This presentation described how and when outbound prospecting (Cold Calling 2.0) can work to provide a predictable flow of leads from highly targeted prospects.
Abortion pills in Jeddah +966572737505 <> buy cytotec <> unwanted kit Saudi A...
Outbound prospecting for highly targeted lead flow
1.
2. What’s a Business Development Rep?
Sometimes also called:
Sales Development Rep
Market Development Rep
Function: Outbound Prospecting
Highly specialized
Only does outbound
Cold Calling 2.0
3. Isn’t David Skok a board
member at HubSpot, and a
huge advocate of Inbound
Marketing?
Whoa!
4. Inbound Marketing
Get Found!
Marketing that
customers love
Using Content,
Social Media,
etc. to reach
buyers in their
purchasing
journey
5. Inbound Marketing: What it’s NOT:
Cold calling
Spamming
Interrupting their favorite
TV shows with Ads
Etc.
6. So why use Outbound Prospecting?
Marketing is not producing enough leads
It can take time for Inbound Marketing to ramp up
Marketing is not producing the right kind of leads
You have a clear set of target customers
Biggest accounts
Most likely to buy
7. When not to use Outbound Prospecting?
Low LTV
Lifetime Value of a Customer
If you can make $10k in the first year, BDR’s can work
8. The Key Elements behind “Business Model”
Cost to Acquire the Customer (CAC)
Profit from that Customer (LTV)
Startup Killer There is a common problem:
9. An out of balance Business Model
Monetization
(LTV)
Cost to
Acquire a
Customer
(CAC)
Entrepreneurs are over-optimistic
18. • Throughout history, specialization
has been the breakthrough to
better techniques. It allows
people to excel at a few specific
tasks.
• Sales is no exception
Ken Krogue, Inside Sales.com
19. Why Specialize?
Lack of Motivation
Experienced sales people hate to prospect
and are usually terrible at it
Given the option to do Prospecting, Closing or Farming,
sales people will gravitate to the things they like most
Lack of Focus
Even if they are good at it, as soon as they generate
some pipeline, they will be too busy to continue
Specialized metrics are required
… to gain visibility into what is working, and what is not
20. Why Specialize?
Converting a lead to an opportunity requires its own
playbook
… and subsequent training and coaching
Sales development is fundamentally different than the rest
of the sales cycle.
The science of connecting with someone is hard enough
when you connect, you have a few seconds to generate interest
and a couple minutes to handle objections and close for a
meeting.
Effective sales development requires full-time management,
specific training, and constant coaching.
Courtesy of TOPO blog
21. How does Specialization work?
Outbound
Prospecting
Inbound
Lead
Qualification
Inbound
Leads
Account
Executives
(Closers)
Customer
Success
or
Account
Managers
(Farmers)
22. Outbound BDRs fit here:
Outbound
Prospecting
Inbound
Lead
Qualification
Account
Executives
(Closers)
Customer
Success
or
Account
Managers
(Farmers)
Inbound
Leads
Research
23. When is it appropriate to Specialize?
As soon as you can afford to have more
than two sales reps
24. Who should you hire? - Company 1
If I have 3 similar candidates
(which at this level happens all the time)
If one of them played college sports they will win
Someone who is a good
listener, challenger
They show up prepared
They ask great questions
And can tell a story
25. Who should you hire? - Company 2
We hire right out of college
We recruit smart kids from good colleges
Our best luck has been hiring kids with business degree
backgrounds - ie: Bentley, Babson, Bryant
But honestly, any smart, very curious, passionate and
hard working, recent grad will do
26. Who should you hire? - Company 3
Hungry, creative and thick skinned
It's all about getting someone's attention so being
creative with your voicemails and emails is
important
You will get a lot of "no" so you need thick skin and
a short memory
27. How much should you expect to pay?
Company 2
40K base salary
8K annual bonus - 2K per quarter
with the ability to over achieve
Bridge Group
Approx. $47,000 in base
$71,600 in total comp
Lower or higher based on location or target market
E.g. in Silicon Valley, SDRs with significant experience calling
enterprise accounts and decision makers can make over $100K
in annual target compensation
28. What results can you expect to see?
Measured in Demos or Meetings:
Company No. 1
20 per month
Company No. 3
8 per month
Other Data I have seen
15-30 per month
29. What is the Cost of each Meeting/Demo?
20 leads per BDR per month
BDR Cost
$71k total cost
Plus 40% overheads
Equals $99k annually
Cost per meeting: $414
30. How long will it take for them to ramp up?
Company No 1.
2-4 weeks to start being productive
2-3 months to be fully ramped up
After about 6 months it's possible that
they are ready for inside sales
31. Lessons learned – from Aaron Ross
Aaron Ross – set up this function at Salesforce.com
Lesson One:
Finding the right person to call is the hardest part
“If I could find the right person, I could usually have a
productive business conversation with them. It was just
a pain in the ass to find them, especially in the F5000
size companies!”
32. Aaron Ross: Breakthrough
In Desperation, I Tried An Experiment:
I’d always assumed that mass emailing executives
wouldn’t work. Don’t I need to carefully craft each email
to them to make it personal?
I wrote one email that was a classic salesy cold
calling letter: “Do you have these challenges? X, Y
Z…”.
I also wrote a totally “short and sweet” different
email simply asking for a referral to the right
person at the company.
33. Aaron Ross: Breakthrough
On a Friday afternoon, I sent two mass emails from
Salesforce.com:
100 of the “classic salesy” emails to F5000 executives,
100 of the “short and sweet” emails to the same kind of
list.
34. Aaron Ross: Breakthrough
Out of 200 emails I sent, I had 10 responses back!
Response rate for the “salesy” email: 0%.
Response rate for the “short and sweet” email: 10%.
Again, these were from C-level and VP-level executives
at large companies.
At least five of the emails I received from the short
and sweet campaign were positive …
referring me to other people in the organization as the
best person for a conversation about sales force
automation.
35. Aaron Ross: Breakthrough
I discovered that mass emailing C-level F5000
executives, with specific kinds of emails, can
generate 9%+ response rates
Those high response rates (8-10% or more) from
high-level executives have held true year after year,
even with my current clients, seven years later.
36. Aaron Ross: Breakthrough
Use a referral/researching approach rather than
cold calling people directly.
You can generate quality referrals from cold contacts
who have never heard of you via short and sweet email
templates
NEVER SELL in these “request for referral” emails
37. Case Study: Acquia Metrics after One Year
Created extra $6 million in Sales Qualified Leads
Closed $3 million in revenue already
… from the first 18 months of pipeline generation
(which will multiply fast now that the flywheel is rolling)
Grew prospecting team from 3 to 25 reps (USA & UK)
Added a manager in each location
Creating an extra $2m in pipeline per ramped rep
… or about $12-$15m in qualified sales pipeline/quarter
… and still growing
many prospectors are still ramping because the team is growing so fast
Prospecting went from generating nothing to creating 40% of the new
business sales pipeline.
Read the full case study here:
http://predictablerevenue.com/blog/case-study-acquia-on-the-100million-revenue-growth-track-trajectory
38. What’s Expected Of A Prospector At Acquia
300-500 outbound emails a month
100 “quick conversations” / “call connects” a
month
… with all kinds of people
20 longer Discovery Calls
… with influencers/decision-makers
15 Sales Qualified Leads
… passed to and accepted by salespeople
With thanks to Tim Bertrand, Acquia
39. Acquia expectations for pipeline & revenue:
Average outbound deal size: $50k in ARR (Annual Recurring Revenue)
15 SQLs / month = $750k pipeline generated per month
A lower goal than a common goal of 8-12 SQLs per month/rep
because they’re going after large accounts
Expected $55k-65k ARR per month per prospector
Or $720,000 in ARR per year per prospector.
Doing the math, with 20 prospectors after just a year
At $600k Annual Recurring Revenue per prospector
Acquia already expects to add an incremental $60 million in pipeline and
$12-$15 million in Annual Recurring Revenue in 2014 at a minimum
At a 10x revenue valuation, that’s an extra $120-$150 million in equity
value to investors in just 2.5 years.
And they’re planning on roughly doubling the team again (to ~40 reps) over the next
18 months, which will help them add an extra $30 million per year in ARR
40. Training, Coaching, Recognition, etc.
A big and important topic
Too long to cover here
Resources
Vorsight
Aaron Ross
TOPO
Reality Works Group
The Bridge Group
InsideSales.com
41. Metrics
Map out the process:
Call or email (Connection attempts)
Connect
Conversation
Meeting or Demo
For Each stage, measure:
Quantity
Conversion rate
42. Map out the process
Connection
Attempt:
Call or email
Connect Conversation
Meeting or
Demo
43. For each stage, measure Quantity and Conversion Rate
Connection
Attempt:
Call or email
Connect Conversation
Meeting
or Demo
Quantity over time
Conversion Rate (%)
44. Coaching for Problem Areas
Low Conversion rates from one step to another
highlight a problem area for specific reps
Use the reps that are best at that stage to coach the reps
that need help
45. Leaderboards
Public display of results triggers competitive drive
Show intermediate results as well as
meetings/demos
Example supplier: Rivalry
46. Technology
There is a ton of very helpful technology
Marketing Automation (HubSpot, Marketo, etc.)
List builders (SalesLoft, InsideView)
Prospect intelligence (LinkedIn, Google, HubSpot, etc.)
Dialers
Email tracking (HubSpot Signals, YesWare, etc.)
Multi-media emails (ClearSlide, Brainshark, etc.)
VoIP phone systems that auto-update CRM
48. Persistence
6-9 call attempts
2-3 emails or voicemails
Best practice (from Ken Krogue, InsideSales.com)
49.
50. Resolve the age old dispute between Sales & Marketing
Sales: “Not enough leads”
Marketing: “I gave you a stack of leads, and you
didn’t call any of them”
Solution: BDR function
Raw Lead MQL (Marketing Qualified Lead) - done by Marketing
MQL SAL (Sales Accepted Lead) - done by BDR
SAL SQL /Opportunity - done by Acct Execs
51.
52. MyProduct.com
HOW IT WORKS DESCRIPTION
Our product
allows you …
BUY NOW!
Only $9,999.99
In a perfect world…
55. Triggers
Moving house
Movers, phones, cable TV, furniture, insurance, etc.
Starting a new software project
PaaS (Platform as a Service), Dev Tools, etc.
Need to hire a lot of new employees
Applicant Tracking System
Just lost my data in hard drive crash
Backup software/service
Read about a scary new Android smartphone virus
Anti-virus software
57. OFTEN NECESSARY TO FIND TOPICS
THAT ARE NOT RELATED TO THE SALE
Build
Trust
Sell
First
Contact
Build
Relationship
58. Examples
Educational Events
Personalized Data that is of value to the customer
Free Software: HubSpot’s WebSite Grader
Meetings with other Execs with the same title
59. Think of your Buyer like a Bank Account
You must make a Deposit before you can expect to make a Withdrawal
60. Never underestimate the important of Research
A personalized email has a far higher chance of
success
If the company is public, look up the CEO’s
discussion of quarterly results
Some companies can automatically send
personalized emails
Based on scanning their web sites (e.g. SEO)
61. Conclusions
Valuable tool in the right circumstances
Must specialize
Invest in the right management, training, etc.
Metrics are key
Look for ways to add value before
you ask for anything