Artigo - Vendas - Aberdeen - Sales Analytics - Hitting the Forecast Bulls-Eye

7/27/2019 Artigo - Vendas - Aberdeen - Sales Analytics - Hitting the Forecast Bulls-Eye

1/21

Sales Analytics:Hitting the Forecast Bulls-Eye

July 2008
http://www.aberdeen.com/common/send_to_friend.asp?cid=5134


2/21


3/21

Sales Analytics: Hitting the Forecast Bulls-EyePage 3

2008 Aberdeen Group. Telephone: 617 723 7890www.aberdeen.com Fax: 617 723 7897

Table of ContentsExecutive Summary.......................................................................................................2

Best-in-Class Performance.....................................................................................2

Competitive Maturity Assessment.......................................................................2 Required Actions......................................................................................................2

Chapter One: Benchmarking the Best-in-Class .....................................................4 Business Context .....................................................................................................4 Issues at Hand ........................................................................................................... 4 The Maturity Class Framework ............................................................................5 Demarcating the Forecasting Landscape ............................................................6 The Best-in-Class PACE Model ............................................................................8 Best-in-Class Pressures and Strategies ...............................................................8

Chapter Two: Benchmarking Requirements for Success..................................11

Competitive Assessment......................................................................................11 Capabilities and Enablers......................................................................................13 Solution Provider Support for Sales Analytics and Forecasting End-Users ......15

Chapter Three: Required Actions .........................................................................17 Laggard Steps to Success......................................................................................17 Industry Average Steps to Success ....................................................................17 Best-in-Class Steps to Success............................................................................18

Appendix A: Research Methodology.....................................................................19 Appendix B: Related Aberdeen Research............................................................21

Figures

Figure 1: YOY Change in Performance Metrics by Maturity Class...................6

Figure 2: End-user Definition of "Sales Forecast" ..................................................7 Figure 3: Top Barriers to Developing an Accurate Sales Forecast ...................7 Figure 4: Business Pressures Facing Organizations that Deploy SalesAnalytics or Forecasting Tools ..................................................................................9 Figure 5: Strategic Actions Deployed by Organizations to AddressForecasting Accuracy and Predictability ..................................................................9 Figure 6: Respondents Who Dont Know or Measure Sales Forecasting Data.10 Figure 7: Budget Sources for Sales Analytics and Forecasting Solutions .......15 Figure 8: Sales Analytics Vendor Selection Criteria............................................16

TablesTable 1: Top Performers Earn Best-in-Class Status..............................................5 Table 2: The Best-in-Class PACE Framework .......................................................8 Table 3: The Competitive Framework...................................................................12 Table 4: The PACE Framework Key ......................................................................20 Table 5: The Competitive Framework Key ..........................................................20 Table 6: The Relationship Between PACE and the Competitive Framework.........20


4/21


2008 Aberdeen Group. Telephone: 617 723 7890

Chapter One:Benchmarking the Best-in-Class

Fast Facts 60% of responding

companies have currentdeployments of salesanalytics or forecastingsolutions; 22% of theseorganizations have done sowithin the past year

An additional 19% of companies are interested,evaluating, planning, orbudgeting a sales analytics orforecasting deployment

Among companies withpending sales analyticsdeployments, 51% haveincreased CRM/SFA spendto accommodate; theaverage budget increase is21%

Enterprise sales organizations are under increasing pressure, often bothfrom internal and external stakeholders, to provide more accurate salesforecasts of top-line revenue. Aberdeen research reported by over 4,500respondents for The 2008 Aberdeen Report, has revealed that the top twopressures companies face are organic revenue growth, and profitability /margin growth. Despite this, our research shows that while the ability toforecast top-line revenue represents an adopted practice by 83% of companies, the average accuracy with which they anticipate results is only68%. This implies a potential miscalculation of business outcomes by nearlyone-third across all organizations that forecast revenue. To maintain acompetitive position in the market, companies are turning to sales analyticssolutions that provide an enterprise-wide data flow into the forecastingprocess, thus creating a more refined snapshot of future revenue andempowering more efficient, margin-driven sales activity as well as more pureselling time.

Business ContextSales teams have long deployed CRM and SFA solutions to support a varietyof chronologically-ordered questions within the organization: the past (whatdid the customer purchase?), present (what is in our pipeline?), and future(when is the deal likely to close, for how many dollars, and at whatprobability to "seal the deal?"). While an increase in sales volume can impactthe future in terms of top-line performance, how can the forecast itself be

utilized to drive better profit margins?According to November 2007 Aberdeen research, Sales Effectiveness:Leveraging Content to Close Deals, 61% of Best-in-Class companies currentlydeploy sales analytics tools in direct support of business goals focused onincreasing market share. In comparison, 58% of Industry Average and 42% of Laggards use similar solutions. This ability to narrow the margin of forecasting error impacts top performance in bid-to-win ratios, cost-per-qualified-lead metrics, and in minimizing sales rep non-selling time.Ultimately, the promise of contemporary sales analytics solutions dependson an enterprise's ability to accurately anticipate their overall businesshealth by corroborating two-dimensional CRM data with intelligence storedelsewhere within the organization, such as in finance, supply chain, customerservice and marketing, and to focus sales efforts on the newly-identified,most profitable opportunities in the pipeline.

"Adoption rates are significantlyimproved by launching a'bottom up' approach asopposed to a 'top down'directive. 'Buy in' from the salesforce is critical to success."

~ Dr. Simon J. Senior, Sales

Operations Director -Analytical Sciences,PerkinElmer Inc.

Issues at HandLimitations on internal visibility into predictive business results arecompounded by the changing dynamics of many business environments, andthus affect both forecasting accuracy and, ultimately, an organization's actualrevenue flow. As a result, flawed source data affects decisions on how sales

www.aberdeen.com Fax: 617 723 7897
http://www.aberdeen.com/2-0/campaigns/14-aberdeen-report-2008-landing-page.asphttp://www.aberdeen.com/summary/report/benchmark/4200-RA-sales-effectiveness.asphttp://www.aberdeen.com/summary/report/benchmark/4200-RA-sales-effectiveness.asphttp://www.aberdeen.com/summary/report/benchmark/4200-RA-sales-effectiveness.asphttp://www.aberdeen.com/summary/report/benchmark/4200-RA-sales-effectiveness.asphttp://www.aberdeen.com/2-0/campaigns/14-aberdeen-report-2008-landing-page.asp


5/21



execution will occur and then, in turn, the level and type of resources thatwill be applied to sales situations based on past successes / failures, salescycle timeframes, and close ratios.

Definition

Sales analytics refers to anenterprise-wide ability to view

real-time activity andforecasted sales in the contextof business intelligencegathered in non-salesdepartments within theorganization

Sales forecasting inaccuracies are not limited to over-eager deal-closingexpectations at mid-quarter; publicly-held firms are taken to task for missingtheir number on the plus side of estimates, as well. Hence, predictability andholistically sound forecasts remain an important goal, in all cases when anorganization's ability to leverage opportunities that might be missed whenover- or under-performance trends are not visible to senior management,or detected in enough time to respond.

The Maturity Class Framework Aberdeen used three key performance criteria to distinguish the Best-in-Class from Industry Average and Laggard organizations, all of which address

the crucial components of sales performance, in the context of overallcorporate success, as illustrated by Table 1.

Table 1: Top Performers Earn Best-in-Class Status

Definition of Maturity Class Mean Class Performance

Best-in-Class:Top 20% of aggregateperformance scorers

16% increase in annual corporate profit margin (EBITDA) 15% annual increase in sales performance against quota 13% increase in percentage of sales reps achieving annual quota

Industry Average:Middle 50% of aggregate

performance scorers

2% increase in annual corporate profit margin (EBITDA) 1% annual increase in sales performance against quota 13% increase in percentage of sales reps achieving annual quota 7% decrease in annual corporate profit margin (EBITDA)Laggard:

Bottom 30% of aggregateperformance scorers

7% annual decrease in sales performance against quota 7% decrease in percentage of sales reps achieving annual quota

Source: Aberdeen Group, July 2008

The three criteria chosen to represent top-drawer enterprises areembedded within a significant number of self-reported performance metricsdetailed in Figure 1. With negative or neutral year-over-year growth in allareas, Laggard organizations' relatively poor performance is defined byidentical criteria to which Industry Average and Best-in-Class companiesrespond with more positive results. In defining how the strongest numbers

are linked to specific capabilities and enabling technology solutions, pleaserefer to Chapter Two.


6/21



Figure 1: YOY Change in Performance Metrics by Maturity Class

7%-

2%-

5%-

2%-

0%

7%-

7%-

)2%

5%

10%

10%

11%

13%

15%

16%

16%

2%

3%

4%

1%

1%

-10% -5% 0% 5% 10% 15% 20%

Averag e p ro fi t m arg in per d eal

Forecast accuracy

CRM adoption by sales reps

Individual sales reps achieving quota

Sales performance against quota

Ann ual co rpo rate profi t m arg in(EBITDA

Revenue per Sales Rep

Best-in-Class

Industry Averag e

Laggard


Demarcating the Forecasting LandscapeIn anticipation of understanding how top-performing organizations providethemselves with accurate and timely sales forecasts, Aberdeen's surveyrespondents were asked, what single definition of 'forecast' most accuratelydescribes the metrics used by your company to anticipate future businessvolume?" Best-in-Class trends emerging in Figure 2 point to consideringgross rather than net dollars, as well as deal or revenue totals in lieu of unitvolume. Laggard organizations that focus on the pure number of units sold,or on net profits, are demonstrating an inability to select appropriate

measurement tools for analyzing the health of their business.



7/21



Figure 2: End-user Definition of "Sales Forecast"

33%

24%

5%

19%

40%

27%

13% 13%

7%

38%

28%

20%

4%

11%

19%

0%

10%

20%

30%

40%

50%

Gross dollar total of deals

closed or contracts

booked

Gross dollar value of

recognizablerevenue

Number of units sold

Estimated netprofit total of deals closedor contracts

booked

Estimated netprofit value of recognizable

revenue

B est-in -Class In dustry Average Lagg ard

Sales analytics are a great toolin finding the hiddenopportunities in your existingcustomer base, and great wayto save time by focusing onhigh potential deals.

~ Stephen Cadley, ManagingPartner, Cadley Consulting


In addition to providing Best-in-Class views of forecast definitions,Aberdeen research reveals what the same organizations consider as themost relevant barriers to developing accurate sales forecasts, as seen inFigure 3.

Figure 3: Top Barriers to Developing an Accurate Sales Forecast

16%19%

53%

14%

37% 37%

21%

58%

48%

32%

26%

16%

53%

44%

30%

24%22%

40%

0%

15%

30%

45%

60%

Over-confidenceor sand-

bagging bySales staff

Insufficient dataentered by sales

reps

Inability toweight dealsaccording to

customer buying

patterns andneeds

CRM/SFA tool sare not robust

enough toprovide a

reliable forecast

Non-salessources of CI are

not linked tosales data

Insufficient dataentered by sales

managers

Best-in-Class Industry Average Laggard


Figure 3 shows a clear Best-in-Class understanding of the speed bumps thatcompanies face in developing an accurate view of future revenue, and thesebarriers are heavily weighted on the sales organization, specifically thequota-carrying reps who provide either insufficient or overly optimisticviews of their pending deals. Data stores from other business silos areproblematic only for Laggard organizations, implying that top-performing



8/21



companies have the right tools and data connectivity in place to aligninformation from multiple corporate sources, but still need to overcomethe barriers presented by their own sales reps. The following sectionsanalyze how the Best-in-Class do so.

The Best-in-Class PACE ModelUsing sales analytics and forecasting solutions to achieve corporate goalsrequires a combination of strategic actions, organizational capabilities, andenabling technologies that can be summarized as seen in Table 2.

Table 2: The Best-in-Class PACE Framework

Pressures Actions Capabilities Enablers Need toprovidemoreaccuraterevenueforecasting

Align forecastingprocess withcorporate, notindividual,objectives Develop metrics toanalyze andincrease value fromSFA / CRMinvestment Replace intuition-based salesresource allocationwith fact-basedpredictive analytics

Regular forecast reviewswith sales reps and linemanagers Cross-functional access tothe sales forecast Single view of customer /prospect Customized data integrationrequiring no support from IT Optimize lead or territoryassignment for predictedsuccess Triggered coaching /mentoring for under-

performers Deal abandonment analysis

Ad hoc query / reporting from multiple datasources (63% Best-in-Class adoption)

Sales analytics (59% Best-in-Class adoption) Modules for executive, manager, and rep-levelutilization (59% Best-in-Class adoption) CRM goal / actual dashboard upgraded withKPIs and personalized forecast (54% Best-in-Class adoption) Data mining (41% Best-in-Class adoption) Self-assessment tools to support sales reps andmanagers (40% Best-in-Class adoption) Scorecards or stack-ranking for all levels of sales reps and managers (38% Best-in-Classadoption)

Device-agnostic access to real-time forecast(34% Best-in-Class adoption) Critical opportunity / alert notification paletteor case-level semi-passive (33% Best-in-Classadoption)


Best-in-Class Pressures and StrategiesAs seen in Figure 4, an accurate view of future corporate revenue, and a"single view of the truth" regarding current and anticipated sales activities,dominate the business pressures that companies report to Aberdeen as the

most significant influencers on their decision-making around salesforecasting protocols, communications, and solutions deployed. While manysales analytics software vendors place a focus on public compliance andregulatory factors influencing sales forecasts, relatively few companies seethis as a problem.


9/21



Figure 4: Business Pressures Facing Organizations that DeploySales Analytics or Forecasting Tools

73%

68%

31%

9%

0%

25%

50%

75%

Need to prov idemore accurate

revenueforecasting

Need a sing le viewof cu rrent sales

activity andpredicted future

performance

Need to alignmanagement of sales personnelwith c orporate

goals

Need to av oidunder- or over-

estimating resultsfor the investment

communitySource: Aberdeen Group, July 2008

When organizations choose to take action in order to address thesepressures, Figure 5 reveals the spectrum of options most frequentlyconsidered. Moving their process from subjective "gut instinct" to objective,fact-based, predictive analytics, and migrating the forecast activity away fromsales rep needs and toward more holistic corporate goals, lead the list of priorities. Best-in-Class companies amplify this trend, selecting predictiveanalytics deployments 30% more frequently than Laggard firms, and alsoout-pacing Industry Average and Laggard companies in the practice of re-focusing on corporate goals over individual accomplishments, as well.

Figure 5: Strategic Actions Deployed by Organizations to AddressForecasting Accuracy and Predictability

41%35%

19% 19% 18%

0%

10%

20%

30%

40%

50%

Replace

intuition-basedsales r esourceallocation with

fact-basedpredictiveanalytics

Align

forecastingprocess with

corporate, notindividual,objectives

Develop

metrics toanalyze and

increase valuefro m SFA/CRM

investment

Identify largest

and mostpromising

deals early insales process

Define

acceptableforecasting

variancewindows




10/21



Aberdeen Insights Measuring KPI's

Despite the fact that fully 86% of companies surveyed either currently deploysales analytics or forecasting solutions, or plan to do so within a year, asurprising set of data points is revealed within the Aberdeen researchmethodology that provides end-users with "don't know" or "don't measure"responses when reporting on the wide variety of business metrics requested inthe survey instrument and revealed for Best-in-Class, Industry Average andLaggard performers in Figure 1.

As revealed in Figure 6, the KPI's that distinguish high-performing firms fromothers represent surprising empty data sets among many organizations. Withsales analytics and forecasting technology solutions pointed directly atimproving metrics such as quota attainment and improvements in corporaterevenue, "not knowing" or "not measuring" will undoubtedly place a significantbarrier in front of any sales team - and their enterprise as a whole - interestedin achieving success through the deployment of supporting technologies.

Figure 6: Respondents Who Dont Know or Measure Sales ForecastingData


Don't Know Don't Measure

13%

23%

14%

5%

9%

9%

12%

13%

12%

1%

3%

6%

6%

10%

0% 10% 20% 30%

Av erage d eal s ize or order value

Forecastaccuracy

Sales perform anceagainst quota

Sales repsachieving quota

Bid-to-win ratio

CRM adoptionby sales reps

Profit margin per deal/order

% of Respondents Source: Aberdeen Group, July 2008

In the next chapter, we will see what the top performers are doing toachieve these gains.


11/21



Chapter Two:Benchmarking Requirements for Success

The selection of sales analytics and forecasting solutions plays a crucial rolein the ability to turn the strategies defined earlier, into profit.

Case Study Aruba Networks

Consider the case of Aruba Networks, a provider of unified mobilitysolutions. Franco Anzini, Sales Operations Manager, was faced with thecompanys growth that required more than a core CRM tool to managethe increasing complexity of the sales forecasting process. With insufficientbudget or executive support for a full-blown business intelligencedeployment, a sales analytics tool proved advantageous in bridging the gap.Our sales analytics tool sits very nicely on top of our hosted CRM

solution, integrating very naturally, with no IT involvement, explainsAnzini. We see a number of people who, having never seen theapplication before, are building reports and making sense out of thenumbers within five minutes. Its as easy and intuitive as building an Excelpivot table.

Using modules that provide analytics, operations, finance, and pipelinefunctionalities, Aruba has quickly seen results, according to Anzini. OurCRM adoption has increased with our analytics deployment. Its a trickle-down effect from top management into the sales force. People know thatswhere the source of the truth lies, so we have adoption following theproper representation of sales activity. It definitely allows us to makedecisions faster, because were able to get to the data immediately. Inaddition to visibility, the companys bottom line is impacted as well. Anziniexplains, we use an opportunity snapshot functionality to take regularviews of the data, then lay them down beside each other to see whatschanging. The sales analytics deployment allows us to figure out the healthof our business, in terms of whats closing, whats being pushed out, andwhat should be killed, all within the sales forecasting ecosystem.

Competitive AssessmentAberdeen Group analyzed the aggregated metrics of surveyed companies todetermine whether their performance ranked as Best-in-Class, Industry

Average, or Laggard. In addition to having common performance levels, eachclass also shared characteristics in five key categories: (1) process (theapproaches they take to execute their daily operations); (2) organization (corporate focus and collaboration among stakeholders); (3) knowledgemanagement (contextualizing data and exposing it to key stakeholders);(4) technology (the selection of appropriate tools and effectivedeployment of those tools); and (5) performance management (theability of the organization to measure their results to improve theirbusiness). These characteristics (identified in Table 3) serve as a guideline


12/21


13/21



Capabilities and EnablersFast Facts The typical company forecast

accuracy is 73.4%; Best-in-Class companies improvedtheir accuracy by 10% inYOY measurements,compared to a 3%improvement amongIndustry Average companiesand a 2% decrease amongLaggards

The average companypublishes an internal forecastevery 32 days

10% of companies do notmeasure forecast accuracy;4% do not know how oftentheir forecast is publishedinternally

Based on the findings of the Competitive Framework and interviews withend users, Aberdeens analysis of the Best-in-Class demonstrates clear

trends regarding the type of capabilities and technology enablers within thesales analytics and forecasting sector that align with top corporateperformance.

ProcessBest-in-Class companies recognize that form follows function, and thusthese companies deploy a variety of process-oriented capabilities to ensuremore accurate and utilitarian sales forecasts. With the concept of "if you canmeasure it, you can manage it" in hand, these organizations create anenvironment that supports regular analysis of not only current data, buttrends in sales performance that include reviews of the forecast itself,married to understanding why deals are won and lost. In addition to thesemore personalized process deployments, top-performing companies alsooutpace Industry Average and Laggard organizations around the planned useof standardized rankings to classify every sales opportunity in the pipeline.This supports the notion that an accurate, single view of the "truth" sharedby multiple departments and layers of an organization, and baked into thedaily operations of the enterprise, is a worthy investment that can bedirectly linked to high-level revenue performance and Best-in-Class status.

OrganizationWith better processes in place to define the sales forecast, how cananalytical solutions be deployed to better share it within the rest of the

enterprise, and empower other line-of-business leaders, influencers, andstakeholders to take pre-emptive actions based on a more accurate view of pending revenue numbers? Collaborative efforts that extend beyond thesales leadership show the value of doing so, with Best-in-Class companiesmore focused on unifying the flow of potentially vital, rich businessintelligence from non-sales data stores, into the sales operations function.Once this integration is streamlined, providing all the business and executiveleaders with access to the data not only reports, but informs , and tends tobe most effective when achieved without internal tech support. In otherwords, the sales organization can best serve the needs of the company byusing analytical and forecasting solutions designed to assist not only theirteam, but the organization as a whole.

First, make sure that sales

reps understand whyforecasting is important andthat they see forecasting as auseful tool with a personalbenefit. Then train the salesmanagers how to handle theforecast as a coaching tool toimprove sales reps`performance.

~ Roman Teichert, VicePresident of Sales & Field

Operations for Otis Austria

Knowledge ManagementMany speak of the "single view" of a customer or prospect, usually in thecontext of a holistic CRM or SFA deployment geared toward selling orservicing a specific account and all its various internal buyers, with non-salesusers provided access to - and building a stake in fine-tuning - the samereports. Yet in the context of achieving an accurate sales forecast, the ideaof a single view is more complex, and should be defined as an internal-facingfunctionality, via the linkage of non-sales data - from departmental



14/21



intelligence silos such as marketing, logistics, finance, supply chain, orcustomer service - to the same source used by sales to identify buyers andclassify opportunities that sit outside the company firewall. Expanding SFAcontent with cross-functional analytics, to this point, is an enormous Best-in-Class priority with 61% planning to implement it within the next year,compared to significantly lower Industry Average and Laggard trends in thesame area. The use of predictive analytics, especially geared towardidentifying potential cross-sell and up-sell opportunities informed by datafrom non-sales departments, is additionally deployed by the Best-in-Classmore than twice as often as by Laggard organizations. Providing betterknowledge to the top corporate executives via customizable, compressedC-suite view, finally, is also active in 50% more of the Best-in-Class incomparison to low-performing organizations. In fact, 74% of thesecompanies rate top management's access to better forecasts as a primebusiness driver, which represents a 17% increase over Laggards.

Technology The technology enablers that companies deploy to achieve a tighter, moreuseful view of predicted sales activity run the gamut from sales rep-orientedtools to corporate-wide initiatives. The common theme running throughthem all, however, as well as the clear delineation between Best-in-Classand other organizations, focuses on the basic concepts of clarity andimmediacy . With multiple data sources populating the pipeline view,supported by tiered access and real-time adjustment of KPI's, the enablingtechnologies provided by sales analytics and forecasting solutions ultimatelyshould yield a better, more trusted forecast that depicts a more widelyacknowledged portrayal of the enterprise's health and future well-being.

In addition to the technology enablers defined in Table 3, additionalfunctionalities favored by Best-in-Class organizations over others include:

User-specific customization wizardsWe now see the movement of individual forecast componentsclosely, can analyze things thatare stuck, or look like theyrestuck, and take correctiveaction.

~ Matthew Reznick, MarketingEvangelist, 3n

Lead assignment by optimized patterns of profitability, purchase, orpayment trends

Extract, Transform and Load (ETL) Data mining Multi-lingual or cross-cultural (diversity)

Performance ManagementWith the previous capabilities and technology enablers in place, finally,organizations should naturally be expected to create a closed-loop processthat allows for continuous improvement through performance managementbest practices. With many human capital management aspects provided bysome sales analytics and forecasting solutions, Best-in-Class organizationsare using automation to breed large-scale, repeatable methodologies of steering the best sales deals, sales reps and sales skills toward one anotheron a continuous basis. An additional use of solutions offered includes the



15/21



ability to measure the effects of deal abandonment, discounting, or salesincentives on overall performance by sales reps and team.

Solution Provider Support for Sales Analytics andForecasting End-Users

"That which is measured isachieved.

~ David Hanson, Vice Presidentof Sales, Accraply, Inc.

Mapping the provision of sales analytics and forecasting tools to the needs of Best-in-Class companies merits an understanding of the funding sources forsuch initiatives. As seen in Figure 7, an overwhelming percentage of top-performing companies approach the solution from a sales expenseperspective, though the benefit is corporate-wide, as detailed earlier.Companies that funnel the expense to marketing, IT, or other departmentsreveal stronger Laggard performance, on the lower end of the spectrum.

Figure 7: Budget Sources for Sales Analytics and ForecastingSolutions

26%21%

5%

77%

17%

3% 3%

61%

21%

9%5%

45%

0%

20%

40%

60%

80%

Sales Marketing InformationTechnology

Business/CompetitiveIntelligence

Best-in-Class Industry Average Laggard


With budget in hand, how do organizations evaluate the solution providers?According to Figure 8, a focus on established, media-friendly companies isrelatively unpopular, in comparison to pure domain expertise and themaxim that "facts tell, but stories sell" represented by provenaccomplishments that will yield experience, wisdom, and a buyer's sensethat the provider will strongly support their deployment.



16/21



Figure 8: Sales Analytics Vendor Selection Criteria

59%

78%

48%

48%

29%

15%

9%

0% 20% 40% 60% 80%

Acco lades in indus tr ymedia

Length of time inbusiness

Technology partner network

Recomm endations bypeers

Comittment tocustomer s ervice

Domain expertis e

Demonstratedsucces s in similar

projects




17/21



Chapter Three:Required Actions

Fast Facts 78% of respondents indicate

that demonstrated success insimilar projects is crucial toselecting a sales analyticssolution provider; 59% areseeking specific domainexpertise

83% of Best-in-Classcompanies deploy apredominantly direct salesforce, compared to 72% of

Industry Average and 69% of Laggards

Whether a company is trying to move its performance based on thedeployment of sales analytics and forecasting solutions from Laggard toIndustry Average, or Industry Average to Best-in-Class, the followingactions will help spur the necessary performance improvements:

Laggard Steps to Success Know your KPI's, measure your KPI's, improve your KPI's

through the deployment of core CRM / SFA tools, layered with asales analytics, predictive analytics, or a forecasting solution that willsupport a more collaborative, corporate-wide, and accurate view of the company's health in the context of a "truthful" and impactful

sales forecast. With over 20% of companies unaware of theirmetrics regarding profit margin, bid-to-win ratios, or how manyreps achieve sales quota, more data is a necessity to support betterforecasts and the decision-making that they impact.

Upgrade the culpability of the sales organization in fundingsales analytics solutions, reducing the distractions of sand-bagging orpoor CRM data entry, and declaring independence from IT indeploying enabling technologies. Laggards demonstrate, as seen inFigure 3, a particular weakness in overcoming these barriers.

Support your human capital with more frequent forecastanalysis, driving of late-breaking deals toward "A" players (40% of

Best-in-Class companies do so, compared to 18% of Laggards), self-assessment dashboards, and triggered coaching / mentoring forunder-performing reps.

Industry Average Steps to Success Reverse information "push" to intelligence "pull" by aligning

the intelligence residing in non-sales data stores with core CRM /SFA data, to create a more holistic, accurate, and believablecompany-wide forecast. Best-in-Class companies hold a 26% leadover Industry Average performers in deploying this technologyenabler.

Adapt what you measure, and how , to address both corporateperformance and forecasting KPI's, moving away from theforecasting of units sold toward the assignment of future grossrevenue metrics (Figure 2). Use automated technology tools toweigh deal potential according to customer buying needs, patterns,etc.

Deploy personalized dashboards with individual KPI's linked toCRM utilization, that are updated in real-time and provide 24x7feedback with views for sales reps, sales managers, and top company



18/21



executives - Industry Average respondents are 80% less likely thanthe Best-in-Class to do so. Move beyond using the CRM as ahistorical record, to an opportunity to interpret the past in order topredict the future.

Best-in-Class Steps to Success Reduce the impact of individual sales reps on the

organization's ability to post double-digit growth by making CRMadoption and accuracy a strategic, positive outcome of betterforecasting technologies that bring more reps within sight of attaining quota. While carrying less of a negative impact on forecastaccuracy than other companies, Best-in-Class organizationsnevertheless see under- and mis-reported sales activity ascontinuing obstacles. Sales reps will ultimately benefit fromcollaborative forecasting and reduce the drag they previously placedon the team's sails.

Enhance internal collaboration around the forecast, buildingon initial successes of sales analytics tools by including customizableviews for executives, managers and individual contributors; criticalalert / opportunity notifications (only one-third of the Best-in-Classcurrently deploy them); and using predictive analytics to determine"what if" scenarios that create a virtual chess game of anticipatedforecast outcomes.

Aberdeen Insights

Sales analytics and forecasting tools, with their premise of both

understanding the various data sets and predictive elements that color asales forecast, hold the potential not only to close the knowledge gapbetween Best-in-Class and other companies regarding their pipeline data,but to "raise the tide" of all organizations by providing more insightful,trustworthy forecasts that are accessed by all executive stakeholders withinthe enterprise. With YOY CRM adoption changes reflecting a deltabetween the Best-in-Class (11%) and Industry Average (4%) and Laggards(0%), the significant investment often made in CRM / SFA technology canbe exploited, improved, and ultimately turned into an investment that paysoff for all stakeholders, both internal and external.

http://www.aberdeen.com/common/send_to_friend.asp?cid=5134


19/21



Appendix A:Research Methodology

In May and June of 2008, Aberdeen examined the use, the experiences, andthe intentions of more than 230 enterprises using sales analytics andforecasting solutions in a diverse set of business enterprises.

Study Focus

Responding executivescompleted an online surveythat included questionsdesigned to determine thefollowing:

The degree to which salesanalytics and forecasting isdeployed in theirorganization, and thebusiness performanceimplications of thetechnology

The structure andeffectiveness of existing salesanalytics and forecastingimplementations

Current and planned use of sales analytics to aid salesquota attainment and overallcorporate revenueperformance

The benefits, if any, that havebeen derived from salesanalytics initiatives

The study aimed to identifyemerging best practices forsales analytics and forecastingusage, and to provide aframework by which readerscould assess their ownmanagement capabilities.

Aberdeen supplemented this online survey effort with interviews with selectsurvey respondents, gathering additional information on sales analytics andforecasting strategies, experiences, and results.

Responding enterprises included the following:

Job title / function:The research sample included respondents withthe following job titles: senior management (C-Suite or president) -22%; vice-president - 19%; director - 19%; manager - 20%;

consultant - 8%. These individuals represent sales or businessdevelopment (46%), marketing (16%), business process management(6%), information technology (6%), logistics or supply chain (6%),and operations (5%).

Industry:The research sample included respondents from anextensive array of industries: high tech, software or hardware(21%), IT consulting or services (11%), telecom equipment orservices (6%), with 4% each from finance / banking / accounting,food / beverage, education and general manufacturing. Mining / oil /gas, transportation / logistics, and healthcare were also representedwith 3% of the companies surveyed.

Geography:The majority of respondents (70%) were from NorthAmerica. Remaining respondents were from Europe (17%), Asia-Pacific (9%) and the rest of the world (4%).

Company size:15% of respondents were from large enterprises(annual revenues above US $1 billion); 34% were from midsizeenterprises (annual revenues between $50 million and $1 billion);and 51% of respondents were from small businesses (annualrevenues of $50 million or less).

Headcount: 43% of respondents were from small enterprises(headcount between 1 and 99 employees); 33% were from midsizeenterprises (headcount between 100 and 999 employees); and 24%

of respondents were from large businesses (headcount greater than1,000 employees).

Solution providers recognized as sponsors were solicited after the fact andhad no substantive influence on the direction of this report. Theirsponsorship has made it possible for Aberdeen Group to make thesefindings available to readers at no charge.



20/21



Table 4: The PACE Framework Key

OverviewAberdeen applies a methodology to benchmark research that evaluates the business pressures, actions, capabilities,and enablers (PACE) that indicate corporate behavior in specific business processes. These terms are defined asfollows:Pressures external forces that impact an organizations market position, competitiveness, or businessoperations (e.g., economic, political and regulatory, technology, changing customer preferences, competitive)Actions the strategic approaches that an organization takes in response to industry pressures (e.g., align thecorporate business model to leverage industry opportunities, such as product / service strategy, target markets,financial strategy, go-to-market, and sales strategy)Capabilities the business process competencies required to execute corporate strategy (e.g., skilled people,brand, market positioning, viable products / services, ecosystem partners, financing)Enablers the key functionality of technology solutions required to support the organizations enabling businesspractices (e.g., development platform, applications, network connectivity, user interface, training and support,partner interfaces, data cleansing, and management)


Table 5: The Competitive Framework Key

Overview

The Aberdeen Competitive Framework defines enterprisesas falling into one of the following three levels of practicesand performance:Best-in-Class (20%) Practices that are the bestcurrently being employed and are significantly superior tothe Industry Average, and result in the top industryperformance.Industry Average (50%) Practices that represent theaverage or norm, and result in average industryperformance.Laggards (30%) Practices that are significantly behindthe average of the industry, and result in below averageperformance.

In the following categories:Process What is the scope of processstandardization? What is the efficiency andeffectiveness of this process?Organization How is your company currentlyorganized to manage and optimize this particularprocess?Knowledge What visibility do you have into keydata and intelligence required to manage this process?Technology What level of automation have youused to support this process? How is this automationintegrated and aligned?Performance What do you measure? Howfrequently? Whats your actual performance?


Table 6: The Relationship Between PACE and the Competitive Framework PACE and the Competitive Framework How They Interact

Aberdeen research indicates that companies that identify the most influential pressures and take the mosttransformational and effective actions are most likely to achieve superior performance. The level of competitiveperformance that a company achieves is strongly determined by the PACE choices that they make and how well theyexecute those decisions.




21/21



Appendix B:Related Aberdeen Research

Related Aberdeen research that forms a companion or reference to thisreport include:

Sales Analytics: Forecasting Success Through Improved Data Visibility ; June 2008

Workforce Analytics: Managing with Metrics; July, 2007 Financial Planning, Budgeting and Forecasting ; April, 2008 Sales Compensation Management ; December 2007 Sales Effectiveness: Leveraging Content to Close Deals; November, 2007

Information on these and any other Aberdeen publications can be found at

www.Aberdeen.com .

Author: Peter Ostrow, VP/Group Director, Customer Management,[email protected]

Since 1988, Aberdeen's research has been helping corporations worldwide become Best-in-Class. Havingbenchmarked the performance of more than 644,000 companies, Aberdeen is uniquely positioned to provideorganizations with the facts that matter the facts that enable companies to get ahead and drive results. That's why

our research is relied on by more than 2.2 million readers in over 40 countries, 90% of the Fortune 1,000, and 93% of the Technology 500.

As a Harte-Hanks Company, Aberdeen plays a key role of putting content in context for the global direct and targetedmarketing company. Aberdeen's analytical and independent view of the "customer optimization" process of Harte-Hanks (Information Opportunity Insight Engagement Interaction) extends the client value and accentuates thestrategic role Harte-Hanks brings to the market. For additional information, visit Aberdeen http://www.aberdeen.comor call (617) 723-7890, or to learn more about Harte-Hanks, call (800) 456-9748 or go to http://www.harte-hanks.com

This document is the result of primary research performed by Aberdeen Group. Aberdeen Group's methodologiesprovide for objective fact-based research and represent the best analysis available at the time of publication. Unlessotherwise noted, the entire contents of this publication are copyrighted by Aberdeen Group, Inc. and may not bereproduced, distributed, archived, or transmitted in any form or by any means without prior written consent by

Aberdeen Group, Inc. 010908a
http://www.aberdeen.com/summary/report/perspective/5254-AI-sales-analytics-forecasting.asphttp://www.aberdeen.com/summary/report/research_briefs/4322-RB-metrics.asphttp://www.aberdeen.com/summary/report/benchmark/4722-RA-financial-planning-budgeting.asphttp://www.aberdeen.com/summary/report/benchmark/4562-RA-sales-compensation-management.asphttp://www.aberdeen.com/summary/report/benchmark/4200-RA-sales-effectiveness.asphttp://www.aberdeen.com/mailto:[email protected]://www.aberdeen.com/http://www.harte-hanks.com/http://www.harte-hanks.com/http://www.aberdeen.com/mailto:[email protected]://www.aberdeen.com/http://www.aberdeen.com/summary/report/benchmark/4200-RA-sales-effectiveness.asphttp://www.aberdeen.com/summary/report/benchmark/4562-RA-sales-compensation-management.asphttp://www.aberdeen.com/summary/report/benchmark/4722-RA-financial-planning-budgeting.asphttp://www.aberdeen.com/summary/report/research_briefs/4322-RB-metrics.asphttp://www.aberdeen.com/summary/report/perspective/5254-AI-sales-analytics-forecasting.asp

Documents

Artigo - Vendas - Aberdeen - Sales Analytics - Hitting the Forecast Bulls-Eye