Are you eating only a part of your pie?

Firing your Entire Sales Engine with Data

Ekta Grover

Bloomreach, Inc

https://www.linkedin.com/in/ektagrover @ektagrover

The views expressed here are solely mine & do not reflect my employer’s opinions/sales strategy

National Sales Convention, 2016 23rd May, 2016, Kuala Lumpur , Malaysia

alignment

Image source https://henrithibodeau.files.wordpress.com/2015/05/right_brain_left_brain.jpg

Structure for this talkChanging business landscape

Sales primer 101 The two facets to growth

Lead qualificationHot lead models

The new paradigm for Business growth

Quantitative assessment ofyour current sales footprint

Sales rep run rate & pipeline velocity

Image source : http://www.measuringflower.com/

The Business landscape is changing

Increasing choices, pricing mix

larger voice regardless of the size of Business

Customers buy outcomes

Your job is to build in product stickiness by deliberate design AND make your customers successful

stepping back

high-volume, low-value transactional environments

low-volume, high-value transactional environments

Quantity vs. quality of the pipelinewhere in the funnel are your challenges

Sales primer 101

Sell more

And do so at a lower cost

Profit=Revenue - Cost

First the paradigm

Aggregate

Benchmark

Identify

Act

Revenue

Acquiring Customers

Retaining Customers

Monetizing Customers

http://www.forentrepreneurs.com/saas-metrics-2/

Understanding what’s happening with your Business

CAC 6000 $MRR 500 $

http://www.forentrepreneurs.com/saas-metrics-2/

Understanding what’s happening with your Business

.. but you can’t solve the problem by (just) adding more customers

The more customers you add

More interesting Business questions

How many customers canyou afford to onboard ?

the lower the valley

When in time should you onboard them ?

If you knew the costs, can you pickup a winning mix ?

affect of lowering CAC

The lower your CAC,the faster the time to profitability

Multiple customers

CAC 6000 $MRR 500 $On boarded 100 customers

Growth rate 2%Churn rate 1%

Customer lifetime= 1/customer churn rate

Insight # 1

lower your CACAdd more MRR from same customer

reducing time to profitability

Keep negative(or lower) churn

Insight # 2 : Customer churn

4% churn = 48% of revenue

1% churn = 12% of revenue

The higher your churn, the harder your sales engine should work

Sustainable profitability

Monetizing customers

Adding just 10% MRR from existing customers

Effectively recovering the CAC sooner

Cost

More effective marketing spends

Better lead qualification /quality of pipeline

Outcome driven sales on boarding programs

Leading best-in-class sales effectiveness

Data they need to succeed & course correct

Effect of channel on customer lifetime, CAC, MRR

Hot lead models & customer segmentation

This means choosing the right channel can free up costs you could use more effectively

Qualifying your leads Goal : Determine sales readiness

phase in the buying cycle

Interest they show in your business

overall fit with your business

Explicit and Implicit scoring

Qualifying your leads

Hot lead models

Golden rule : Start with a customer that has a need

Hot lead models

Budget

Authority

Need

Timing

“If our solution solves your needs, will funding be available to move it forward?”

contact rate with decision makers, how is your prospect based in its immediate ecosystem, demographic data

vertical , no employees, growth parameters (industry, competitors, market share, customers of your prospect)

likelihood of purchase , fit of your solution to their current problems (agnostic of price point )

If they had a strong likelihood to purchase, how much time will it realistically take to close

f(score) =a1*x1+a2*x2+a3*x3+a4*x4

peer group evaluations (early adopters, social proof ) , actual behavioral data-pointscompetitive environment, incumbent deployed competitive solutions and CSAT with those

trigger events like expansion, fresh source of funding

Layered qualification model

customer1

customer2customer3

customer5

CAC

Score

..and other dimensions we discussed earlier

customer4

An intensive prospect qualification opens a lot of opportunities

Multi-axis pricingForces to reveal hidden preferences & needsDetermine how people value different attributes

Better positioning & product differentiation

What we know so far

Make existing customer successful and on-board customers most likely to be successful

On board them at the right time & at right cost

Monetize them proactively to reap the benefits of negative churn

Synthesizing sales territory, quota & success

Government

EnterpriseSmall Business

Medium Business

Understand how your most successful customers look like

Your costs & revenue streams from these customers

Brick & Mortar

yield & productivity of sales teams

Quantitative assessment

Open Opportunities

Closed Opportunities

Average Deal Size

Win Rate

Sales Cycle

too broad, too many verticals

Goal := which accounts will buy & whenWhere in the funnel is the problem ?

Insightsquared.com: Why you didn't hit your number

How many open opportunities your team needs ?

Team’s win rate : 15% ~ 1 in 6 deals convert

Quarterly goal $1 million

Average Deal Size $10,000

Need 600 good-opportunities to start with

Understanding the pipeline

Total value of pipeline in next 90 days is

70,800$

How much is in line with your run rate goals, after accounting the team’s win rates

pipeline strength & stage permeation over time

Qualifying more opportunities, but downstream pipeline is not growing

Likewise for downstream metrics

The new sales paradigm

Farm don’t hunt !

Farm don’t hunt ! by Guy Nirpaz

Would love to engage

https://www.linkedin.com/in/ektagrover @ektagrover

ekta1007@gmail.com