Growth Hacking the Enterprise Sale for B2B SaaS Companies

Growth Hacking the
Enterprise Sale
Presented at Alchemist Accelerator
By Lincoln Murphy
June 19, 2014

Objectives
• Clarity on what “Growth Hacking” is
• Understand how to Apply Growth Hacking to
your Enterprise Sales Process
• Explore some Ideas & Examples to stimulate
imagination
• Access follow-on resources to help execution
Copyright© 2014 Lincoln Murphy. All Rights Reserved.

Agenda
• What is Growth Hacking?
• Growth Hacking Requirements
• Ideal Customer Profile
• Growth Hacking Concepts
– Infiltrate their Network
– Create a Tool
– Random Hacks
– The Sale is just the Beginning

What is Growth Hacking?
• Lessons from my recent Uber ride
• “Hustle that scales”
– Automation Analogy
• Goal is to rapidly accelerate the Sales Process
• Small Deal Size/Self-Service Model Drives NEED
for GH
– Doesn’t mean large deal size / Enterprise Sale can’t
MASSIVELY benefit from GH, though

What is Growth Hacking?
• Bridges and Tunnels
– where they are now  where they need to be
• Mindset
• Engagement
• Buy-In (Champion Uplift)
• Exploits Organic Network Effects
– Your secret weapon – more on this later

Growth Hacking Requirements
• A Culture of Growth Experimentation
– Must be OK with false hypotheses (“failure”)
• Organizational Alignment
– outbound and inbound must work together
– Ability to execute autonomously
– as companies matures and silos develop, the required
agility and cross-functional cooperation necessary for
Growth Hacking to work tends to disappear

• Be Data Driven
– Everything starts with your Gut (even when there’s
data)
– Be able to quickly iterate on the Build – Measure -
Learn cycle
• have resources available to make this happen
– Quickly get to a point where decisions are driven
mostly by data, less by opinion & ”pretty” designs
– HIPPO/VITO/CEO can't be THE voice for very long if
you want to scale

• Align Success Metrics with Reality
– Commissions on closed deals? MQL, SQL, etc.?
– Hypotheses tested? Customer dev interviews?
– Change if not appropriate
– Example: Take some BDAs and use then for testing.
Comp separately and based in viable success metric.
• Roll winning test variants into production processes

• Executional Honesty
• If you're executing like you have product market fit or you have
everything in order when you don’t, that's dangerous
• What if outbound-sourced leads are the way deals will get done
in the early days? Are MQLs a good metric?
• What if MQLs aren't turning into SQLs or opps or closing... Who
cares, right?
• What if you're early, building a market / category... Are your
success metrics aligned with your stage?

Ideal Customer Profile
• Situational
– Not the only type of customer you’ll ever do
business with ever
• It’s just a hypothesis
• It’s absolutely REQUIRED

• Ready
• Willing
• Able
• + Successful
• + Profitable
• + Expansion
• + Advocacy

• Ready
– They have a problem they need solved /
opportunity to take advantage of
– They know they have the problem / opportunity
– The problem / opportunity is acute … there’s a
sense of urgency you can take advantage of

• Willing
– They’re ready to solve that problem by taking
action
– They’re exploring options to solve that problem
– There’s a strong Catalyst: M&A, Investments,
Bankruptcy, hiring/firing

• Able
– They have the means to solve the problem
– They have the authority to solve the problem
– Know their Buying Cycle / Process

• + Profitable
– This means it’s cost-effective to get in front of
them fully-loaded CAC < (LTV/12)
– On-Boarding & Support
– Estimated Lifetime
– Buying Cycle / Process

• + Successful
– They are likely to achieve success with our product
– In the early stages as well as long-term
– Consider all aspects of on-boarding, customization,
data seeding/cleansing, etc.
– What systems do they already need to have in place

• + Expansion
– "This can be a fight or a dance… never both”
– Up-Sell / Cross-Sell
– Allows for Immediate ASV/LTV Boost
– Enterprise Dept vs. SME, Agency vs. Enterprise,
etc.
– Customer Success required here

• + Advocacy
– Intra & Inter-Company Virality
– $1 CAC / 2 = $0.50
– WOM vs. Use-Based Virality
– Of course, ensuring they’re happy is key
– Network Effect = Built-in Social Proof
– Social Proof – logos that get more logos

Infiltrate their Network
• Organic Network Effects
– Who do they interact with on a daily basis
• Customers, Suppliers, Co-workers, Peers, etc.
– Internal and external to the company
– High-value and Transient interactions
– Rare to force / create where don’t already exist
• Intra-company Virality
– Sticky
– Expansion Revenue
– Examples: Yammer, Riskpulse

Infiltrate their Network
• Inter-company Virality
– Get customers who have your customers as their
customers
– When they interact with their help system they'll see
Zendesk and want to use it too
– Examples: Zendesk, Freshbooks
• Expansion
– Land and Expand
– Examples: Box, Dropbox, Domo

Enterprise Growth Hack: Create a Tool
• Create a tool that helps them accelerate the process for themselves
• Doesn’t make the whole process self-service, just the initial touch
points
• Use this to penetrate personas within the orgs
• This can actually be what’s used in the cold-outreach
– Allows the cold outreach process to be scaled much more efficiently
through automation
– Not starting a conversation - necessarily - sending them to a
destination
• Done correctly, this thing is also something that can be leveraged
for PR and other “buzz”

Enterprise Growth Hack: Create a Tool
• Exposes Value Potential
– Bridge or a Tunnel
• ROI Visualization
– Leverage the tool for persona distribution
• Carved Out, Stand-alone apps
– bundles of functions
– Land and Expand
• Migration Tools
• Integration Tools

Random Enterprise Growth Hacking Tactics
• Outbound First
– “Cold” email or calls in the early days
– Warm Leads before you Email or Call
• Social Networks, CRM or IP Address Targeting… or direct
mail/FedEx
• Ads aren’t to drive action – though that may be a side-effect – but
are to get you into their world
• Inbound Second
– Your marketing website must back up outbound
sales/outreach effort

• Free Trials
– Not just for small deal products
– Can be a part of a high-touch, Enterprise sales process
– Build Customer Profile over time
• Concierge Onboarding
– Build it into the CAC
– Lowers the Barrier
– Include some work

• “BTW, I believe we’re in a sales cycle with
you…”
• “Contact Sales” may show “commercial
intent” but how many people DON’T take that
action?
• Enterprise Pricing – “… starts at $50k/mo”

Remember…
• Closing the deal is just the beginning
– On-Boarding / Engagement
– Customer Success
– Advocacy

http://sixteenventures.com/alchemist

Growth Hacking the Enterprise Sale for B2B SaaS Companies

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