Sales ROI Benchmarking

1
Sales ROI Benchmarking
Track Sales Executive Track

• Al Falcione, salesforce.com
• Rick Davis, SunTrust
• Wes Benwick, Bennetts Business Systems

2
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Agenda

• Sales ROI Overview
• SunTrust ROI Case Study
• Bennetts Business Systems ROI Case Study
• QA

Al Falcione Salesforce.com
Rick Davis SunTrust
Wes Benwick Bennetts Business Systems
All
4
Salesforce.com
Al Falcione
Director, Product Marketing
afalcione_at_salesforce.com
5
What is ROI?
Return on Investment (ROI)
Benefit - Cost

Revenue or Net Profit
Total Cost of Ownership
6
Use ROI for Everything

• Initial Purchase
• ROI for budgeting
• TCO for software comparison

• Renewal
• Ongoing ROI

• Upgrade
• ROI for workflow, APIs, campaigns, etc

• Sandbox
• Sarbanes-Oxley Compliance
• TCO vs. Development Environment

• Org Consolidation
• ROI of single customer view, integrated
  forecasting

• AppExchange Applications
• Lower TCO with fewer platforms
• Higher ROI with improved data sharing,
  productivity, better decisions

• Mobile
• ROI for productivity

7
A Process for Measuring ROI
1. Develop CRM Goals
8. Calculate the Hard Dollar ROI

• Identify Metrics

7. Identify TCO

• Baseline Existing
• Performance

6. Map Improvements to Financial Results
4. Map Salesforce to Metrics
5. Cross Organizational Buy-in
Source Adapted from Building a Business Case
for CRM, Gartner, 2006.
8
Key Metrics for ROI Model
Leads
Marketing
Conversion Rate
Deals
Sales
Close Rate
Customers
Service Support
Case Rate
Cases
Resolution Rate
Satisfied Customers
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Mapping Salesforce to Key Metrics
10
SunTrust
Rick Davis
Senior Vice President and Manager, Commercial
Information Services
rick.davis_at_suntrust.com
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SunTrust Bank Profile

• Seventh Largest Bank in US
• 1700 branches
• 179 billion in assets, 122 billion in deposit
• Serves 5 million households
• 550,000 business clients

INDUSTRY Banking
EMPLOYEES 35,000
GEOGRAPHY Southeast US
USERS 2700
PRODUCT(S) USED SFA, Service Support
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Key Strategy and Business Objectives

• Strategy
• Big bank capabilities delivered through local
  relationship managers
• Deliver products through clients financial
  life-cycle
• Local responsiveness
• Execution Relationship Management Model
• Business Objectives
• Maximize Wallet Share
• Faster Customer Acquisition

13
Key Challenges

• Business Challenge
• Lack of focus on high value activities
• Lack of sales visibility
• Inconsistent relationship planning
• Inconsistent cross-LOB partnership
• Technology Challenge
• Lack of platform infrastructure and single-view
  applications
• Poor support of business processes and
  best-practices
• Rising IT costs and ownership issues
• 22 back-end systems

• Poor customer service
• Inefficient use of selling time
• Lost cross-sell opportunities
• Poor execution resulting from lack of detail
  visibility

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Solution Drive Consistent Sales Process

• Sales Teams
• 1 2 3 Call Planner
• Senior Management on Key Accounts
• How is Salesforce used?
• Streamlined call, pipeline and forecast
  management across product lines
• Comprehensive and targeted campaigns
• Reduced ramp-up time for new RMs
• 66 reduction in meeting time

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Solution Cross LOB Partnership 360 Degrees

• Referral tracking
• Different profiles for different LOBs
• How is Salesforce used?
• Single org, open sharing model
• Using Opportunities to track Referrals
• Opportunity profile can help RM gauge
  opportunities for cross LOB referral

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Improvement in Referral Participation
Improvements from Salesforce Loans 5 Treasury
Management 7 Corporate Finance 21 Personal
Wealth Management 31

• Salesforce helped by
• Enabling Relationship Managers to share client
  information
• Identify new opportunities

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Improvement in Sales Activities to Identify More
Opportunities
Sales Activities Improvement with Salesforce

• Salesforce helped by
• Identifying more opportunities for salespeople
• Providing more complete client information
• Net Improvement
• 8 improvement per year
• 14,000 more sales opportunities in 2006
• 7,000,000 in additional revenue per year

Calls per Salesperson per month
8 CAGR
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Improvement in Lead Relationships

• Salesforce helped by
• Better client information
• Improved follow-up and action steps
• Strong pipeline management

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ROI from Salesforce
ROI on Salesforce (2 years)
SunTrust Revenue
997
Revenue (US)
18 CAGR
NPV on Salesforce (2 years)
2 Million
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Key Success Factors

• Management buy-in
• Aligned with strategic objectives
• Ability to support cross-LOB business processes
  and best-practices
• Customization and configuration capabilities
  towards rapid deployment
• Ease of use drives high adoption rate

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Bennetts Business Systems
Wes Benwick
President CEO
wbenwick_at_bbsjax.com
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Bennetts Business Systems Overview

• Office Equipment Dealer, Software Integrator,
  Custom Application Development
• 12 Sales Reps, 2 Managers
• 4 Specialists
• 1 Developer/Administrator
• gt 6,000 Current Customers
• 4,200 Assets under contract
• 10-12 Market Share in N. FL

INDUSTRY Office Equipment REVENUES 10-12
Million/Year
EMPLOYEES 75
GEOGRAPHY North Florida
USERS 25
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ROI Targets and Problem Areas

• Need More Selling Time
• Each Rep avg. 8-10 hours / week of internal data
  mining
• Lower Sales Rep Turnover
• 2 Years ago, 75 Turnover Rate in Sales
• Sales Pipeline Growth
• No database of opportunities prior to
  Salesforce.com
• Neglected Accounts Customer Intelligence
• No system to account for customer activity levels
• When reps left, they took their customer
  knowledge as well

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ROI Goals and Results
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SFA Solution for Driving Positive Return

• Building Blocks for Continuous Success

100 Adoption
Make a deliberate effort to find new data and
processes to integrate with
In Return, we hold our sales department
accountable for providing account intelligence
in real time
Made it easier to get data concerning our
customers assets and histories
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Positive ROI for Bennetts Sales Organization

• 5 additional selling hours / week
• Average Hourly Wage 5 hours/week of reps
• Average Sales GP / hour 5 hours/week of
  reps
• 45 Improvement in Sales Tenure
• 25 of Avg Sales Comp 25 Avg Sales Rep
  Benefits
• 25 Increased Sales Revenue and GP
• Lost Opportunity Intelligence
• 5.8 Million Today
• 15 Million in 5 years

27
Positive ROI for Bennetts Sales Organization

• 5 additional selling hours / week
• Average Hourly Wage 5 hours/week of reps
• Average Sales GP / hour 5 hours/week of
  reps
• 45 Improvement in Sales Tenure
• 25 of Avg Sales Comp 25 Avg Sales Rep
  Benefits
• 25 Increased Sales Revenue and GP
• Lost Opportunity Intelligence
• 5.8 Million Today
• 15 Million in 5 years

177,000/year In Sales GP
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Positive ROI for Bennetts Sales Organization

• 5 additional selling hours / week
• Average Hourly Wage 5 hours/week of reps
• Average Sales GP / hour 5 hours/week of
  reps
• 45 Improvement in Sales Tenure
• 25 of Avg Sales Comp 25 Avg Sales Rep
  Benefits
• 25 Increased Sales Revenue and GP
• Lost Opportunity Intelligence
• 5.8 Million Today
• 15 Million in 5 years

This leads to increased Sales GP, It is more of a
Potential ROI
29
Positive ROI for Bennetts Sales Organization

• 5 additional selling hours / week
• Average Hourly Wage 5 hours/week of reps
• Average Sales GP / hour 5 hours/week of
  reps
• 45 Improvement in Sales Tenure
• 25 of Avg Sales Comp 25 Avg Sales Rep
  Benefits
• 25 Increased Sales Revenue and GP
• Lost Opportunity Intelligence
• 5.8 Million Today
• 15 Million in 5 years

This leads to increased Sales GP, It is more of a
Potential ROI
Offsets cost of a Developer/Admin
30
Positive ROI for Bennetts Sales Organization

• 5 additional selling hours / week
• Average Hourly Wage 5 hours/week of reps
• Average Sales GP / hour 5 hours/week of
  reps
• 45 Improvement in Sales Tenure
• 25 of Avg Sales Comp 25 Avg Sales Rep
  Benefits
• 25 Increased Sales Revenue and GP
• Lost Opportunity Intelligence
• 5.8 Million Today
• 15 Million in 5 years

This leads to increased Sales GP, It is more of a
Potential ROI
Offsets cost of a Developer/Admin
Future growth of Sales Revenue GP will come
from here
270,000 ROI for FY2005
31
Ongoing Measurement

• Pipeline and Forecast Management
• More Inventory Turns More Cash Less Interest

32
Ongoing Measurement

• Pipeline and Forecast Management
• More Inventory Turns More Cash Less Interest

Potential ROI of 100K per year if we can
increase inventory turns by forecasting inventory
better.
33
Ongoing Success

• Applying workflow concepts to our sales process
• Automatically scheduled account reviews/visits
• Better Leads Management
• Raising the bar
• Lower neglected account levels, tighten the
  criteria
• Increase level account intelligence
• Integration with Order Entry / Inventory
  Management
• Bringing Service / Accounting on board

Show Up Follow Up Sales Go Up
Adoption Decreased Turnover
34
QUESTION ANSWER SESSION
Al Falcione
Director, Product Marketing
Rick Davis
Senior Vice President and Manager
Wes Benwick
CEO