Sales ROI Benchmarking

Sales ROI Benchmarking Al Falcione, salesforce.com Rick Davis, SunTrust Wes Benwick, Bennett’s Business Systems Track: Sales Executive Track

Safe Harbor Statement ,[object Object],[object Object],[object Object],[object Object]

Agenda ,[object Object],[object Object],[object Object],[object Object],Al Falcione Salesforce.com Rick Davis SunTrust Wes Benwick Bennett’s Business Systems All

Al Falcione Director, Product Marketing Salesforce.com [email_address]

What is ROI? Return on Investment (ROI) Benefit - Cost = Revenue or Net Profit Total Cost of Ownership Payback Period (months) Total Cost Benefit (per month) Internal Rate Return (5 year) Benefit - Cost Cost (over 5 years) NPV (months) Benefit - Cost (discounted)

Use ROI for Everything ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Buy

A Process for Measuring ROI 1. Develop CRM Goals ,[object Object],[object Object],4. Map Salesforce to Metrics 5. Cross Organizational Buy-in 7. Identify TCO 6. Map Improvements to Financial Results 8. Calculate the Hard Dollar ROI ,[object Object],Source: Adapted from “Building a Business Case for CRM,” Gartner, 2006.

Key Metrics for ROI Model Satisfied Customers Leads Deals Customers Close Rate Cases Resolution Rate Case Rate Conversion Rate Sales Service & Support Marketing

Mapping Salesforce to Key Metrics Higher Forecast Accuracy ,[object Object],[object Object],[object Object],Establish High Forecast Accuracy Visibility 5-10% improvement in conversion rates ,[object Object],[object Object],[object Object],[object Object],[object Object],Improve Lead Quality and Conversion Rate Lead Management 2-5 hours per week per rep ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Sales Productivity (Time) 2-5% higher close rate ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Establish Consistency of Best Practices in Sales Process Sales Effectiveness Typical Improvement %* How Salesforce Helps (examples) Typical Metrics Goal

Rick Davis Senior Vice President and Manager, Commercial Information Services SunTrust [email_address]

SunTrust Bank Profile ,[object Object],[object Object],[object Object],[object Object],[object Object],INDUSTRY: Banking EMPLOYEES: 35,000 GEOGRAPHY: Southeast US PRODUCT(S) USED: SFA, Service & Support # USERS: 2700

Key Strategy and Business Objectives ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Key Challenges ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Solution: Drive Consistent Sales Process ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Solution: Cross LOB Partnership: 360 Degrees ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Improvement in Referral Participation ,[object Object],[object Object],[object Object],Improvements from Salesforce: Loans: 5% Treasury Management: 7% Corporate Finance: 21% Personal Wealth Management: 31%

Improvement in Sales Activities to Identify More Opportunities ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Calls per Salesperson per month Sales Activities Improvement with Salesforce 8% CAGR

Improvement in Lead Relationships ,[object Object],[object Object],[object Object],[object Object]

ROI from Salesforce ROI on Salesforce (2 years) 997% NPV on Salesforce (2 years) $2 Million Revenue ($US) 18% CAGR SunTrust Revenue

Key Success Factors ,[object Object],[object Object],[object Object],[object Object],[object Object]

Wes Benwick President & CEO Bennett’s Business Systems [email_address]

Bennett’s Business Systems Overview ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],INDUSTRY: Office Equipment REVENUES : 10-12 Million/Year EMPLOYEES: 75 GEOGRAPHY: North Florida # USERS: 25

ROI Targets and Problem Areas ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

ROI Goals and Results ,[object Object],[object Object],[object Object],[object Object],Began using Salesforce.com 12 Month Trailing Sales Revenue 1999 Today 6 Million 4 Million Total Days of Sales Employment by Month 1994 Today 25,000 15,000 Began using Salesforce.com

SFA Solution for Driving Positive Return ,[object Object],Made it easier to get data concerning our customer’s assets and histories In Return, we hold our sales department accountable for providing account intelligence in real time Make a deliberate effort to find new data and processes to integrate with 100% Adoption

Positive ROI for Bennett’s Sales Organization ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],$65K/year savings At 30% Closing Rate, 1.5 Million in potential $300K Avg Increase Sales GP/Year $78,000/year In labor savings $177,000/year In Sales GP

Positive ROI for Bennett’s Sales Organization ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],$177,000/year In Sales GP $65K/year savings At 30% Closing Rate, 1.5 Million in potential $300K Avg Increase Sales GP/Year $78,000/year In labor savings

Positive ROI for Bennett’s Sales Organization ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],This leads to increased Sales GP, It is more of a Potential ROI $65K/year savings At 30% Closing Rate, 1.5 Million in potential $300K Avg Increase Sales GP/Year $78,000/year In labor savings $177,000/year In Sales GP

Positive ROI for Bennett’s Sales Organization ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Offsets cost of a Developer/Admin This leads to increased Sales GP, It is more of a Potential ROI $65K/year savings At 30% Closing Rate, 1.5 Million in potential $300K Avg Increase Sales GP/Year $78,000/year In labor savings $177,000/year In Sales GP

Positive ROI for Bennett’s Sales Organization ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Offsets cost of a Developer/Admin Future growth of Sales Revenue & GP will come from here $270,000 This leads to increased Sales GP, It is more of a Potential ROI $65K/year savings At 30% Closing Rate, 1.5 Million in potential $78,000/year In labor savings $177,000/year In Sales GP $300K Avg Increase Sales GP/Year $78,000/year In labor savings $177,000/year In Sales GP - $30,000 (Annual User Lic.)

Positive ROI for Bennett’s Sales Organization ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Offsets cost of a Developer/Admin Future growth of Sales Revenue & GP will come from here $270,000 900% ROI for FY2005 This leads to increased Sales GP, It is more of a Potential ROI $65K/year savings At 30% Closing Rate, 1.5 Million in potential $78,000/year In labor savings $177,000/year In Sales GP $300K Avg Increase Sales GP/Year $78,000/year In labor savings $177,000/year In Sales GP - $30,000 (Annual User Lic.)

Ongoing Measurement ,[object Object],[object Object],Daily “Best Case” Snapshot $250K $255K $260K $250K

Ongoing Measurement ,[object Object],[object Object],Potential ROI of $100K per year if we can increase inventory turns by forecasting inventory better. Daily “Best Case” Snapshot

Ongoing Success ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Show Up + Follow Up = Sales Go Up Adoption + Decreased Turnover

Al Falcione Director, Product Marketing Rick Davis SPEAKER TITLE HERE Wes Benwick CEO QUESTION & ANSWER SESSION COMPANY NAME/LOGO COMPANY NAME/LOGO

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Sales ROI Benchmarking