<Insert Picture Here> SMEI 2010 Conference Justin Anderson, Senior Director, Oracle CRM Product Development
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Sales and Marketing Performance Management
There are still some executives who are waiting for things to return to normal. It's not going to happen. Constant change is the new normal the era of optimization and disciplined expansion is dead. Success now requires not just doing it better, but mastering the ability to do it differently. Scott Anthony Harvard Business Review October 2009
Economics of Revenue Performance Total Revenue = Deals in Pipeline x Avg. Deal Size ( ) x Sales Cycle Duration Win Rate Total # of Sales Reps A slight improvement in any of these key metrics can have a profound impact on revenue attainment The question is how?
Top Performance Requires a Focus on Every Member of the Revenue Chain CSO CMO Sales Reps Sales Ops Marketing Ops
Typical State of Sales and Marketing The need for a unified revenue process Lead Generation Lead Nurturing Lead Qualification Lead Acceptance Deal Support Closed Business Marketing Owned Sales Influenced Sales Owned Marketing Influenced
The True Picture of Cloud CRM Today Disconnected pipelines No end-to-end analytics Multiple vendors Separate databases Time-consuming integrations Additional support calls Higher costs
Integrated Marketing and Sales Maximizing the Revenue Funnel Lead Generation Lead Nurturing Lead Qualification Lead Acceptance Deal Support Closed Business Marketing Owned Sales Influenced Sales Owned Marketing Influenced
Cloud CRM Vendors Don t Have Best-in-Class Marketing Only Option is to Buy Expensive, Add-On Products SALES Contact Management Lead Management Cloud Analytics Vendors MARKETING Analytics Lead Nurturing Opportunity Management Forecasting PRM Cloud Marketing Vendors Lead Scoring Response Management Website Monitoring Web Marketing Mobile Sales Reporting Cloud CRM Vendors Campaign Automation Email Campaigns
Oracle CRM On Demand Provides Complete Sales and Marketing SALES Contact Management MARKETING Analytics Lead Management Lead Nurturing Opportunity Management Forecasting PRM Mobile Sales Reporting Enterprise Visibility Lead Scoring Response Management Website Monitoring Web Marketing Campaign Automation Email Campaigns
Benefits of Unified Sales and Marketing Increase your revenue pipeline Find more opportunities Stop the leaks Nurture every lead Improve lead quality to increase conversion Expand your knowledge about the customer Make leads actionable and timely for sales reps Make smart calls, not cold calls Gain insight across unified revenue funnel Know what works Provide end-to-end visibility to keep sales and marketing aligned Enable Marketing to demonstrate ROI Enable Marketing and Sales to be more collaborative and productive Share customer knowledge both directions Put best practices into automated systems Get more out of your people
Enable Each Person in the Chain to GET SMARTER FIND MORE OPPORTUNITIES GET MORE PRODUCTIVE
FIND MORE OPPORTUNTIES
Grow the Pipe, Stop the Leaks Automatically nurture prospects until they are ready to buy Lead Generation Lead Nurturing Lead Qualification Lead Acceptance Deal Support Closed Business 45% of respondents purchase a product within 12 months MARKETING FUNNEL SALES FUNNEL * Marketing Mgmt Journal, 1994 v3
Gain Insight Across Unified Revenue Funnel Bi-directional flow between sales and marketing Optimize the process with enterprise visibility Lead Generation Lead Nurturing Lead Qualification Lead Acceptance Deal Support Closed Business Marketing Helps Sales Close Deals 500 Inquiries 100 Prospects 10 Qualified Leads 6 Accepted Leads 3 Opportunities 1 Closed +5% +5% +5% +5% +5% More Revenue Sales Helps Marketing Improve Lead Quality
GET SMARTER
360 Sales Reps $2M Plan 90 80 70 60 # of Sales Reps 50 40 30 20 10 rep turnover = 30 rainmakers = 54 # of sales reps 0 % Attainment of Plan
Increase Heads Increase Quotas The Result: Unhappy Sales People
Or Determine best opportunities. Evenly allocate them. Quotas and incentives to match.
<Insert Picture Here> Gartner, Inc Michael Dunne Vice President Through 2012, enterprises will miss the equivalent of 5% to 10% of annual sales as lost opportunities that could have been captured through improved management of sales territories, quotas and compensation plans. Source: Michael Dunne, Gartner, "MarketScope for Sales Incentive Compensation Management Software, March 5, 2010
90 80 70 # of Sales Reps 60 50 40 30 20 # of sales reps Opportunities 10 0 % Attainment of Plan
Sales Performance Management Increasing Revenues with Existing Resources # of Sales Reps 90 80 70 60 50 40 30 20 Small Increase in % Quota Attainment Can Drive Large Increase in Revenue Less Turnover 3% Productivity Increase Yields 10% More Revenue More Rainmakers 10 0 % Attainment of Plan
Maximize Sales Coverage across Territories Problem Spreadsheets and rules make territory planning imprecise Matrix of dimensions (products, segments, customer size ) Sub-optimal plans are created based on few drivers due to the complexity of iterating and managing across 10s-100s of spreadsheets.
Deploy Quota Plans with an Outside-in Approach Problem New Reps, New Territories The Quota Guess Most companies determine quota based on a reps productivity rather than customer opportunities This disconnect builds risk into the sales plan by design. Industry Average Percentage of Reps making quota was 76%, with Laggard companies achieving 22%. Aberdeen 2010
Improve Deal Size with Pricing Intelligence
GET MORE PRODUCTIVE
Only 22% of a typical salesperson s time is spent selling - The Alexander Group, Inc. Sales reps spend an average of 7 hours per week looking for relevant information for sales calls - IDC Sales Advisory Service
Common Productivity Challenges Key Challenges Sales reps waste time pursuing leads and opportunities that are not a good fit and do not have a high likelihood to close. Sales reps spend too much time on administrative tasks and data entry/retrieval Sales reps rely on their own tribal knowledge to find and gather the information they need to close a deal. Impact 50% of companies say they need to improve how sales rep prioritize which accounts to focus their selling efforts CSO Insight Only 37% of a sales reps time is actually spent selling CSO Insight 59% of companies say they need to improve their ability to provide cases studies and references for their sales reps CSO Insight
How Sales Rep Spend Their Time Not Enough Time Selling Source: CSO Insights
Lack of Knowledge To Close the Deal Source: CSO Insights
Develop a Robust Lead Nurturing Strategy Increase the quantity of sales ready leads by automating the entire marketing process from initial contact to contract List Purchases Collateral Email Webinars Lead Generation Lead and Nurturing Capture Qualified Unqualified Opportunity Lead Tradeshows Other Data Sources Lead Gen Feedback Delayed Sales Win
Continual Discovery with Progressive Profiling Accelerate discovery earlier in the cycle Make leads more actionable by incrementally learning more about your prospects Increase conversion rates while gathering the most useful information
Benefits of Nurturing and Progressive Profiling Case Study 200-400% increase in useful Customer Data Better lead qualification, more informed sales reps Questions asked 60,000 50,000 40,000 30,000 20,000 10,000 Weeks Attributes Gathered With Progressive Profiling with Legacy System 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Insight Gained
Sales Effectiveness Challenge in Life Sciences 50 Sales reps need to make 50 sales calls per week 15 A full product discussion occurs in only 15 percent of sales calls 98 Average physician-rep interaction is only 98 seconds Make Every Interaction Count Source: The Alexander Group and Pace Productivity Inc.
Focus on Both Reporting and Rep Productivity Travel Time, 40% Scheduling Appointments, 15% Reporting/ Administrative, 15% Waiting for Physicians, 20% Selling/ Face Time, 5% Sample Drops/ Signature Capture, 5% How a Typical Rep Spends Their Time Today Source: Oracle Industries Business Unit
Not Pursuing the Right Opportunities Source: CSO Insights
Whitespace Analysis
Mobile CRM @ the Forefront of Productivity Primary Secondary CRM in the Browser CRM anywhere else!
Mobile CRM Primary Client for Sales Mobile CRM for iphone and Blackberry Horizontal and vertical editions Composite; CRM data and enterprise data integrations
Sales On the Go Solution for selling, not just reporting Rich media you can show to customers live digital closed loop Sales Rep-Facing Customer-Facing
Oracle Sales On the Go Integrates with Oracle CRM Solutions, high impact user interface
Oracle CRM Desktop: Outlook & Notes Delivering CRM the way you want it, where you want it
Social Collaboration
Hierarchical Visibility Streams manager control pushed down visibility pulled up subordinate subordinate subordinate subordinate
Social Activity Streams publish account peer service request subscribe campaign lead peer opportunity peer peer
Collaboration Needs To Be Ubiquitous manager sales rep customer customer service rep product manager finance director HR rep inventory manager partner
Social Activity Streams
Time Spent on Reporting
Empower with Analytics Equip every user with access to analytics Eliminate multiple versions of the truth Focus on rolebased, actionable analytics, not information overload Role Based Executives Managers Rep / Agent Complete Historic Real-Time Ad-hoc
Opportunity Management Process Framework Stage of Revenue Funnel Purpose/Focus Practices/Activities/Tools Sales Stage Milestone System-captured Evidence Roles & Responsibilities 55
Opportunity Management Process Sample 1. Suspect 2. New Prospect 3. Price Quotes 4. Proposal Follow-up 5. Finals 6. Post-Finals Follow-up 7-8. CLOSED Won or Lost 9-10. New Business Taken/ Not Taken Purpose Assess lead potential and assign a prospect rating Qualified Prospects Pre-sales Creates Quote/ Response Strategize Next Steps/ Develop Game Plan to get to Finals Prepare and Conduct Proposal Meeting Develop Final Strategy to Win the Business Notify Sales Ops of outcome Transition to New Business for Final Review Activities/ Tools Qualifying script and checklist Opportunity Development Plan Price Quote Document Blue Sheet Invitation Email Template Finals Prep Sheet Dry Run schedule Final Call Plan New Business Notification Form Milestone Prospect Qualifier Completed Advisor asks for Price Quote RFP/RFI submitted Price Quote Proposal issued to Advisor Invitation to Finals Meeting Blue Sheet Completed Finals Meeting Held Final Decision Received from Advisor NONB Completed Evidence in CRM OD Prospect Qualifier Completed and Documented Request Submitted to PreSales Initiate Pricing Activity Completed Proposal Submitted Pricing Tab on Oppty Record Completed Finals Meeting Appointment Scheduled Blue Sheet Documented Presentation Book attached to Opportunity Final Meeting Appt Completed Sales Stage Advanced to Closed-Won or Closed Lost NONB embedded in System 56
Focus on BOTH Effectiveness and Results Metrics Pipe Coverage Sell Cycle Length Opportunity Aging Lead Conversion Attainment Margin Market Share Win Rate Leading Indicators Lagging Indicators By Geo, Product, and Customer Segment 57
Targeted Leading/Lagging Indicators by Role Executive Manager Associate Leading Indicators Share of Spend (%) Forecast Accuracy (%) Opportunities (#, $) Avg. Opportunity Size ($) Campaigns (#) Response Rate (%) Leads (#) Opportunities (#, $) Avg. Opportunity Size ($) Account Plans Plans (#) Activities (#) Pipeline Aging (# days) Pipeline Velocity (#%) Leads (#) Opportunities (#, $) Sales Plans (#) Activities (#) Proposals (#) Referrals (#) Lagging Indicators Service Line Business Volume ($) Operating Costs ($) Customer Satisfaction (%) Customer Retention (%) Employee Satisfaction (%) Customer Acquisition Cost Savings (%) Regional Business Volume ($) Win Rate (%) Sales Cycle Time (Days) Sales Productivity (%) Customer Satisfaction (%) Customer Retention (%) Employee Satisfaction (%) Account Business Volume ($) Closed deals (#,$) Account Penetration Win Rate (%) 58
Call to Action Key Questions Do you have one unified pipeline or two? Where do your reps spend time and how can you increase selling time? How are you fostering collaboration? How do you measure your progress? 59
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