Sales Benchmark Index's Bryce Record webinar on how best-in-class sales forces are segmenting their accounts to determine the real potential. Learn how to find hidden revenue opportunities, rank your accounts based on potential and balance territories.

1. December 15, 2011

2. Logistics for today’s call….
 All attendee’s will be on “silent” mode during the
presentation.
 Please utilize the “Questions” feature to ask questions;
simply type in your question and press enter.
 At the conclusion of the presentation, the moderator
will facilitate the “Question & Answer” session
utilizing the “Questions” feature.

3. Sales Benchmark Index will….
 Send a copy of the presentation to you
 Additional questions can be sent directly to:
Bryce.Record@salesbenchmarkindex.com
Join us for our next Webinar….
 Filling Open Reqs with Top Talent Fast –
Recruiting, Selecting, and Ramping Sales Leaders
 January 12, 2012
 1:00 p.m. Central
 30 minutes
 Register at http://www.salesbenchmarkindex.com/

4. Bryce Record
Brief Bio
 Sr. Consultant at Sales
Benchmark Index
 Mgr of Sales Operations and
Analysis at Corporate
Express/Staples
 Mgr of Sales Pricing Operations
at The TriZetto Group
 12 years of B2B sales experience,
both field and corporate

5. Overview
Questions you need to answer
 Is your existing customer account base segmented?
 How can you determine true territory potential?
 Are your territories optimized and balanced?
 Are territories aligned with individual rep targets or quotas?
 Does your CRM capture your territory potential, preserving key
institutional market knowledge when reps leave?

6. Territory Optimization Goal
 Balance work load
 Spread Prospects, Opportunities and Customers
evenly
 Improve forecast accuracy
 Improve win rates
 Align sales capacity with market potential

7. Territory Design Process
Step 2 Step 4
Step 3 Step 6
Step 1 Analyze Map Prospect Step 5
Determine Review and
Baseline Existing / Customer Produce
Market Refine
Current Perf Customer Data to Territories
Potential Assignment
Spend Territories
Objective
Establish a sales territory design that optimizes and aligns sales capacity with
market potential

8. Step 1 – Baseline Current Performance
 Best Practice to analyze and understand by Territory/Rep:
1. Win Rate – Understand and measure this in the future
2. # of Opportunities
3. Pipeline Revenue Forecasted
 Understand Quota Attainment impact on rep by rep basis
Pipeline ($ Forecasted
Account Region Account Executive # of Opportunities FY11 Quota Gap ($) Gap (%)
Millions) Pipeline Revenue
Asia Pacific Rep 1 11 $41.0 $13.1 $13.5 -$0.4 -3%
CALA Rep 2 6 $11.1 $3.5 $1.3 $2.2 172%
Rep 3 27 $37.8 $12.1 $39.0 -$26.9 -69%
Rep 4 7 $46.0 $14.7 $10.4 $4.3 42%
Rep 5 11 $24.5 $7.8 $10.4 -$2.6 -25%
Europe Rep 6 9 $18.9 $6.1 $7.8 -$1.7 -22%
India Rep 7 7 $16.4 $5.3 $13.0 -$7.7 -60%
Rep 8 17 $19.3 $6.2 $5.0 $1.2 23%
Rep 9 20 $41.8 $13.4 $52.0 -$38.6 -74%
Rep 10 14 $65.9 $21.1 $20.0 $1.1 5%
Middle East/Africa Rep 11 7 $18.9 $6.0 $10.0 -$4.0 -40%
Rep 12 3 $11.3 $3.6 $12.0 -$8.4 -70%
North America Rep 13 10 $5.2 $1.7 $7.8 -$6.1 -79%
Rep 14 19 $16.7 $5.4 $14.3 -$8.9 -63%
Rep 15 12 $14.5 $4.6 $7.8 -$3.2 -41%
Rep 16 3 $4.7 $1.5 $11.0 -$9.5 -86%
Rep 17 10 $18.9 $6.0 $11.0 -$5.0 -45%
Key Account Rep 18 2 $1.5 $0.5 $3.9 -$3.4 -87%
Grand Total 195 $391.8 $125.4 $325.3 -$199.9 -61%

9. Step 2 – Understand Spend by Customer
Significant change in Median Customer Spend at
the 1,000 employee threshold and again at 2,000
employees
(1) Total Sales (USD) Captures multi-year customer spend

10. Phase 3 – Prospect DB – Build Steps
 Evaluate Existing Customer Spend
 Cut by multiple level and layers
1. Revenue
2. Industry
3. Geography
4. Number of Employees
5. Number of Locations
 Determine what “Drives” the spend. As you review
data, ask yourself which of the firmographic elements
above show a high affinity towards higher spend

11. Step 3 – Build and Forecast Prospect Potential DB
 Prospects included based on:
# of Prospects x Customer Spend = Territory Potential

12. Step 3a – Forecast Spend Potential
 Evaluate customer potential in relation to Total Prospect Employees

13. Step 3b – Forecast Spend Potential
 Future iterations should include added precision of:
Potential spend by Revenue

14. Step 3c – Forecast Spend Potential
 Future iterations should include added precision of:
Potential spend by # of Subscribers by Operator by Country
Example of Brazil

15. Phase 3d – Final Forecast to Predict Potential
Annua l N umbe r of Fore ca ste d
Compa ny (Prospe ct) R e v e mploye e s Custome r Size Bucke t Sa le s
Amp Group Holdings Limited
$ 963 2,014 >=2,000 Empl $ 587,193
Pgg Wrightson Limited $ 954 1,995 >= 1,500 and <2,000 Empl $ 277,170
Goodyear Tyres Pty Ltd $ 924 1,937 >= 1,500 and <2,000 Empl $ 277,170
Dp World Holdings (Australia) Limited
$ 880 1,852 >= 1,500 and <2,000 Empl $ 277,170
Tbp Group Pty Ltd $ 872 1,836 >= 1,500 and <2,000 Empl $ 277,170
Bandelle Pty Limited $ 872 1,836 >= 1,500 and <2,000 Empl $ 277,170
Suncorp-Metway Ltd $ 8,592 16,953 >=2,000 Empl $ 587,193
Manningtree Investments Pty Limited59
$ 8 1,811 >= 1,500 and <2,000 Empl $ 277,170
Input data to
regression. Use if R-
Square is >65%
How to read a
regression
equation, then
use formula to
predict sales

16. Step 3e – Peak Performance Replication
Customer Employees vs. Customer Spend
85960 80th Percentile
34726
14900 Frontier
8563
5928
3969
2900
Customer Employees
2000
1600
1135
790
550 Stretch Frontier
403
308
244
200
130
90
63
40
20
10
$- $50,000 $100,000 $150,000 $200,000 $250,000
Annual Customer Spend
Total Employees Linear ( Total Employees )

17. Step 4 – Map information to territories
 Territory Pot = Existing Customer Base + Pipeline + Prospects
 Overlay 3 Components and remove duplicates
Territory Size
# of # of # Total Territory
Territory Rep ($M Potential
Opportunities Prospects Customers (# of accounts)
Spend)
Terr #1, N.
John Smith 71 432 12 515 $192.0
America
 Produce Territories with concise geographic boundaries:

18. Step 4a – Produce Balance Territories

19. Phase 4b: Optimizing Territories
 141 customers selected (Blue Zips highlighted)
Geographic Analysis
shows that 141
customer are in
targeted area.
Note that you can
change Territory
boundaries by
dragging and
dropping.

20. Step 5 – 6: Produce and Refine Territories
 Understand Potential Distribution
 Prioritize Accounts in each Territory
 Best Practice: Assure reps with largest work capacity and historical win rate
get largest Territorial Patch
 Know Prospect density
Heat Map Identifying Opportunities + Prospects by Geography

21. Input to: Territory Sizing Calculator
Territory design
calculator
Data
Assumption

22. Sales Territory Design Questions
1. Have you segmented your existing customer base?
2. Do you understand what drives customer spend?
3. Have you used customer spend knowledge to flesh
out market potential?
4. Does your knowledge of the above impact
forecasting accuracy?
5. Are your territories balanced?

24. Further interest….
Sign-up for a free sales methodology planning consultation by:
E-mailing info@salesbenchmarkindex.com
 Additional questions can be sent directly to:
Bryce.Record@salesbenchmarkindex.com
Join us for our next Webinar….
Filling Open Reqs with Top Talent Fast – Recruiting, Selecting, and
Ramping Sales Leaders – RSVP Here
 Thursday, January 12th , 2012
 1:00 p.m. Central
 30 minutes
 Register at http://www.salesbenchmarkindex.com
Thank-You for attending…