Setting Up Opportunity Management

Best Run Bikes bought Cyclo Clothing, but the two businesses still run separately. Sales Manager, Eduard Becker, wants to make sure every new opportunity created in SAP Sales Cloud Version 2 for Cyclo Clothing has its own document type and internal process.

With the new document type and internal process in place, the sales team correctly tracks and manages Cyclo Clothing opportunities. It allows them to measure the success and effectiveness of their sales efforts for the bought business separately from their primary operations.

To achieve this goal, Best Run Bikes relies on the standard Opportunities features in SAP Sales Cloud Version 2 and creates a new document type for the Cyclo Clothing business.

Alan, the administrator responsible for managing the system, needs to set up a new document type within SAP Sales Cloud Version 2. This document type will specifically generate new business for any new opportunities related to Cyclo Clothing.

The following demonstration shows how Alan creates a new document type for opportunities.

The party schema configuration determines the structure and organization of parties involved in the opportunity process. Parties include customers, prospects, contacts, or other entities related to the opportunity. The party schema defines the relationships between parties, roles, and the information captured for each party. This configuration improves the ability to manage and track the parties involved in the opportunity process.

Alan configures the following options to keep a Party Schema for Opportunities:

1. Activate or deactivate specific values.
2. Select which party role needs to be obligatory.
3. Review the determination steps of each party role and activate or deactivate steps based on the requirements.

Sales Cycles for opportunities are important for both Sales Managers and Sales Representatives:

A defined sales cycle offers Sales Managers clear visibility into the progress of each opportunity. They track each opportunity's progress through the pipeline, identify potential bottlenecks, and take corrective action if needed. By analyzing the stages and duration of the sales cycle, Sales Managers evaluate the performance of individual Sales Representatives and the team as a whole. Sales cycle data enables Sales Managers to forecast future revenue and give resources effectively. With a defined sales cycle, Sales Managers generate correct sales reports that offer insights into key performance metrics.

Sales Representatives benefit from a clear roadmap offered by the sales cycle. It outlines the steps that they need to follow, helping them stay organized and focused throughout the sales process. A defined sales cycle guarantees that all Sales Representatives follow a standardized approach. This consistency leads to a good customer experience, builds trust, and improves the brand reputation. Understanding the sales cycle helps representatives identify high-value opportunities that are more likely to convert. They focus on nurturing and closing these leads, resulting in higher success rates.

Alan configures the following options to keep the Sales Cycle for Opportunities:

1. Create a whole new Sales Cycle
2. Select the default Sales Cycle
3. Activate/Deactivate Sales Cycles

Alan configures the following options to keep Categories for Opportunities:

1. Create new entries to categorize Opportunities further when business needs extend beyond standard values. The code for custom values needs to begin with the letter "Z."
2. Configure the description of the categories.
3. Toggle whether a given category is active.
4. Delete only custom categories. 

The Sales Manager, Eduard Becker, wants to make sure every new opportunity created in SAP Sales Cloud Version 2 for Cyclo Clothing has its own document type. By default, the category value is set to "CC Prospect for Clothing," with the option for the user to change it later.

With the new document type and the default category CC Prospect for Clothing, the sales team can speed up the creation of new opportunities. Also, the team further categorizes them later in the process. It happens when they gain a clearer understanding of which types of clothing products interest the customer.

To achieve this goal, Best Run Bikes relies on the determination rules for Opportunities in SAP Sales Cloud Version 2. When the document type is "Z001 Cyclo Clothing," the system automatically sets the category to CC Prospect for Clothing by default.

Alan, the administrator who manages the system, needs to set up the determination rule within SAP Sales Cloud Version 2. 

The following demonstration shows how to create new determination rules for categories in opportunities.

The status change is important for sales representatives for the following reasons:

• By tracking reasons for status changes, sales representatives gain insights into why certain opportunities progress or stall. This information helps them make informed decisions about their sales strategies and how to approach each opportunity efficiently.
• Over time, tracking reasons for status changes reveals patterns or trends in the sales process. For example, if a particular reason constantly leads to successful closures, sales representatives focus on replicating that success in similar situations.
• By understanding the reasons behind status changes, sales representatives forecast them correctly. It helps them analyze historical data on how opportunities move through the pipeline. Also, it helps them make realistic predictions about future sales performance.

In conclusion, tracking reasons for status changes in opportunities is essential for sales representatives to understand customer behavior, improve their sales approach, and achieve good results. It equips them with valuable insights, enables correct forecasting, and encourages continuous improvement in the sales process.

Alan configures the following options to keep Reason for Status for Opportunities:

1. Create new entries to manage extra reasons for status based on business needs that the standard values don't address. Custom values need a code beginning with the letter "Z."
2. Configure the description of custom values.
3. Select the status to which this Reason refers.
4. Toggle the activation or deactivation of reason entries.
5. Delete only custom entries.

Configure Forecast Categories

To use Pipeline Management and Forecasting in SAP Sales Cloud Version 2, administrators need to set up forecast categories in the system.

Make sure that opportunities have forecast categories assigned to them. The system calculates and shows overall totals for these categories, factoring in only opportunities with a forecast category.

Alan defines custom categories and maps them to definitions. These definitions need a one-to-one mapping:

1. Create a new forecast category. Custom categories need to begin with the letter "Z."
2. Mark Committed Opportunities when they're certain to become closed-won.
3. Classify Best Case Opportunities as becoming closed-won.
4. Include one more category between commit and, if necessary, such as "Most Likely."

It's also possible to update forecast category fields automatically using Autoflow rules.

Configure the Contact Role

Tracking contact roles for opportunities is essential for the sales process. Contact roles refer to the different individuals or stakeholders involved in the decision-making process within a potential customer organization. In many B2B (business-to-business) sales scenarios, various individuals participate in the decision-making process. By tracking contact roles, sales representatives identify key decision-makers, and gatekeepers within the organization. This understanding helps tailor sales strategies and engage with the right people at the right time.

Alan configures the following options when keeping the Contact Role for Opportunities:

1. Create new entries to manage extra Contact Role types based on business needs that the standard values don't address. The code of custom Contact Roles must begin with the letter "Z."
2. Configure the description of custom Contact Roles.
3. Toggle activation of Contact Roles.
4. Deactivate standard values.

Set up the Status

Match Opportunities document types with a specific status schema. In SAP Sales Cloud Version 2, adapt the available standard status schema if needed. However, when you create a new Opportunity document type, the system needs to keep a new status schema.

Alan configures the following options when keeping the status for Opportunities:

1. Create a new set of statuses for an Opportunity Document Type. First, create the Document Type that includes the new statuses.
2. Create a new status schema and a new status code, and the standard values delivered by default in SAP Sales Cloud Version 2. The customized status code needs to start with the identifier "Z."
3. Change the description of the existing values.
4. Change the sequence.
5. Set the internal status for each status code.
6. Set the status to the initial one.
7. Activate or deactivate specific values.
8. Delete custom status entries.

The Sales Manager, Eduard Becker, wants to create a new opportunity document type for Cyclo Clothing. Eduard needs to create a dedicated status schema for this new opportunity type. Eduard and the sales team can track the Cyclo Clothing business separately.

Alan needs to set up a new status schema within SAP Sales Cloud Version 2. The system defaults to relate this status schema to the new Cyclo Clothing opportunity type.

The following demonstration shows how to create a dedicated status schema for the new opportunity type.

Alan configures a single number range for use of Opportunities in Guided Selling. The system assigns the next sequential number from the range to new opportunities. You can view the latest number used in the Number Range Status column.

Alan configures the following in the number range:

1. Define a prefix for use before the number in the ID, if wanted.
2. Define the initial number in the range.
3. Define the final number in the range.

Configure Routing Rules for Opportunities

Alan creates routing rules to assign opportunities to employees automatically. When creating the rules, Alan needs to:

1. Adapt the columns to set up the rules table. Up to 20 columns can be in the table. Alan needs the following columns: Owner, Owner Role, Sales Employee, and Sales Employee Role.
2. Add and configure a new role for each rule.
3. Activate the new set of rules.

Activate the system to assign Opportunities to sales representatives automatically.

During this section, we examined these essential configurations:

• Opportunity Settings Configuration: Configure key features for opportunities, such as general settings, document types, sources, party schema, sales cycle, and categories. It also includes reasons for status, forecast categories, contact roles, status schemas, number ranges, and routing rules. ​

• General and Document Type Settings: Explore options such as guided selling score, contact interaction threshold, opportunity export, and progress bar customization. Also, how to create and manage custom document types for specific business needs. ​

• Sales Cycle, Categories, and Determination Rules: Create and manage sales cycles and categories. Also, how to use determination rules to set default values based on criteria such as document type. ​

• Status, Reason for Status, and Forecast Category: Create and manage custom status schemas and codes, keep reasons for status changes, and set up forecast categories for pipeline management and forecasting. ​

• Party Schema, Contact Roles, and Number Range: Configure party roles, contact roles, and number ranges for opportunities, including setting mandatory roles and customizing range and prefix settings. ​

• Opportunity Routing: Set up and activate routing rules to assign opportunities to employees based on defined criteria automatically.