“Most companies can increase profit between 2 and 4 percent by doing nothing other than getting a grip on price discounts”, says pricing expert Tony Hodgson of Pricing Solutions. “And key to this is an effective salesforce approval process”.
Let’s imagine your ‘fully loaded’ margin on an opportunity is 10 percent. (That’s the margin including indirect costs, not just the product gross margin).
Price discounts apply to gross revenue. Therefore, a 5 percent price discount means giving away half your profit.
Moreover, discount by more than 10 percent and the deal is loss making.
The fully loaded margin in your business is probably a different figure. Nevertheless, you understand the impact.
“Too many companies are at the ‘fireman’ stage when it comes to price discounts. They rush from opportunity to opportunity dealing with discount emergencies,” says Tony.
“The first step is to agree a discount policy and make sure it is adhered to. That means having a robust approval process in salesforce.”
So we interviewed Tony. Picked his brain about approval processes.
And guess what?
He gave us 10 powerful salesforce approval process tips.
And here they are. Along with our advice on how to implement each of the tips in salesforce.
Tip 1. Implement an effective approval process
“Frequently, authorization for price discounts happens in a haphazard and informal manner. Consequently, that almost guarantees giving away unnecessary discounts and eating into your profits”, says Tony.
“It sounds obvious but defining a discount policy and using a robust salesforce approval process for price discounts is the first step”.
Implement salesforce Approval Processes
Use the standard salesforce approval process function to achieve this. If you’re unfamiliar with how approval processes work then watch this short video from GSP Senior Consultant Nick Ambrose.
Alternatively, we’ll give you some pointers when you get in touch.
Tip 2. Avoid rounded discount levels in approval processes
“Companies typically give discount authority levels of 10, 15 or 20 percent in their approval process”, says Tony.
“But remember, that’s a discount on the gross revenue. Every 1% of revenue given away disproportionately affects the margin for that deal.
“Sales people often take the path of least resistance. In other words, if the customer asks for a discount they go straight for 10 percent if that’s their authority level. Therefore, why not give them authority of 9 percent? Or 7.5?
“Likewise with higher authority levels in the approval process. Instead of giving managers authority levels of say, 20 percent, give them 17. All our evidence shows there’s almost never any impact on win rates. However, you gain a major increase in opportunity margin”.
Implement non-rounded authority levels in salesforce
Use any number you chose for each level of authority in salesforce approval process.
For example, make the approval process entry criteria 7 percent. This means any opportunity with a discount greater than this figure needs approval.
Tip 3. Record agreements in the approval process
Tony’s third tip is to keep a record of what was approved and why.
“Let’s say you give a 2 percent discount based on a certain rationale. 12 months from now, you don’t want to give away more discount for the same reason. The discount for that rationale is already been taken by your first discount.
“A big issue in many companies is that the reason for a discount is not visible later”, says Tony.
“Email isn’t the ideal place for this. It’s impossible for people not directly involved in the discussion to access the information. And even if you are involved, it’s not easy to quickly find the information 12 months later”.
Record what was agreed in salesforce
There’s often dialogue between a sales person and the manager before the approval process formally starts.
Many companies that successfully use salesforce approvals processes store this dialogue on salesforce Chatter. That means the information is stored directly on the opportunity, for all to see, for all time.
When approving or rejecting an approval process request, the approver also enters a justification into the comments box. That’s an excellent way of keeping a record of precisely why the approver made this specific decision.
Tip 4. Re-visit opportunities after the deal is done
Tony recommends reviewing deals 6 months after signing the paperwork.
“Check that the customer is sticking to their side of the commitment.
“For example, you gave a 5% discount in return for a guaranteed order of 1000 units per month. Check that’s what the customer actually orders. Sometimes it won’t be.
“That doesn’t mean you go back to the customer in an aggressive way. Perhaps their project is delayed. However, you do at least want to shift the balance of power by making sure they’re aware of the broken commitment. That’s an important negotiating point, next time around”.
How to schedule approval reviews in salesforce
There’s two simple ways to do this.
Option one involves a custom date field on the Opportunity. When the deal is set to Closed Won, populate this field with the review date. If this is done manually (rather than by using a workflow rule, for example) then apply a validation rule to make sure a date is entered.
Option two is to create a Task. Set the date 6 months hence and give it a type value of ‘Deal Review’.
Add Bundles Of Products To Quotes Or Opportunities
Tip 5. Make the profit impact visible during the approval process
Tony recommends approving or rejecting each discount request with full knowledge of the impact on profit of each deal.
“Each 1% of discount has a greatly magnified impact on the net margin of each opportunity. Approvers need knowledge of this impact when they are considering deals in the approval process. Otherwise, you run the risk that many deals have borderline profitability.”
How to calculate the net margin on each opportunity in salesforce
To do this accurately your business needs to be using Products on Opportunities. (In addition to calculating net margin there are many other reasons why you should be using Products).
This means there are two options depending on the level of sophistication that’s necessary to give approvers the information they need.
The first option works well if the fully loaded unit cost does not vary by territory or customer type. In other words, the same cost applies irrespective of where the product is being sold.
To do this create a custom field on the Product to store the fully loaded unit cost of the Product. Then use a formula field on the Opportunity Product Line Item to calculate the Quantity multiplied by the Product unit cost. This tells you the total cost of the Product on that particular Opportunity. Sum this value for all Products on the Opportunity using a workflow rule.
The second option is appropriate if the cost of fulfillment varies from one region or segment to another.
For example, in the ILX Group, the cost of delivering training courses varies significantly by geography. This is reflected in the price at which training courses are sold around the world.
The price variation is managed through Price Books aligned to each geographical territory. ILX then created the Unit Cost field on the Price Book Entry. This means the variable cost is reflected on the opportunity line items. Again, the total cost is summarized on the opportunity.
Either approach means the total net margin is calculated. It’s the Amount minus the total net cost of the Products. It means managers take the margin figure into account when deciding whether to accept discount requests in the approval process.
Tip 6. Streamline the salesforce approval process
It’s natural to think that the more steps in the approval process, the more unlikely it is that unnecessary discounts will be given away.
“But that’s not always the case”, says Tony. “Stripping out levels of authority has a remarkable impact.
“For example, one of our manufacturing clients had six levels of authority in their approval process. Yet we still found lots of evidence of unnecessary discounts. So they stripped four levels out of the approval process in salesforce.
“Now managers have authority up to 9 percent. If the sales person wants a higher discount, the approval request goes direct to the CEO.
“And guess what?
“They usually don’t ask for discounts of more than 9 percent. Win rates have remained stable. But profitability has improved”.
How to streamline approval processes in salesforce
Think carefully about the approval process steps needed in your business. Then, configure the Entry Criteria and Steps in the Approval Process function that will support your streamlined process.
Tip 7. Measure win rates
Many companies have differential pricing between geographical territories or market segments. That means there needs to be flexibility in the discount policy.
“It’s important to test and validate changes to the discount levels,” says Tony.
“The best way to do this is by measuring win rates over time and across territories or segments. That produces quantitative data that can be used to evaluate and adapt pricing and discount approval processes.”
How to measure win rates in salesforce
There are various approaches to measuring opportunity win rates. We believe the only robust way is to compare the number and value of opportunities Closed Won and Lost in a given period.
Tip 8. Make sweeteners explicit in the approval process
“It’s a fact of life that sometimes you need to offer inducements to win a deal”, says Tony.
“Free delivery. Non-chargeable training. Upgraded support contracts. Add-ons at no charge. They’re all legitimate ways to get a deal across the line.
“But there’s either a direct cost or an opportunity cost in fulfilling them. Therefore, they’re all forms of price discount.
“The key is to make sweeteners explicit in the deal. If you’re giving away free delivery, fine. However, make an above-the-board conscious decision to give free delivery and include the value as discount in the approval process”.
How to make sweeteners explicit in salesforce approval processes
The key to this is making sure that all elements of the customer solution are captured on the opportunity in salesforce.
Using Products is one way to do this. Items such as delivery, service contracts and optional components can all easily be created as Products. Consider using the product selection wizard to make it easy for sales people to add products to opportunities in salesforce. Let sales people set the sales price to zero for freebies included in the deal.
If you are not using products then create custom fields on the opportunity to capture information about what is included in the deal given to the customer.
Either way, it means managers reviewing a deal in the approval process now have a holistic view of the cost and revenue associated with the opportunity.
We have a fantastic video case study that shows how ILX uses products to generate a wide range of benefits including full control of discounts within approval processes.
Tip 9. Track discounts by teams and individuals
“Some people are just naturally better at resisting customer demands for discounts”, says Tony. “New or inexperienced sales people often find it more difficult, for example. However, teams or individuals that are under pressure to hit quota are also prone to giving unnecessary discounts.
There are a number of ways to address this. The most obvious is to give sales people the training and coaching needed to negotiate effectively. But it’s not always one size fits all. You need management information to determine which sales people will benefit from different types of training”.
How to measure discounts given using salesforce
To do this create several fields on the Opportunity that calculate the total discount in percentage and value. Nick demonstrates this in the video in Tip 1. Then use reports and dashboard charts in salesforce to track discounts by team and user. Also, think about using volume based pricing within salesforce to manage and control discounts offered to customers.
Tip 10. Conduct qualitative research
It’s common to find a ‘Reasons Lost’ field on the Opportunity in salesforce. Typically a validation rule ensures sales people complete the field when the Opportunity Stage is set to Lost.
“How often do you see anything other than ‘Price’ set as the reason that a deal is lost?” asks Tony. “Hardly ever. Yet is this always the real reason? I very much doubt it.
Of course, price can be a factor in losing deals. However, it’s important to get to the bottom of the other reasons as well. Win-rate measurement gives you the quantitative metrics on how well you are doing. But undertake qualitative research to get to the underlying reasons for success or failure”.
How to capture qualitative research in salesforce
Many of our customers use a custom object called ‘Lessons Learned’ and associate this with the opportunity.
An internal review is conducted whenever a large deal is won or lost and the key findings captured in the Lessons Learned object.
This is sometimes supplemented with customer interviews carried out by an independent third party. As Tony explains, that’s a way to get powerful insights not be available through internal discussions alone.
About Tony Hodgson
Tony is the Managing Director for Pricing Solutions Ltd UK. PSL is an international pricing strategy consultancy dedicated to helping clients achieve World Class Pricing competency. Their international team of senior pricing consultants provides clients with the tools and support they need to make pricing decisions that improve the bottom line.
As Managing Director, Tony works with leading organisations across a wide array of sectors, including manufacturing, pharmaceuticals, medical devices, food services, digital publishers, tourist attractions and many more. No matter what the sector, the common currency is an understanding of all aspects of pricing.
If you are interesting in exploring pricing improvements at your company please connect with Tony, or contact him directly to initiate a discussion. Find full details at www.pricingsolutions.com
What if the standard set of salesforce Opportunity Stages don’t match your sales process?
(They probably don’t, by the way).
Then change them. But to what?
The answer can provoke heated discussion. But it’s critical.
Get the opportunity stages right and you have the core ingredient for pipeline visibility and a robust sales process.
But there’s more to this than meets the eye. Here’s our latest guide to sales processes and salesforce opportunity stages.
Sample B2B Sales Process
Imagine a typical B2B sales process with a 3 month cycle. (We’ll come to other sales processes shortly).
There’s usually significant interaction with the customer during the sales process.
In this scenario, action-oriented opportunity stages are better than milestone-based stages. Qualifying rather than Qualified. Customer Evaluating rather than Proposal Sent.
This is because the Opportunity Stages track the status of the deal within the sales process over a period of time. That period of time might be weeks or even months. The sales person is likely to be doing a number of things to move the opportunity on during this period.
In other words the opportunity stage represents a series of customer interactions. It’s not a one-off milestone.
Here’s the sales process and set of opportunity stages used by many of our customers in this scenario.
Investigating (alternatives might be Discovery, Qualifying).
Let’s have a look at each one.
Opportunities in the Prospecting Stage represent your long term pipeline.
No budget or timescale has been identified. The Close Date is uncertain and likely to be several months in advance. Indeed the customer – if asked – might not agree that a potential deal yet exists.
Many Prospecting opportunities will be qualified-out directly from this Stage. That’s fine. Either there was no solid opportunity that could be driven out. Or the sales person decided this opportunity wasn’t one to pursue.
But some of these opportunities will mature into viable and important pipeline deals.
Sometimes companies will filter opportunities at the Prospecting stage out of pipeline reports and dashboards. That’s fine, if you’re focusing on deals that might close this month or next month. But tracking the size of the Prospecting pipeline is an essential sales management activity.
Use a term such as Discovery or Qualification if you prefer. The sentiment is the same.
The potential for a deal exists. Positive actions are being taken on opportunities in this stage to determine two things.
Firstly, does the customer have a genuine need for the type of products and services we sell? Remember, activities during this stage may be more about creating demand rather than simply responding to it.
Secondly, are we a good fit (among potential other suppliers) for the customer?
This stage typically includes determining whether the customer has – or can obtain – appropriate budget. The more your product or service is innovative (at least to the customer) the less likely they are to have set budget aside at the start of the financial year.
This doesn’t mean budget cannot be found. Demonstrate compelling value and it’s often surprising how funding can materialize.
The customer is making a decision on which supplier to work with. A formal proposal or quote may have been given. But it may simply be that indicative pricing or costs estimates have been supplied.
One thing is for sure though. The value your company brings is being communicated to the customer stakeholders.
Other activities might include proof of concept demos, customer reference visits or creation of a short video to demonstrate the solution.
A close plan has been mutually agreed with the customer. This may include agreeing commercial terms and sorting out the legal paperwork.
The word ‘Lost’ implies that a competitor gained the deal at our expense. And of course that’s not always the case.
We might have ‘Qualified Out’ a deal. Or the customer made no purchasing decision at all.
But Sales’ resistance to mark deals as Closed Lost means that many sales pipelines are over-inflated. They contain deals that are unlikely ever to be won. But no-one wants to change the status to Closed Lost.
So bring on two further opportunities stages.
Mutual agreement with the customer that there’s insufficient mutual benefit in this case. The sales person is no longer pursuing the opportunity.
Create this opportunity stage to capture management information on deals that are not being pursued.
But here’s the thing. In the majority of cases, opportunities should only transition to this stage from the early stages of Prospecting or Discovery.
Not every sales deal has a gestation period of several months or longer.
The sales process for new deals might be protracted. But the same company might sell consumables associated with the core products.
These sales are more transaction-based. Here we can use more milestone-based opportunity stages. ‘Quote Sent’ for example, rather than Evaluating.
The same business might also sell support contracts that are renewed every year. This repeat sales might be covered by a different set of opportunity stages. These stages may reflect the more linear process associated with renewing the contract.
What about the other extreme. Our customers Taylor Woodrow (construction) and Siemens Energy (power) have sales processes that typically span several years. Typically selling to government agencies, these businesses have to operate within procedures and processes tightly defined by the purchaser.
A sub-stage field has been created to manage this additional complexity. The field captures the status of a deal within the overall opportunity stage. This approach is preferable to proliferating the opportunity stages. Once more than four or five pipeline stages has been created it’s hard to see the wood for the trees in dashboard charts.
“Sales people and their managers use a combination of rep activities and customer ‘verifiers’ or behaviors to track the progress of a deal. This change explicitly encourages reps to focus on achieving certain outcomes in the best way instead of simply executing activities in the prescribed way” says Adamson.
In other words, it’s all very well to create fields and even validation rules to control when an opportunity stage can be advanced. But base these controls on the customer’s buying behavior, not simply the pre-defined list of activities that the sales person is expected to fulfill.
The standard set of opportunity stages in salesforce might not match your sales process. It usually doesn’t. No matter. Follow the tips and guidance we’ve explained in this article and you’ll have a robust sales process and solid pipeline visibility.
Last month we gave you 5 Compelling Ways to increase your salesforce.com benefits. As promised, here’s another five ways our customers have increased the benefits they deliver from salesforce.com. See which ones apply to you.
1. Improve sales funnel management
Nearly every sales funnel contains padding. Deals that rumble along month after month. Opportunities that with the best will in the world, are unlikely to ever close successfully. It’s these Opportunities that are artificially inflating your sales funnel and giving everyone a false sense of future revenue. So improve sales funnel management in your company by identifying these lame duck deals and weeding them out. Here’s three metrics that help you do just that: – Number of Close Date changes. – Number of days since the last update in the Opportunity Stage. – Number of days the Opportunity has been open. These are key metrics that measure the quality of opportunities in the sales funnel. Tracking these metrics will improve the effectiveness of your sales funnel management. Let’s say your typical sales cycle is 90 days. The Opportunity in the screenshot above has been open for 143 days. The Close Date has moved 12 times. And the Opportunity Stage was last updated 60 days ago. Can you rely on this deal to successfully close? Probably not. Combine these metrics with sales target solutions to determine whether you’ve sufficient opportunities in your sales funnel to meet your revenue goals. Remove The Poor Quality Sales Deals That Inflate Your Sales Funnel explains how to increase your salesforce.com benefits by creating these metrics.
2. Use Product Schedules to track future revenue
Many businesses do not receive the total value of an Opportunity in a single invoice. The traditional sales funnel view gives good insight into the total value of potential deals. But it does little to inform management on how the income or cash will be received. Here are five examples of situations where Product Schedules can bridge that gap:
Recurring revenue models, such as maintenance or support contracts.
Manufacturing businesses, in which the goods are shipped and invoiced over several months.
Framework agreements, in which a customer draws-down orders against an overall contract.
Project-based sales, in which revenue is invoiced based on work completed.
Transactional sales, in which customers make multiple repeat orders over the course of the year.
In other words, Product Schedules are highly useful when the Opportunity Amount is invoiced and received through a number of instalments. They enable revenue recognition to be managed in salesforce. And they significantly increase sales funnel visibility by projecting how the gross sales value on potential deals will be invoiced over time. Creating custom Product Schedules enables even more advanced functionality. Here’s an example of an s-curve revenue schedule in salesforce.com used by a customer in the construction industry. Reports and dashboards show the accumulated Product Schedules across all Opportunities to generate a revenue profile for the months and years ahead. Use Product Schedules For Revenue Recognition And Funnel Visibility explains how the standard salesforce Product Schedule feature works. It also demonstrates how custom Product Schedule solutions can easily be created to significantly extend your salesforce.com benefits and forecast recurring revenue. If you want to know more in general about using Products in salesforce then Learn The Basics; and even try The Ultimate Guide to Product Price Books.
3. Load Invoices or Orders into salesforce
Many businesses rely upon regular repeat orders from existing customers. For these companies, an Opportunity represents the process of acquiring a new customer that will subsequently make many repeat purchases. These repeat orders will often be processed through an ERP or Finance system rather than directly through salesforce. Importing the actual Order or Invoice data into salesforce on a regular basis provides powerful insight that drives business development and account management. It reveals customers whose orders are increasing or decreasing. And allows managers to track the relationship between business development activity and invoiced revenue. The screenshot shows Orders imported against the Account record and in-line charts used to display the trend in Order value. In this particular customer, the Orders are also automatically linked to a Target record to track performance against target in salesforce. Getting the data into salesforce doesn’t necessarily require full blown integration. Quite the contrary. We have many customers that load Invoices or Orders into salesforce using the Data Loader on a weekly or monthly basis.
It’s amazing how many companies don’t implement web to lead.
Most business people will acknowledge that the quicker you get in touch with a new Lead, then the greater the chance of a sale. This is particularly the case when the prospect contacts several companies. Being the first to respond dramatically increases your probability of success.
Yet very often companies using salesforce.com fail to implement web to lead. This is a shame, because it gives an easy way to capture new leads from your web site and immediately direct them to a person that can respond quickly.
Here’s what you can do with web to lead:
Automatically insert new Leads into salesforce from a Contact Us page on your web site.
Immediately send an acknowledgement email to let the prospect know you’ve got his enquiry.
Automatically send prospects content (white papers, case studies, product specifications) that they request from a form on your web site.
Automatically assign the Lead to the person or team that can respond quickly.
Use multiple web to lead forms on a single web site, each tailored to a particular product area or geographic region.
And of course reports and dashboards provide management information on how well each Lead Source is performing and how quickly sales teams are responding.
The web to lead wizard makes it easy to integrate salesforce with your web site.
There’s plenty of advice available on using web to lead to increase your salesforce.com benefits.
5. Use Quotes with Opportunities and Products
So you’re already using Opportunities and Products. And now maybe you’re considering Product Schedules. Why would you want to muddy the water with Quotes?
Let’s say a customer asks you for two different versions of the same proposal. You want to keep both because you don’t know which one he’s going to choose.
Of course the value of the Opportunity is NOT the sum of the two Quotes added together. The Quotes are mutually exclusive. The customer is going to accept one or the other. So how do you calculate the value of the Opportunity?
The answer to this is Quotes. You can create multiple Quotes on an Opportunity. Each Quote can have its own combination of Products. You decide on the ‘most likely’ Quote. It’s this Quote that is synchronised to the Opportunity and is populated into the Opportunity Amount.
If the customer changes his mind and chooses one of the other Quotes, no problem. Just synchronise that Quote to the Opportunity.
The screenshot shows a single Opportunity in salesforce with multiple Quotes. Quote 1 is synchronised to the Opportunity. It’s the value of this Quote that is counted for funnel purposes.
Using Quotes means you can increase your salesforce.com benefits by:
Getting an accurate view of the number of Quotes you’ve sent.
Differentiating between Quotes and Opportunities.
Retaining each Quote on the Opportunity so you’ve got a record of what’s been sent to the customer.
Integrating Quotes with third party applications such as Conga Composer, Echosign or DocuSign to automate the physical production, delivery and acceptance of the Quote.
Integrating Quotes with Approvals to streamline Pricing Approvals and Quality Assurance processes.
It’s always possible to drive more benefits from your salesforce licenses. We’ve given you ten examples of how that can be achieved in these two blog posts. And of course don’t hesitate to get in touch if you’d like to discuss implementing these ideas into salesforce.com in your own business.
Creating an RFP response is a big deal for Kentech. Even if it’s a small deal – two weeks of solid work is a minimum. So having a controlled processes to decide which projects to bid for is a critical driver of profitable business acquisition. And as an existing salesforce.com client the logical place to start was with a salesforce Approval Process.
With an annual turnover of $140 million, Kentech ranks as one of the world’s largest privately owned specialised engineering contractors in the world. Operating primarily in the upstream Oil & Gas industry, Kentech employees work in some of the harshest and most locations on the planet.
Like many organisations involved in multi-million dollar contracts, Kentech has a specialised team that prices projects and creates the technical response to RFP’s. As with many teams that perform this role, there simply aren’t enough hours in the day to produce a response to every opportunity that the sales team would like to go after. And of course not every deal has the same level of profitability.
So there has to be control over which RFPs get passed to the team to work on.
Kentech previously managed this process by email. With multiple stakeholders, often in different continents and time zones, it doesn’t take much to image how poorly this worked. Or how inventive the sales team can be in circumnavigating the documented process to try to get their own opportunities onto the approved list!
As advocates of salesforce.com, Kentech were keen to migrate this process to salesforce. But there were two key restrictions in salesforce they wanted to overcome:
Error messages come up one at a time
Kentech work on complex deals. This means there are lots of fields on the Opportunity and related objects that the sales person needs to complete before he can submit the deal for approval. This is handled by validation rules (“entry criteria”) on the approval process.
However let’s say some of these fields haven’t been filled in by the sales person. When he clicks ‘Submit for Approval’ he gets an error message – but only one at a time. Frustrating if there’s half a dozen fields that need to be completed.
To overcome this we produced a small piece of code that evaluates all the approval Entry Criteria and generates a single error message with all the errors listed. Simple but effective.
There’s only one submit for approval button
Complex deals such as this often means that management approval is required at different stages in the opportunity life cycle. Each of which has different entry criteria and approval steps.
However there’s only on Submit for Approval button on each object. So how do you implement different approval processes?
The answer is to create new custom buttons and link them to different approval processes.
“It’s the small things that really make a difference to user adoption,” says Kentech’s IT Manager, Joanne O’Reilly. “Getting the process onto salesforce.com was a big win for the management team. But finding ways to automate the process, reduce re-keying and enhance the user experience pays major dividends in getting the sales team to buy-in to salesforce.”
Approval processes don’t just apply to pricing discounts. GSP has customers using salesforce.com approvals to manger quality assurance, project handover, technical health checks and complex Case completion.
Using an electronic signature application integrated with salesforce.com is a sure-fire way to speed up deals and secure customer commitment. And like every other business, at GSP we like to get our deals done.
And also like most organisations, when we agree a deal with a customer we need to get the paperwork signed.
In our case it’s called a Statement of Work (SoW). Amongst other things it describes the scope of the work to be undertaken, outlines the roles & responsibilities between ourselves and the customer and documents commercial arrangements.
“Getting a signed SoW physically signed used to be one of the most arduous, time consuming and generally painful tasks a consultant had to undertake!” says Kerry Townsend, Consultant at GSP.
Here’s how it used to work
We created the SoW in MS Word then converted it to a PDF. We emailed the PDF to the customer. The customer printed it out and physically signed it. Then he or she had to find the time to walk over to the photocopier and figure out how the photocopier can act as a scanner.
At this point many people gave up and started looking for an envelope with which to post it back to us. It’s amazing how few envelopes exist in most offices these days. If however they got the photocopier to do its’ job they scanned the document and emailed it back to themselves. Then they emailed it to us.
It took forever. And guess what, we often ended up starting – or even finishing – the work before we ever got the signed SoW back.
How does it work now?
Today we use EchoSign, integrated with salesforce.com, to streamline the process and obtain electronic signatures.
“I still have to write the Statement of Work” says Kerry. “But now we have EchoSign embedded in salesforce. This means I can mail merge the key information and easily send the SoW to the customer. Often get it back, electronically signed, in minutes!
“Other relevant people such as our Finance Manager are automatically notified in Chatter. The customer can sign it immediately from their keyboard and I also get a Chatter feed and email notification letting me know its been signed. It truly removes the hassle for all concerned and radically speeds up the contract signature process.”
The signed document is stored in a Related List on the Opportunity in salesforce. And all parties are also automatically emailed a copy of the digitally signed contract.
Watch this video to see a demonstration of how EchoSign works with salesforce.com. There’s also more information about EchoSign, including an option for a free trial on the AppExchange.
A common problem for manufacturing and distribution companies that use salesforce.com is that the standard product selection functionality doesn’t easily allow sales people to quickly add multiple product line items. This is particularly a problem if there are other business rules around the products, for example, minimum order quantities or product bundles that must be purchased together.
This was the issue facing Mascolo. In addition to operating the Toni & Guy hair salon chain, the company makes and distributes a wide range of hair care products under the label.m banner to other hair salons throughout the country. Field sales reps need to be able to stand in a busy salon and quickly enter a wide variety of products and quantities into salesforce.com.
salesforce product selection wizard
From the Opportunity page the sales rep clicks “Add Products” and is taken to a product selection screen that lists all the product categories (see image at the top of the page).
He selects his products on the left hand side of the page and then enters the quantity for each product on the right hand side.
Items from multiple product categories can be selected:
The rep saves the product selection and is taken back to the Opportunity. The products selected in the wizard have been added as line items on the Opportunity.