QUARTERLY BUSINESS REVIEW (QBR) MEETING TRANSCRIPT DATE: January 7, 2021 TIME: 12:30 PM DURATION: 45 minutes PARTICIPANTS: Timothy Brennan (Director of Operations), Tony Carter (Regional Sales Manager), Jimmy Jensen (Data Analyst), Lisa Miller (Clinical Supervisor), Philip Gibson (Account Manager) ---------- TIMOTHY BRENNAN: Alright, everyone, thanks for joining. Let's jump right in. Philip, why don’t you kick us off with a high-level overview of account performance for Q4? PHILIP GIBSON: Sure thing, Timothy. Overall, Q4 was solid. We hit 97% of our revenue target for the quarter, which is slightly below the 98% we were aiming for, but still a good result considering the seasonality we typically see in December. Key accounts, like Stellar Health, continued to expand their usage of our services. We did see a slight dip with OmniCorp, but that was anticipated due to their internal restructuring. I’ve been proactively engaging with their new point of contact, Sarah Chen, and early conversations are promising. TIMOTHY BRENNAN: Okay, good. 97% is respectable. What’s driving the shortfall, Philip? Was it a specific issue with closing deals, or more a matter of timing? PHILIP GIBSON: It's a little of both, honestly. We had a couple of larger potential contracts that slipped into Q1 due to extended legal reviews on the client side. And OmniCorp, as I mentioned, contributing about 2% of that gap. We’re forecasting those deals to close early next quarter. I’ve updated the pipeline report accordingly. TONY CARTER: From a sales perspective, the issue wasn’t lead generation. We actually surpassed our lead volume target by 15%. The problem, and this ties into what Philip’s saying, is deal velocity. These larger deals are taking longer to close than anticipated. We need to focus on shortening that sales cycle. I think we could improve our demonstration process, perhaps tailoring it more specifically to each client’s needs. LISA MILLER: I agree with Tony. From the clinical implementation side, we're seeing a trend where prospects are asking very detailed, specific questions about data security and compliance – particularly around HIPAA. Our standard demo doesn't always address those concerns adequately. We’ve had a couple of instances where the sales team requested we customize the demo on the fly, which puts a strain on our resources. TIMOTHY BRENNAN: That’s a valuable point, Lisa. So, we're seeing a bottleneck in customized demos to address compliance concerns. Jimmy, can you shed some light on whether the data shows a correlation between demo customization requests and deal closure rates? JIMMY JENSEN: Let me pull that up… Okay, so looking at the last six months, deals where we had at least one custom demo request have a 28% higher close rate compared to those with standard demos. However, the average time to close for those customized demos is 18 days longer. Also, there's a clear trend: the number of customization requests has increased by 35% in Q4. TONY CARTER: Those numbers are significant. Clearly, customization works, but the extra time is a concern. TIMOTHY BRENNAN: Exactly. It’s a trade-off. Lisa, what would it take to create a more robust, pre-built demo track specifically addressing data security and HIPAA compliance? Something that’s readily available instead of requiring on-the-fly customization? LISA MILLER: I think we can put together a comprehensive demo module focusing on those key areas within two weeks. It would involve scripting out a specific scenario, showcasing our security protocols, and detailing our compliance certifications. We’d need a bit of support from the IT team to capture screen recordings of the backend systems. TIMOTHY BRENNAN: Okay, let’s prioritize that. Jimmy, can you work with Lisa and IT to get the necessary screen recordings scheduled? And Lisa, aim to have that module ready for training by January 21st. That’ll give the sales team a week to practice with it before the end of the month. JIMMY JENSEN: Sounds good. I can coordinate with IT this week and get a schedule set up. We'll need access to the test environment, of course. LISA MILLER: I’ll provide a detailed list of what we need captured, including specific system functions and data points. Access to the test environment isn't a problem. PHILIP GIBSON: This will be a huge help, honestly. I've been spending a lot of time trying to bridge that gap between the technical details and the client's understanding. TONY CARTER: Absolutely. It will empower the sales team to address those concerns more effectively and build trust earlier in the process. TIMOTHY BRENNAN: Okay, great. Let’s move on to operational efficiency. Tony, can you share any insights from the sales team’s perspective on areas where operations can streamline processes? TONY CARTER: The biggest pain point, consistently, is the contract generation process. It’s still too slow. Sales reps are often waiting several days for finalized contracts, which delays the signing process and impacts revenue recognition. I know it’s a complex legal document, but is there any way to expedite that? TIMOTHY BRENNAN: That’s a fair point. We’ve been looking at automating more of the contract process. We're evaluating a contract lifecycle management (CLM) system, but the implementation timeline is estimated at six to nine months. In the meantime, what specific aspects of the current process are causing the most delays? PHILIP GIBSON: It’s often the minor edits and approvals. A client might request a small wording change, and then it gets kicked back and forth between legal and finance for approval. That back-and-forth is what kills the momentum. TIMOTHY BRENNAN: Okay. Jimmy, can you analyze the contract approval logs for the past quarter and identify the average turnaround time for contract revisions and the bottlenecks in the approval chain? Let’s quantify where the delays are happening. JIMMY JENSEN: Sure. I can have that data compiled by the end of the week. TIMOTHY BRENNAN: Good. In the interim, let’s establish a clear escalation path for contract revisions. If a revision request is stuck in the approval process for more than 24 hours, it automatically escalates to me and the head of legal. That should force quicker action. Philip, Tony, can you communicate that to the sales team? TONY CARTER: Absolutely. We’ll let them know immediately. PHILIP GIBSON: Will do. LISA MILLER: From a clinical implementation standpoint, we’ve been seeing a slight increase in support tickets related to user training, specifically around the new reporting features. It seems some users are struggling to generate the reports they need. TIMOTHY BRENNAN: Is the documentation clear enough, Lisa? Or do we need to revisit the training materials? LISA MILLER: I think the documentation is adequate, but users are saying they learn best through interactive training. Perhaps a series of short, targeted video tutorials could be helpful. We could cover the most common reporting scenarios. JIMMY JENSEN: I can analyze the support ticket data to identify the most frequent reporting questions. That will help focus the video tutorials. TIMOTHY BRENNAN: That’s a great idea, Jimmy. Lisa, if Jimmy can provide that breakdown, can you outline a plan for creating those video tutorials? Target completion date of February 15th? LISA MILLER: Yes, that’s achievable. I’ll need some time with the screen recording software, but we can definitely get that done. TONY CARTER: That proactive approach will be really beneficial. Reducing support tickets is always a win. TIMOTHY BRENNAN: Okay, let’s recap the action items. Jimmy, you’re working with Lisa and IT on the customized demo screen recordings, and analyzing contract approval logs and support ticket data. Lisa, you’re leading the creation of the HIPAA compliance demo module and the reporting tutorial videos. Philip and Tony, you're communicating the contract escalation path to the sales team. And we're all keeping an eye on the OmniCorp situation. Anything else before we wrap up? PHILIP GIBSON: Just one quick thought. I’m heading to the industry conference in Orlando next month. Would it be helpful if I focused on gathering intel on competitor offerings, specifically regarding data security features? TIMOTHY BRENNAN: Absolutely, Philip. That would be extremely valuable. Prioritize that during the conference. And bring back a comprehensive report. Alright, excellent. Thanks, everyone, for a productive discussion. Let’s keep the momentum going into Q1. TONY CARTER: Sounds good, Timothy. Thanks. LISA MILLER: Thank you. JIMMY JENSEN: Thanks, everyone. PHILIP GIBSON: Thanks. Appreciate the actionable insights.