Commercial Operations Jack Sosnowski

Commercial Operations / Jack Sosnowski Today’s topics Overview Our Team & Function 2018 Recap 2019 Priorities “A day in the life of…” Focus on Sales Productivity Commercial Operations / Jack Sosnowski

Our Team… Strategy Drives Structure Project Improvements Organizational Support across functions NDA and Commercial Contract Management Marianne Trimble Business Process Improvement Leader Jenn Brown Channel Analyst Michelle McGuire, Manager of Customer Engagement Greg Spears Manager, Customer Solutions Orders Customer Service Post Sales Judie Dillon Manager, Technical Applications Technical Orders Quotations Technical Support Key Accounts Industrial OEM / DCS Commercial Operations / Jack Sosnowski

Commercial Operations / Jack Sosnowski Interesting facts Figures and improvements We receive over 100,000 phone calls and emails per year or 400 per day! Quotes up 11% YoY (5,401 vs. 4,872) with a 21% improvement on cycle times (now 29%<24 hours) Tech support activities are up 33% YoY while maintaining 99% first call answer rate @ 75% staffing levels Meeting/beating 50%+ reduction in order processing time goal 10% YoY improvement in EDI line count 30% increase in completed NDA’s Providing weekly sales team updates on activities and pipeline reporting Driving multiple key organizational initiatives and imperatives Commercial Operations / Jack Sosnowski

CE Management Operating System (MOS) High Level Overview 2017 2018 + Plan- Principles, Strategy Alignment & Prioritization 1 1 Execute Day-to-Day- Key Business Processes, Work Standards & Tiered Accountability 2 2 Monitor Performance- Feedback, Metrics & Tracking 3 3 Optimize The Organization- Colaborate, Communicate, Align the Orgainzation & Improve 4 4

Commercial Operations / Jack Sosnowski Key Themes for 2019 Continued focus and improvements on the Customer Experience Speed Efficiency and Effectiveness Cross functional alignment and support Improved “say-do” ratio Driving a performance based culture Commercial Operations / Jack Sosnowski

So what’s it like being a Customer Service Representative? Commercial Operations / Jack Sosnowski

A day in the life of a Customer Service Representative… An upset customer Commercial Operations / Jack Sosnowski

Commercial Operations / Jack Sosnowski Leads to… Unhappy sales team Commercial Operations / Jack Sosnowski

Commercial Operations / Jack Sosnowski So what happens next? We get the call or email… Commercial Operations / Jack Sosnowski

Commercial Operations / Jack Sosnowski How do we respond? A few options… Option #1 Option #2 Commercial Operations / Jack Sosnowski

Commercial Operations / Jack Sosnowski Option 2 Impulsive Response or “Below the Line” Commercial Operations / Jack Sosnowski

Commercial Operations / Jack Sosnowski Results: Event + Response = Outcome Commercial Operations / Jack Sosnowski

Commercial Operations / Jack Sosnowski Results: Event + Response = Outcome Commercial Operations / Jack Sosnowski

Commercial Operations / Jack Sosnowski Results: Event + Response = Outcome Commercial Operations / Jack Sosnowski

Commercial Operations / Jack Sosnowski Option 1 Skillful response or “Above the Line” Commercial Operations / Jack Sosnowski

Commercial Operations / Jack Sosnowski Results: Event + Response = Outcome Commercial Operations / Jack Sosnowski

Happy Customer Engagement People Make Happy Customers… Commercial Operations / Jack Sosnowski

Commercial Operations / Jack Sosnowski Happy Customers make… Happy salespeople! Commercial Operations / Jack Sosnowski

Focus towards Sales Enablement and Sales Productivity

Commercial Operations / Jack Sosnowski Interesting factoids Some things to think about… According to Insidesales.com, what % of sales go to those companies that respond first? Google found that X% of all buyers are millennials? According to Marketingdonut.com, 80% of sales require 5 follow up calls after the meeting. What % give up after 1 follow up? According to Top Sales World Magazine, 91% of customers say that they would give referrals. What % of sales people ask for referrals? According to Hubspot, what % of buyers trust reps? According to Dale Carnegie, what % of customers believe a sales person understands their needs? According to The Brevit Group, 63% of customers remember presentation stories. What % remember statistics? Answer - 30-50% Answer - Nearly 50% Answer - 44% Answer - 11% Answer – 3% Answer - 13% Answer - 5% Commercial Operations / Jack Sosnowski

Are Customers Changing? SFDC Sales Article “15 Sales Statistics That Prove Sales Is Changing “(11/17) Stephanie Jansen Trend #1 – “Customer Experience” is now the top Sales benchmark… “79% of business buyers say it's absolutely critical or very important to interact with a salesperson who is a trusted advisor-not just a sales rep – who adds value to their business” Trend #2 – High-Performing Sales teams are adopting new approach… “60% of sales professionals say that collaborative selling has increased productivity by more than 25%...” Trend #3 – Teams are reducing inefficiencies with tech… “79% of sales teams use or are planning to use sales analytic technology to increase efficiency” Trend #4 – Adopting artificial intelligence (AI, Guided Selling, POS etc) for smarter selling… “Top sales teams have already realized the power of AI to craft a compelling customer experience” Commercial Operations / Jack Sosnowski

Sales Productivity vs. Efficiency vs. Effectiveness Is there a difference? Sales Productivity is boosted by improving the efficiency and effectiveness Sales Efficiency is can be improved by either eliminating or re-allocating current sale efforts to other functions Sales Effectiveness can be more challenging because it requires improve sales capabilities Commercial Operations / Jack Sosnowski

Sales Productivity vs. Efficiency vs. Effectiveness In simplest form… Sales Productivity = Efficiency X Effectiveness Commercial Operations / Jack Sosnowski

How Do we Spend Our Time Today? A typical week… Only 48% of the week is spent selling 23% of your time is on Customer Support 23% of your time is administrative 16% of your time is on tech and app support What should this look like moving forward? How can we help improve how we spend our time? What could this mean? Commercial Operations / Jack Sosnowski

So Why Is This Important? Here’s some things to ponder… A 1% improvement on current opportunity hit rate = $417,000 +/- A 1% improvement on improving non sales activities = $540,000 +/- A 1 day improvement on quote to shipment cycle time = $700,000+/- Multiple others we will be working on to help us meet or exceed our goals! Commercial Operations / Jack Sosnowski

Commercial Operations / Jack Sosnowski