Selling for the Lean Startup

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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/

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  • Your targets are Early Adopters and Innovators. You’re a startup, so find these people and sell to them. That’s where prospecting becomes so vital. Conference become so vital. Why conferences? Who attends? The middle manager punching a time clock or the engaged executive?
  • Start with this slide – “How do you get to this place where you can view and measure your conversion rates?” Build. Measure. Learn. In your sales process.
  • Selling for the Lean Startup

    1. 1. + Selling for the Lean Startup Scott Sambucci | SalesQualia www.salesqualia.com Lean Startup Circle 2013-03-05
    2. 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. 3. + Your Goal Develop a predictable, replicable, scalable sales framework that you can scale and manage.
    4. 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. 5. + About Me @salesqualia | www.salesqualia.com 415-596-0804 | scott@salesqualia.com
    6. 6. +Frameworks: The Plan
    7. 7. + The Mathematics of Love Solving Problems > Building Products
    8. 8. + Build. Measure. Learn your Sales Process. SALES PROCES S
    9. 9. + It’s not you. It’s me.  Product Problem  Market Problem Sales Problem
    10. 10. + Ash Maurya – “Running Lean” 1. Document Plan A 2. Identify Risk 3. Test Your Plan Source: “Running Lean”
    11. 11. + Why do people buy? 1. Increase revenue 2. Reduce costs 3. Increase efficiency 4. Reduce Risk
    12. 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. 13. +  EXERCISE Write your Value Statement for your product or service. Hint: Remember the four (4) reasons people buy. [5 minutes]
    14. 14. +People: Living organismsthat buy your stuff
    15. 15. + Buyer Types  USER BUYER  TECHNICAL BUYER  ECONOMIC BUYER CHAMPION
    16. 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. 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. 18. + Personas enable us to identify the purchasing motivation for each buyer [EXERCISE]
    19. 19. + Value Statement ≠ Value PropositionSource: http://www.businessmodelalchemist.com/2012/08/achieve-product-market-fit-with-our-brand-new-value-proposition-designer.html
    20. 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. 21. +The Rules ofEnterpriseSelling
    22. 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. 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. 24. + Stages of the [Enterprise] Sale1. Needs Analysis 2. Evaluation of Options  Your Value Statement & Initial question  Product Demo3. Resolution of 4. ImplementationConcerns  Decision/Contract ”Show the team”/ Objections [EXERCISE}Source: “Major Account Sales Strategy” by Neil Rackham
    25. 25. + Committees
    26. 26. Hey Scott,Received this email from Damien at The Presidio last night. This basically confirmswhat you were talking about yesterday; let me know what kind of a response youbelieve I should get back to him with.Thanks,--------------- Forwarded message ----------From: ______Date: Thu, Feb 28, 2013 at 6:07 PMSubject: RE: _____follow upTo: ________Hi ----,Thanks for stopping by. As mentioned we don’t have a budget to work with at themoment. That might change by summertime. Please give me a buzz then!Thanks~-----
    27. 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. 28. +Prospecting Researching Finding Calling
    29. 29. + Prospecting is coding  Need to do it consistently for long, focused stretches.  Andyou need to do it. Code wont improve itself and neither will your sales channel.  Build. Measure. Learn.  Work smarter, not harder.
    30. 30. Source: “The Entrepreneur’s Guide to Customer Development”
    31. 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. 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. 33. +Measurement
    34. 34. + Funnel Stages Source: “The Entrepreneur’s Guide to Customer Development”
    35. 35. + Remember: Stages of the [Enterprise] Sale 1. Needs Analysis 2. Evaluation of Options 3. Resolution of Concerns 4. Implementation
    36. 36. + Dave McClure AARRR Source: “The Entrepreneur’s Guide to Customer Development”
    37. 37. + 50 100 150 200 250 0May-07Jun-07Jul-07Aug-07Sep-07Oct-07Nov-07 Case Study Dec-07Jan-08Feb-08 RegistrationsMar-08Apr-08May-08 NewJun-08Jul-08 AccountsAug-08 Registrations : New AccountsSep-08Oct-08Nov-08Dec-08 0 5 10 20 25 30 35 40 15
    38. 38. + 100 150 200 250 0 50May-07Jun-07 Jul-07Aug-07Sep-07Oct-07Nov-07Dec-07Jan-08 RegistrationsFeb-08Mar-08Apr-08 NetMay-08Jun-08 Jul-08Aug-08 New AccountsSep-08Oct-08Nov-08Dec-08 Registrations : Net New Accounts 5 0 10 15 25 30 35 20
    39. 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. 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. 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. 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. 43. +Prospecting: Go Forth & Multiply
    44. 44. + LinkedIn: Case Study  Agency CMO & RMBS Group  Lead: Neal Aggarwal, Jeffries & Company  Formerly with C12 Capital  Google Search: Jeffries & Company
    45. 45. +
    46. 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. 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. 48. + Stop calling people  Cap yourself at 2 VMs, then push to drip campaigns  Iftheyre not returning your call, the prospect is:  Not interested  Youre 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. 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. 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. 51. + Find Your Inbound Leads  Huh?  Remember: No one cares about you.
    52. 52. Add value, add+ value, add value “I saw this article on HousingWire. What do you think about...?”
    53. 53. + 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]
    54. 54. +Prospecting@Conferences
    55. 55. + Pre-Conference
    56. 56. + 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
    57. 57. + The email text (~1000 sent , ~60 replies) Just a quick check in to see if youre attending next weeks ASF conference in Orlando. Ill be there with our Market Analytics team (booth and all!) from Sun-Wed. Weve 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 dont always line up with your day- to-day work, but figured its always good to ask.) Many thanks - looking forward to your reply. - Scott [spreadsheet]
    58. 58. Pre-Conference
    59. 59. Pre-Conference
    60. 60. + At the Conference
    61. 61. At the Conference
    62. 62. At the Conference
    63. 63. + http://www.imn.org/main/news.cfm
    64. 64. + At the Conference Don’t Sell. Discover.
    65. 65. At the Conference
    66. 66. + At the Conference  Set day/time block goals & objectives  Twitter  Blog & Post about speakers  Discover, don’t sell  No Demos  Stick & move
    67. 67. + Post-Conference
    68. 68. + Post-Conference  "Iwas at Dreamforce last week and saw a really interesting presentation that think youd be interested in…”  Add value, add value, add value.
    69. 69. + 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]
    70. 70. +Free Book(Because that’s how I roll)
    71. 71. + 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

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