CEOFlow Introduction To Cold Calling 2.0 102007Presentation Transcript
Cold Calling 2.0 Aaron Ross PebbleStorm’s CEOFlow: “Grow revenue through enjoyment” [email_address] Part 2 of 2 And how marketing can leverage an outbound sales development team
Part 1 Review
In Part 1:
What it's like if you're “panning for gold with a colander” (generating leads without an effective lead management function), and what to do about it:
- Treat salespeople as internal customers
- Build an ‘Lead Management Machine’
- Choose and commit to a first step
[Slides available at www.salesmachine.blogspot.com,
or contact us for copies]
So you’ve nailed inbound lead management and are making the most of the inbound leads hitting your website...
Now how do you get MORE new large company leads and MORE bang for your buck by leveraging a Cold Calling 2.0 team?
Who this is intended for (Although there are principles here anyone can appreciate) Companies with direct sales (or use channel partners with direct sales models) selling a product worth more than $10,000 in value.
The big picture
The B2B leadgen problem $100M Defense Contract Boeing Lobbyist $100 Sale Timex Watches Google, eBay $100,000 Order Salesforce.com, Saas… Many Buyers Few Buyers Specificity of Product (Can I easily specify what I want?) HIGH Low $1,000,000 Order Oracle Apps, SAP Gartner/Accenture Low Avg Sale Price High ?
Too much noise, too little time Print Ads Webinars Online News LinkedIn Twitter Radio Microsite Campaigns Telemarketing Wikis Cold Calls Mail Email Campaigns Blogs RSS feeds Phone TV Texting
The business issue How can your programs and company break through the noise to generate measurable results?
Where you are 97% Other 3% Cold calling Sources of new customer revenue
Where you want to be 75% Other 25%+ Cold Calling 2.0 Sources of new customer revenue
Cold Call : A telephone call to someone who is not expecting contact
Also known as…
waste of time
The irony of Cold Calling 2.0 is that it should never involve making ‘cold calls’
Who are these guys? We created, from scratch, a “Cold Calling 2.0” sales development team that has sourced $100 million in recurring revenue for salesforce.com (that’s an extra $1 Billion in market capitalization)
Why it should NOT have worked
Unlike today, Salesforce.com had little brand recognition in large companies…. “Who? Do you do sales outsourcing?”
Below-market compensation for the role
Classic prospecting methods and cold calls didn’t work
No fancy tools or big budgets: we only used salesforce.com, OneSource, Spoke/Jigsaw, & telephones
Why it did work
Invested a year of preparation to nail it before scaling
A team 100% focused on outbound prospecting
A process that created PREDICTABLE results
Leveraged our tools every way possible
Committed to developing its people and expertise
Earned executive trust and commitment with audited, proven results
Cold Calling 2.0 1.0
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
What is world class?
“ Outbound Machine”
15-30%+ 8-10x+ >20% 90% Growth of customer acquisition Return on sales development reps Outbound close rates Success rate for sales development reps
Building a world class machine
What’s your true potential?
So you want to take the first steps to transform…
If you can only do 3 things…
New technologies and a search for shortcuts tend to distract people from nailing the basics first.
After the basic and process are proven, then accelerate them.
Three fundamentals to start with:
1. Smart targeting Ideal industries Ideal companies Research functional teams Find influence Business Issues Fit?
Separate the core functions www.CEOFlow.com “ Outbound” Account Management Sales Frontline Sales Organic & Marketing Leads “ Inbound” Qualified Opportunities New Customers
3. Develop your people Product-pitching “ Salesperson” Selling Product, Doing Deals Presentations Problem-solving “ Person Who Can Sell” Build Trust Through Transparency, Honesty Conversations
A new email template will not transform you.
Don’t let the search for tricks distract you from getting the basics right
But, here are examples:
1.0 : “More is better”
Subject: Improve sales effectiveness in Q2?
*Are you continually challenged to project accurate revenue? *Do you know who your best reps are and what makes them successful? *Do you know which marketing activities your company engages in are generating closed deals? *You know there are some big deals in the pipeline, but can you easily generate a real-time report detailing their status? *Do you know where your marketing dollars are best spent? Does this sound familiar? You face the same challenges as many other companies. Salesforce.com has proven to be successful at leading global companies such as Adobe Systems, AOL Time Warner Communications, Putnam Lovell, Dow Jones Newswires, Berlitz Global Net, Siemens, Microstrategy and Autodesk to name a few.
Salesforce.com is a web-based CRM service that can be rapidly rolled out and is easy to use. Sales organizations use it to centralize and report on contacts, accounts, historical activities and to track sales performance. Marketing can easily measure the ROI of individual projects. Salesforce.com makes it very easy to customize reports and gain visibility into your sales organization and individuals' performance to get a better handle on your business. Online demo: salesforce.com/us/seminar.html
Could we schedule 20 minutes of time to discuss this? Or would someone else in your organization be a more appropriate contact?
Warm regards, Aaron Ross
2.0 : “Less is more”
For your own good, we’re not including an example template here
If you use someone else’s language, it loses authenticity (write real emails as if to a friend)
If everyone uses the same templates, they’ll stop working
3 key points:
State simply and clearly why you are reaching out
Offer credibility (say, examples of customers)
Make the email easy to read and respond to on a blackberry
Process 1.0 : Big chunks, slow pace
1. Target marketing executives at 100 accounts
Cold calls, Fedex’d books…
Emails: 1% response rate
2. Take weeks or months to set up calls
3. Irrational persistence
When it’s just not a good fit (no budget, no pain, wrong time…) doggedly keep trying to handle objections
RESULT: Slow feedback cycle – not sure if it’s working?
High effort, low results
Process 2.0 : Smaller chunks, faster pace
1. Begin with a handful (5-10) “Ideal” targets
2. Email the CEO , C-level executives or call their assistants
“ Research calls”, not cold calls
Emails: we achieved 9% response rates
3. Get C-level referrals within hours or days to your target contacts
4. Quickly discover if there is a fit or not, and move on
Not knowing one way or the other is a dead zone
5. Move on to the next batch of targets
RESULTS: Fast feedback cycle – it should work NOW
High effort, high results
The First Phone Call
1.0: ALWAYS BE CLOSING!
Discuss the pitch, “Value Prop” and how great your company is for most of the call
Success = new Stage 1 Opportunity
A call resulting in no new opportunity is considered a failure
in-depth demo or in-person sales meeting to discuss purchasing processes, competitors, etc.
2.0: ARE WE A FIT?
First call :
Brief introduction for context, focus on learning about the prospect’s business for most of the call
Success = enough understanding to place them in one of 3 buckets:
1.Good Fit Now (Set Next Step)
2.Good Fit Later (Build an Internal Champ)
3.Waste of Time
Next steps Business Issues & Goals discussion that re-qualifies / confirms the processes and mutual alignment of both sides.
Top prospecting mistakes (besides making cold calls)
6. Expecting instant results
It can take 2-4+ weeks to develop a qualified opportunity
5. Long emails
Can someone read and respond on a BlackBerry?
4. Going wide, not deep
Hitting 100 accounts once instead of 10 accounts 10x each
3. Giving up too quickly at Ideal Targets
Don’t give up on working to understand if there is a fit or not until you get a “no” from the real decision maker
2. Not giving up quickly enough at non-Ideal Targets
These wastes of time are a huge opportunity cost
1. Depending on activity metrics instead of a proven process
“ Dials per day” is meaningless. What’s the ‘assembly line’ process?
Now, how can marketing leverage a cold calling team?
How marketing can leverage sales development
Three ways marketing and sales can work together to proactively generating more leads:
Tradeshows & conferences
Apply budget to tools that help generate pipeline…as long as you hold sales to tracking & proving results
Examples: Demandbase, Genius, ConnectAndSell
Use your imagination on some other joint project…
-But keep it simple
-If they want budget for something, just try it! But hold them to proving the results
A conference campaign
Phase 1: Preparation (Weeks)
Acquire a list of attending companies
The outbound sales team calls into the relevant accounts to:
- Prepare a conversational cheatsheet for the conference attendees
- Set up appointments
Phase 2: The Event
Send sales (not just marketing) to proactively work the event
Personal request: please resist indiscriminately scanning badges. Only scan people who are actually interested in your offerings!
Phase 3: Follow Through (Weeks)
The outbound team completes its follow up on the leads generated at the tradeshow
Phase 4: Constant Improvement
Take some time to discuss what you would do differently next time.
- “ITunes” for sales contacts and marketing names
Search, filter and purchase
- Web 2.0 self-service interface
- Raises productivity for both marketing programs and cold calling programs
- Business Model: Price per contact/name
Help sales leverage marketing tools
Increase results from marketing investments by helping salespeople get more out of them
For Sales Reps, see in real-time…
- Who opens your e-mails
- Who visits your web site
- Which pages they visit and for how long
… and either call them while they’re at their desk, or present personalized greetings and chat invitations
Business model: monthly subscription per user
Sales reps spend enormous amounts of time dialing, with no connection to decision makers
ConnectAndSell deploys virtual sales agents to do the dialing (it’s like a human autodialer, without the ‘click’)
Sales reps have a constant stream of live conversations
- 7 to 10 per hour, rather than 1 to 2
Business model: $275 per hour of usage (before volume discounts)
Multiply sales conversations per day
One more time
A great application is no substitute for, and will not fix, an ineffective process.
They accelerate processes that already work.
1. A dedicated outbound sales development team multiplies effectiveness
- In fact, if they aren’t dedicated…they won’t be effective
2. Where are you going to start?
- Your next conference
- Try out a joint sales-marketing application around an upcoming campaign
3. Be “Aggressively Patient”!
- Aggressive progress every day, patience for results
Now light the fuse!
Aaron Ross PebbleStorm’s CEOFlow
“ Grow revenue through enjoyment”
Thank you Design: David Stychno (firstname.lastname@example.org) Special thanks to: Erythean Marttin, Ryan Martin, Mike O’Sullivan, Elizabeth Arnsdorf Thank you!
Which level are you?
Don’t measure ROI
Fuzzy “Ideal Target” profile
Not measuring close rates of outbound pipeline
Reps making “cold calls”
Dependence on calls per day metric
No career path
Advanced apps distract
ROI between 200%-800%
Have reps who are 100% outbound
<20% outbound close rates
Clear career path
Trying advanced apps
“ Outbound Machine”
ROI of >800%
Perfect “Ideal Target” profile
Strict quality-control standards
>20% outbound close rates
90% success rate of reps
Promoted outbound reps outperform in sales
High ROI on advanced apps
Level 1 Level 2 Level 3
Getting to the next level
We Build Your Dashboards
Basic CRM training
You Optimize Dashboards
You Build Own Dashboards
CRM + Apps
Level 1 Level 2 Level 3
Transformational timeline @ 6 Months
Outbound-specific “Ideal Target Profile” defined
First outbound reps ramped and seeing results
Tracking dashboards and tools in place
First “new process” qualified opportunities generated
Predictable, proven “Outbound Machine”
15%+ outbound contribution to revenue
Quantified ROI on the role
Proven career path, upward mobility
@ 18-24 Months First 90 Days
Onboarding process and tools defined
Next set of outbound reps hired and ramped
Quality audit process in place
First revenue from short-cycle opportunities
Example prospecting waterfall Add Target Accounts Add Contacts __ Call Connects __ New Opportunities __ Closed Deals Prepare Prospect Begin Sales Cycle Work Responses (9% Response Rate) __ Demos/Appointments Define Ideal Target Profile Send __ Cold Emails / Make __ Mapping Calls
Invest in training 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
It’s a better investment to really train outbound reps before putting them on the front lines (so they can have constructive conversations)
Train them for 4-6 weeks in customer-oriented roles first
Ingredients For Rep Success
You know exactly what you need to do every day, and do it.
You truly care about the company you work for, the product they sell, and in trying to help your prospects solve problems.
Constant Improvement (Kaizen)
Expertise takes time and effort; perfection is a journey, not a destination.