Account Segmentation Final Briefing

Project objectives 1 Define Ideal Customer Profile Formula and Propensity to Buy factors 2 Calculate revenue potential by account and solution for customers and prospects across all sales channels 3 Develop ongoing capability to segment & prioritize market by potential and to design territories

INDEX Step Description 1 Account Segmentation Summary 2 Model Overview Appendix A Milestones Detailed Inventory Appendix B Business Intelligence Examples

Account Segmentation Summary

Milestones Milestone Impact Provided Top 100 Accounts by Potential ACME INC. can Review Initial Results Completed Correlation & Regression Analysis Perform frontier analysis and regression analysis on customer data Assures the Data and Nurture Factors are Properly Weighted Indicates level of alignment to Bookings and Potential Merged All ACME INC. and Vendor Data in the Account Segmentation Workbook Enriched customer firmographics with 3rd party data Determined account potential and propensity to buy scores for all accounts Identified and define relevant buying behaviors and triggers ACME INC. can analyze 7k+ accounts for account potential and propensity to buy ACME INC. took ownership of the tool on Jan. 14th ACME INC. has been trained on use and maintenance of the tool

New capabilities and Benefits Function Capability Description Benefits Sales and Marketing 1. Potential Spend Calculator Quantify potential spend by solution offering for each account Quantitatively define a territory by potential and Propensity to Buy score 2. Account Prioritization through PtB formula Prioritize customer and prospects accounts across all sales channels Rely less on linking future growth to a handful of major accounts 3. White Space Insight Identify top targets from thousands of businesses Sales Engineers will improve productivity by spending more time with the right accounts and less time chasing low opportunities 4. Business Intelligence Easily link to reports from an index table and create new views from easy to use pivot tables Improve sales and marketing decisions

New capabilities and Benefits Function Capability Description Benefits Sales 5. Quota Planning Begin to define Quotas based on Potential vs Bookings Move to territory based quotas based on data and results vs one goal across sales 6. Sales Resource Planning Easily create account lists for new hires and base sales headcount on opportunity Improve understanding of when and where sales coverage is needed. Increase resource allocation effectiveness by combining output with workload analysis in the territory design workbook Marketing 7. Marketing Suspect Definition List of businesses not yet ready for sales attention but deserving of marketing attention Integrate sales and marketing activities to move businesses from Marketing Suspect to Sales Suspect, Prospect and Customer 8. Campaign Planning Design campaigns for Marketing Suspects Attain agreement between sales and marketing on who top targets are

Model Overview

Account Segmentation Workbook Workbook model Industry Sales of Customer Bookings Geography Customer Segmenting Account Segmentation Workbook Analysis Customer Master File 3rd Party Data Pipeline PtB Formula Translation & Transformation Booking Potential Bookings Account Scoring Territory Design Tool

Model overview The Excel workbook consists of 5 main areas. Each area has multiple tabs. Main Sections of the Workbook Description Summary Information Includes an index table, pivot tables for easy analysis and a table where PtB scores and potential are calculated ICP and Frontier Potential Separate tabs for Software and International Bookings Control Panels This is where the PtB formulas are referenced to drive PtB scoring. Any changes made automatically adjust the PtB scoring. Regression and Correlation Analysis These tables were created and used to review PtB formula’s and compare account potential to bookings and pipeline. Data Inputs Bookings, pipeline, master customer information and third party data were combined into one table in this section.

Ideal Customer Profile & clusters The below table represents Frontier Potential by Cluster The frontier potential is the 80th percentile of bookings for customers in the given cluster Annualized Account Potential ($,000's)

ACCESS TO DECISION MAKERS * PROPENSITY TO BUY FORMULA Data Factors Nurture Factors INDUSTRY REVENUE # of DC/ FACILITIES # of EMPLOYEES GROWTH COMBINED SQ. FOOTAGE ECOMMERCE LEVEL OF AUTOMATION ACCESS TO DECISION MAKERS CAPEX 15% 10% 5% 10%* 100% * Ecommerce weighting is 30% for Retail distribution as determined through correlation analysis

Data factor coverage and next steps for nurture factors Data Factors: Good results for 7 Data Factors with 91% overall coverage Issue: Several of the desired data fields cannot be provided or determined from third party or ACME INC. information Impact: Nurture factor information is used when it exists. SBI Recommendation: Due to low coverage of Nurture factor information SBI recommends ACME INC. develop a process to collect and leverage the information through marketing, sales or other

PtB FORMULA FACTOS WERE CONFIRMED VIA CORRELATION ANALYSIS Example: The PtB formula was improved by changing the weighting of Ecommerce. By reviewing correlation analysis with leadership, a decision was made to increase the weighting of Ecommerce. Increased Ecommerce weighting to drive up correlation

Conquering the barrier of “sales Language” Category Definition Customer Purchased a system or software in last 4 years Prospect An active Lead or sales Opportunity in SFDC. This implies management attention and drive to closure Sales Suspect A company that fits the ICP (Ideal Company Profile) and that has been assigned to a selling resource to actively penetrate but is not a Lead or Opportunity in SFDC Marketing Suspect A company that fits the ICP but is not assigned to a selling resource and, therefore, must be approached by Marketing assets Align definitions to move forward together