25 Oct Profitability reinforced: Who is affected by deal management?
by John Pora
When you set your organization up with deal management, you’re not just streamlining existing processes. You’re providing your business with powerful insights that can drive more revenue and make the sales process easier for your employees.
But what employees will be affected by implementing deal management? And is it only front-line employees who will notice a difference?
In this blog, we take the foundational elements covered in the first post and look at how deal management affects certain groups and individuals in your business, specifically the sales team: sales rep, sales manager, and sales operations will all be impacted by deal management, as well as decision-making sponsors in your organization.
Sales reps are the organizations front-line and relationship builders with your customers. Ideally, they understand the customers’ needs and can help provide information on the appropriate pricing, what type of discounts or concessions a particular account or opportunity might need to close, and why deals are won or lost. Deal management can help you put better predictive information and direct guidance in the hands of the people who need it most, your sales reps. When you have a confident sales rep that is armed with customer insights you’ll close deals faster and give less away.
Leveraging deal management can provide sales reps specific intelligence such as historical data on similar deals, price scoring, and win/loss data. Sales reps appreciate how a deal looks, its likelihood to close and in what timeframe. Historical data on deals similar to the opportunity they’re working helps the organization to know the exact way to affect customers’ feedback and response. This comparison helps to identify what discount is best to get a win.
Organizations can choose what information is exposed to individuals, but arming reps with more specific intelligence can guard against unnecessary discounting, assess possible delays or additional approvals needed, and furnish a deeper understanding of client behavior that helps negotiate a faster close.
A sales manager looks across the deals in his region and determines how they can sell better and faster and to grow revenue and preserve margin beyond one client or opportunity… Deal management includes, in the most recent release, a price organization function that shows the best price option to optimize margin and the chance of winning the deals; this is a game changer for sales managers. Now managers have data at their fingertips to assess specific deals and their regional portfolio of opportunities to make the best decisions for the clients and still serve the business.
Deal management provides valuable insights into your win-loss rate and discounting history. Sales operations and deal desk functions can easily look at regional pricing models, discounting, and win/loss data from a data science perspective without much effort.
The most exciting part of this benefit is that they can explore pricing and discounts and directly access analysis in a central location without requiring a data scientist in the background.
When management and functional areas that operate above sales management get involved in strategic deals and need more information, deal management gives them the pivotal metrics and historical context to determine over time what types of pricing are working with particular customer sets and markets and what the best approach is to maximize profitable business.
Those at the top of the organization are responsible for guarding the organization financially, and deal management gives them increased control over the margin and overall increase in profitability as part of the day to day operations. Deal management is a quick and easy way for management to put tools and data in the hands of the sales team to help foster smarter pricing and discounting strategies with their clients. It ultimately gives the management team better insights and controls over broad discounting and deal-making and eliminates extra cycles in the process to evaluate optimal pricing for regions and market types.
So, there are a number of different roles that benefit from deal management. From the front line sales people interacting directly with customers and the deal desk and pricing stakeholders driving insights and guidance into the process, to the management teams ensuring the overall health and profitability of the business. Deal management insights can provide a quick win to the sales process and impact profitability.
In the final installment of this deal management blog series, we’ll look at organizational readiness for deal management and how to identify what stage your organization is in. Are you ready?
John is the VP of Oracle Professional Services here at Simplus. He’s an accomplished business leader with more than 20 years of experience in developing and maintaining rigorous deployment and customer service practices for high-growth enterprise software companies.