Ftm Business Template - Sales Scorecard

Sales Scorecard Business Template

What is a Sales Scorecard?

When should you use it?

The Sales Scorecard is a structured method for planning, prioritising and tracking sales opportunities through to a successful sale.

The Sales Scorecard should be used at the start of a new campaign or sales opportunity. Use it to capture essential information during the initial discovery meeting, and then use the checklist at each review meeting to assess the current probability of success.

Why is it relevant? Profitable sales are the lifeblood of most commercial organisations. Use the Sales Scorecard to drive the adoption of best sales practices across your team.

Who needs to be involved? Everyone in your sales team will benefit from the adoption of a best practice approach to selling. Furthermore, a common approach will help teams to work together and to learn from each other. Avoid introducing too much additional bureaucracy by using the Scorecard checklist on high value opportunities only – effectively having a FastTrack and a Complex approach based on the value to the business.

How should you implement it? Start by gaining support for your approach from your top sales people as their buy-in will be critical to success. Then issue the team with the template and ask them to assess their top five opportunities using the Scorecard checklist – this should demonstrate its value as a tool for planning the activities necessary to make the sale. Ultimately success will then be dependent on how you use the outputs from the consolidated scorecards in the form of simple redamber-green reports at your regular monthly performance review meetings.

© SofTools, 2009. For more information on related products and services, visit www.Fast-Track-Me.com or contact us at: [email protected]

Sales Scorecard This is a case example based on a fictitious company called TVT – all the data is displayed for demonstration purposes only. For a detailed explanation of what each cell is used for please refer to the Virtual Consultant on the following pages.

Form 1: Opportunity Overview Opportunity profile Target Customer

TVT Surprise-lite to Tasbo

Opportunity Description

Increase sales of Surprise-lite, Arctic range to Tasbo by 20%

Sales Person

Andy Bruce

Channel

Direct

Value-Cost-Time summary Best case Worst case Expected value Cost of sale

Sales increase 30% valued at £450,000 Sales do not increase £200,000 £5,000

Tasbo are increasing their product range Customer Situation in express stores and targeting more web sales

Probability of success

0.8

Tasbo need to be selling products with a strong brand, that appeal to the health conscious and take the Tabso brand upmarket

Forecast value

160,000.00

Start date

9 Mar 2006

28 Apr 2006

Customer Problem

Business Impact

Will increase Tabso's sales of healthy products, increase sales and assist in repositioning their brand

Recommended Solution

Increase account management focus and TV advertising inserts of Surprise-Lite

Target close date

Involvement

Marketing department

Actual close date

Sales process

Demonstrate solution

Last save

Classification

New sales to existing customer

Last update

9 Mar 2006 14:08 Campaign underway and progressing nicely

Number of Insights

0

Status

Green

Number of Issues

0

Actual value

TBA

© SofTools, 2009. For more information on related products and services, visit www.Fast-Track-Me.com or contact us at: [email protected]

Form 2: Scorecard Criteria 1 2 3 4 5

Qualification checklist

Does this prospect fall within the current strategic markets? Right client Is there a real client need and is it worth need the campaign effort? Has a budget been allocated and the RoI Right finance criteria agreed? Do we know and have a relationship with Right people the key client people? Right Is there a deadline for implementation timescale and can we meet it? Right target

6

Right solution

Does our solution address the business needs - and can we prove it?

7

Right criteria

Has the basis of the decision been agreed and have we influenced it?

8

Right Workplan

9 10

Can we demonstrate that our solution is practical to implement and operate?

Right level of Have we identified campaign risks and risks put in place mitigating actions? Do we know the competition and do we Right USP have a clear source of advantage? Overall, is this campaign worth the Summary necessary effort?

Criteria status Yes, it is a strategic customer and a core product with good margins Yes, this will improve Tasbo's sales in their Healthy range Finance have agreed with the costings and the spending has been approved Yes, we have relationships with all decision makers and influencers The deadline is set and it is realistic Yes, we have pitched this to Tasbo and they agree this fits in with their strategy and fulfils their business needs Yes, this has been agreed and we influenced it directly We have completed the market research and the results are positive, we are ready to implement our plan now We need more work to identify the risks and come up with mitigating actions We have already been selling this product and have proved our competitive advantage Yes, it looks very good

Graphic: Spider’s web

© SofTools, 2009. For more information on related products and services, visit www.Fast-Track-Me.com or contact us at: [email protected]

Score 10 8 10 10 8 9 10 9 3 9 86

Virtual ConsultantTM The Virtual ConsultantTM provides a step-by-step guide to completing this business template. It is worded as a series of questions designed to make you stop and think about this topic in a challenging and creative way – as if a business coach or consultant was sitting next to you.

Form 1: Overview Target & Opportunity Description Who is the target customer or client, and what is it that is being sold to them? Sales person Who is responsible for the closure of this sales opportunity? Channel What sales channel or strategic partner is used? (If none, simply enter 'Direct') Customer situation What is the current situation leading to this opportunity? Customer problem What is the business problem that the target needs to resolve? Business impact What is the overall impact on the target's business performance? Recommended solution What is the proposed solution? Involvement Who else (individuals or groups) need to be involved in this opportunity in order to guarantee success? Sales process Where is this opportunity in the overall sales process? 

1) Create interest: Making the customer aware of the products, services and capabilities. Who are we, what do we do and what makes us different?

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2) Establish need: Understanding the customer situation. What specific problems of opportunities do they face and how is it impacting their performance?

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3) Agree basis of decision: Checking the criteria that the customer will use to make the choice as to which solution they will go with. Have we influenced these criteria in our favour? Do we know what the customer's ideal performance is for each criteria?

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4) Build business case: Establishing how the Return-on-Investment (RoI) will be calculated. What are the expected financial returns and is the investment worth it? Whatever solution we propose must reflect the scale of the customer need

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5) Demonstrate the solution: Ensuring that the customer understands our offer sufficiently to make a decision. Have we demonstrated that we can meet the customer criteria effectively (and better than our competition)?

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6) Present the proposal: Formally submitting an offer to provide the service at an agreed price. Have we made sure that we are reflecting the key customer need, our source of differentiation, and how we meet their selection criteria?

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7) Handle objections: Providing satisfactory answers to customers concerns. Have we provided evidence (reference sells) that we can meet their criteria, and shown how we would manage any perceived risks?

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8) Close opportunity: Reflection on the management of the sales opportunity to learn lessons for the next time. Have we complete a formal win-loss analysis and captured insights for the future?

© SofTools, 2009. For more information on related products and services, visit www.Fast-Track-Me.com or contact us at: [email protected]

Classification What type of opportunity is this? Customers and opportunities can often be grouped into natural segments or types. This will help with the overall sales effort in terms of the approach, the amount of effort required, and even who needs to be involved. Analysis of sales by type at the end of the year will also help to establish areas where you are strong and areas where you are weak Insight count How many insights or lessons have been learned on this opportunity so far? Whilst capturing learnings does not help the current sale, these insights can have a dramatic impact on future campaigns, and helps to ensure that the departure of a key member of the sales team does not also result in a loss f vital insights Issue count How many current issues are there associated with this opportunity? These issues need to be resolved in order to increase the probability of success Best and worst case What is the best and worst case scenarios for this opportunity? By thinking about where the initial sale might lead, it helps to set the correct level of priority and focus, and may influence the way the opportunity is managed Expected value What is the value associated with the most likely or expected outcome? Note: this should reflect the anticipated revenues from closing the opportunity Sales and marketing costs What are the direct costs of sale? Note: you may want to include all associated costs including your time, or alternatively, just the direct marginal costs associated with this opportunity. Recognise that major opportunities may require a marketing plan Probability of success What probability would you assign to this opportunity? Note: this is a 0 to 1 scale where 1 = sale closed, and 0 = no chance of winning 1 = sale closed and may be won (signed proposal or purchase order) or lost 0.8 = likely to win the deal, but have not yet received confirmation in the form of a signed proposal or purchase order 0.5 = the customer recognises the value of the opportunity and is formally evaluating it from a business case perspective - possibly in a competitive situation 0.2 = the customer need is understood but they have yet to see or understand the value of the solution (generate interest and influence the basis of the decision) 0 = the opportunity has yet to be explored or there is no chance of winning (in which case it should be closed) Forecast value What is the forecast value of this opportunity? This is the value of the sale multiplied by the probability of success, where you may or may not want to subtract the cost of sale Start date On what date was this formally recognised as an opportunity? Initial target close date What was the initial target date set for closure?

© SofTools, 2009. For more information on related products and services, visit www.Fast-Track-Me.com or contact us at: [email protected]

Latest or actual close date What is the latest closure date? This is particularly important and will help to assess the accuracy of forecasting at the end of the year. For most sales teams, they tend to forecast a shorter sales cycle than exists in practice Status What is the current status of this opportunity?  Red = Concerns and immediate action is required  Amber = Watch carefully  Green = On track  Black = Opportunity closed (won or lost) Note: Red indicators should generate Quick Tasks, and Amber indicators generate Quick Risks Actual value On completion of the sales activity, what was the realised value to our company? Note: if the sale was lost, this figure will be '0'

Form 2: Scorecard For complex sales you may also want to compete a scorecard based on eight factors that increase the probability of success

Criteria What are the areas of a sales campaign that influence the probability of success? Checklist question What are the specific key questions to assess each campaign against? Criteria status What is the current level of performance against each criteria? Score Use a simple ten point scale to assess the campaigns overall status or 'health' 10 = Current performance cannot be improved, to 0 = no progress made to date what so ever Note: overall scores of 0 to 50 reflect a significant weakness in the campaign, scores of 51 to 80 identify specific concerns that need to be resolved before moving forward, and scores of 81 to 100 reflect a strong probability of success

© SofTools, 2009. For more information on related products and services, visit www.Fast-Track-Me.com or contact us at: [email protected]

Sales Scorecard Use the following blank template to address an issue or opportunity within your business or team

Form 1: Opportunity Overview Opportunity profile Target Customer Opportunity Description Sales Person Channel Customer Situation Customer Problem Business Impact Recommended Solution Involvement Sales process Classification Number of Insights Number of Issues

Value-Cost-Time summary Best case Worst case Expected value Cost of sale Probability of success Forecast value Start date Target close date Actual close date Last save Last update Status Actual value

© SofTools, 2009. For more information on related products and services, visit www.Fast-Track-Me.com or contact us at: [email protected]

Form 2: Scorecard Criteria 1

Right target

2

Right client need

3

Right finance

4

Right people

5

Right timescale

6

Right solution

7

Right criteria

8 9 10

Right Workplan Right level of risks Right USP Summary

Qualification checklist

Criteria status

Does this prospect fall within the current strategic markets? Is there a real client need and is it worth the campaign effort? Has a budget been allocated and the RoI criteria agreed? Do we know and have a relationship with the key client people? Is there a deadline for implementation and can we meet it? Does our solution address the business needs - and can we prove it? Has the basis of the decision been agreed and have we influenced it? Can we demonstrate that our solution is practical to implement and operate? Have we identified campaign risks and put in place mitigating actions? Do we know the competition and do we have a clear source of advantage? Overall, is this campaign worth the necessary effort?

Graphic: Spider’s web

© SofTools, 2009. For more information on related products and services, visit www.Fast-Track-Me.com or contact us at: [email protected]

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