C9 Case Study I Yahoo! Global Forecasting: Efficiency, Accuracy, Growth How C9 helped Yahoo transform its forecasting process to create a well-disciplined sales organization with an improved capacity to achieve consistent revenue growth. About Yahoo! By keeping people connected to what matters most to them, across devices and around the world, Yahoo! Inc. creates value for advertisers who want to establish relationships with Yahoo users. Industry Web Services and Information Highlights • Global deployment of C9 Forecast across North America, Europe and Asia • 13% increase in selling time • Global forecast now submitted in hours Patrick O’Leary Yahoo! Senior Director of Sales Operations and Strategy • Because they lacked well-defined forecasting metrics, salespeople had trouble following a consistent and disciplined selling process. • Salespeople spent an inordinate Currently Yahoo counts on a team of amount of time each week gathering nearly 1,000 members to sell advertising. information to create their forecasts; The Challenge: Inaccurate Forecasts Research has shown that forecasting is a thorny issue. In a survey of 1,700 companies, research firm CSO Insights found that only 46% of forecast deals ended up in the “win” column (CSO Insights “2013 Sales Management “Our Sales guys love C9” Problems at the Rep Level Optimization Study”). Lack of accurate this pulled them away from core selling activities. Problems at the Management Level • Sales managers found it cumbersome and time-intensive to cope with shadow-accounting practices and consolidate information from many spreadsheets. • Confusion around reported numbers sales metrics means that executives are made it difficult to gauge the actual stuck leading and managing based on status of deals and their probability of hunches and instinct. closing. Before establishing a relationship Problems at the Executive Level with C9, the sales team at Yahoo • Lack of faith in the accuracy of had a fundamental lack of trust in forecast numbers made it difficult to forecast numbers. Pipelines were make strategic business decisions. plagued by excessive subjectivity, • Forecast data was vulnerable to holes and rampant “shadow accounting” in Excel spreadsheets was common. Overall, unnecessary friction and poor communication existed between management and the sales team. “We had the same conversation each week, arguing about the numbers,” says Patrick O’Leary, Yahoo Senior Director of Sales Operations and Effectiveness. and inaccuracies whenever someone was hired or fired, which made it difficult for executives to balance downstream business operations. C9 Case Study I Yahoo! The Solution: C9 Pipeline and C9 Forecast Based on positive results of an initial rollout of C9 Pipeline and C9 Forecast in June 2012, Yahoo went on to implement C9 solutions to teams across North America, Asia, and Europe. Yahoo uses quantitative data generated by C9 Pipeline to streamline, organize, and enhance the forecasting process. With C9, Yahoo can now benchmark its results against past performance. And with C9’s predictive capabilities, based on hundreds of signals associated with each deal opportunity in the pipeline, Yahoo gets a quantitative assessment (expressed as a “C9 score”) of the quality of their deals. In addition, C9 analyzes qualitative data such as “time since last touch” and changes in close dates. This information is rolled up into an opportunity-specific risk assessment and marked accordingly as high, medium, Here are some specific benefits and High adoption rates of tools and results Yahoo has seen so far. improved Adherence to Selling Process Early Warnings when Revenue Forecasts Drop Before C9, an “archaeological dig” was required to figure out why numbers had dropped, according to O’Leary. Using a tree-like function within C9, the sales team now can drill into each region, down to the individual salesperson. Seeing specific attributes of every deal makes it easy to pinpoint the root cause of the revenue dropped from the forecast. Elimination of “Data Gaming” and Improved Sales Coaching Unlike the traditional frustrations associated with adopting new technology designed to help the sales force, Yahoo salespeople actively use C9 because it offers them a variety of direct benefits. For example: • Based on the activity in their pipeline, salespeople can now see if they’re likely to hit their quotas. • They also know how big their pipeline needs to be in order to make their numbers. • They can compare against a previous quarter to analyze their performance. Conversations around forecasted numbers Measurable Productivity Gains are now focused around the size and shape “Our sales guys love [C9],” say O’Leary. of the pipeline rather than data accuracy. “They can go into the app every day to “If someone says, ‘We’ve got another 500k coming in next week, I can say, ‘You’ve been working on that deal 120 days when the see what’s happening in the pipeline. You also automatically view changes in C9 week over week.” average is thirty days. What conversation On average, Yahoo has saved two hours did you have that made you think that?’” of productivity a week per rep and four The Results: Accurate and Reliable Forecasts says O’Leary. hours a week for managers. Using C9 has improved pipeline visibility and Thanks to the detailed insights and One salesperson told O’Leary, “This is the analysis delivered by C9, salespeople can best tool we’ve implemented here in five move beyond the static information in years. This is going to save me one-to-two the CRM system. They also more open hours a week.” or low risk. greatly improved the accuracy of forecast reports. Once a day, Yahoo loads all its revenue booked against contract into C9, and then layers pipeline information from Salesforce.com on top of that. “C9 is the place that brings those two together so [we] get that holistic view,” says O’Leary. about the status of deals during coaching conversations with their managers. With better visibility into the early stages of deals, sales managers now see problems in enough time to collaborate with other parts of the organization and request assistance where needed. About C9 C9 delivers predictive sales and marketing applications that increase revenue, generate more precise forecasts, and mitigate pipeline risk. By combining data science with products that improve sales and marketing execution, C9 enables leading companies like Yahoo, Pitney Bowes, and Google to drive predictable growth. C9 Inc. Tel +1.650.561.7855 177 Bovet Road, Suite 520 Fax +1.650.637.1473 San Mateo, CA 94402 info@c9inc.com USA 2 Copyright © 2014 C9 Inc. All Rights Reserved. Active Warehouse, Active Analytics, Active Connectors, Active Reports, Active Insights, Active Pipeline and Active Forecast are trademarks of C9.