Inside Sales Steering Committee Review

111/3/2016 SBI Proprietary & Confidential. All rights reserved. 111/3/2016 SBI Proprietary & Confidential. All rights reserved.

ACMEUS Telesales Growth Initiative


“What is the role of Telesales to

support the growth of SaaS and high

value customers?”


EXECUTIVE SUMMARY

SBI has assessed the role of Telesales across:

4 Lenses of Discovery: Corporate, Customer, Field, Market

Sales Execution Framework: Planning, Engagement, Support

Overview: Telesales has strong leadership and has well defined strategy. Opportunity to improve performance through stronger tactical execution

5 major opportunities have been identified:

1. Align talent and sales functional strategies2. Improve conversion by reorganizing sales team and optimizing

processes3. Focus selling initiatives in customer base to drive attach and

maximize4. Reduce High Value Churn by building Customer Success org5. Follow-Up on No Sales by creating closed loop process for nurturing

and developing


ACME IS LEVEL 3

15%

DESCRIPTION

The Revenue Growth Maturity Model (RGMM) is used by organizations to assess how

they rank in terms of strategic alignment today, and helps them pinpoint where they

would like to be assessed in the future.

OUTCOMES

ACME has been assessed and plotted along the 5 Levels of the Revenue Growth Maturity Model:

•Level 1 – Chaos: Corporate Strategy documented, but Functional Strategies do not exist

•Level 2 – Defined: Corporate & functional strategies documented, but not implemented or aligned to each other

•Level 3 – Implemented: Corporate & functional strategies documented and implemented at functional level but not aligned

•Level 4 – Managed: Corporate & functional strategies documented, implemented and aligned internally to each other

•Level 5 – Predictable: Corporate & functional strategies documented, implemented and aligned internally to each other and the market

There is a strong correlation between the assessed level and two key valuation metrics – Customer Acquisition Costs (CAC) and Customer Lifetime Value (CLTV). As maturity level improves, CAC is reduced and CLTV is improved.

Benchmark data indicates companies that move from Level 3 to Level 5 on the RGMM reduce their CAC by upwards of 22% and increase CLTV by 18%.


ACME IS LEVEL 3

Level 3 Description ACME Application

Corporate and functional strategies have been defined through an annual planning exercise and implemented along functional silos.

Functional strategies appear to be in line across functional areas (Corp, Product, Marketing, Sales, Talent). Evidence of functional strategies being silod and not aligned (e.g., product not aligned with BU sales or marketing efforts, talent not aligned with sales)

Each level in the function understands their strategy and abides by it.

Each cross-functional leader has a charter

Organizations can point to behavior changes in each of the functions.

Since re-org agents and managers have taken on new actions and processes, and are adopting the new way

Past accomplishments are repeatable; management can truly depend on their execution.

Performance of inbound and outbound teams are consistent across Tucson and Fredericksburg, validating that methods and processes are consistent and repeatable

While friction within each function has been removed, it still exists among adjacent functions

Telesales working to identify how it supports the BU when selling a SaaS offering that is trending away from phone sales to online purchasing

Customers are still confused by their experiences (non-alignment with external market)

Customers seek product selection advice from Telesales, even from online channels. Feature differences given increased online price point is confusing to the market. Non-integration of products from customer perspective (multiple billings) causes frustration.

BU ObservationsTelesales observations


THE VALUE OF STRATEGIC INTERNAL AND EXTERNAL ALIGNMENT

CAC REDUCTION BY LEVEL

(estimated)

% OF REVENUE INVESTED ON CORE STRATEGIC AREAS

When ACME achieves strategic alignment, Customer Acquisition Cost (CAC) declines, and with

new subscription focus, Customer Lifetime Value (CLTV) increases.

LEVEL 3

(Current)

LEVEL 4 LEVEL 5

$292 $245 $204

-16% -30%

SALES UNDERFUNDED FROM TYPICAL B2B ORG REDUCE CAC INCREASE CLTV

CLTV INCREASE BY LEVEL

(estimated)

LEVEL 3

(Current)

LEVEL 4 LEVEL 5

$1,470 $1,538 $1,715

ACME TYPICAL B2B

PRODUCT

MARKETING

SALES

TOTAL

12.2% ($37.7M/309M)

11%

5%

19%

35%

12%

19%

5%

11%

0%

5%

10%

15%

20%

25%

30%

35%

40%

INTUIT (SBG) TYPICAL

SALES MARKETING PRODUCT

$292

$245

$204

LEVEL 3

(Current)

LEVEL 4 LEVEL 5 0%

2%

8%

13%

26%

LEVEL 1 CURRENT LEVEL 3 LEVEL 4 LEVEL 5

Source: FY17 Channel sales Strategy, LTV to CAC for Rob Offsite v2.ppt.


US TELESALES HAS A SOUND STRATEGY, BUT THERE ARE OPPORTUNITIES TO IMPROVE EXECUTION

INEFFECTIVELY

DIE QUICKLY

A poor plan executed brilliantly

THRIVE

A brilliant plan executed brilliantly

DIE SLOWLY

A poor plan executed poorly

SURVIVE

A brilliant planexecuted poorly

EFFECTIVELY

INEFFI

CIE

NTL

YEFFIC

IEN

TLY

STRATEGY –

DOING THE RIGHT THINGS

TAC

TIC

S –

DO

ING

TH

ING

S R

IGH

T

Great Strategy, Focus and Direction Opportunity to Improve Tactics and Execution

Drop in IB and Supplies that would result in -12% CAGR. Need for improved Talent execution (Compensation aligned with business objectives, Sales Competencies developed for talent management, and improved coaching effectiveness

Set strategy to get more from customers via OB and Accounting channels, and Saves. Result is +5% CAGR

Opportunity to improve conversion through improved sales tactics (Ecosystem sales model, SaaS Product fit discovery, etc.)

3 year channel vision around consultative sales process, unlocking SaaS ecosystem, and growing High-Value

Telesales is currently only partially leveraging its 4.5M customer base to drive HV customer growth and is well below SaaS benchmark

Strong Leadership in with good business understanding Following-up on High-Value No Sells. Currently no defined lead nurture programs exist

Sales talent largely capable of executing strategy with improved process and coaching

Tactics are not in place to reduce churn. Churn in SBGs highest value customer segments (50% of revenue) are well over benchmark

Created 4-Step Outward-In Sales Process

B-

Strategy Tactics


USING THE SALES STRATEGY FRAMEWORK, WE ASSESSED US TELESALES AGAINST THE FOLLOWING CRITERIA

Aligned to Best Practice

Gap to Best Practice

Significantly Off Best Practice or Non-Existent

4 STEP METHODOLOGY

PLANNINGPlanning phase is where you develop sales and data plans that will make

the number. This will help you plan for how you will reach your goal. With the

right plans in place, you improve your chances of success

ENGAGEMENT

Engagement is where you define how the sales team is going to interact

with prospects and customers. The process definition continues through the

sales process that must match the way buyers turn their initial interest into a

decision to buy

ORGANIZATION

Organization is where you set up the correct organizational structure so the

right people are in the right roles to execute the processes. This is where you

figure out how to deploy the resources you secured in the Planning Phase.

Then make sure they are the right resources to execute the processes

defined in the Engagement Phase

SUPPORTSupport is where you help the Sales team’s effectiveness by removing their

non-selling responsibilities and streamlining those that can’t be off-loaded


What do we need to make it successful? Quartile all reps, develop PBX

routing system to ramp an increase in calls to the best reps

What is it?

Route calls to reps available in queue with highest revenue per call.

Motivates reps to focus on revenue per call and results in significant

sales improvement

Why are we doing it?

This has a significant revenue impact for Telesales and is a best-

practice among call centers

Who should own it? Sales leadership

What will it cost and what is the impact?

There is an $8M revenue increase when shifting 25% of the call

volume from Tier 2 consultants to Tier 1 (Best), Tier 3 to Tier 2, and

Tier 4 to Tier 3.

What are the key metrics/KPIs?

Call volume per consultant, revenue per call, call type, handle time,

abandon rate

55%

Who is doing this?

55% of top performing call centers surveyed have some sort of performance or skills based call routing

Source: YTD Calls and Sales Aug-May 2016 Andrew Taylor,

Bottom

Tier

Top Tier

89,036

144,204

113,243

116,576

66,777

130,412

120,983

144,887

Tier 4

Tier 3

Tier 2

Tier 1

New Routed Totals Current Call Total

25% of calls are transferred from each Tier.

Growth + Cost -

SaaS

High-Value

2

SMART CALL ROUTING WILL GENERATE $8M IN ADDITIONAL TELESALES REVENUE

8


32%

30%

28%

10%

Call Volume

Breakdown by

Category

What is it?

Capture critical data on “tire-kickers” (no 1st call closes) to enable

lead nurture process to get customers back into sales funnel

Why are we doing it?

68% of customers don’t buy initially. 30% are redirects. 28% of

customers have an opportunity for future purchase. 10% of

customer are not product fit. Lead nurture is low cost and keeps

customers engaged and in-funnel

Who should own it? Marketing

What will it cost and what is the impact?

Base don benchmark there is a 10% or greater impact to an

automated lead management system which equates to $15M in

additional revenue to IB and OB teams

What are the key metrics/KPIs?

Percent (%) of recipients who request further nurture content, SQL, MQL,

lead to conversion rates, trial conversion rates ($ and %), campaign

MQL goals, email blasts open rates, and upgrade and retention rates

Companies that automate lead

management see a 10% or greater increase

in revenue in 6-9 months.

(Source: Gartner Research)

Benchmark:

Buy

Re-directs

Don’t

Buy

No Prod Fit

What do we need to make it successful? Continue developing ELOQUA

to build out tracking mechanisms for web/OA, phone calls, and

chat leads

$449

$493

Increase in IB/OB Revenue

by 10% over 3 Years

IB & OB FY'16 Rev 10% Increase

Growth + Cost -

SaaS

High-Value

5

DEVELOPING LEAD NURTURE PROCESS WILL GENERATE $49M IN ADDITIONAL TELESALES REVENUE

14


LEV

EL

OF

EFFO

RT

HIGH MEDIUM LOW

MO

DER

ATE

HIG

HVE

RY H

IGH

TACTICAL PRIORITIZATION

Generalist Sales Org 145

Call Routing to Top Reps 8

Variable Comp, $/Sale

221

Pipeline Nurture Process 49

Combine IB/OB Teams 17

Improved Coaching 148

SaaS Qualification/

Data Capture 114

Simplify Systems26

Targeted Trial Conversions 11

Reduce Call Redirects 2

LEVEL OF IMPACT

Hiring tied to Sales Competencies 44

Stand-Up Customer Success

Org 60

Onboarding Cross/Up-Sell 6

Sell into Base to increase HV 247

Inside Sales Steering Committee Review

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