being a high performing sales organization requires a hard reset on conventional thinking

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Building High Performing Sales Organizations Tiani Bova Global, Customer Growth & Innovation Evangelist [email protected] @Tiani_Bova in/tianibova Purposeful Selling Can Change the Game

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Building High Performing Sales Organizations

Tiffani Bova Global, Customer Growth & Innovation Evangelist

[email protected] @Tiffani_Bova in/tiffanibova

Purposeful Selling Can Change the Game

Forward Looking Statements

 Safe harbor statement under the Private Securities Litigation Reform Act of 1995:

 This presentation may contain forward-looking statements that involve risks, uncertainties, and assumptions. If any such uncertainties materialize or if any of the assumptions proves incorrect, the results of salesforce.com, inc. could differ materially from the results expressed or implied by the forward-looking statements we make. All statements other than statements of historical fact could be deemed forward-looking, including any projections of product or service availability, subscriber growth, earnings, revenues, or other financial items and any statements regarding strategies or plans of management for future operations, statements of belief, any statements concerning new, planned, or upgraded services or technology developments and customer contracts or use of our services.

 The risks and uncertainties referred to above include – but are not limited to – risks associated with developing and delivering new functionality for our service, new products and services, our new business model, our past operating losses, possible fluctuations in our operating results and rate of growth, interruptions or delays in our Web hosting, breach of our security measures, the outcome of any litigation, risks associated with completed and any possible mergers and acquisitions, the immature market in which we operate, our relatively limited operating history, our ability to expand, retain, and motivate our employees and manage our growth, new releases of our service and successful customer deployment, our limited history reselling non-salesforce.com products, and utilization and selling to larger enterprise customers. Further information on potential factors that could affect the financial results of salesforce.com, inc. is included in our annual report on Form 10-K for the most recent fiscal year and in our quarterly report on Form 10-Q for the most recent fiscal quarter. These documents and others containing important disclosures are available on the SEC Filings section of the Investor Information section of our Web site.

 Any unreleased services or features referenced in this or other presentations, press releases or public statements are not currently available and may not be delivered on time or at all. Customers who purchase our services should make the purchase decisions based upon features that are currently available. Salesforce.com, inc. assumes no obligation and does not intend to update these forward-looking statements.

Innovation Drives New Experiences

Personalized Shopping

Share Health Data

Transportation On Demand

Automatic Updates

Building Competitive Advantage

Redefining Innovation

B A

Company-Centric Innovation

Inside – Out

Slow

Closed Process

No Customer Input

A

B

Customer-Centric Innovation

Outside - In

Agile

Transparent

Collaborative with Customers

Customer Brand Centric

Company Brand Centric

The Unintended Consequence of Innovation?

The Customer has Become More Disruptive

We’ve Entered the Connected, Digital World And now the customer is in control

 Cloud: Scale, performance, and real-time access

 Social: New places to meet our customers

 Mobile: Always-on, always-connected experiences

 Data Science: Relevant and personalized interactions

 IoT: Connected sensors, beacons, devices, and apps

While many companies have been admiring the opportunities digital brings, they have been focused

on ‘doing things better’ when getting dramatic results comes from 'doing things differently'

The Continuous Experience Reinvent Sales Processes to Accelerate your Customers Success

Customer Experience is?

Productivity Advocacy

Innovation

Marketing

Customer Service

Improved Collaboration

New Capabilities

Sales

Customer Insights

Business Growth Customer

Satisfaction

Competitive Advantage

Customer Experience Builds Advocacy

“In two years, 90% of companies expect to compete almost entirely on the basis of customer experience up from 36% two years ago.” – Laura McLellan, Gartner, quoted in Ad Age Sept. 2014

“…we’re not in the basketball business. We’re in the business of creating unique experiences.”

- Mark Cuban

“Do what you do so well that they will want to see it again and bring their friends.”

- Walt Disney

Customer Experience Leaders Outperform the Market 8-Year Stock Performance of Customer Experience Leaders vs. Laggards vs. S&P 500 (2007-2014)

Cum

ulat

ive

Tota

l Ret

urn

120%

100%

80%

60%

40%

20%

0%

107.5%

Customer Experience

Leaders 72.3%

S&P 500

Index 27.6%

Customer Experience Laggards

Source: © 2015 Watermark Consulting

Exhibit 1 People Most Often Consult Friends and Family Before Making a Purchase

13%

13%

10%

50% Friends and family

39% Company websites

35% Blogs and forums

Social media

TV

Newspapers and magazines

Radio

Percentage of people consulting each source before purchasing1

Sources: IntelliSurvey of more than 227,000 customers in Canada, France, Germany, Italy, Japan, Spain, the UK, and the U.S. in 2015; BCG analysis. 1The average of all countries and sectors covered in the survey; multiple answers were possible.

People are about more likely to consult friends and family than newspapers, magazines, television and social media

3% 4X-5X

Exhibit 2 Advocates Are Less Likely to Leave Than Critics, and They Spend More

Sources: IntelliSurvey of more than 227,000 customers in Canada, France, Germany, Italy, Japan, Spain, the UK, and the U.S. in 2015; BCG analysis. 1Customers who are willing to leave a company, are actively looking for better offers, or are already switching brands. 2Any product that a customer purchased in addition to the original product.

5

36

3

39

43

36

5

4

Strong advocates Strong Critics

Churn rate of advocates and critics (%)1 Additional products purchased by strong advocates vs. strong critics (%)2

19

30

74

255

Mobile telecom

Retail banking

Car insurance

Health insurance

Sales Disruption Sales Will Need to Become More Flexible

 The “2015 State of Sales” survey asked more than 2,300 global sales leaders about their priorities, challenges, metrics,

and strategies for the year. Here’s a quick look at the current state of sales.

The Reality for Sales Leaders

Customer connections take priority. This suggests sales leaders view growing a base of loyal, connected customers — rather than “one and done” deals — as instrumental to sustained success.

Top 3 Sales Objectives

Growth matters most. Increasing revenue, powered by an expanding customer base, outranks margin optimization as a measure of success.

Top 3 Sales Success Metrics

Acquire new customers

Amount of new revenue

Grow the value of existing customers

Number of new customers

Create deeper customer relationships

Amount of recurring revenue

80%

57%

46%

35%

55%

56%

Top 3 Sales Challenges

Sophisticated customers pervade the market. Sales teams have long felt the pinch of heightened competition and price wars, but the rapid rise of customer sophistication brings new complications as teams strive to stay connected in real time.

See increased market competition

Find customers seeking the lowest price possible

See customers’ needs have grown more sophisticated

58%

55%

47%

Process Driven

 Metrics drive behavior

 Numbers game

 Volume trumps value

 Results proportionate

 Pipeline is king

 Short term focus

 Roles defined

 Results based

 Lead to Advocacy

 Contextual

 Connected

 More art than science

Productivity Driven Sales Driven Customer Driven

 Defined steps

 Unnatural behavior

 Maximizes tools

 More Science than art

Sales Leaders Must Make a Decision – Rigor or Flexibility

Context is Everything

 The Future of Selling Will be Contextual

§  Understand a customers requirement

§  What is their starting point

§  What are the buying dynamics (Internal & External)

§  Are there any industry regulations driving the decision

§  Is there a solutions match

Not all Customer Engagements are Created Equal

Getting It Done

• This is not about selling products it is about selling change • Sales must facilitate the customers thought and decision process

• You must lead the change • Establish a customer-centric culture

• Get the right resources for the right customers • Start from the ‘outside-in’

• This is not about avoiding performance metrics • This is about promoting how you can improve your customers business in meaningful ways

• You must build the right skills and infrastructure • Sustain and Support the change from the first mile to the last mile

In the future ….customer driven sales organizations

Will completely reset value and meaningful engagement with customers

thank y u Tiffani Bova Global, Customer Growth & Innovation Evangelist [email protected] @Tiffani_Bova in/tiffanibova