Capabilities value map best practice

Capability Value Map Best Practice

Salesforce.com

Best Practice Overview  It is important to define early in the program which metrics will be monitored and how they will be measured, so that the benefits achieved can be closely tracked. For example, progress on the following business goals could be tracked with these metrics: – Increase revenue by acquiring new, profitable customers: Percentage Accepted Leads to Sale – Increase revenue by retaining customers: Percentage Sales to Repeat Customers – Reduce costs by reducing sales costs: Average Number of Sales Calls per Sale

 We have provided a template to assist in building your objectives and how you will measure them as well as a value map to tie business objectives to Salesforce capabilities.

Why complete a CVM? Define and prioritize your business objectives

 Map Salesforce capabilities to business objectives –

Provide feedback to modify the CRM strategy and implementation

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Establish tools for change management

 Articulate definition of success –

Provide a way to measure results

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Set and gauge the level of success in meeting CRM objectives

 Hold individuals accountable for results –

Make mid-course corrections as necessary

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Create transparency regarding goals and progress at the macro and individual level

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Eliminate the need for “oral history” and replace it with data on the development of strategies and objectives

Capability Value Matrix Process Tracking progress of vision and strategy • Provide visibility to how the initiative is tracking against business goals • Identify areas where program is not achieving business results and provide corrective actions • Develop a single, consolidated list of program metrics used by all regions and user groups Define KPIs • Pick limited set of metrics • Tie each metric to an objective

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• Audit data to create credibility • Empower managers to change behavior and business process based upon reports/dashboards results

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Validation

Vision Strategy Objectives

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Define KP Is

Operationalize • Identify salesforce.com capabilities • Build, configure and deploy application

Capabilities Value Map

Vision

Tie business objectives to Salesforce capabilities Legend Marketing Sales Service & Support

Value Drivers

Business Objectives

Increase Revenue

Acquire New Profitable Customers

PRM

Capabilities

KPI Marketing Campaign Management & Measurement

Salesforce for Google Adwords

Web-2-Lead/ Lead Lead Generation & Partner Lead Collaboration Assignment Rules Qualification

Data-Insight Partner/External Force.com Platform

Grow Existing Customers

Increase Sales to Existing Customers

Customer Retention

Increase Retention of Existing Customers

Customer Profitability

Improve Sales Effectiveness

Cost Avoidance

Avoid Strategic Project Costs

Cost Reduction

Reduce Business Operation Costs

Revenue Generation

Account Cross-sell and Management up-sell Planning

Customer SelfService

Salesforce Ideas

Personalized Customer Interactions

Personalized Customer Interactions

Automatic Competitive Information

Consistent Sales Methodology

Force.com Platform

Marketing Campaign Management & Measurement

CTI Integration

Customer Survey

Salesforce to Salesforce

Customer Segmentation Customer Value Management

Account Management Planning

Workflow Engine/ Approval Workflow

Competitor Data Management

Activity Management

Incentive Opportunity Program Pipeline Management Visibility

Salesforce Product Configuration, Mobile/Offline/ Pricing & Quoting Outlook Connect

Salesforce Account Content Intelligence

Compliance

Customer Survey

Partner Deal Registration

SAP/Oracle Connect

Sandbox

Team Selling

Improve Customer Satisfaction

SLA Management

Partner Lead Collaboration

Salesforce Center of Ideas Excellence

Cost Savings

Maintenance Risk

Remove Risk of Legacy Platform Use

Regulatory Risk

Reduce Risk from Regulatory Compliance

Customer Satisfaction

Improve Customer Interactions & Insight

User Satisfaction

Improve User Interactions

Infrastructure & Hardware (Force.com)

Force.com Platform

Risk Mitigation Audit & History Tracking

Sales Process Service Process & Escalation Consistency Automation

Centralized Marketing Project Encyclopedia Management

Salesforce Applications & Releases

Usage Patterns

Microsoft Integration

Workflow Engine/ Approval Workflow

Custom Interface with Visualforce

Expense Management

AppExchange

Data Quality Dashboards

Customer SelfSLA Product Configuration, Sales Process Service Management Pricing & Quoting Consistency

Satisfaction

FAQ & Knowledge Database

Online Product & Services information

Mobility

Contact Data Management

Customer Survey

Competitor Data Management

Personalized Customer Interactions

Account Data Management

Reports & Analytics

Best Practices Use a Capability Value Map to prove the business case  Objectives - Define and prioritize –

Focus on business objectives (drive more revenue, sales rep productivity, retire existing apps, etc.)

 Design KPIs / Metrics - Quantifiable measurements agreed upon in advance –

All business behavior can be measured

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Quantifiable measurement indicates if business is making progress toward goals and objectives

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KPI’s bridge the gap between business objectives and Salesforce capabilities/roadmap

 Operationalize - Mechanisms for tracking and viewing progress –

Translate objectives into actual Salesforce capabilities

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Configure and build application based upon capabilities

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Deploy Salesforce dashboards and reports designed to capture measurements

 Validate – Is the data telling you what you expect –

Identify who owns the data in the reports and dashboards

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Empower people to change business processes based upon the data

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Embed a discipline of dashboards/reports into the management process

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Be candid and pragmatic about what the data tells you

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Interpret KPIs/metrics to drive behavioral change

Worksheet Example Best practice – create a business value matrix Value Driver

Business Objective

Acquire New Profitable Customers

Increase Revenue Increase Retention of Existing Customers

Cost Reduction

Reduce Business Operation Costs (Sales)

Behavior Changes that Lead to Outcome

How to Measure the Behavior Changes – Metric

Increase sales to new customers

% of Accepted Leads to Sale

Increase number of new customers

% of Sales to New Customers

Increase up sell

Sales Generated Up sell

Increase sales to existing customers

Priority

Ease of Capture

Readiness for Capture

Source

High

Low

Not Captured

SFDC

High

Low

Not Captured

SFDC

Percentage of deals with up sell

High

Low

Not Captured

SFDC

% of Sales to Repeat Customers

Percentage of sales associated with repeat customers

High

Low

Not Captured

SFDC & Oracle

Increase repeat purchase rate

Repeat Purchase Rate

Measure repeat purchase deals against all deals

High

Low

Not Captured

SFDC & Other

Increase number of deals managed by each user

Average Number of Deals per Account Manager

Average number of active opportunities managed by AM

Medium

Low

Captured

SFDC

Reduce number of sales calls per sale

Average Number of Sales Calls per Sale

Average number of calls made per closed opportunity

Medium

Medium

Captured

SFDC

Definition Percentage of leads accepted that have been closed Percentage of sales associated with new customers