Capability Value Map Best Practice

Salesforce.com

Best Practice Overview

It is important to define early in the program which metrics will be monitored and how they will be measured, so that the benefits achieved can be closely tracked. For example, progress on the following business goals could be tracked with these metrics:

– Increase revenue by acquiring new, profitable customers: Percentage Accepted Leads to Sale

– Increase revenue by retaining customers: Percentage Sales to Repeat Customers

– Reduce costs by reducing sales costs: Average Number of Sales Calls per Sale

We have provided a template to assist in building your objectives and how you will measure them as well as a value map to tie business objectives to Salesforce capabilities.

Why complete a CVM?Define and prioritize your business objectives

Map Salesforce capabilities to business objectives

– Provide feedback to modify the CRM strategy and implementation

– Establish tools for change management

Articulate definition of success

– Provide a way to measure results

– Set and gauge the level of success in meeting CRM objectives

Hold individuals accountable for results

– Make mid-course corrections as necessary

– Create transparency regarding goals and progress at the macro and individual level

– Eliminate the need for “oral history” and replace it with data on the development of strategies and objectives

Define KP Is

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ratio

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alidation

Define KPIs• Pick limited set of metrics• Tie each metric to an objective

VisionStrategy

Objectives

• Provide visibility to how the initiative is tracking against business goals• Identify areas where program is not achieving business results and provide corrective actions • Develop a single, consolidated list of program metrics used by all regions and user groups

Operationalize • Identify salesforce.com

capabilities• Build, configure and deploy

application

Validation• Audit data to create

credibility• Empower managers to

change behavior and business process based upon reports/dashboards results

Capability Value Matrix ProcessTracking progress of vision and strategy

Capabilities Value MapTie business objectives to Salesforce capabilities

Revenue Generation

Value Drivers Business Objectives Capabilities

Salesforce for Google Adwords

Increase Revenue Acquire New Profitable Customers

Marketing Campaign Management & Measurement

Web-2-Lead/ Lead Assignment Rules

Lead Generation & Qualification

Legend

Marketing

Sales

Service & Support

PRM

Data-Insight

Partner/External

Force.com PlatformGrow Existing

Customers

Increase Sales to Existing Customers

KPI

Customer Retention Increase Retention of Existing Customers

Customer Profitability Improve Sales Effectiveness

Cost Avoidance Avoid Strategic Project Costs

Cost Reduction Reduce Business Operation Costs

Maintenance Risk Remove Risk of Legacy Platform Use

Regulatory Risk Reduce Risk from Regulatory Compliance

Customer Satisfaction Improve Customer Interactions & Insight

User Satisfaction Improve User Interactions

Partner Lead Collaboration

Partner Deal Registration

Competitor Data Management

Account Management

Planning

Cross-sell and up-sell

Personalized Customer

Interactions

Marketing Campaign Management & Measurement

Customer Survey

Customer Segmentation

Customer Value Management

Personalized Customer

Interactions

Customer Self-Service

Team Selling

Customer Survey

Salesforce Ideas

Incentive Program

Management

Account Management

Planning

Consistent Sales Methodology

Automatic Competitive Information

Account Intelligence

Salesforce Mobile/Offline/

Outlook Connect

Force.com Platform

Infrastructure & Hardware (Force.com)

Project Management

Centralized Marketing Encyclopedia

Sales Process Consistency

Service Process & Escalation Automation

FAQ & Knowledge Database

Expense Management

Force.com Platform Salesforce Applications & Releases

Audit & History Tracking

Usage Patterns

Customer Self-Service

Product Configuration, Pricing & Quoting

SLA Management

Sales Process Consistency

Contact Data Management

Customer Survey Personalized Customer Interactions

Microsoft IntegrationCustom Interface

with Visualforce

Online Product & Services

information

Mobility Competitor Data Management

Account Data Management

Reports & Analytics

Product Configuration, Pricing & Quoting

Partner Lead Collaboration

Opportunity Pipeline Visibility

Vision

Cost Savings

Risk Mitigation

Satisfaction

Compliance Salesforce to Salesforce

Workflow Engine/ Approval Workflow

SAP/Oracle Connect

Sandbox Salesforce Ideas

Center of Excellence

Salesforce Content

Activity Management

Improve Customer

Satisfaction

CTI Integration

SLA Management

Workflow Engine/ Approval Workflow

Data Quality Dashboards

AppExchange

Best PracticesUse a Capability Value Map to prove the business case

Objectives - Define and prioritize

– Focus on business objectives (drive more revenue, sales rep productivity, retire existing apps, etc.)

Design KPIs / Metrics - Quantifiable measurements agreed upon in advance

– All business behavior can be measured

– Quantifiable measurement indicates if business is making progress toward goals and objectives

– KPI’s bridge the gap between business objectives and Salesforce capabilities/roadmap

Operationalize - Mechanisms for tracking and viewing progress

– Translate objectives into actual Salesforce capabilities

– Configure and build application based upon capabilities

– Deploy Salesforce dashboards and reports designed to capture measurements

Validate – Is the data telling you what you expect

– Identify who owns the data in the reports and dashboards

– Empower people to change business processes based upon the data

– Embed a discipline of dashboards/reports into the management process

– Be candid and pragmatic about what the data tells you

– Interpret KPIs/metrics to drive behavioral change

Worksheet Example Best practice – create a business value matrix

SFDCCapturedMediumMediumAverage number of

calls made per closed opportunity

Average Number of Sales Calls per Sale

Reduce number of sales calls per sale

SFDCCapturedLowMediumAverage number of active opportunities

managed by AM

Average Number of Deals per Account Manager

Increase number of deals managed by each user

Reduce Business Operation

Costs (Sales)

Cost Reduction

SFDC & Other

Not Captured

LowHighMeasure repeat purchase deals against all deals

Repeat Purchase Rate

Increase repeat purchase rate

SFDC & Oracle

Not Captured

LowHigh

Percentage of sales associated

with repeat customers

% of Sales to Repeat Customers

Increase sales to existing customers

SFDCNot

CapturedLowHigh

Percentage of deals with up sell

Sales Generated Up sell

Increase up sell

Increase Retention of

Existing Customers

SFDCNot

CapturedLowHigh

Percentage of sales associated

with new customers

% of Sales to New Customers

Increase number of new customers

SFDCNot

CapturedLowHigh

Percentage of leads accepted that have been

closed

% of Accepted Leads to Sale

Increase sales to new customers

Acquire New Profitable

Customers

Increase Revenue

SourceReadiness for Capture

Ease of Capture

PriorityDefinitionHow to Measure

the Behavior Changes – Metric

Behavior Changes that

Lead to Outcome

Business Objective

Value Driver