QualityKiosk

Drawing up a sales strategy

GROUP 9
 Analyse the Indian market for Quality Assurance services in 2015
specifically for the banking sector and outline the implications for
QualityKiosk

Increased complexity of the business applications led to the growth of QA services

Security issues, functional loopholes, poor end customer experience, loss of money due to
fraud, erratic system behaviour
Need of QA for Bad application caused irreparable damage to the reputation and balance sheet of bank
Banking Sector

Indian software testing market stood at $5 billion in 2015

Estimated growth rate of 20% YoY because only 34% of projects met objectives
Growth
Potential

Opportunity for the company to provide its end-to-end offering

Banking vertical contributed 40% of overall business with far greater profitability than
insurance vertical
Implications for Aggressive target of growing revenues by 5 times in next 5 years
Quality Kiosk
What specific set of customers within the banking sector would you
recommend that Krishna pursue? Justify your answers.

Krishna should target New Private sector bank and

Targeted Payment banks
Customer in
banking sector Reason:

Private sector banks are heavily investing in the IT to

provide convenience and greater customer
Public sector private sector Payment satisfaction.
Banks bank Banks
Private banks are coming with many applications
such as core banking, deposits, lending, etc. which
requires functional testing
Sales cycle of new private sector banks and payment
New private Old private banks were 2 months and 1 months respectively
sector bank sector bank Both are expected to pay higher for quality and could
expected to strike longer term partnership
Initial revenue at the time of signup was substantially
higher

New Private sector Old Private sector Public sector Payment

Banks Banks banks Banks
Existing
Customers 7 3 2 0
Total Potential 8 12 20 8

Exhibit 4
 Evaluate the target plan and compensation plan set up by Krishna.
Does it meet the requirements of the organization?

Current Coverage of banking customers: 30%

Current Coverage of banking customers using all three services: 25%

With the inclusion of 8 payment Banks, there is a lot of ground to cover and based on these facts, the
company needs more hunters to tap the untapped potential.

Hence, hunters must be incentivized more compared to the farmers.

Hunter Incentivization Farmer Incentivization

Lower Revenue Targets Higher Revenue Targets

Higher New Signups Target Lower New Signups Target

New Business Development (New Services) Leverage Selling (New Services)

The existing incentive plan is in line with the requirements of the organization, however in order to motivate
hunters further, a bonus must be given for every customer acquisition they do.
 Evaluate the three options drawn up by Krishna and
recommend one. Justify your choice.

Option1: High penetration and medium revenue (3H + 1F)

Option2: Low Penetration and high revenue (1H + 3F)

Option 3: Medium penetration and medium revenue (2H + 2F)

Reasons:

With the inclusion of 8 payment banks, there was still a lot of ground to cover.
Out of target space of 40 customers(PSU and private), the current coverage was only 30 percent,
still a market left to tap new customers.
CEO(M Jhawar) also convinced that majority of the companys revenue would be driven by banking
sector, which meant we have to first penetrate into new customers and later go for up sell and cross
sell.
One Farmer can target 9/40 existing customers
Anuroop krishna can use his skills and experience to be hunter and help in targeting new
customers.
 Develop a spreadsheet calculator to calculate incentives at different levels
of performance. Based on the same, assess the sensitivity of important
variables. Discuss your findings.
New Signup New services to existing customers

Irrespective of the revenue generated from the

new customer; the incentive for the Farmer The amount of incentive the salesman gets
increases by more than 50% for every first new is sensitive towards the amount of new
sign up and more than 33% for the next sign up services that are provided to the existing
and so on customers

In the above case incentive for the hunter The uncertainty in the output incentive
increases by more than 20% for every first new value can directly be apportioned to the
sign up and more than 16% for the next sign up revenue generated from the new services
and so on offered to existing customers

The total incentive paid to the salesmen is Existing services to existing

highly sensitive towards the new signups that
are generated irrespective of revenue generated
by the new signup
customers
The amount of incentive the salesman
gets is not highly sensitive towards the
amount of existing services that are
provided to the existing customers
since its 1.5 times lesser sensitive
compared to new services
 Think beyond the three options for sales force structure
detailed by Krishna and recommend your own options.

Existing Sales Force Structure: Specialization by selling activity

Option 1: 3 Hunters and 1 Farmer

Option 2: 1 Hunter and 3 Farmers
Option 3: 2 Hunters and 2 Farmers

Proposed Sales Force Structure: Specialization by industry vertical

Option 1: 3 Banking Specialists and 1 Insurance Specialist- To target higher profit generating sector
which has seen less penetration
Option 2: 2 Banking Specialists and 2 Insurance Specialists- To have an equal representation from both
the sectors

Expertise within the Banking sector:

For New Private Sector Banks- 3
Old Private Sector Banks- 1
Public Sector Banks- 1