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unSEXY Conf 2013: Jamie Sutherland, Xero
 

unSEXY Conf 2013: Jamie Sutherland, Xero

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    unSEXY Conf 2013: Jamie Sutherland, Xero unSEXY Conf 2013: Jamie Sutherland, Xero Presentation Transcript

    • Beautiful accounting software Selling un$EXY Insights from building a sales team Friday, August 9, 13
    • “If you hire clowns you’ll end up with a circus” Friday, August 9, 13
    • President, Xero US @sutherlandjamie Hi! I’m Jamie Sutherland. Friday, August 9, 13
    • Friday, August 9, 13
    • •Global leader in online accounting •193,000+ paying businesses •7,400+ Xero accounting partners •400+ staff (US HQ in San Francisco) •Bank feeds from 5000+ institutions 2007 2008 2009 201 201 Introducing Xero 201 Friday, August 9, 13
    • Insight 1 Define your business goals Friday, August 9, 13
    • Business goals Business goals Friday, August 9, 13
    • Business goals Business goals Market share Friday, August 9, 13
    • Business goals Business goals Revenue Market share Friday, August 9, 13
    • Business goals Business goals Profitability Revenue Market share Friday, August 9, 13
    • Friday, August 9, 13
    • Insight 2 Appropriate sales structure Friday, August 9, 13
    • Team structure • What are you hiring for? • Web sales -> can you sell with no-touch? • Telesales -> can you contract a telesales agency to do your sales? • Inside sales -> can you product be sold with phone calls, emails, and online demos? Web sales Telesales Inside sales Field sales Product complexity Friday, August 9, 13
    • Commission plans Compensation • Base salary • 50-100% commission / quota • Equity Onboarding / Ramp • Management by objective (MBO) • Recoverable & guaranteed draws Friday, August 9, 13
    • Insight 3 Sort out your recruit strategy Friday, August 9, 13
    • Define the role • Spend the time to create a job description • What are the goals for the role? 1st month, first 3 months, full year • What exactly are you hiring for? • define the optimal skills • define the optimal experience • define the optimal domain knowledge Friday, August 9, 13
    • Hiring models Philosophies • Hire really smart, amazingly talented people and they’ll figure it out • Hire people based on experience, previous success, domain expertise Hiring strategies • Do-it-yourself • In-house recruiter • Outsourced recruiter • Retainer • Fee for placement Friday, August 9, 13
    • Insight 4 Metrics matter Friday, August 9, 13
    • Metrics matter Sales rep metrics # calls # connections # closes % Web metrics # unique visitors # trials # paid % % % Friday, August 9, 13
    • Important SaaS metrics 1. Monthly recurring revenue (MRR) 2. Churn rate 3. Lifetime Value of a Customer (LTV) 4. Cost to acquire a customer (CAC) 5. Months to recover CAC Friday, August 9, 13
    • Rule of thumb CAC = sales/mktg expenses # of customers acquired Friday, August 9, 13
    • CAC = sales/mktg expenses # of customers acquired LTV = ARPU cost to serve 1 x churn Rule of thumb Friday, August 9, 13
    • CAC = sales/mktg expenses # of customers acquired LTV = ARPU cost to serve 1 x churn Rule of thumb Friday, August 9, 13
    • Rule of thumb -> LTV should be 3x greater than CAC -> Salesforce / Constant Contact are at 5 x greater than CAC -> recover CAC in under 12 months David Skok, Matrix Partners 1. 1. Friday, August 9, 13
    • But, I’m just getting started... -> don’t waste time with fantasy spreadsheets -> use as a guiding principle -> get a sense of your annual contract value -> set up a quick scenario analysis around potential churn rates and cost to serve Friday, August 9, 13
    • Insight 5 Have fun Friday, August 9, 13
    • Friday, August 9, 13
    • Friday, August 9, 13
    • Friday, August 9, 13
    • Friday, August 9, 13
    • No matter how great of a product you build, it only matters if people buy it Friday, August 9, 13
    • “If you build it, the people will come”.... Maybe. Odds go up if you have a great sales team to help make that happen. Friday, August 9, 13
    • Beautiful accounting software Thank you Jamie Sutherland President, Xero US @sutherlandjamie Friday, August 9, 13