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Key Takeaways:
Attendees will leave the session with a 5-step plan for marketers to leverage new technologies to revolutionize their marketing strategies. Looking ahead, let's ask the right questions, define precise metrics, and embrace a forward-thinking approach that aligns with the evolving needs of both the market and the customer.
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2. Trojan Dilemma
Why not
■ Distract Salesoft from Primary objective of Becoming leader in SA
■ Could cannibalize sales from PROCEED
■ Strain in relationship with consultants responsible for PROCEED Success
Benefit
Access to new customer account,quick sales, increased revenues
3. SaleSoft, Inc - Introduction
■ Founded in July 1993 by Gregory Miller
Objective-
■ Drive out inefficiencies in sales, marketing and service cycles and reduce
SG&A costs
■ Marketing PROCEED as a CSAS(Comprehensive Sales Automation
System)
■ Vice president- Miller, CFO-Bill tanner
■ Question in hand- continue to Sell PROCEED to selected customers or
launch TH to larger customer base
4. The Sale Automation Industry
■ SA is a system that automated some or all processes used in the sales order cycle (i.e.) from lead generation to post-sales
service.
Marketing Functions-Telemarketing, direct mail, advertising campaigns etc.
Sales Functions- Account management, team selling & sales force management.
Customer service Functions- complaint tracking, service reports & repurchase details
■ SA market at around $1 billion and expected growth rate- 40%
■ Potential market- 9.2 million salespeople.
■ Current SA penetration at 2.4 million or 26 percent of market
■ Growth attributed to
Drop in laptop computer prices.
Introduction of user friendly software.
Development of communication technology.
■ Major Competitors- Sales Technologies and Brock Control Systems
5. Type of SA Solutions
■ Low end-CMS(contact management system)
■ High end-CSAS(comprehensive sales automation system)
CMS-
Maintains, access and update details of customer in database present in sales person’s laptop
Large no of vendors offering proprietary versions and most popular is ACT by Symantec Corporation
Emphasis on providing individual products performing one function in sales and marketing Process.
CMS lacked Integration across all marketing ,sales and service functions.
Neither help CMS help management leverage the market information nor help sales reps and sales managers
improve their management of sales process/order cycle.
CSAS
■ Comprehensive Sales Automation System is a software which provides:
Integrated tools to sales, marketing and service personnel to perform their jobs more efficiently
and effectively.
Back end decision support systems to the management to help them make decisions more
proactively.
Greater value where there was greater variance and uncertainty in the sales order cycle.
7. PROCEED(SMRP)
■ Allowed customer to automate their entire marketing sales and customer service operations
■ Developed to run on MS windows
■ Integrated with common Email, word processing, fax, spreadsheet and presentation software
■ Used advances software technologies allowing sales people to use complete functionality of system unattached to host system
■ 3 modules ready out of 8 modules proposed
Sales System
■ Recorded and displayed easy to use scheduling system, customer information, personal appointments, meetings and To Do
lists
■ Creates common database using info from sales person ,allowing entire sales team access to availability, allocation and
resource throughout organization.
■ Organizes flow of each prospective sale into pipeline segments and each segment contained user defined set of sales activities
involving sales people and team
■ Allows sales view and progress made towards closure.
■ Provided up-to-date pipeline status on all opportunities.
■ Decision support and executive information system that allowed management to plan efficient resource deployment
Sales system Marketing System Service System
Field Sales Campaign Management Incident tracking
Opportunity Management Marketing Encyclopedia Relationship management
Sales management Literature fulfillment
8. Marketing System
■ Automated telemarketing, direct mail and advertising campaigns
■ Provided management with data for evaluating cost/benefit of each campaign
■ Central repository for maintain and updating product information, pricing schedule, new product launch
announcement etc.
■ Automated the identification, accumulation and distribution of literature requests from all sources within
organization, customers and prospects
■ Tracked usage and inventory of marketing resources
Service System
■ Captured all customer service issues and tracked them through ultimate resolutions
■ Provides management with continuous customer feedback
■ Effective and efficient means for rapidly transferring qualified leads to field sales
■ Provided management with data for evaluating cost/benefit of each campaign
■ Repository all customer contacts, activities, commitments and correspondence that could be used for generate
new sales opportunities from existing customers
9. Trojan Horse
■ TH is very close to a simple Contact Management System (CMS) since its primary focus
was on Sales.
■ TH offers SaleSoft to get into new customer accounts, gain quick sales and generate
Revenue.
■ The Sales manager can anticipate any shortfall in sales.
■ Can review associated sales activity and help in improving sales force performance.
10. Comparison of PROCEED and Trojan Horse
PROCEED
■ Comprehensive system
■ Less competition.
■ Difference in product.
■ Long term ROI.
■ Focused on sales, marketing, services
■ Less crowd with small start ups
■ 8 months in development
■ Further investment of $1 million
■ Priced at $2400 per user
Trojan Horse
■ Sales Module of PROCEED with functions from other
modules.
■ High Competition
■ Similar to other products
■ Short or medium term ROI.
■ Focused on sales only
■ Giants like Microsoft and Lotus entering
■ Ready in 3 months
■ Investment of $0.2 million in development and 0.5
million in promotion
■ Prospective price $400- $1000 per user
■ Marketing cost 1/3 rd of Proceed
12. Statement of Operations for TH
1996 1997 1998
Revenues
License Fees 400 2000 5000
Services 25 500 1250
Total Revenues 425 2500 6250
Expenses
Cost of License Fees 40 200 500
Cost of Services 15 250 650
Sales and marketing 835.67 1900 3500
Product Development 200.00 0 0
Interest Expense 0.00 0 0
G & A 940.00 1950 3000
Total expense 2030.67 4300 7650
Net Income -1,605.67 -1800 -1400
Statement of Operations for PROCEED
1996 1997 1998
Revenues
License Fees 4813 10500 21000
Services 1937 4500 9000
Total Revenues 6750 15000 30000
Expenses
Cost of License Fees 546 1155 2310
Cost of Services 1146 2700 5400
Sales and marketing 3524.00 5700 10500
Product Development 1007.00 2100 4200
Interest Expense 0.00 0 0
G & A 940.00 1950 3000
Total expense 7163.00 13605 25410
Provision for Income Tax 0 0 -1393
Net Income -413.00 1395 3197
Quantitative Analysis
13. Our Recommendation
■ SaleSoft should go ahead with PROCEED-
Core Competency
Primary Objective of SalesSoft
Less competition
Product differentiation.
Better in long term returns.
Customer Benefit.
14. Why not Trojan Horse
■ Unable to cater organizations needing CSAS.
■ PROCEED will not be ready and competitors will grab market share.
■ Trojan Horse does not require partnership with consultants which will hamper
success of PROCEED.
■ Trojan Horse will cannibalize the sales of PROCEED.