Unleashing High Impact Sales Enablement. Presented by: Joanne Pollitt Principal Executive Advisor: CEB, now Gartner

Transcription

1 Unleashing High Impact Sales Enablement Presented by: Joanne Pollitt Principal Executive Advisor: CEB, now Gartner

2 Unleashing High Impact Sales Enablement The Unexpected Support That Best Drives Revenue

3 SURVEY DEMOGRAPHICS Responses by Region, Percentage of Respondents Responses by Seniority Level, Percentage of Respondents 9% 10% 16% 15% Analyst/Entry Level APAC EMEA North America Latin America 59% 22% 7% 27% 35% Mid-Manager Level Executive Senior Level Executive Head of Business Function Head of Line of Business N = 88. Source: CEB 2018 Commercial Banking Agenda Poll.

4 2018 COMMERCIAL BANK EXECUTIVE PRIORITIES Three Business Objectives Top Concerns Anticipated Changes 1. Delivering on customer expectations around products 2. Reducing points of friction in buying and service 3. Getting more operating efficiency from sales coverage 8% 50% 35% 24% of commercial banking executives expect to be most concerned with growth through new customers. 28% will focus on operational efficiency 33% Technology and Products (35%) will change the most. Customer Experience (33%)and Sales Model (24%)are also expected to change. Talent Management (8%) will change the least.

5 TOP ECONOMIC CONCERNS Top Economic Concerns for 2018, Percentage of Respondents Q: What do you expect your business line s top economic concern to be for 2018? Growth through New Customers 1% Growth through Existing Customers 28% Lower Expenses through Improved Operational Efficiency Lower Expenses through Cost Cutting 20% 50% N = 88. Source: CEB 2018 Commercial Banking Agenda Poll.

6 CRITICAL OBJECTIVES, BY BUSINESS LINE Critical Area Small Business Business Banking Middle Market Mapping changing customer channel usage and expectations Pinpointing how the bank can influence customer purchasing in sales interactions Utilizing tech partnerships and APIS to transform customer experience Scaling Bank supports for RM customer quality interactions Removing RMs administrative and compliance burdens 72% 73% 72% 47% 48% 51% 72% 68% 67% 51% 53% 56% 81% 75% 70% 60% 58% 44% 79% 78% 72% 49% 52% 56% 72% 77% 67% 33% 40% 37% N = 88. Source: CEB 2018 Commercial Banking Agenda Poll. Importance Confidence in Execution

7 CAN T JUST HIRE MORE Percentage of RMs Whose Loan Generation is Greater Than the Bank Median By Tenure in Seat, North America Average RM Tenure Median Number of Years in Current Role at Current Bank 60% 50% 55% 54% 52% 6 5 Years 40% 38% 30% 20% 10% 3 3 Years 0% 0-2 Years 3-5 Years 6-10 Years More than 10 Years N = 1,129. Source: CEB 2014 Sales Force Assessment. 0 N = 2,884 RMs (2010); 2,702 RMs (2014). Source: CEB 2010 and 2014 Sales Force Assessment

8 CAN T JUST WORK MORE How Has Time Spent on Non-Client-Facing Work Changed in the Past Two Years? Percent of RMs Responding 100% Magnitude of Increase in RM Time Spent on Non- Client Facing Work Percent of RMs Responding, Among Those Who Reported an Increase 22.2% No Change 18.4% Decreased 52.9% Increased 50% 18% 69% 13% N = 890, 507 Source: CEB 2017 RM Sales Environment Readiness Assessment. 0% Less than 20% 20% 50% Increase Above 50% Increase We ve been doing really well, but we re like the duck on the water: it looks calm on the surface, but under the water the feet are moving like crazy. Head of Sales Force, North American Commercial Bank

9 ALL IN FOR TECHNOLOGY ENABLEMENT Banks Making Investments in Sales Enablement Technology Now, by Type of Technology Commercial Banking Only, Global Making Major Investments/ Replacements Now Have It, No Planned Change Not Investing/ Unsure Sales Content Management Predictive Lead Analytics Sales Intelligence Sales Prospecting Coaching Tools Performance Management 50% 42% 8% 51% 38% 11% 51% 40% 9% 52% 42% 6% 52% 37% 11% 53% 42% 5% Pricing, Configuration, and Quoting Tools 54% 42% 4% Pipeline Management, and Forecasting 56% 35% 9% 0% 50% 100% N = 259. Source: CEB 2017 Financial Services Technology Survey Note: Total does not equal 100% due to rounding. We view technology as an enabler, but it isn t solving the root cause problem which is a broken sales process. Group Vice President, North American Commercial Bank

10 CURRENT TOOLS DON T HELP WITH OUTCOMES Extent that Tools Fail to Help RMs Better Understand Customers or Manage the Sales Process More Effectively Percentage of RMs Neutral or Not Agreeing that the Tool Helps Them 77% 77% 63% 62% 58% 67% 66% 46% N = 1,269. Source: CEB 2016 Sales Environment Readiness Assessment Survey CRM Pricing Tools Pipeline Management Understand Customers Sales Prospecting Manage the Sales Process

11 UNDERSTANDING SALES ENABLEMENT 1. Sales Environment Readiness Assessment 24 Institutions 335 Sales Managers 1,651 Relationship Managers 50+ questions on team composition, performance, tools and technology, enablement supports, sales process, culture. 2. Qualitative Interviews 45-minute interviews with executives at 26 institutions across all business lines to understand their sales enablement strategies and challenges Source: CEB Analysis

12 NEW MANDATE: ENABLE YOUR SALES FORCE Executives Three Approaches to Sales Enablement Goal: Hire and Manage Talent Goal: Make Bankers More Efficient Goal: Fulfill Customer Needs Hiring Usable CRM Commercial Insights Training Coaching/ Incentives Customer-Facing Time Customer Segmentation Market Coverage Leads Identification Sales Process Internal Collaboration Specialists Ethical Sales Culture Customer Needs Understanding Value Proposition Relevant Messaging Differentiated Products Customer Accountability Sales Discretion Source: CEB Analysis Talent Supports Process Supports Customer Interaction Supports

13 PROCESS AND TALENT ARE THE BIG BETS Sales Enablement Strategy Prioritization, by Enablement Approach Percentage of Initiatives, Among Total Initiatives in Sample Customer Interaction Supports: 18% Process Supports: 43% We re trying to remove bureaucracy from RMs days and save them time. Our top priorities are getting a new CRM and improving lead generation capabilities. N= 26 Institutions Source: CEB Analysis; 2017 Research Interviews with Commercial Banking Executives Talent Supports: 39% We want leaders to focus more on coaching. We are constantly training our people. We re trying to get new bankers ramped up faster.

14 WHAT MATTERS MOST Relative Impact of Improving Sales Enablement Approaches on RM Revenue Goal Achieved Percentage Point Change in RM Revenue Goal Achieved When RMs Perception of Bank Effectiveness Increases 22.6% 11.0% Improving Customer Interaction Supports Improving Customer Interaction Supports and Process Supports The results of all other scenarios tested were not statistically significant. N= 962 Source: CEB 2017 Sales Environment Readiness Assessment

15 CUSTOMERS WANT OUTCOMES Traditional Overlap Between What Customers Valued and What Banks Offered Customers Valued: Access Access to local knowledge Access to staff who could provide reliable service support and match needs to products Access to financing Banks Offered: Access Access to local staff Access to RMs who could offer reliable service, diagnose needs, and provide solutions Access to the balance sheet Aligned Around Access Current Disconnect Between What Customers Expect and What Banks Still Offer Customers Value: Outcomes Banks Still Offer: Access Source: CEB Analysis Relevant and timely information to drive business outcomes On-demand availability to ensure timely business outcomes Access to financing on their terms to deliver business outcomes Disconnect: Outcomes Versus Access Access to local staff Access to RMs who can offer reliable service, diagnose needs, and provide solutions Access to the balance sheet

16 INTERACTION SUPPORTS HELP DRIVE OUTCOMES How Customer Interaction Supports Help RMs Drive Clients Business Outcomes What RMs Need to Help Customers Achieve Outcomes 1. Guidance to Understand Customer Needs Key Components of Support to RMs: A clear understanding of customers basic needs. A value proposition that underscores how the bank is uniquely positioned to help customers achieve business outcomes. 2. Unique Insight and Products to Deliver + to Clients + Key Components of Support to RMs: Commercial insights that help achieve customers business outcomes. Useful messaging or collateral that can be used with customers. Differentiated products and services that help customers achieve their business outcomes in ways other banks cannot. 3. Discretion and Accountability to Tailor the Interaction to the Client Key Components of Support to RMs: Significant discretion on how to sell. Accountability for ensuring customers receive the most appropriate products and services to meet their needs. Source: CEB Analysis

17 A NEW GOAL Executives Three Approaches to Sales Enablement New Goal: Help Customers Achieve Business Outcomes Goal: Hire and Manage Talent Goal: Make Bankers More Efficient Goal: Fulfill Customer Needs Hiring Usable CRM Commercial Insights Training Coaching/ Incentives Customer-Facing Time Customer Segmentation Market Coverage Leads Identification Sales Process Internal Collaboration Specialists Ethical Sales Culture Customer Needs Understanding Value Proposition Relevant Messaging Differentiated Products Customer Accountability Sales Discretion Source: CEB Analysis Talent Supports Process Supports Customer Interaction Supports

18 PROCESS TO WHAT END: ENABLING OUTCOMES Selected Process Support and End Goal Support Customer Segmentation and Market Coverage Leads Identification CRM Platform Specialists and Internal Collaboration End Goal: Enable Banker Efficiency Align Bank Resources to Service Preference Identify Large Pool of Prospective Customers Accurately Match Product to Customer Need Deliver Technical and Closing Support to Drive Purchase of Diverse Suite of Products End Goal: Enable Customer Outcomes Align Bank Resources to Customer Outcomes Identify Precise Customer Segments Whose Outcomes the Bank Can Deliver On Accurately Identify Insight That Drives Customer Outcomes Deliver Specialized Insight and Solutions Aligned with Client Goals Ethical Sales Culture Ensure Compliance and Avoid Mis-Selling Ensure Accountability for Driving Customer Outcomes Source: CEB Analysis

19 Appendix: Align Process Supports With Customer Outcomes A Case Profile of BDC

20 ADJUST SERVICE MODEL TO MEET CUSTOMER NEEDS Challenge: Enable RMs to Serve Customers Efficiently Goal: Grow the bank by 10% Hire More Bankers Make Bankers Do More Create New Branches Set Aggressive Cross-Sell Goals Expand Into New Markets Understand Customers Better Efficiently Serve Customers Meet Customer Preferences Streamline RM Portfolios Provide RMs Insight Tools Source: CEB analysis. Solution: Bifurcate High and Low Touch Customers Prefer more bank interactions Source: CEB analysis. Prefer to interact infrequently via

21 IDENTIFY CUSTOMER INTERACTION PREFERENCES BDC surveys RMs and learns that 32% of bank s portfolio is low activity customers that prefer to interact with the bank only if they need service. They tracked customer website behavior to understand them and provide tailored solutions. 32% of the bank's portfolio was made up of low- activity customers. BDC conducted customer panels to gather input on what they were doing right and what they were doing wrong, as well as customers preferred level of service. After identifying preferred levels of service, BDC sent customers a survey via to identify their preferred channels. Send From Source: CEB analysis.

22 ALIGN PORTFOLIOS WITH INTERACTION PREFERENCES Type of Business: $2 M or Less in Sales Growth Aspirations: Slow, Steady Number of Products: 1 3 Method of Contact: Phone or Frequency of Contact: As Needed Expected Needs: General Service Type of Business: Over $2 M in Sales Growth Aspirations: 15%+ Growth Rate Number of Products: 3+ Method of Contact: In-Person Frequency of Contact: Three Annual Meetings Expected Needs: Customized Insight As customer financing needs change, they are reassigned to another RM portfolio to fit their new needs. Source: CEB analysis.

23 LOW TOUCH: HELP BANKERS SERVE EFFICIENTLY Outbound: Low-Touch Example Sent from Marketing Every Six Weeks S e n d F rom Sarah Hello John, Financial ratios provide valuable information about the health of your business, get started today with our free ratio calculators. Thanks for choosing BDC! content is not sales or marketing material, but help customers run their business more effectively. s are signed by customer s RM. Source: CEB analysis. Inbound: Customer Questions to Call Center Account Log-Ins Balance Inquiries Payment Scheduling Customer on Phone Tax Forms Advisory Services Need to Contact an RM Working Capital 101 Source: CEB analysis. Call Center Employee

24 HIGH TOUCH: HELP BANKERS SERVE EFFECTIVELY RMs Conduct Customer Phone Calls or Site Visits Three Times a Year Pre-Meeting: High Touch Customer Meeting Prep ipad 9:40 AM Notifications Spent 0 5 minutes preparing Googled customer information and industry Customer conversation was insubstantial and non-business related Client-led with no insight Customer Name XXXXXXXXXX XXXXXXXXXX Spend minutes preparing Gather industry information to share with customer Pull up information on the structure of customer s current financing Banker-led with insight During Meeting: App-Enabled Customized Conversation Generate preauthorized loan amounts for client in real-time Run personalized business scenarios and compare growth margins in real time in front of the client Record notes directly into CRM system from ipad to reduce amount of RM time in the office Provide client proposal right then and there Source: CEB analysis.

25 RESULTS High Touch Low Touch 10% growth from 2015 to 2016 Repeat customers have increased, and attrition has decreased. 12% change in new customer acquisition Client satisfaction has grown 10 times Customers reporting to be satisfied or very satisfied has jumped from 61% to 71% Source: CEB analysis.