Social Selling: The ROI For Your Team
Flexing Sugar Platform
Christopher Lamb
IBM Program Director, Social [email protected], Twitter: chrisscottlamb
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Agenda
Your Sales Team
Social Selling
ROI Methodology
How to get started?
Questions
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#ibmsocialbiz
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Challenges for your Average Sales Person
Takes too long to prepare for customer meetings
Difficulty finding relevant and current product information
Forced to use tools that don't help them sell
Wasting time on leads that don't pan out
Need to understand portfolio with little training
Changing roles weaken relationships Spend too much time doing reports and
not enough time selling to customers
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Reach Spend more time with customers
Discover Understand their customers better than the competition
Act Focus on opportunities that create the most profit
Engage Know experts across the organization who help him close deals
Characteristics of Top Sales People
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Agenda
Your Sales Team Social Selling
ROI Methodology
How to get started?
Questions
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Focus on management Focus on selling
Create a team of top performers with Social Selling
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Reach - Spend more time with customers
Access to experts, content and communities from Apple, Android, RIM and Nokia mobile devices
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Reach - Spend more time with customers
Collaborate with customers remotely with a rich set of social tools
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Engage - Apply expertise from across the organization
Easy access to experts so you get customer questions answered
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Engage - Apply expertise from across the organization
Leverage recommended communities and sales content
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Engage - Apply expertise from across the organization
Re-use best practices from other teams
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Discover - Understand your customers better than the competition
Know what customers are talking about and what they like and don't like through sentiment analysis of social data
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Act - Focus on accounts and opportunities that create the most profit
Use predictive analytic models to focus on right deals and recommend the best products and pricing
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IBM and SugarCRM Social Selling Software Components
Mobile SugarCRM Portal Email Inbox
Cloud Hosted On Premises
• Single Sign On• Data Connectors• External Social Data
• Event Management• Service Management• Enterprise Search
• Cloud Integration• Business Process Management
Social Collaboration• Business Card/Profile• Communities• Shared Files• Activity Stream• Emeetings• Projects• Instant Messaging
SugarCRM
• Contact Management• Account Management• Opportunity Management• Activity Management
Business Analytics• Dashboards • Reports• Forecasting• Data Warehouse
Predictive Analytics• Propensity to Buy• Upsell/Cross sell• Forecast Outlook• Optimal Pricing
Social Analytics• Expertise Location• Recommend Content• Sentiment analysis
Capabilities
Integration
Access
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Agenda
Your Sales Team Social Selling
ROI Methodology
How to get started?
Questions
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Business Value Assessment
Consultative approach to calculating ROI
Four steps
Day in the life demonstrationFact gatheringAssumptionsMath
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Day in the life demonstration
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Fact Gathering
Example Technology Firm
Number of employees 1000
Number of sales people 100
Average # deals per year 12
Average deal size $125K
Internal Discount Rate for investments
10%
Pre-tax profit margin 15%
Average labor costs Varies by role
YTY increase in labor costs 4%
Hardware and software costs Varies by year
Plus other operational data
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Assumptions
Your team makes the assumptions after seeing the demo
You decide if time saving results in increase revenue or costs savings
Example Technology Firm
Time saved/deal finding information about the account during progression cycle
20 min
Time saved/deal finding experts and content during proposal cycle
20 min
Time saved/deal finding experts and content during post proposal cycle
30 min
Time saved per deal re-using a best practices template 45 min
Time saved per deal by collaboratively creating new content
30 min
Adoption rates Varies by year
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Survey of 1900+ large firms in all industries
Validate Assumptions
Past Business Value Assessments Surveys by analysts firms
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Math: Results for Example Technology Company
Year 1 Year 2 Year 3 Year 4PV Cash Flow of Project Costs ($186,909) ($40,093) ($37,098) ($37,098)
PV Cash Flow of Project Benefits $75,661 $152,850 $218,854 $188,177
Net Cash Flow ($111,248) $112,758 $181,756 $151,079
Cumulative Cash Flow ($111,248) $1,510 $183,266 $334,345
NPV Net Present Value of Opportunity $345,093
ROI
NPV of Project Costs ($290,449)NPV of Project Benefits $635,542 ROI (IRR) 67%
Year 1 Year 2 Year 3 Year 4
($200,000)
($100,000)
$0
$100,000
$200,000
$300,000
$400,000 Cashflow and Breakeven
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Agenda
Your Sales Team Social Selling
ROI Methodology
How to get started?
Questions
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© 2011 IBM Corporation
Different starting points for Social Selling
Maximize Reach with your customers • IBM SmartCloud
Engage• IBM Customer
Experience Suite
Discover insights about your customers
• IBM Cognos Consumer Insight
Act on opportunities that create the most profit
• IBM Cognos Business Intelligence
• IBM® SPSS® Decision Management
Engage expertise across the organization
• IBM Connections• IBM Sametime
Link to more info on Social Selling
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Christopher Lamb, IBM Program Director, Social [email protected], Twitter: @chrisscottlamb
Thank You
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