Embracing Digital Disruption to Power Sales Growth

Sales Summit 2015

1 Day.

13 sessions. 14 Sales Thought Leaders.

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Embracing Digital Disruption to Power Sales Growth #SalesSummit #DF15

 Yusuf Tayob  Managing Director, Accenture

https://www.salesforce.com/sales-summit/

Digital Disruptors From Multiple Lenses

•  Customer

•  Competitors

•  Sellers

#SalesSummit #DF15 Copyright © 2014 Accenture All rights reserved.

Digital Disruption: Customer


Stakeholders Procurement

C-level deciders Business units/users

IT department

Open content & channels: twitter, linkedin, pinterest, youtube,

Branded content & channels:

Consumer (B2C) Business (B2B2C/B2B)

More Accessible

More Continuous

More Dynamic Consumerized Experience

Empowered by the Network

Never a done deal

Faster, always-on, effortless choice

Influence beyond brands’ reach

Re-evaluating all the time

More empowered

Voice of Customers

Always in the channel

Customer Engagement Disruption

Digital Disruption: Customer


Innovators

Early Adopters

Early Majority

Late Majority

Laggards

Old curve of market

innovation

Big-Bang Market Segments

Trial users

Everybody else

Customer Adoption

Disruptors are Everywhere! Digital enables unencumbered development, resulting in unprecedented disruption…

Digital Disruption: Competitors


Digital Disruption: Sellers

Operations Disruption

•  Direct-to-customer

•  New players/value chains

•  Indirect channel growth

•  Blurred global/local

•  Talent efficiency boost

•  Role of face-to-face

•  Skill gaps (digital…)

•  Back-Office now to ‘Front’

•  Process Digitization

•  Much more collaborative

•  Front-Office convergence

Digital disruptions across Marketing, Sales & Service

Ecosystem Disruption

Talent Disruption


Fragmented, even competing, initiatives

Digital Customers viewed as obscure, special group

Lack of common, material target to

rally around

New capabilities applied to outdated

customer model


Digital Disruption: Barriers to Success

Sales as we know it… on the verge of extinction?

Execution Excellence & Ops Drive Excellence in Execution

Put your money where your profit is

E

Price & Profit Optimization Deliver Profit, Not Just Revenue

P

S

Enablement of Talent Use Science to Improve Sales Talent

Spend Optimization

D

E

Digital Selling Embrace Dynamic Channels

 5 Must-dos to Drive Profitable Growth at S-P-E-E-D

Copyright © 2014 Accenture All rights reserved.

How Digital Sellers Play to Win

#SalesSummit #DF15

Advertising

Channel Incentives (Through/to Partner Promotions,

MDF, Rebates, etc.)

Sales Incentives (Commissions, Bonuses,

SPIFs, etc.) Price Discounts Size

of C

lient

Spe

nd (B

illio

ns A

nnua

lly)

Customer: Unaided Consideration,

Qualified Leads

Channel Partner: Qualified Leads, Partner-led Sales

Sales Producer: Direct Sales

Customer: Propensity to Buy

Variable Sales & Marketing Spend Value Chain Illustrative

 Companies invest $100s of millions to billions in variable costs to drive top-line Spend Optimization


•  Less than ½ employ analytics to better understand customer needs and identify sales opps

•  CSO’s rate visibility and ability to measure performance high – 68%, but… only 1/3 actually track and measure sales Spend ROI

 Put your money where your profitability is


Spend Optimization


Digital Sellers strategically align working sales spend – the costs CSOs control and influence – with an intense focus on ROI to power profitable growth.

 Put your money where your profitability is


Spend Optimization


•  Best in class performers have nearly 2x the emphasis on improving margins and reducing discounting.

•  44% report their sales managers need improvement in adopting and implementing clear, effecting pricing strategies.

 Deliver Profit, Not Just Revenue


Price & Profit Optimization

Digital Sellers invest in price strategy adoption and deal-level governance, monitoring outcomes to boost profit.

The story of rounding… •  Salesperson’s price worksheet:

$76,352 ---- becomes ---> $75,000 •  1.2% to 1.5% rounding is not such a big deal but adds up…

1% improvement in price, or profit optimization, is often worth 10% in EBIT…

 Deliver Profit, Not Just Revenue


Price & Profit Optimization

Enterprise Value

FIN

Maturity Decentralized and Reactive Practices

Cost Effectiveness and Efficiency Gains

1st Generation

2nd Generation

Next Generation Sales Operations

Beyond Efficiency to Become the Sales

Information Engine

Cost Center Revenue Enabler

Geo 1 Geo 3 Geo 2

Ops Ops Ops

Global

Activity Management

Order Management

Incentive Compensation

Pricing & Configuration

Territory Management Shar

ed S

ervi

ce

Sup

por

t #SalesSummit #DF15 Copyright © 2014 Accenture All rights reserved.

Sales Execution Excellence and Operations

•  Fewer than 50% of Firms have broadly adopted their CRM technology.

•  Only half (51%) of companies follow a formal selling process…

•  …and very few (8%) of companies report sales methodology adoption.

 Drive Excellence in Execution


Execution Excellence and Operations

Digital Sellers architect the selling experience to serve the non-stop customer, embracing Digital and Cloud as catalysts for change, and evolving operations to be the “insight engine” for sales.

 Drive Excellence in Execution


Execution Excellence and Operations

Enablement of Sales Talent #

of S

ales

Re

ps

Performance

The top 20% are

bringing in 62% of the

revenue!

80% of the sales force only brings in 38% of the revenue

What’s different about those top 20%? §  Is it their skills and competencies?

§  Is it their personality attributes?

§  Is it their behaviors?

§ Yes, Yes and Yes…. * SOURCE: CSO Insights


•  Attrition has increased, especially among the better performers.

•  Hiring processes lack needed rigor – 59% plan to add to their sales force, yet 44% of firms struggle to land top talent.

•  Training investments have increased, yet reported effectiveness has declined… leaving a large proportion of sales reps in the “frozen middle”.

 Use Science to Improve Sales Talent

#SalesSummit #DF15

Enablement of Sales Talent


Digital Sellers apply science to uncover the DNA of high performing sellers, apply those insights to the sales coverage model, roles, and enablement, and

move the “frozen middle”.

 Use Science to Improve Sales Talent

#SalesSummit #DF15

Enablement of Sales Talent


•  Non-stop customers are 58% through the buying process by the time of the first sales call.

•  CSOs expect 12% of sales to come from Service, but Sales and Service are disconnected…

•  …and Marketing and Sales don’t even agree on the common definition of a lead.

 Embrace Dynamic Channels


Digital Selling and Dynamic Channels

Digital Sellers use technology to get the right opportunity to the right sellers at the right time, embrace the evolving role of retail and the channel partner, and are reorienting the front office to collaborate around the

non-stop customer.

 Embrace Dynamic Channels


Digital Selling and Dynamic Channels

Questions

#SalesSummit #DF15

Salesforce Sales Leadership Community www.salesforce.com/salesleadership

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Thank you

Technology

Embracing Digital Disruption to Power Sales Growth