Embracing Digital Disruption to Power Sales Growth

Sales Summit 2015
1 Day.
13 sessions.
14 Sales Thought Leaders.
www.salesforce.com/
sales-summit/
Join the conversation
#SalesSummit #DF15

Embracing Digital Disruption to
Power Sales Growth
#SalesSummit #DF15
 Yusuf Tayob
 Managing Director, Accenture
https://www.salesforce.com/sales-summit/

Digital Disruptors From Multiple Lenses
•  Customer
•  Competitors
•  Sellers
#SalesSummit #DF15 Copyright © 2014 Accenture All rights reserved.

Digital Disruption: Customer
Stakeholders
Procurement
C-level deciders
Business units/users
IT department
Open content & channels: twitter, linkedin, pinterest, youtube,
Branded content & channels:

Consumer
(B2C) Business (B2B2C/B2B)
More Accessible
More Continuous
More Dynamic Consumerized
Experience
Empowered
by the
Network
Never a
done deal
Faster, always-on,
eﬀortless choice
Inﬂuence beyond
brands’ reach
Re-evaluating
all the time
More empowered
Voice of Customers
Always in the channel
Customer Engagement Disruption
Digital Disruption: Customer

Innovators Early
Adopters
Early
Majority
Late
Majority
Laggards
Old curve of
market
innovation
Big-Bang Market
Segments
Trial
users
Everybody
else
Customer
Adoption
Disruptors are Everywhere!
Digital enables unencumbered development, resulting in
unprecedented disruption…
Digital Disruption: Competitors

Digital Disruption: Sellers
Operations
Disruption
•  Direct-to-customer
•  New players/value chains
•  Indirect channel growth
•  Blurred global/local
•  Talent efficiency boost
•  Role of face-to-face
•  Skill gaps (digital…)
•  Back-Office now to ‘Front’
•  Process Digitization
•  Much more collaborative
•  Front-Office convergence
Digital disruptions across Marketing, Sales & Service
Ecosystem
Disruption
Talent
Disruption

Fragmented,
even competing,
initiatives
Digital Customers
viewed as obscure,
special group
Lack of common,
material target to
rally around
New capabilities
applied to outdated
customer model
Digital Disruption: Barriers to Success

Sales as we know it… on the verge
of extinction?

Execution
Excellence & Ops
Drive Excellence in Execution
Put your money where your profit is
E
Price & Profit
Optimization
Deliver Profit, Not Just
Revenue
P
S
Enablement of Talent
Use Science to Improve Sales Talent
Spend Optimization
D
E
Digital Selling
Embrace Dynamic Channels
 5 Must-dos to Drive Profitable Growth at S-P-E-E-D
Copyright © 2014 Accenture All rights reserved.
How Digital Sellers Play to Win
#SalesSummit #DF15

Advertising
Channel Incentives
(Through/to Partner Promotions,
MDF, Rebates, etc.)
Sales Incentives
(Commissions, Bonuses,
SPIFs, etc.)
Price Discounts
SizeofClientSpend(BillionsAnnually)
Customer:
Unaided Consideration,
Qualiﬁed Leads
Channel Partner:
Qualiﬁed Leads,
Partner-led Sales
Sales Producer:
Direct Sales
Customer:
Propensity to Buy
Variable Sales & Marketing Spend Value Chain
Illustrative
 Companies invest $100s of millions to billions in variable costs to drive top-line
Spend Optimization

•  Less than ½ employ analytics to better understand customer needs and identify sales
opps
•  CSO’s rate visibility and ability to measure performance high – 68%, but…
only 1/3 actually track and measure sales Spend ROI
 Put your money where your proﬁtability is
Spend Optimization

Digital Sellers strategically align working sales spend – the costs CSOs control and influence – with an
intense focus on ROI to power profitable growth.
 Put your money where your profitability is
Spend Optimization

•  Best in class performers have nearly 2x the emphasis on improving margins and reducing
discounting.
•  44% report their sales managers need improvement in adopting and implementing clear,
effecting pricing strategies.
 Deliver Profit, Not Just Revenue
Price & Profit Optimization

Digital Sellers invest in price strategy adoption and deal-level governance,
monitoring outcomes to boost profit.
The story of rounding…
•  Salesperson’s price worksheet:
$76,352 ---- becomes ---> $75,000
•  1.2% to 1.5% rounding is not such a big deal but adds up…
1% improvement in price, or profit optimization, is often worth 10% in EBIT…
 Deliver Profit, Not Just Revenue
Price & Profit Optimization

Enterprise
Value
FIN
Maturity
Decentralized and
Reactive Practices
Cost Effectiveness and
Efficiency Gains
1st Generation
2nd Generation
Next Generation
Sales Operations
Beyond Efficiency to
Become the Sales
Information Engine
Cost Center Revenue Enabler
Geo 1 Geo 3Geo 2
Ops Ops Ops
Global
Activity Management
Order Management
Incentive Compensation
Pricing & Configuration
Territory Management
SharedService
Support#SalesSummit #DF15 Copyright © 2014 Accenture All rights reserved.
Sales Execution Excellence and Operations

•  Fewer than 50% of Firms have broadly adopted their CRM technology.
•  Only half (51%) of companies follow a formal selling process…
•  …and very few (8%) of companies report sales methodology adoption.
 Drive Excellence in Execution
Execution Excellence and Operations

Digital Sellers architect the selling experience to serve the non-stop customer, embracing Digital and Cloud
as catalysts for change, and evolving operations to be the “insight engine” for sales.
 Drive Excellence in Execution
Execution Excellence and Operations

Enablement of Sales Talent#ofSales
Reps
Performance
The top
20% are
bringing in
62% of the
revenue!
80% of the
sales force only
brings in 38%
of the revenue
What’s diﬀerent about those top 20%?
§  Is it their skills and competencies?
§  Is it their personality attributes?
§  Is it their behaviors?
§ Yes, Yes and Yes….
* SOURCE: CSO Insights

•  Attrition has increased, especially among the better performers.
•  Hiring processes lack needed rigor – 59% plan to add to their sales force, yet 44% of
ﬁrms struggle to land top talent.
•  Training investments have increased, yet reported eﬀectiveness has declined… leaving a
large proportion of sales reps in the “frozen middle”.
 Use Science to Improve Sales Talent
#SalesSummit #DF15
Enablement of Sales Talent

Digital Sellers apply science to uncover the DNA of high performing sellers, apply those insights to the
sales coverage model, roles, and enablement, and
move the “frozen middle”.
 Use Science to Improve Sales Talent
#SalesSummit #DF15
Enablement of Sales Talent

•  Non-stop customers are 58% through the buying process by the time of the ﬁrst sales
call.
•  CSOs expect 12% of sales to come from Service, but Sales and Service are
disconnected…
•  …and Marketing and Sales don’t even agree on the common deﬁnition of a lead.
 Embrace Dynamic Channels
Digital Selling and Dynamic Channels

Digital Sellers use technology to get the right opportunity to the right sellers at the right time, embrace the
evolving role of retail and the channel partner, and are reorienting the front oﬃce to collaborate around the
non-stop customer.
 Embrace Dynamic Channels
Digital Selling and Dynamic Channels

Salesforce Sales Leadership Community
www.salesforce.com/salesleadership
#SalesSummit #DF15

Embracing Digital Disruption to Power Sales Growth

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