Build A Sales Machine: Avoid The 7 Fatal Sales Mistakes & Double New RevenuePresentation Transcript
From A Salesforce.com Executive: How To Avoid The 7 Fatal Sales Mistakes CEOs And VP Sales Make & Double New Revenue
Aaron Ross - My Story
Stanford Undergrad + GSB dropout
CEO of LeaseExchange: -$5 Million
Ironman Triathlon, Boulder Outdoor Survival School
Sr. Director at Salesforce.com: $100 Million
‘ Entrepreneur-in-Residence’ at Alloy Ventures ($1B)
On 10 advisory boards + investor in six companies
Now: PebbleStorm , with three coaching programs:
Sales Machine: “Create Predictable Revenue”
CEOFlow: “Turn Your Employees Into Mini-CEOs”
U nique Genius Coaching for individuals
Created A $100M Inside Sales Team At Salesforce.com A“Cold Calling 2.0” process and team that helped increase recurring revenue for Salesforce.com by $100 million & grew F5000 bookings by more than 60%
And Years Of Consulting/Advising
Why Am I Doing This?
After so many years of coaching/advising CEOs and VP Sales…
I see the same mistakes made over and over again
I made them myself as a CEO
They are simple to avoid!
Coming: Summer 2010
A Wave Of Change
What Works In Sales Has Changed
Field Sales = 90% of prospecting
ABC / Always Be Closing
Dials per day, appointments
Cheesy sales tricks work
“ I hate this job”
Long letters & emails
CRM hurts productivity
1.0 2.0 Sales Dev = 90% of prospecting Is there a mutual fit? Qualified opportunities / month Research, referral calls Authenticity works “ I learned a lifetime skill” Short and sweet text emails CRM multiplies productivity
The 7 Fatal Growth-Killing Sales Mistakes CEOs and VP Sales Make
1. Not Taking Responsibility For Understanding Sales & Leadgen
Everything begins with the CEO
The CEO must understand the fundamentals of sales and lead generation
Avoid arbitrary goals, assumptions and plans
Solution: the CEO must take full responsibility for educating & developing themselves
2. Thinking Salespeople Should Prospect (Make Salespeople Jacks-Of-All Trades)
Salespeople should fulfill deals
Only prospect 20% of the time, to Top 10 Strategic Accounts or to current customers
“ Lumping” is when salespeople do it all: qualify, cold call, close and manage accounts
Solution: specialize! You only need two salespeople to begin to specialize
Separate the Four Core Functions “ Outbound” Customer Success & Renewal Sales Frontline Sales Organic & Marketing Leads “ Inbound” Qualified Opportunities New Customers
3. Assuming Channels Will Do Your Selling For You
You have to control your own destiny
The channels will come AFTER you are successful
Solution: you must control your own destiny first. Focus on direct sales success before counting channel chickens.
Solution: get coaching on how to hire, train & incent, or find local companies to model.
If you want one year of prosperity, grow grain
If you want ten years of prosperity, grow trees
If you want one hundred years of prosperity, grow people
Train New Employees In Support/Services Intern With Services or Lead Qualification (2-4 Weeks) Call Stale Leads (1 Week) Call Fresh Leads / Stale Opptys (1-2 Weeks) Degree of Risk Time Call Cold Executives Example: training salespeople in non-sales roles
5. Being “Product-Out” Rather Than “Customer-In”
Unclear Ideal Customer Profile
No one cares what you do, they only care what you do for them
Little executive time spent with customers (should be 25% of your time)
Solution: talk to customers to get clear on what you do for them, rather than how you do it.
Nail Your Ideal Customer Profile
Ideal contact at targets?
6. Sloppy Tracking And Measurement
You have no predictability without a funnel
Are you measuring and tracking what you do and produce, or putting it off?
“ We’ll do that next [week, quarter, year…]”
Unless you understand what works and doesn’t work, you are guessing at how to improve
Solution: Start tracking 2-3 key activities / results now. Add something new each month.
7. Command-And-Control (“Push”) Management
Employees have few opportunities to contribute beyond their roles
More motivation than inspiration
Using long hours/hard work instead of creative problem solving
Exhausting employees (and management)
Solution: read “The Seven Day Weekend” by Ricardo Semler. Subscribe to CEOFlow.com.
CEOFlow: “Pull Management”
Bonus Mistake: Underinvesting in Customer Support
Too focused on new customer acquisition?
Ignore account management and support at your peril
We have a world of “Frictionless Karma” – bad customer experiences get around instantly
Solution: love & handhold your first 50 customers
Trust => Extraordinary Growth
The CEO Is The Pebble In The Pond
CEO Sweet Spot
Understanding Leads: Seeds, Nets & Spears
Distinguishing types of leads
Distinguishing types of leads
Harder to increase
Easier to increase
Medium work to increase
revenue more than 40%!
___ Website Visitors ___ Leads (Registrations) ___ Qualified Leads ___ Qualified Opportunities $___ Pipeline $___ Bookings __% Conversion __% Accepted __% Converted $___ Avg /Oppty ___% Close SALES DEVELOPMENT SALES MARKETING Sales Cycle Length ____ __ Lead Qualification Reps per __ Leads per Month __ Account Execs per $__ Pipeline per Month Cost per Lead $___ Nets Funnel