Sevin Rosen Funds Marketing and Sales Roundtable July 2004 Building the Sales Pipeline

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Text of Sevin Rosen Funds Marketing and Sales Roundtable July 2004 Building the Sales Pipeline

  • Sevin Rosen Funds Marketing and Sales RoundtableJuly 2004Building the Sales Pipeline

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  • Agenda Building the Sales Pipeline 2004 Sevin Rosen Funds. All rights reserved. Introductions Marketing and Sales Closed Loop System Overview Sally Duby Presentation Glen Vondrick Case Study Wrap Up

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  • 2004 Sevin Rosen Funds. All rights reserved.

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  • Building The Sales Pipeline

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  • The ProblemHow do resource constrained start-up companies quickly ramp sales in emerging markets as cheaply as possible?

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  • Solution: Sales DevelopmentIncrease revenues with lower sales costsMaximize appropriate face-to-face time of direct sales with prospectsUse lowest cost channel to present the value proposition at the beginning of the sales cycleHave control on the skill set and presentation abilities of the prospects first contact with the companyBe able to quickly train resources to introduce new products to prospects with direct feedback loop to Product MarketingPut sales controls on marketing program qualityBring visibility of process and pipeline to executives and board

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  • Possible Sales Development ApproachesIn-houseField Sales Reps personal rolodexSend Marketing generated inquiries directly to field sales repsBuild your own Sales Development team

    Outsourcing

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  • Philosophy of In-house Sales Development TeamsRequires executive buy-in and supportManagement of the team is a skillInside teams require different management than field salesSales Development is a science rather than art if done properlyInfrastructure is criticalAdherence to metrics managementBrings Sales and Marketing together, aligns goalsMore to inside sales than hire someone and give them a phone

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  • Sales Development ProcessInquiryQualifiedOpportunityClose Inquiry Qualified Opportunity Close

    Tracking Tool

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  • Pitfalls to AvoidNo Field Sales follow-up accountabilityNo Sales Development quality accountabilityBad 1st impression of company with untrained, unskilled inside representatives with no directionIncorrect incentive compensation goalsRelying solely on Marketing to produce qualified leadsNot tracking, measuring and reporting activities & results- more than just # of calls

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  • Three Necessary Components For Successful In-house Sales Development TeamsPeopleProcessesSystems

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  • PeopleUnderstanding the true role- lead qualification or selling?Skills match job requirementsDocumented job requirements and candidate profilesCompensation plan aligned to goals and objectivesRepresentatives are held accountable for specific goals they have control overGiven the proper tools to be successfulTrainingOn-going coaching

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  • CompensationSales Professionals at Technology Companies in the San Francisco Bay Area Average annual base salary and total compensation PositionBase salaryCompensationSales developmentDirector$102,000$167,000Manager75,000138,000Senior representative70,000100,000Representative50,00084,000TelesalesDirector102,000167,000Manager88,000154,000Senior representative55,000117,000Representative53,000105,000Source: "2004 Inside Sales Compensation Report," Phone Works, San Francisco.

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  • ProcessesWhy is this so important?VolumeProductivityScalable and repeatableMeasurable results

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  • Process DetailProductivity metrics and activity levels required to achieve targets Lead qualification, rating model and lead distributionLead and product fulfillment Call guides, qualification criteria, VM, & email messages defined in writing, call process, hand-off processCall listsTracking and reporting systems design, lead feed back Work environment and equipment requirementsOn-going training and coaching

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  • Accountability Is Key

    Field Sales Responsibilities

    Qualified suspect follow-up within 2 days of receipt of leadMove to appropriate funnel/forecast status Participate in weekly lead review call with sales development repCommunication and direction from field sales important- example: provide sales development with your top 20 accounts Sales Development

    Inquiries followed up on in timely basis, appropriate # of cold calls madeQualified according to agreed upon criteriaMove to appropriate qualified status and assign new task to appropriate field repParticipate in weekly lead review call with field sales repAdherence to processes

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  • Sample MetricsSales Development Productivity# outbound calls & email per day/week/month50/250/1000Contacts (connects, returned calls and returned emails) per day/week/month at 15% rate8/37/150% of contacts in B lead category7.5%# of contacts per month in B lead category11% of contacts in A category2.5%# of contacts per month in A lead category4Average deal size$20KPipeline value per month (A leads)$80KPipeline value per month (A/B leads)$300K

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  • SystemsAutomate as much as possibleSFA, phone systems, fax, web, web presentationsWeb leads entered into SFA, leads automatically assigned to repsSales process integrated into SFAReports automated from SFA and phone system

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  • Sales Development End ResultsMeasurablePredictableScalableVisible

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  • Sally DubyPresident510-749-9073sduby@phoneworks.comwww.phoneworks.com

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  • Developing an Effective Sales Pipeline - Real Life ExamplesGlen D. Vondrick

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  • First Priority - a Lead MachineLeads prime the pump for the pipeline Inside reps want themOutside reps cannot sell without themChannel partners require themMarketing programs effectiveness measurements depend upon themCEO and Board visibility for sales predictability mandates themVP Sales can replicate sales successes Attract, hire, and retain staffTraining and scaling the organizationBalance short and long term expectations

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  • Proven ResultsImplementation driven by services contract with milestones signed off by all playersLead Gen expense became most valuable and protected company budget assetsSales methodology, training, and forecasting became standardized for all repsAble to hire/staff to fit own process without relying uponcandidate rolodex and style

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  • Impact Lead Generation Pipeline 3X increase in 90 daysTime of initial contact to close to < 90 days Compensation plans aligned between various positionsAccurate sales force productivity metrics collected and reported upon at Board levelHigh confidence across various depts in the ability for Sales to track, forecast, and close leadsRecord quarterly revenue results attainedAdjusted same model to different products and different markets at different times

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