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Sevin Rosen Funds Marketing and Sales Roundtable
July 2004
Building the Sales Pipeline
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
©2004 Sevin Rosen Funds. All rights reserved.
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Building The Sales Pipeline
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The Problem
How do resource constrained start-up companies quickly
ramp sales in emerging markets as cheaply as
possible?
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Solution: Sales Development
Increase revenues with lower sales costs Maximize appropriate face-to-face time of direct sales
with prospects Use lowest cost channel to present the value proposition
at the beginning of the sales cycle Have control on the skill set and presentation abilities of
the prospects’ first contact with the company Be able to quickly train resources to introduce new
products to prospects with direct feedback loop to Product Marketing
Put sales controls on marketing program quality Bring visibility of process and pipeline to executives and
board
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Possible Sales Development Approaches
I. In-house Field Sales Rep’s personal rolodex Send Marketing generated inquiries
directly to field sales reps Build your own Sales Development
team
II. Outsourcing
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Philosophy of In-house Sales Development Teams
Requires executive buy-in and support Management of the team is a skill Inside teams require different management
than field sales Sales Development is a science rather than
“art” if done properly Infrastructure is critical Adherence to metrics management Brings Sales and Marketing together, aligns
goals More to inside sales than “hire someone and
give them a phone”
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Sales Sales Development Development to Field Passto Field Pass
OpportunityOpportunity
QualifiedLead
Field Opportunity Field Opportunity MgmtMgmt
Inquiry into Inquiry into Tracking Tracking
tooltool
Lead funnel Lead funnel mgmtmgmt
New to Qualified
Marketing Marketing InquiriesInquiries
Sales DevelopmentSales Development
Sales Development ProcessSales Development ProcessInquiry–Qualified–Opportunity–CloseInquiry–Qualified–Opportunity–Close
Requalify
Cold CallingCold CallingNo incoming inquiriesNo incoming inquiries
Inquiry Inquiry Qualified Qualified Opportunity Opportunity Close Close
Tracking ToolTracking Tool
New Customer Marketing
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Pitfalls to Avoid No Field Sales follow-up accountability No Sales Development quality accountability Bad 1st impression of company with
untrained, unskilled inside representatives with no direction
Incorrect incentive compensation goals Relying solely on Marketing to produce
qualified leads Not tracking, measuring and reporting
activities & results- more than just # of calls
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Three Necessary Components For Successful In-house Sales Development Teams
People Processes Systems
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People Understanding the true role- lead qualification or
selling? Skills match job requirements Documented job requirements and candidate
profiles Compensation plan aligned to goals and objectives Representatives are held accountable for specific
goals they have control over Given the proper tools to be successful Training On-going coaching
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CompensationSales Professionals at Technology Companies in the San Francisco Bay AreaAverage annual base salary and total compensation
Position Base salary Compensation
Sales development
Director $102,000 $167,000
Manager 75,000 138,000
Senior representative 70,000 100,000
Representative 50,000 84,000
Telesales
Director 102,000 167,000
Manager 88,000 154,000
Senior representative 55,000 117,000
Representative 53,000 105,000
Source: "2004 Inside Sales Compensation Report," Phone Works, San Francisco.
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Processes
Why is this so important? Volume Productivity Scalable and repeatable Measurable results
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Process Detail Productivity metrics and activity levels required to
achieve targets Lead qualification, rating model and lead distribution Lead and product fulfillment Call guides, qualification criteria, VM, & email
messages defined in writing, call process, hand-off process
Call lists Tracking and reporting systems design, lead feed back Work environment and equipment requirements On-going training and coaching
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Accountability Is Key
Field Sales Responsibilities
• Qualified suspect follow-up within 2 days of receipt of lead• Move to appropriate funnel/forecast status • Participate in weekly lead review call with sales development rep• Communication 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 made• Qualified according to agreed upon criteria• Move to appropriate qualified status and assign new task to appropriate
field rep• Participate in weekly lead review call with field sales rep• Adherence to processes
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Sample MetricsSales Development Productivity
# outbound calls & email per day/week/month 50/250/1000
Contacts (connects, returned calls and returned emails) per day/week/month at 15% rate 8/37/150
% of contacts in B lead category 7.5%
# of contacts per month in B lead category 11
% of contacts in A category 2.5%
# of contacts per month in A lead category 4
Average deal size $20K
Pipeline value per month (A leads) $80K
Pipeline value per month (A/B leads)$300K
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Systems Automate as much as possible SFA, phone systems, fax, web, web
presentations Web leads entered into SFA, leads
automatically assigned to reps Sales process integrated into SFA Reports automated from SFA and phone
system
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Sales Development End Results
Measurable Predictable Scalable Visible
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Developing an Effective Sales Pipeline - Real Life Examples
Glen D. Vondrick
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First Priority - a Lead Machine
Leads prime the pump for the pipeline Inside reps want them Outside reps cannot sell without them Channel partners require them Marketing programs effectiveness
measurements depend upon them CEO and Board visibility for sales predictability
mandates them VP Sales can replicate sales successes
Attract, hire, and retain staff Training and scaling the organization Balance short and long term expectations
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Proven Results Implementation driven by “services contract”
with milestones signed off by all players Lead Gen expense became most valuable
and protected company budget assets Sales methodology, training, and forecasting
became standardized for all reps Able to hire/staff to fit own process without
relying upon”candidate rolodex” and style
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Impact Lead Generation Pipeline 3X increase in 90 days Time of initial contact to close to < 90 days Compensation plans aligned between various
positions Accurate sales force productivity metrics
collected and reported upon at Board level High confidence across various depts in the
ability for Sales to track, forecast, and close leads
Record quarterly revenue results attained Adjusted same model to different products and
different markets at different times
