Presented by Scott Sambucci, SalesQualia. About the Workshop: To test an MVP, you need customers. And Customer Development means you need to know the a few basic sales skills. This workshop focuses on understanding the customer pain (Customer Discovery) and then showing them you can solve it (Customer Validation). This 3 hour activity-based workshop began with effective methods for finding potential customers (salespeople call this "prospecting"), then what to say and how to say it to your potential customers (a.k.a "making sales calls"). These first customers enable you to validate your product idea and build your business model. By employing a few simple principles and developing a structure for your Customer Discovery calls, you'll accelerate your learning. Work smarter, not harder. Skills covered: - How to research referrals before you call them; - How to identify new potential customers; - How to maximize your time at conferences & industry events. The last part of the workshop discussed "Sales Mapping" - a technique to plan and prepare for any Customer Development conversation. - Convert your potential customers into paying customers; - Reduce sales call anxiety; - Focus on your product development and learning. This workshop was organized and hosed by the Lean Startup Circle Meetup Group on 3/03/13: http://sanfrancisco.leanstartupcircle.com/events/102632652/

1. +
Selling for the Lean Startup
Scott Sambucci | SalesQualia
www.salesqualia.com
Lean Startup Circle
2013-03-05

2. +
Workshop Assumptions
 You
think know your customer segment (for
now)
 You think know your business model (for now)
 You are not pivoting (right now)
 Youare doing sales calls, not customer
discovery calls

3. +
Your Goal
Develop a
predictable, replicable, scalable sales
framework that you can scale and
manage.

4. +
What we’ll cover today
 Developing a Lean Sales Process
 Build, Measure, Learn
 Value Statements
 Customer Personas
 Measuring Your Sales Process
 Enterprise Selling
 AARRR
 Prospecting
 Finding,
Researching, Calling
 Conferences

5. +
About Me
@salesqualia | www.salesqualia.com
415-596-0804 | scott@salesqualia.com

6. +
Frameworks:
The Plan

7. +
The Mathematics of Love
Solving Problems > Building Products

8. + Build.
Measure.
Learn your Sales Process.
SALES
PROCES
S

9. +
It’s not you. It’s me.
 Product Problem
 Market Problem
Sales Problem

10. +
Ash Maurya – “Running Lean”
1. Document Plan A
2. Identify Risk
3. Test Your Plan
Source: “Running Lean”

11. +
Why do people buy?
1. Increase revenue
2. Reduce costs
3. Increase efficiency
4. Reduce Risk

12. + “What job are your customers hiring you to
do?”
-Clayton Christensen
Frame your product in terms of the
customer’s problem, not your solution.
[EXERCISE]

13. +
 EXERCISE
Write your Value Statement for your product or
service.
Hint: Remember the four (4) reasons people buy.
[5 minutes]

14. +
People:
Living organisms
that buy your stuff

15. +
Buyer Types
 USER BUYER  TECHNICAL BUYER
 ECONOMIC BUYER CHAMPION

16. +
Personas Case Study:
Who are the Buyers for a Wildfire sales rep?
https://www.facebook.com/pages/Katzkin-Leather/118280084893986?sk=app_403359706360567

17. +
Personas Case Study
CMO “I’m interested in any tools that
will increase our ROI.”
Director of Marketing “Social Media should support us
at conferences and drive traffic to
our website.”
Director of Social Media “Are you tell me I can’t do my
job?”
VP of Sales “Yes! Our sales reps can
certainly handle and close more
leads!”
VP of Product “The sales people suck. The
product sells itself.”
CEO “I just set my my website on The
Facebook. What’s the Twitter?”

18. +
Personas enable us to identify the
purchasing motivation for each buyer
[EXERCISE]

19. +
Value Statement ≠ Value Proposition
Source: http://www.businessmodelalchemist.com/2012/08/achieve-product-market-fit-with-our-brand-new-value-
proposition-designer.html

20. +
EXERCISE
 Use a current sales situation & your points of contact
 Draw a 2-column grid, then list your Buyer Types.
Buyer Type (Persona) | Name of Person
 Writedown each person’s motivation to purchase
your product.
 How does your Value Statement change for each
person?
[10 minutes]

21. +
The Rules of
Enterprise
Selling

22. +
Random Rules to Enterprise Selling
 The sale always takes longer than
you think it should and the prospect
tells you it will.
 There is always more than one
decision-maker.
 The decision-maker that counts the
most is generally invisible to you.
 Assume 1 month per $10,000

23. +
Sales Conversions per Revenue
# of sales
Revenue per year conversations
$1-10 1
$10-100 2
$100-1000 4
$1000-10,000 8
$10,000-100,000 16
$100,000-$1,000,000 32
$1,000,000-$10,000,000 64
$10,000,000-$100,000,000 132

24. +
Stages of the [Enterprise] Sale
1. Needs Analysis 2. Evaluation of
Options
 Your Value Statement
& Initial question  Product Demo
3. Resolution of 4. Implementation
Concerns
 Decision/Contract
”Show the team”/
Objections
[EXERCISE}
Source: “Major Account Sales Strategy” by Neil Rackham

25. +
Committees

26. Hey Scott,
Received this email from Damien at The Presidio last night. This basically confirms
what you were talking about yesterday; let me know what kind of a response you
believe I should get back to him with.
Thanks,
-----
---------- Forwarded message ----------
From: ______
Date: Thu, Feb 28, 2013 at 6:07 PM
Subject: RE: _____follow up
To: ________
Hi ----,
Thanks for stopping by. As mentioned we don’t have a budget to work with at the
moment. That might change by summertime. Please give me a buzz then!
Thanks~
-----

27. +
EXERCISE
 Draw a 3-column grid.
 Label four (4) stages to the sale.
Stage of the Sale | Opp Name | How do you know?
 Think about 2-3 sales opportunities you are working right
now.
 Place each opportunity into the correct stage.
 How do you know? (Hint: Remember the Buyer
Personas Exercise)
[10 minutes]

28. +
Prospecting
Researching
Finding
Calling

29. +
Prospecting is coding
 Need to do it consistently for long, focused
stretches.
 Andyou need to do it. Code won't improve itself
and neither will your sales channel.
 Build. Measure. Learn.
 Work smarter, not harder.

30. Source: “The Entrepreneur’s Guide to Customer Development”

31. +
Cold Calls are dead.
New Calls are necessary.
 Find
a handle. Add value. Customize your message.
(Remember our Value Statement exercise)
 Look
for Groups and Titles that match your
economic buyer & user buyer.
 (i.e. Analyst, VP, Managing Director, Director of
Marketing, VP of Sales, CFO, CTO)
 The “Predictable Revenue” approach (Aaron Ross)
 Structure your calls: Confirm. Ask. Explore.
[EXERCISE]

32. +
EXERCISE
 Draw three (3) columns on a sheet of paper
Confirm | Ask | Explore
 Develop 2-3 questions for each of these
three areas for your next planned sales call
with a current or target prospect.
[10 minutes]

33. +
Measurement

34. +
Funnel Stages
Source: “The Entrepreneur’s Guide to Customer Development”

35. +
Remember:
Stages of the [Enterprise] Sale
1. Needs Analysis
2. Evaluation of Options
3. Resolution of Concerns
4. Implementation

36. +
Dave McClure AARRR
Source: “The Entrepreneur’s Guide to Customer Development”

37. +
50
100
150
200
250
0
May-07
Jun-07
Jul-07
Aug-07
Sep-07
Oct-07
Nov-07
Case Study 
Dec-07
Jan-08
Feb-08
Registrations
Mar-08
Apr-08
May-08
New
Jun-08
Jul-08
Accounts
Aug-08
Registrations : New Accounts
Sep-08
Oct-08
Nov-08
Dec-08
0
5
10
20
25
30
35
40
15

38. +
100
150
200
250
0
50
May-07
Jun-07
Jul-07
Aug-07
Sep-07
Oct-07
Nov-07
Dec-07
Jan-08
Registrations
Feb-08
Mar-08
Apr-08
Net
May-08
Jun-08
Jul-08
Aug-08
New Accounts
Sep-08
Oct-08
Nov-08
Dec-08
Registrations : Net New Accounts
5
0
10
15
25
30
35
20

39. +
Registrations : Net New Accounts
(including Jan ’09)
Registrations Net
New Accounts
700 35
600 30
500 25
400 20
300 15
200 10
100 5
0 0
Sep-07
Dec-07
Sep-08
Dec-08
Jul-07
Jul-08
Jun-07
Feb-08
Mar-08
Jun-08
Feb-09
Jan-08
Jan-09
Oct-07
Oct-08
May-07
May-08
Nov-07
Nov-08
Aug-08
Aug-07
Apr-08
[go to spreadsheet]

40. +
Measure Twice, Cut Three Times
 Conversion rates
 Sending sample personalized reports  no additional
conversion, it just wasted 20 minutes per prospect
 Long emails describing the product didn’t work
 Keep emails short.
 Better Questions
 Situational & Needs Analysis
 “What brought you to our site?”
 Smarter Research on Leads
 Look for agents updating websites

41. +
Measurement: Case Study
 63 inbound leads sent an email
 23 conversations  2 demos -> 2 proposals.
 What about the other 40 that you didn’t hear from?
 What about the 21 that didn’t convert to demo?
 THEY saw a match based on your initial
communication, then THEY decided it wasn’t a fit?
 Categorize the failed conversions and look for trends
– wrong fit, wrong person, price, have a system.
 Categorize your objections
[EXERCISE]

42. +
EXERCISE
Write an email to an inbound lead designed to
create a specific action or advance.
(HINT: Include permission to call that person at a
specified time.)
[10 minutes]

43. +
Prospecting:
Go Forth &
Multiply

44. +
LinkedIn: Case Study
 Agency CMO & RMBS Group
 Lead: Neal Aggarwal, Jeffries & Company
 Formerly with C12 Capital
 Google Search: Jeffries & Company

45. +

46. +
Value Statement
“We’ve developed a mortgage risk indicator that can
predict defaults in performing mortgages assets with
a 75% accuracy rate. For a typical non-agency
RMBS, that equates to more than a $500,000
differential over the life of the security.”

47. +
 “Hi Neil. This is Scott Sambucci with CoreLogic. I
saw that you were a member of the RMBS group
on LinkedIn and thought you’d be a good person
to call.”
 “Are you primarily trading non-agency RMBS?”
(Confirm)
 “How are you evaluating potential defaults of
currently performing assets in your securities?”
(Ask)
 [Value Statement] (Explore)

48. +
Stop calling people
 Cap yourself at 2 VMs, then push to drip campaigns
 Ifthey're not returning your call, the prospect is:
 Not interested
 You're using the wrong medium
 They are really busy, in which case they are an ideal
candidate for your product…
 Your Value Statement needs work

49. +
Prospect Call Framework
For Every Call…
1. Value Statement
2. Prepare Your Voicemail Message
3. Industry Topics
• Recent news article
• Upcoming or recent Conference
• Press Release about their company

50. +
EXERCISE
 Locate a target candidate
1. Develop a Value Statement for THAT person
2. Script a Voicemail
3. Locate three (3) “Go-to” topics for the
conversation
[15 minutes]

51. +
Find Your Inbound Leads
 Huh?
 Remember: No one cares about you.

52. Add value, add
+
value, add value
“I saw this article on
HousingWire. What do
you think about...?”

58. +
EXERCISE
• Find two (2) places where you can contribute to
your industry’s conversation.
• Outline two (2) topics that you can write about by
Friday.
[10 minutes]

59. +
Prospecting
@Conferences

60. +
Pre-Conference

61. +
Pre-Conference
 Usethe conference agenda to find speakers. Add
value, add value, add value.
 Set up meetings before the conference
 Setmeetings first before you buy a plane ticket.
My rule is 3 meetings/day
 Offer to volunteer in exchange for a badge
 Make a friend with someone who can get you
attendance list
 Marketing agencies, sponsors, big customers

62. +
The email text
(~1000 sent , ~60 replies)
Just a quick check in to see if you're attending next week's
ASF conference in Orlando. I'll be there with our Market
Analytics team (booth and all!) from Sun-Wed. We've got
some very cool new applications launching soon - would
love to give you a sneak preview.
If you are, shoot me a quick reply so we can get together - -
coffee, meeting before/after sessions - whatever works. (I
know these conferences don't always line up with your day-
to-day work, but figured it's always good to ask.)
Many thanks - looking forward to your reply.
- Scott
[spreadsheet]

63. Pre-Conference

64. Pre-Conference

65. +
At the Conference

66. At the Conference

67. At the Conference

68. +
http://www.imn.org/main/news.cfm

69. +
At the Conference
Don’t Sell. Discover.

70. At the Conference

71. +
At the Conference
 Set day/time block goals & objectives
 Twitter
 Blog & Post about speakers
 Discover, don’t sell
 No Demos
 Stick & move

72. +
Post-Conference

73. +
Post-Conference
 "Iwas at Dreamforce last week and saw a really
interesting presentation that think you'd be
interested in…”
 Add value, add value, add value.

74. +
EXERCISE
• Identify two (2) industry conferences in the next six
months
• Find the speaker & attendee list
• Find the conference organizer and schedule a
time to contact them directly.
[15 minutes]

75. +
Free Book
(Because that’s how I roll)

76. +
Find Me
Scott Sambucci| SalesQualia
@salesqualia | www.salesqualia.com
www.youtube.com/salesqualia
www.quora.com/scott-sambucci-salesqualia
415-596-0804 | scott@salesqualia.com