The Microsoft Platform Slide 2.0

I’ve made some changes to the slides I posted a few months back. In this new version I wanted to elevate Employee Experience (EX) and Customer Experience (CX) to the same plane. By coincidence this is also reflective of the new Microsoft Business unit: AI Business Solutions that encompasses Modern Work, Dynamics 365 and Power Platform.

In this new deck I have also added (stolen from a colleague) a visual to describe the extensibility of the platform as well as slightly more detail on Azure platform fundamentals across Infrastructure, App Services, Data Platform, AI Platform and of course Security.

This single cloud platform gives organisations the ability to build, buy and deliver rapid time to value at scale with all the benefits of out the box capability, full extensibility with all the governance and controls to manage risk in this AI Era.

The slides are available to download here.

Foundation principles Vs The pace of change

I’m fascinated by contradictions, contrasts and how whilst we live in a world of increasing change, there remains some fundamental principles that are as true today as they have every been. It is these foundational principles that I believe make organisations stand out and why some companies prosper and some do not.

To understand change lets look at the history of the fortune 500:

The average lifespan of an organisation in the S&P 500 in the 1960s was 75 years. Today the average is 21 and decreasing. That a lot of disruption, so what is going on? There is a lot going on behind the numbers, it isnt all companies becoming insolvent, these numbers include the large volumes of M&A as well as bankruptcy.

Let’s take a look at the increasing volume of start-ups and unicorns (unicorn is a startup company valued at over US$1 billion which is privately owned and not listed on a share market).

These organisations are no longer considered startups but are still relatively “new”. Airbnb for example was only founded in 2008 and Spotify in 2006. It tool Airbnb only 3 years to reach $1 billion valuation, that’s phenomenal growth. Growth that most of the companies in this picture and may others in the tech world have been able to realise. If you look at the AI space right now then that growth is even faster. To put this into context, it took Microsoft 11 years to reach a similar valuation. The pace of change and disruption is increasing year after year.

Back to the original question: Why are some organisations successful and some not?

Lets take a look at some more established organisations for a clue:

You will all know these companies too, these are all well established organisations that are very successful in their own right. But what do you think all these companies have in common?

Lets take a look at these and a few more to find out.

  • Berkshire Hathaway – Originally a textile manufacturer that took off in 1839. Buffett took control in 1962, though, and by 1967 he started to move outside of textiles into insurance and other sectors.
  • Taco Bell – Hot dogs and now Taco’s
  • Nokia– Opened a pulp mill and started making paper. The company later bounced around a number of industries before getting serious about phones in the 1960s.
  • 3M – Originally planned to sell the mineral corundum, an important ingredient in building grinding wheels, directly to manufacturers.
  • Tiffany– The jewelry and silverware hot bed was originally a stationer called Tiffany, Young, and Ellis w
  • Hasbro. They sold textile remnants. Their business gradually shifted into school supplies before making the leap to toys after the 1952 introduction of Mr. Potato Head.
  • Colgate – The hygienic products company got its start in 1806, but it didn’t make its first toothpaste until 1873. Founder William Colgate initially manufactured soap, candles, and starch.
  • Xerox – When Xerox got off the ground in 1906, it was as a maker of photographic paper and photography equipment called the Haloid Company. The company didn’t introduce what we would think of as a copier until the Xerox 914 made its debut in 1959

All of these organisations do something quite different to what they did when they were originally founded. They adapted. But how and why?

To answer this question and perhaps the best example of this is Avon.

David H. McConnell started Avon in 1886. McConnell sold books door-to-door, but to lure in female customers he offered little gifts of perfume. Before long, the perfume McConnell was giving away had become more popular than the books he was selling, so he shifted focus and founded the California Perfume Company, which later became Avon.

Avon like all the other examples had a deep and meaningful understanding of their customers. And because of this understand they were able to adapt their business model, their products and services to the needs of what the customer really valued:

The key for organisations to be successful are complex and varied but there are thee principles that I believe are foundational to success:

  • The ability to understand and know your customer
  • Have the culture and desire to listen, learn and adapt even if that lesson is hard to hear or takes you away from what originally made you successful
  • Have the (technology) platform to make the adaptation needed at pace and scale

I hope this was useful reading. Id love to hear any other examples you have or other fundamental principles that all organisations need to be successful over the long term.

Agents, AI and the evolving messaging

One of the areas I am particularly fascinated in right now is how people and organisations are adapting the way they think and talk about AI and the “Agentic World”. It is a fast moving space (although some of original tech has been around a long time) with recent innovations and vastly improving cost models capturing peoples imagination.

All this has reminded me on how we use to talk about technology decades ago and how with a maturing market and customer base we’ve had to constantly adapt.

Lets take a look at a very early 1980’s advert for the Osborne computer. Computers at the time where niche, expensive and attracted a relatively small market. As a side note Osborne would go on to be infamous for the “Osborne effect” which is a good lesson of the caution one should apply to “roadmap sessions”. As you can see below it is all features and functions for an end customer that could understand what all of that means. I see similarities in the way we used to speak about cloud “e.g. we have X datacentres, Y storage, networking speed, etc etc”

We then move onto a later example from Radio Shack for the Tandy computer. We are now approaching mass market appeal. Prices have dropped considerably and you can see from the advert that is is far more inclusive and helpful for all people (not just technical) to start their journey with computers. Here I see similarities with the way we went from Cloud computing to Software as a Service. Here the usage and outcome was clearer for the end user we had “CRM systems, HR systems, Accounting software etc”. It was far cheaper and easier to buy.

Next we actually have an early advert from the 1970’s from Apple. Apple have always been great on how to speak to customers. I love this example because it is market making. It is not afraid to “teach” or explain how to use a computer. This is exactly what was needed at the time when most people didnt think a computer was relevant for them. This is where we are with AI, specifically Gen AI and Agentic AI. The messaging is what is it and how can I use it in my business. Customers want to be taught how, what are the use cases and how do you drive rapid adoption.

I hope this has been interesting, please do share your stories and how your messaging is evolving. Thank you for reading.

Deal Planning & Qualification

To build on my previous article about Business Value, it is crucial to have a clear, consistent, and agreed-upon financial basis for technology projects to ensure positive customer outcomes. Here are some further tips and practical steps on how to achieve this.

I cover all this in detail in my Sales Training Sessions “Delivering customer value through the sales process (sales & pre-sales primer)”. New dates TBA soon or contact me directly for more information.

The first step is to have a clear understanding of the potential opportunity. The following is an amalgamation of many deal qualification templates, sales process and over 20 years experience in the industry. It serves as a reminder on every deal of the basics that all parties (the customer, the vendor, the partner) all need to align on.

  • Budget / Funding
    • What confirmation do you have that the customer will fund this project?
    • How has the customer managed similar projects in the past?
    • Is there a business case in place?
  • Business Issue
    • What business issue(s), problem or opportunity, is motivating the customer to take action?
    • What happens as a result of the pain?
    • What has the client already tried to resolve the pain?
    • Why has this not resolved it?
    • What options does the client believe it has for solving the pain? 
    • What are the timescales for resolving the pain and why?
    • What is the compelling event?
    • If there is no compelling event what is your plan to create one?
    • Who ultimately owns the pain?
    • Who else is impacted by this pain?
  • Business Case
    • What is the potential business value ($) or consequences of acting or not acting on the business issue(s)?
    • What timescales does the value have to be achieved in and why?
  • BDM Alignment Power
    • Who in the organisation has done most to guide you through the evaluation process?
    • What significant actions have influential contacts taken on your behalf?
    • Has the BDM unit met with our competitors?
    • Does anyone in the BDM unit have a relationship with our competitors, if so describe?
    • Has the customer agreed to our evaluation plan? If yes who has signed on behalf of the customer?
  • Our Portfolio& relationship landscape:
    • Describe the ‘One Company” approach
    • Describe current client investment in our offerings
    • Which BDM’s regularly engage with us?
    • Describe 2 & 3 above for our competitors
  • Risk
    • What is the customer’s ‘do nothing’ risk?
    • What other internal projects could compete with the budget and what are the plans to mitigate?
    • What are you doing to mitigate the competitive threats?
    • What are you doing to mitigate the “non believers” within the sphere of influence?
    • How do you plan to mitigate the need for negotiation?
    • How are you managing the client’s sign off process?
    • How are we mitigating the risk involved with implementation (if any?)
    • Are there any additional risks for last minute delays or loss?
  • Value Prop
    • Which of the customers key selection criteria favour our solution?
    • Which criteria represent risk?
    • Describe the Microsoft value proposition that solves the customer problem and is unique to Microsoft
    • Has the BDM unit accepted our value proposition and value case?
    • What is the competitors value proposition?
    • How does the BDM unit believe our value prop compares to our competitors?
  • Partner
    • Which Partner organisations has relationship with the BDM unit?
    • How are we aligning ourselves with these organisations?
    • Do they have people on the bench for us or our competitor?
    • What is their win, do they influence directly or indirectly?

As we build a clear pathway to a potential commitment its important to also build focus on the sales experience and some of the activities that we will employee to bring the customer on the journey with us. I’ve built the following template to help define these activities:

  • Discovery
    • Business Pain Points: What are they key business issues we are trying to overcome
    • Persona’s: Who are the persona’s and what are their individual pain points and objectives
    • Walk the floor: What first hand experiences / observations do we want to undertake. E.g. CC visit, walk the floor, store visit
    • Transformation: What can be automated, what will they no longer need to do, what new things are possible
    • Q&A: What are the difficult questions and our consensus responses
  • Design
    • Business Value: What key business value metrics (Business drivers, Business outcomes, KPI’s) do we intend to land
    • Future Business Vision: What is the future vision / state we want to land
    • Story: What is the outline story we intend to tell (day in the life)
    • Persona’s: What personas will take part in the story
    • User Journeys: Describe the user journeys that we need to demonstrate
    • Industry: What industry examples / POV do we intend to share
    • Case Studies: What case studies will we use to give confidence in the solution
  • Showcase
    • Wow Factors: What wow factors will we include
    • Compete landmines: What compete landmines do we intend to land and what do we want to defend against
    • Take Aways: What will we leave the customer with (Screenshots, Click Through presentation, Reprise, Video)
    • Personalisation: How will we personalise the session to create an amazing unique experience (Branded leaflets, mocked up Trustpilot, Glassdoor, Exec Video
    • Pricing: Are we clear on what the solution will cost? What is included, what they need to buy, what existing capability they can leverage. Deployment, maintenance costs etc
  • Deployment & Adoption
    • Deployment: Describe the reference architecture we purpose and how this will fit into the current to desired state
    • Risk: How will the solution maximise the opportunity for increase ROI whilst minimising deployment, adoption challenges
    • Skills: What skills will they need and what is the plan to upskill / cross train
    • Future: How will the solution provide a foundational basis to grow their business in the future
    • Wheel of value: What does our entire Org value look like (Support, Deployment Services, CAB, Partner, etc)

I hope this is helpful, there are plenty of other articles on my website related to discovery, value engineering and many other practical ways to deliver customer value.

Generative AI for UI

A few weeks ago I wrote about 𝗔𝗴𝗲𝗻𝘁𝘀 𝗮𝗻𝗱 𝘁𝗵𝗲 𝗳𝘂𝘁𝘂𝗿𝗲 𝗼𝗳 𝗔𝗽𝗽𝘀:

On April 4th 2025 Microsoft Research shared an update to our WHAM model (you can read more about that here: ) and if you want to actually play the Generative AI game you can do so here.

In my article I wrote about how “As we move forward, the end user experience will evolve with more dynamic UIs tailored and delivered in real-time by AI. “

This example from MSR takes this auto generated UI to another level 🙂

PS The original Microsoft Research article about MUSE is here: Our first generative AI model designed for gameplay ideation

Complexity from simplicity

I like stories, I like listening to people tell stories and if you know me well then you know this is also how I like to communicate ideas.  

One of my most popular stories was the story of the pencil, I first told it about 10 years ago. I was inspired by something I heard about on an episode of a Freakonomics podcast which referenced an economic essay titled “I, pencil” I, Pencil – Wikipedia. It made me think about the relationship between simplicity and complexity.

My story is below:

This is quite obviously pencil. You know what it is and what it does. You don’t need a training program, a certification or a user guide to understand how to use a pencil. It is also simultaneously one of the most simple and yet most powerful devices on the planet.

Even today with all the technology available to us, children are still taught to read and write with the humble pencil.  

If you think about some of the world’s greatest achievements, many of them probably started with a pencil. An idea, a sketch, many of the greatest artworks started with pencil drawing on canvas. Most business plans, books and inventions start with the pencil. And so at first glance we might think about the pencil as in fact a very simple device.

When I first thought about this story my daughter was still learning to spell. I think she was about five years old at the time. I remember she would come home from school most days with a list of ten words on a piece of paper. She would read each word, cover it with her hand and then she’d have to write out the word she had read. This would her homework each day (back when she liked doing homework). As somewhat of a competitive father, I thought I would test her a little 😊. So one day I got her homework and as she was halfway through I said “let me add something”. I took the pencil from her, and I wrote “I like Arsenal” on her homework page.

I gave her the page, she put the paper down and then took a pause.

You should know that I live in north London and although we are only around the corner from the Arsenal stadium you never know what might happen and who your children might support….

She said. “No Daddy, you are wrong……

I was worried. I took a deep breath, and I wondered what was going to come next and this is, what she wrote:

“I love Arsenal. Boo Tottenham”.

This was an incredible experience for me as an avid Arsenal fan and even prouder father! This was another example of an amazing experience of what can happen with a pencil.

The question then is:

When you think about what your business, your solution, your value proposition. Do you look at the world through the eyes, of a child or user in terms of what amazing things you can do with a pencil? Or do you look at the world, through the eyes of engineer?”

Because if you look at the world through the eyes of an engineer, when you look at the pencil what you actually see are the different chemicals that are required to create the rubber, the different metals that are required to attach the rubber to the pencil itself. The cedar wood that is used to make the pencil (because cedar wood doesn’t warp). You need special glue to attach the two bits of cedar wood together. You need five different layers of lacquer to create that premium pencil feel. And then of course you need graphite and clay ( it’s the percentage of graphite and clay that determines the hardness and softness in a pencil).

And so suddenly we have gone from what would seemingly seem like a very simple device to something that is actually quite complex.

In fact in a manufacturing plant it takes over 177 steps to build the pencil!

Imaging buying a pencil. You go to the pencil shop, you don’t care about the different things that are in it, do you? You don’t care that it takes 177 steps. You might however be interested that this pencil was used by an artist that you liked or was used by someone who you admired.

You certainly don’t really care about the complexity of the pencil itself. Often, I see organisations mistake complexity for differentiation. They may show a vast architecture slide to show the breadth of what they do in the hope that inspires some sense of uniqueness or something that other organisations might find difficult to replicate.

Successful organisations focus on what is possible and what the outcomes might be, this is who customers want to buy from.

Think about the pencil when you when you have a complex solution that you’re considering putting in front of a customer, ask yourself “what is it that I want them to see & experience?”.

Thank you for reading.

Back to the future (of SaaS)

A colleague and I recently collaborated on ideas for a customer meeting we had coming up. Special thanks to Steve Everett for the initial idea and the subsequent narrative we developed. We aimed to address why, despite many technological advancements, we find ourselves still trying to solve the fundamental challenges decades later.

Many of you will have seen the articles/podcasts on “death of SaaS”  and whist I take a more balanced view I do agree that we are in the midst of some quite significant ways in which technology will solve real world problems. I also believe this is going to fundamentally benefit us all.

Those that will benefit the most and rise above the competition will be those that are ready to embrace this opportunity and take a platform approach, NOW.

The problem (we have been talking about the same problems for the last 20 years):

  • Rising expectations of Customer and Employee Experience
  • The quest for a Single Customer View, Customer 360, KYC
  • Lack of (promised) ROI

Why? (with all the promise of technology solutions, this this arguably worse than it has ever been)

  • Best of breed and siloed decision making means on average customers have 300 + Apps in their business
  • Cloud. Cloud has increased the proliferation of apps, business users can buy and deploy applications with a credit card
  • SaaS has promised infinite configurability and customisation. Many of these applications now are too risky or difficult or expensive to change. Not to mention the niche skills (and therefore risk) that you now need in your organisation to manage these applications

The Future (how will we solve this for the long term)

  • Make cohesive decisions based on the Customer Journey and organisational wide business outcomes not decision made in departmental silos
  • Invest in platform not product. A platform approach will provide scale to your business, reduce risk and enable you to build flexibility and adapt rapidly to the pace of change in the industry
  • Agent & AI over Apps. The way we deliver solutions is rapidly changing. Agents and AI will enable us to not only simplify our business but provide automation across business processes at scale

You can download the above slide in PPT format here.

Thank you for reading! I hope this article is useful, please do share your thoughts.

Partner Success: What do customers look for?

One of my favourite roles at Microsoft was the UK Technical Director for Global Partner Solutions. I describe this role on my LinkedIn profile as “Delivering Customer success through our Partners by focusing on business outcomes, innovation and sustainable business models.“. I held this position for five years, during which I dedicated my efforts to comprehensively understanding customer expectations from partners and supporting the UK partner ecosystem in meeting these needs while standing out in a competitive market.

I saw three things as fundamental to what we needed to do:

  1. Business Outcomes – We would prioritise our efforts on partners that focussed on driving business outcomes for their customers
  2. Innovation – We would prioritise our efforts on key innovations (such as AI) where partners could offer something unique to help customers scale their own technology ambitions
  3. Sustainable business models – We would prioritise our efforts on engagements that focussed on repeatability, differentiation and founded on sound business plans

Over many years I was curious as to why a customer would select one partner over another. I would take every opportunity to ask customers “Why” and “What would you do differently” when it came to partner selection. I’ve categorised this feedback into seven areas:

  • Solve business problems – Business outcomes are more important than how we typically measure project project success (e.g. Time, Budget, Scope). A project should only been seen as a success if it meets the objectives of the business and the needs of the users. My article implementation best practises covers this in more detail: https://markmargolis.me/2014/02/10/crm-implementation-best-practice-with-microsoft-dynamics-crm/
  • Partner to Partner – It is unlikely that a single partner is going to be able to meet the entire objectives of any business. Successful partners have a large network, they have a good understanding of the ISV ecosystem and are they willing to work together.
  • Incentive Alignment – Price is always important, but long-term economies of scale are more important. As a partner becomes increasingly integrated into the business, successful partners ensure that the customer is always getting value for money. Partners help the customer upskill even if this means lower revenue in the short term. It is about long term value creation.
  • Value over price – Price is important but organisations are willing to pay more if they can see the value. Customers want strategic alignment with an organisations business plan. They want to avoid managing a fragmented partner ecosystem. Successful partners and strong relationships are based on strong culture alignment and are comfortable challenging the customer and having honest conversations about what is and is not working well. Successful partners provide the right team with the right capability.
  • Skills & Scale – Customers are becoming more technical (“every business is a software business“). How will the partner amplify the customers technology capability and enable it to scale. Successful partners move quickly. Customers already have commoditised technology capability, they need to “burst” and great partners act quickly.
  • Deep technical specialisation – If “every business is a software business” then successful partners not only provide scale but they also provide deep technical specialisations in areas of high demand and innovation (AI, Agents, Automation etc).
  • Industry & Cross industry expertise – Customers don’t want to train partners on their industry, they expect partner to have it. Successful partners are steeped in industry know how. Furthermore great partners bring cross industry expertise and best practise from adjacent industries.

To give you a sense of the difficulty for customers when choosing a supplier, consider this picture that represents the vast ecosystem (and therefore choice) a customer faces. In this case just for a marketing solution.

As I was developing a strategy for how I would:

  • A) create a differentiated UK partner ecosystem
  • B) Assess the capability of the ecosystem and
  • C) build a plan to transform the ecosystem

I was fortunate that a great colleague of mine at Microsoft Melissa Mulholland (now CEO of Crayon) had commissioned a series of “Modern Partner” ebooks with IDC and this provided a foundation by which we where able to create a “Partner Transformation Index”.

We scored each of our partners according to 4 categories:

  • Engaging Customers
  • Optimising Operations
  • Empowering Employees
  • Transforming Products

Each category contained detail that enabled us to build a comprehensive plan with partners. You can read the full details of each category in the following ebooks:

You can download the above images in PPT format here.

I hope this article is useful, please do share your thoughts. Thank you for reading!

Technology ROI profiles

Last week I shared perspectives on how building a Business Value Framework can provide a clear, consistent and agreed upon financial basis to accelerate investments for your solution. Today I thought I’d share a bit more about the typical return on investment (ROI) profiles that we see in the industry. Many years ago I attended a conference that shared something similar to the slide below. I’ve recently added to it in order to account for some of the more recent technology trends, namely. Generative AI and Agentic AI.

Technology ROI Profiles

The slide above shows three examples:

  • Internet of Things: The example here is that you can see some quick return on investment before it flattens out
  • Application Protocol Interfaces (aka the API economy): Whereas the API economy / business platforms require significant investment of time and technology before you start to see significant returns
  • AI: Similarly AI or specifically traditional AI as we have thought about it until relatively recently can provide reasonable returns before we see more exponential growth

I could write a great deal more on each of these areas. I am particularly fascinated about how each of these is disrupting value chains and creating opportunities for new business models which is why we see exponential growth. For now however I am going to keep this simple and focussed on the typical ROI profiles.

Technology ROI Profiles

This second slide shows how we see Generative AI and Agentic AI providing different ROI.

  • Gen AI: Gen AI (think Copilot) is easy to deploy and provides very quick ROI specially around productivity, efficiency as well as growth over the longer term
  • Agentic AI: Requires more effort in the short term but provides and will continue to provide exponential growth for organisations in terms of cost / process optimisation as well huge opportunities for efficiency and growth

Wherever you are on your journey not only do you want a clear understanding of the returns of value but it also helps to understand the typical ROI profiles that you might expect to see. I hope the above helps. You may also find this article useful in the context of my other related articles such as:

When building your AI / Gen AI / Agentic AI strategy then you’ll want to map your opportunities against your Innovation/AI Strategy roadmap. An example pf this is below and you read more here:

The PowerPoint deck for the above images are here:

Thank you!

A Simple Value Framework

In my experience, one of the barriers to successful technology projects is the lack of a clear, consistent and agreed upon financial basis on which the project is undertaken and then measured. Although there have been many improvements in investment planning, more attention is often given to evaluating the technology itself rather than critically assessing and building a comprehensive financial case for its return on investment.

Whether you are:

  • A vendor selling your solution to a customer
  • A customer building an internal investment case to invest in a solution
  • A transformation or project lead responsible for the delivery of the project

It is essential to have a consistent basis by which the project/solution will deliver tangible business benefits. I’ve been involved in thousands of technology decisions and the lack of ROI is very rarely the software but rather down to decision making, communication and a lack of a consistent value/ROI framework that can be tied to the technology decision.

During the early days (day one) I like to start with something really simple. At a subsequent phase we’ll do a much more comprehensive business value assessment but early on I want to be clear on the high level objectives and the language (KPIs) I will want to use during discovery.

Many years ago I built a simple value framework that would ensure I understood the business drivers behind a technology decision. An example of this is below and is a Sales Productivity / Sales Transformation value proposition.

It breaks down into three components:

  1. Business Drivers – What goal is the organisations trying to achieve?
  2. Business Outcomes – How are they going to achieve the goal?
  3. Key Performance Indicators – How will they measure If they are achieving the goal?

Lets go a little deeper:

Business DriversWhat

Firstly, it is crucial to identify the business driver from the customer’s perspective. Generally, this falls into one or more of three categories: growth, cost or risk reduction / mitigation. Understanding whether the customer’s primary focus is on expanding their business or reducing costs is essential, as it influences the source of their budget allocation. Typically, cost budgets are nearly always allocated, whereas discretionary budgets can often come from a growth budget.

For example, while working with a major UK bank, I initially focused on cost reduction due to their financial strain and shareholding by the UK government. However, after realising that there was no budget for cost reduction, we shifted our value proposition towards growth.

This drastically changed the conversation we had and how we “sold” our solution, the language we used, the examples we gave and the people we spoke to.

As a result, they invested heavily in the solution proposed. This experience underscores the importance of understanding the different budget allocations within the customer’s organisation.

Business OutcomeHow

The second component involves determining the business outcomes the customer aims to achieve. This could involve acquiring new customers, increasing sales from existing customers, or enhancing process efficiency. If growth is the objective, strategies may include acquiring new customers or boosting sales from current ones.

Key Performance IndicatorsIf

To measure success, key performance indicators (KPIs) are used. For new customer sales growth, metrics such as sales revenue, sales velocity, and lead conversion rates are essential. Instead, for existing customer growth, indicators like average order size, repeat sales, and product penetration are critical. Each metric provides valuable insights and requires tailored language, storytelling, and value propositions.

The image below is an example framework completed with a sample made up customer. It is taken from our Catalyst program which you can find links to at the end of this post.

When I first starting doing this many years ago I used to carry a a PDF around with me that contained a library of KPIs and definitions. Today I rely on Copilot:

A further refinement of the prompt can help you build a more customised framework for your solution:

Business Drivers

  1. Market Expansion: Entering new geographic regions or customer segments.
  2. Customer Experience: Enhancing customer satisfaction and loyalty.
  3. Operational Efficiency: Streamlining processes and reducing costs.
  4. Digital Transformation: Leveraging technology to improve sales processes.
  5. Competitive Advantage: Differentiating from competitors through unique offerings.
  6. Revenue Growth: Increasing sales through cross-selling, upselling, and new product launches.

Business Outcomes

  1. Increased Market Share: Capturing a larger portion of the market.
  2. Higher Customer Retention Rates: Reducing churn and increasing repeat business.
  3. Improved Sales Productivity: Achieving more sales with the same or fewer resources.
  4. Enhanced Customer Satisfaction: Receiving higher customer satisfaction scores.
  5. Faster Sales Cycles: Reducing the time it takes to close deals.
  6. Revenue Growth: Achieving higher sales and revenue targets.

Key Performance Indicators (KPIs)

  1. Sales Growth: Percentage increase in sales revenue.
  2. Customer Acquisition Cost (CAC): The cost of acquiring a new customer.
  3. Customer Lifetime Value (CLV): The total revenue expected from a customer over their lifetime.
  4. Churn Rate: The percentage of customers who stop doing business with the company.
  5. Average Deal Size: The average value of closed deals.
  6. Sales Cycle Length: The average time it takes to close a deal.
  7. Conversion Rate: The percentage of leads that convert into customers.
  8. Net Promoter Score (NPS): A measure of customer satisfaction and loyalty.

You can also ask Copilot for example industry benchmarks:

Sales Growth

  • Industry Benchmark: Sales growth rates can vary significantly by industry. For example, technology companies often aim for annual sales growth rates of 15-25%, while more mature industries like manufacturing might target 5-10%[1].

Customer Acquisition Rate

  • Industry Benchmark: The cost of acquiring a new customer (Customer Acquisition Cost – CAC) can vary widely. For instance, in the B2B sector, the CAC can range from $164 to $310[2]. The visitor-to-lead conversion rate is typically around 2.2%[3].

Customer Retention Rate

  • Industry Benchmark: Customer retention rates also vary by industry. For example, the banking industry enjoys a relatively high average retention rate of around 75%, while the hospitality industry has a lower average retention rate of about 55%[4].

Sales Cycle Length

  • Industry Benchmark: The average sales cycle length can differ based on the complexity of the product and the industry. For example, in the software industry, the average sales cycle length is around 90 days, while in the manufacturing industry, it can be around 130 days[5].

Lead Conversion Rate

  • Industry Benchmark: The lead conversion rate varies by the type of lead. For cold leads, the conversion rate is typically 1-3%, for warm leads it is 5-10%, and for highly targeted leads from existing customers, it can be 10-25%[2].

Customer Satisfaction Score (CSAT)

  • Industry Benchmark: Customer satisfaction scores (CSAT) generally range from 75% to 80% across various industries[6].

Sales Team Productivity

  • Industry Benchmark: Sales team productivity can be measured by various metrics such as the number of deals closed per salesperson, revenue generated per salesperson, and the average deal size. For instance, achieving more sales with the same or fewer resources is a common benchmark[7].

And of course, please always check the citations

Further reading:

If you want to find out more about Value Engineering and the Catalyst Program (and I highly recommend it) you can find a comprehensive training program here: https://get365ready.com/microsoft-level-up/course-detail/1360820 and here:https://partner.microsoft.com/en-US/asset/collection/microsoft-catalyst-partner-presales-immersion-course#/

Download:

Thank you for reading!