Measuring the ROI of Your Sales Performance Initiative (Messaging Matters webinar series)

© 2011 Corporate Visions, Inc. All rights reserved. Corporate Visions, Power Messaging, Power Positioning and Be Different. Where It Counts. Your Message. are registered trademarks or trademarks of Corporate Visions, Inc. All other trademarks are the property of their respective owners.

MESSAGING MATTERS WEBINAR SERIES

How to take the guesswork out of whether your messaging and training investments are working

Measuring the ROI of Your Sales Performance Initiative

What if other professions didn’t bother testing and analyzing results?

“Sales training initiatives need to be integrated with diligent and auditable process designed to measure results to be considered among the elite.”

Dave Stein, ES Research

The Art of Winning an Unfair Game

If you can measure the wind… you can measure your training results


Scott Watson Founder of Beyond ROI, Inc.

Since 1994, Scott Watson has designed and implemented 800+ assessment and measurement projects with Fortune 500 companies such as Cisco Systems, SONY, ExxonMobil, IBM, AT&T, Verizon, Hewlett-Packard, and Accenture.

Beyond ROI, Inc. • www.getBeyondROI.com. • 469-‐200-‐8027

December 15, 2011

Page 14 © 2011 Beyond ROI, Inc. • www.getBeyondROI.com

Live Webinar Audience Poll Results


ASTD State of the Industry Reports

2004 Study Notes: Included 213 organizations representing the broadest range of size and industry. Considered by ASTD to accurately represent “the U.S. norm.”

Companies measuring at “Level 5 ROI” were included in the category “Level 4 Results.”

2005 Study Notes: Included 18 Fortune 500 companies participating in ASTD’s Benchmarking Forum. These organizations represent the largest and most complex global learning organizations.

ASTD Study #1

31% 14% 8%

74%

0% 20% 40%

60% 80%

100%

Level 1 Reaction

Level 2 Learning

Level 3 Behavior

Level 4 Results

Level 5 ROI

ASTD Study #2

53.9%

22.9% 7.6% 2.1%

91.3%

0% 20%

40% 60%

80% 100%

Level 1 Reaction

Level 2 Learning

Level 3 Behavior

Level 4 Results

Level 5 ROI

Page 16 © 2011 Beyond ROI, Inc. • www.getBeyondROI.com © 2010 Beyond ROI, Inc. • www.getBeyondROI.com

Bersin Research: Most Valuable Measures?


What is Measured Now?

Bersin & Associates © November 2006


Desired vs. Actual Measurement…


Is there funding for measurement?

82% say, “We should spend more – or much more on measurement”




“You’ve always known that well designed

well implemented training can

change lives and grow the business…”

Now you can prove it.®


Who do we work with? Over 800 assessment and measurement projects completed with…


Why measure Power Messaging?

  Reason #1: Capture Business Results from Power Messaging –  how are we growing people? –  how are we growing the business?

  Reason #2: Accountability for Execution –  for actually using new knowledge, skills, and process –  for manager involvement

  Reason #3: Feedback for Coaching to Power Messaging –  simple –  relevant –  actionable




The Science: What do we measure?

Effect “How much does

it help?” Linked to…

Cause “How much is it used?”

Leading Indicators (surveys)   use of 19 Power Messaging skills,

processes, and tools   use of marketing tools, resources   5 coaching activities   9 support and reinforcement

activities

Lagging Indicators (your metrics)   Success Stories – with actual

customers   Pipeline growth   Performance against plan   Deal size, Margin, Volume, etc.


A clear picture of Power Messaging applica\on . . .


How do we get them to be honest?


RealityCheck Success Story . . .

Coaching and Support


Leading Indicators: How much are they using it?

Overall Power Messaging ApplicaKon: 70.1% (excluding Coaching)

82% return (92 of 112)


Leading Indicators: Most used Power Messaging skills?

82% return (92 of 112)


Leading Indicators: Least used Power Messaging skills?

82% return (92 of 112)


What about the “Lagging Indicators?”




Leading Indicators (surveys)

  use of 19 Power Messaging skills, processes, and tools

  5 coaching acKviKes

  9 support and reinforcement acKviKes

Lagging Indicators (your metrics)

  Success Stories – with actual customers

  Pipeline growth

  Performance against plan

  Deal size, Margin, Volume, etc.


Lagging Indicators: 64% Provided Success Stories (59 of 92 participants)

Percep\ons of Value in the Success Story: “Overall, how much did your use of the principles, tools, and skills from Power Messaging contribute to your SUCCESS in this parKcular sales situaKon?”


Reality Check®: Success Story Summary

Number of Stories

Closed Business

New Opportuni\es

Impact of Power Messaging on Success

Total Factored Value

4 $9,200,000 $11,450,000 “made all the difference” -‐ 100% $20,650,000

21 $19,718,000 $69,600,000 “made a significant difference” -‐ 75% $66,988,500

19 $21,250,000 $51,790,000 “made some difference” -‐ 50% $36,520,000

3 $1,250,000 $2,500,000 “made a lidle difference” -‐ 25% $937,500

1 $0 $200,000 “made no difference, or worse” -‐ 0% $0

48 $51,418,000 $135,540,000 $125,096,000

Financial Impact: A total of $51,418,000 in closed business and $135,540,000 in new potential business was reported in 48 success stories with specific examples of how Power Messaging was used in the sales process.


Reality Check®: Success Story Summary

How were Success Stories captured? Similar to a behavioral interview, the RealityCheck success stories enable parKcipants to provide a single specific example of a Kme when they used Power Messaging with an actual customer.

What do the numbers mean? Success Stories are simply a way to LINK applicaKon and results. Because we asked about only one opportunity per parKcipant, these totals do NOT represent the full impact of the Power Messaging program.

Totals were gathered according to these conserva\ve standards:

 If a range of values was provided in the success story, we used the lowest number (e.g., one parKcipant reported “35K -‐ 100K closed” then $35,000 was counted).  If we did not see clear evidence of the Power Messaging principles, skills, and strategies in the RealityCheck™ success stories, the revenue was NOT included.  We encourage you to do a “spot check” on a handful of success stories to verify the closed and potenKal revenue amounts provided by parKcipants to verify accuracy.


Comparisons: Leading and Lagging Indicators




  Comparison #1 – How does coaching impact Power Messaging usage?   Comparison #2 – How does higher Power Messaging usage correlate with larger sales?   Comparison #3 – How does higher Power Messaging usage correlate new opportunities?


Comparison #1: by Coaching . . .

PowerView Ques\on: “Your mastery of Power Messaging skills and principles will conKnue to improve over Kme, especially when you apply them regularly with a helpful coach, and take advantage of the available reinforcement content.”

82% return (92 of 112)


Comparison #1: Coaching and Skill Applica\on Basis for Comparison: Coaching Activity (5 items) compared to each participant’s application of Power Messaging skills (19 items). Both scales run from 0-100% of the time.

Statistical Significance: The relationship between manager involvement and skill usage is statistically significant, where Student’s T-test = 6.119, confidence interval of p < 0.028 @ 84 d.f. (two-tailed test, type 1 error, 95% confidence interval).


Comparison #1b: Coaching and Skill Applica\on Basis for Comparison: Coaching Activity (5 items) compared to each participant’s application of Power Messaging skills (18 items). Both scales run from 0-100% of the time.

Statistical Significance: The relationship between manager involvement and skill usage is statistically significant, where Student’s T-test = 6.638, confidence interval of p < 0.01 @ 86 d.f. (one-tailed test, type 1 error).


0% 25% 50% 75% 100%

“Always” “Never” “SomeKmes” “Rarely” “Frequently”

Num

ber of ParKcipants

“Low Adopters”

“High Adopters”

Comparison #2: by Skill Applica\on . . .


Comparison #2: Skill Applica\on and Closed Business Basis for Comparison: We compared participants with “above” vs. “below average” application of 19 Power Messaging skills to closed business, as captured in in 48 Success Stories.

Statistical Significance: The relationship between skill usage and closed business is statistically significant, where Student’s T-test = 3.426, confidence interval of p < 0.002 @ 28 d.f. (two-tailed test, type 1 error, 95% confidence interval).


Comparison #3: Skill Applica\on and New Opportuni\es Basis for Comparison: We compared participants with “above” vs. “below average” application of 19 Power Messaging skills to new opportunities, as captured in in 48 Success Stories.

Statistical Significance: The relationship between skill usage and new opportunities is statistically significant, where Student’s T-test = 4.882, confidence interval of p < .01 @ 44 d.f. (two-tailed test, type 1 error, 95% confidence interval).


Comparison #4: Skill Applica\on and Pre/Post Quota Achievement

Research Ques\on: “Does higher Power Messaging usage significantly correlate with higher Monthly Quota Achievement, when compared Pre vs. Post training?”

Leading Indicators: ApplicaKon of 19 Power Messaging skills,

tools, and process

 Individual averages for 68 parKcipants for the applicaKon of 19 skills  Overall individual applicaKon scores ranged from a low of 41% to a high of 100% Comparison groups (independent variables) -‐ High Appliers: use PM >75% of the Kme (20 ea.) -‐ Medium Appliers: 65-‐75% of the Kme (25 ea.) -‐ Low Appliers: <65% of the Kme (23 ea.)

Lagging Indicators: Pre/Post monthly Quota Achievement

for 68 parKcipants

 Pre-‐training: four months, Feb-‐May FY12  Post-‐training: five months, June-‐Oct FY12  Test Metric: phased, monthly performance for revenue (50% weighKng) and margin (50% weighKng) vs. quota per month


Comparison #4: How “Big” is the difference? Basis for Comparison: We compared participants with Low, Medium, and High application of 19 Power Messaging to Pre/Post Monthly Quota Achievement.

Graph 14: Skill Application and Pre/Post Change in Monthly Quota Achievement


Comparison #5: What difference does Coaching make? Basis for Comparison: We compared participants who reported Low, Medium, and High coaching activity to Pre/Post Monthly Quota Achievement.

Graph 15: Coaching Activity and Pre/Post Change in Monthly Quota Achievement


Comments: How will Power Messaging impact your Career?

  “Power Messaging (Corporate Visions) is not just a course that you take like a SPIN selling or any other sales course we have all taken. This is something that if you truly embrace it will change not only you, but your customers and anyone you deal with in life. I am not the same Account Manager I was before this course and I am on a different Career path than I was before (In a Good Way).”

  “Best training and program we have ever had and used - very practical and relevant. Can only make me a better salesperson.”

  “It has definitely made me a better sales rep in the eyes of my customers. Larger sales. I feel it was the best applicable training I have received in 5 years.”

  “It just creates a whole new way of thinking as I prepare for and execute meetings with customers. I think it helps us think outside the box and position ourselves different that our competition in life and sales. I think it helps us see the whole picture in all that we do.”


Webinar Recording Available on www.corporatevisions.com/events

Additional Questions Join us on LinkedIn to continue the conversation http://www.linkedin.com/groups?about=&gid=4101593

THANK YOU!


Executive Roundtables Spring Tour 2012 Measuring the ROI of Sales & Marketing Alignment Initiatives

Two-hour regional executive roundtables

February 28, 2012 San Francisco, CA

April 25, 2012 Boston, MA

March 22, 2012 Chicago, IL

Scott Watson Beyond ROI, Inc

Tim Riesterer Corporate Visions, Inc.

Susan McGinnis Philips Respironics

Peter Ostrow Aberdeen Group

Complimentary Registration http://win.corporatevisions.com/ROIRoundtables.html

Discussion Panelists: