Vendor of Choice Finalists SelectedTODAY Date Why Who KPI Metrics Source of Urgency Approval Process Decision Process Evaluation Process
COPYRIGHT © REVEGY, INC. // PROPRIETARY AND CONFIDENTIAL Collaborate on the Plan Activity Week of Discovery Interviews – Prospect Technology Team 29-Jul Discovery interviews - Prospect Finance Team 5-Aug Summarize findings and prospect agreement 12-Aug Collaborate on Plan/Timing for Evaluation 19-Aug Capture KPI/Metrics Current State 26-Aug Develop Implementation Plan 2-Sep Agree on preliminary success criteria 9-Sep Submit contracts to legal 16-Sep Gain legal approval (Terms & Conditions) 23-Sep Present proposal for approval 30-Sep Final negotiations 7-Oct Contract Signed/Purchase Order Issued 14-Oct Implementation Kick-Off 21-Oct Go Live Date 15-Jan Measure Success 22-Jan
COPYRIGHT © REVEGY, INC. // PROPRIETARY AND CONFIDENTIAL Build a Plan – Watch for Bear Traps - Procurement - Board Approval - Security Reviews
COPYRIGHT © REVEGY, INC. // PROPRIETARY AND CONFIDENTIAL Map the Decision Makers ✔ ✔ 
COPYRIGHT © REVEGY, INC. // PROPRIETARY AND CONFIDENTIAL Value tools and Negotiation Plan P&L Reduce Sales Expense 5% Increase Sales Volume 5% Decrease Discount 5% Sales 100.0 100.0 105.0 105.0 Cost of Goods 60.0 60.0 63.0 60.0 Gross Profit 40.0 40.0 42.0 45.0 Fixed Costs 13.0 13.0 13.0 13.0 General & Admin. 11.0 11.0 11.0 11.0 Sales Expenses 6.0 5.7 6.0 6.0 Profit Before Tax 10.0 10.3 12.0 15.0 Profit Increase 3.0% 20.0% 50.0% Harvard Business School Publication #9-192-098 rev 7/9/92
COPYRIGHT © REVEGY, INC. // PROPRIETARY AND CONFIDENTIAL Forecast with Confidence – The Five Pillars 4. Coaching
COPYRIGHT © REVEGY, INC. // PROPRIETARY AND CONFIDENTIAL What is coaching? 38 Manager: Frank, I’m concerned about your forecast Frank : Just submitted the final proposal to XYZ, I’m confident it will close this month
COPYRIGHT © REVEGY, INC. // PROPRIETARY AND CONFIDENTIAL What happens at the point of the Spear? 43% 47% 52% 0% 20% 40% 60% Poor Average Excellent Proactive Coaching CSO Insights, 2013 Global Sales Performance Optimization Study
COPYRIGHT © REVEGY, INC. // PROPRIETARY AND CONFIDENTIAL When to Coach Closed Qualify Discover Develop Solution Propose Negotiate Right Deal? Can we Win? Will it Close on Time?
COPYRIGHT © REVEGY, INC. // PROPRIETARY AND CONFIDENTIAL RepForecastSkill Trust but Verify Coach Priority #1 Monitor Ignore Prioritize your coaching
COPYRIGHT © REVEGY, INC. // PROPRIETARY AND CONFIDENTIAL Forecast with Confidence – The Five Pillars 5. Analytics/Metrics
COPYRIGHT © REVEGY, INC. // PROPRIETARY AND CONFIDENTIAL Why analytics and metrics? 43 44.30% 51.80% 54.80% 70.40% 40% 50% 60% 70% Win Rates Reps Achieving Quota No Analytics With Analytics CSO Insights, 2013 Global Sales Performance Optimization Study
COPYRIGHT © REVEGY, INC. // PROPRIETARY AND CONFIDENTIAL What to measure • Average Deal Size • Time to Win/Lose a deal • Qualification Score to Win/Loss • % of Outcome/Evidence to Win/Loss • Velocity/Dropout between Stages • Average Discount • Forecast Accuracy 44 New vs. Existing Deal Size – Small vs. Large Customer Size – Small vs. Large
COPYRIGHT © REVEGY, INC. // PROPRIETARY AND CONFIDENTIAL Average Sales Cycle – New vs. Existing Customer CSO Insights, Inc. 2013 Sales Performance Survey
COPYRIGHT © REVEGY, INC. // PROPRIETARY AND CONFIDENTIAL Sales Process Dynamics Opportunities Exiting Process Leads In 60% 48% 22% 10% Discovery Propose Negotiate Closed Won Qualify 90 Days 46 Days 32 Days 39 DaysStage Duration
COPYRIGHT © REVEGY, INC. // PROPRIETARY AND CONFIDENTIAL Don’t get Siebel-ed Deal Forecast Percent Amount Deal #1 75% $1,000,000 Deal #2 75% $1,000,000 Forecast Amount ??? Forecast Percent vs Forecast Category 10% Omitted 25% Pipeline 50% Upside 75% Commit 90%
COPYRIGHT © REVEGY, INC. // PROPRIETARY AND CONFIDENTIAL
COPYRIGHT © REVEGY, INC. // PROPRIETARY AND CONFIDENTIAL Which reps are following the sales process?
COPYRIGHT © REVEGY, INC. // PROPRIETARY AND CONFIDENTIAL VP of Sales – WIIFM? 0.00% 5.00% 10.00% 15.00% Trusted Forecast All Others Aberdeen Group – Sales Forecasting Benchmark Report Average Revenue Growth Rates
COPYRIGHT © REVEGY, INC. // PROPRIETARY AND CONFIDENTIAL • Understand your ideal customer and when they buy • Create an evidence-based, buyer-aligned forecast • Leverage tools to plan and win • Change Sales Managers from “flogger of the forecast“ to “Sales Coach” • Leverage key metrics into forecast reporting Forecast with Confidence!
COPYRIGHT © REVEGY, INC. // PROPRIETARY AND CONFIDENTIAL Questions? Tim Braman VP Corporate Strategy tbraman@revegy.com Revegy www.revegy.com