outbound saas sales 101
TRANSCRIPT
Outbound SaaS Sales - 101
7/15/2016Peter MacKie L-Spark Lunch & Learn 1
L-Spark - Lunch & Learn
Agenda
• Why Outbound
• Defining the Sales Process – The Buyer’s Journey
• Structuring Teams – Specialization
• Sales Tools & Metrics
• Scaling & Volume – Sales Acceleration Software
• Common Mistakes – Made with Good Intentions
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Positioning & Terms used in these Slides
• Sales Generated or Qualified Leads are SQLs
• Marketing Generated or Qualified Leads are MQLs
• SQLs Are considered outbound – generated by Sales
• MQLs Are considered inbound – generated by Marketing
• Scheduled SQLs are superior to Lead Generation
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Do you need outbound sales - Factors
• Cost of a SQL Generated by the Sales Team
• Cost of a MQL Generated from website, social media, etc.
• Closing Ratio of SQLs – True cost per Sale
• Closing Ratio of MQLs – True cost per Sale
• Product or Solution Awareness
• Product or Sales Process Complexity
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Defining Your Sales Process
• Segment your market, develop your messaging
• Map the buying process – be mindful of The Buyer’s Journey
• Define tactics and goals for each stage
• Define responsibility and map interdependencies
• Determine tools, systems and supports needed
• Deploy, measure, refine, refine, refine, refine
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The Buyer’s Journey
Awareness
Interest
Consideration
Preference
Purchase
Outbound
Inbound
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Get 100% Executive Agreement On
• Unique Selling Proposition (To be Shared Externally)
• Unique Value Proposition (To be Shared Externally)
• Top 3 problems your solution addresses (To be Shared Externally)
• Top 3 reasons prospects buy your solution (Internal Only)
• Top 3 reasons prospects choose your competitors (Internal Only)
• Top 3 reasons prospects do not purchase (Internal Only)
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Team Structure & Average Goal Ranges
• Sales Development Team - Sales Development Representatives - SDRs
• SQL Goal = 0.5 to 4 SQLs / SDR / Day
• Sales Team - Account Managers - AMs
• Sales Goal = 0.5 to 5 Sales / AM / Day
• Sales Team - Account Executives - AEs
• Sales Goal = 0.25 to 1 Sale / AM / Day
• Market Development Team - MDRs
• MDR Goal = 20 to 30 MQLs / MDR / Day
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Why Task / Team Specialization is Critical
• Sales is a Process
• Clear lines of demarcation between stages are needed
• All stages are interconnected
• Every stage converts
• Measuring every conversion is critical
• Every stage can be improved
• Practice makes perfect or at least better
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Sales Team Tools
• Opening Scripts – only the first 20 – 30 seconds (SDRs only)
• Call Guides (Talking Points, Top 3 Problems & Sales Process)
• Call Recording – How would you know ?
• Call Coaching – What could you teach them ?
• Sales Training – Every team deserves it
• Real Time Dashboards – How would they know ?
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Sales Team Tools
• Contests – increases performance 25% to 40%
• Advancement & Bonuses for the SDRs – sustainable & fun
• Well segmented and high quality prospect Lists
• Sales Automation / Acceleration System
• CRM System
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Scaling & Volume – Planning / Structure
• Sales Predictability is critical for long term success
• Every stage or conversion point needs to be measured
• Start with the end in mind – For example
• 1 Sale / Day requires 4 Discovery Calls or Demos / Day (25%)
• 1 Completed Discovery Call requires 2 Scheduled SQLs (50%)
• 1 Account Manager can manage 8 Scheduled SQLs / Day
• 1 Sales Development Representative produces 4 SQLs / Day
• 2 SDRs per 1 Account Manager is required
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Scaling & Volume – Sales Development Team
• SDR Calls per SQLs – Standard Conversion is 1.5% to 3.0%
• 50 Calls = 0.75 to 1.5 SQLs / SDR / Day
• 100 Calls = 1.5 to 3 SQLs / SDR / Day - Sweet Spot
• 150 Calls = 2.25 to 4.5 SQLs / SDR / Day
• 200 Calls = 3 to 6 SQLs / SDR / Day
• SDR Emails & Voice Messages / Day
• 100 calls requires
• 70 Voice Messages
• 60 (30 + 30 ) Emails /Day
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Scaling & Volume – Sales Team
• Sales Touches – It takes 3 to 10 touches to close
• Most sales people:
• Either give up after 2 calls or
• Get “Continuances” for months wasting time and burning prospects
• Advances vs. Continuances
• Can I call you in 2 weeks?
• When would you like me to call you?
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Does it all Work ?
• CAC – Cost to Acquire Customer
• LTV – Lifetime Value of Customer
• LTV : CAC Ratio > 3 (Quick Ratio)
• Months to recover CAC > 12 (Quick Ratio)
• Closing Ratio of a SQL – Cost per Sale
• Closing Ratio of a MQL – Cost per Sale
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Sales Automation / Acceleration Systems
• Click to Dial – on 100 calls per day it saves 10 digits - 1,000 clicks / Day
• List & Time Zone Management
• Voice Message Deposit ( 70 VM per day) & Call Recording
• Email Automation, Templates and Metrics (Opens & Clicks)
• Structured Cadence - 1, 5, 15, 30 , 90, 150, 210, 270, 330 Business Days
• Local Presence – Local Calling Line ID (CLID)
• A few Solution Providers
• Salesloft.com
• Insidesales.com
• Velocify.com
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Common Mistakes – SDR Team
• Low Call Volume Goals - 100 Calls is reasonable
• 70 Voice messages, 1.5 minutes each = 105 minutes
• 30 Conversations, 5 minute average = 150 minutes
• 50 Email messages, 1.5 minutes each = 75 minutes
• Total effort equates to 330 minutes or 5.5 Hours in a 7.5 hour day
• Using SDRs for Lead Gen vs. Scheduled SQLs results in low quality Leads
• Using SDRs for Research, they lack business experience and it lowers call volume
• No Dashboards or Detailed Reporting
• No formal documented process
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Common Mistakes – AM Sales Team
• Assuming prospects want to see your solution
They will – But once they begin to become Aware & Interested
• Assuming your sales people can sell
• Uncover pains & develop them
• Progress continually towards a sale
• Read the customer
• Control the sale
• Assuming good AMs will prospect
Awareness
Interest
Consideration
Preference
Purchase
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Common Mistakes – Sales Management
• Assuming your sales team members will figure things out
themselves – its your job not theirs
• Opening scripts
• Top Problems
• Talking Points
• Process
• Not leveraging Technology
• Building Lists – Buy Them
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Thank You for Your Time
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Questions ?
Peter MacKie