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Sales Funnel for Lean Startup Seattle  by  Andy Chen (AARRR)
 

Sales Funnel for Lean Startup Seattle by Andy Chen (AARRR)

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Managing the Sales Funnel is critical for startups. Andy Chen took the Lean Startup Seattle folks through a tour of the Sales Funnel Basics, Starting with the AARRR Metrics for Pirates and walking ...

Managing the Sales Funnel is critical for startups. Andy Chen took the Lean Startup Seattle folks through a tour of the Sales Funnel Basics, Starting with the AARRR Metrics for Pirates and walking through the details of managing the sales funnel and the sales team.

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    Sales Funnel for Lean Startup Seattle  by  Andy Chen (AARRR) Sales Funnel for Lean Startup Seattle by Andy Chen (AARRR) Presentation Transcript

    • Lean Startup - Building an Enterprise SaaS Sales Engine May 5, 2014 Andy Chen andy@cryingbox.co m 1
    • SALES BLACK • In first dotcom boom, it was the Idea (Yahoo!) • In late 2000’s, it was Users (Facebook) • Now, it’s Sales (and growth of sales)! “The series A valuation picture, according to [big VC], goes something like this based on month revenue rate (MRR): $40-$70K MRR translates to a $7M-$14M pre-money valuation $100K+ MRR translates to a $15-$20M pre-money valuation” 2 is the new
    • What is a Sales Process? 3http://500hats.typepad.com/500blogs/2007/09/startup-metrics.html
    • Process is different based on your product/strategy • B2B vs. B2C • Enterprise vs. SMB • Early stage vs. Early growth vs. Scaling • Velocity deals vs. Elephant hunting 4
    • What we think Sales does 5
    • What Sales really is 6
    • Marketing Engine Overview Integrated Marketing Engine Campaign/Scoring Leads Lead Qualification Drip/Nurturing Pipeline Management http://www.g2crowd.com/categories/marketing-automation/compare Qualified Opportunities 7
    • Marketing’s goal is to create Qualified Leads/Oppty Leads Leads can be Implicit or Explicit Scores over 125 Go to top priority and guarantee a call w/in 24 hrs 8 CMO CRO
    • Sales Enablement Tools 9
    • Sales’ goal is to create quantifiable deal- movement SalesMarketing 10
    • Use a Sales Methodology to create consistency 11
    • Sales Comp Structure • Enterprise rep = $7-$10k new MRR/month • Mid-market rep = $4-$8k new MRR/month #Reps Base/Var iable Target Equity MRR Notes Early Stage 1-2 75/25 Same as early employee <$25k Company-wide goal focus. Significant product co-creation Early Growth 2-5 50/50 Sliding Scale $25- $100k Individual quota. Sell what you have Scaling 5+ 35/65 Low equity >$100k Individual quota. Specialized 12
    • Other Sales Tips • Hire slow, Fire fast • Evaluate in weeks/months, not quarters • Don’t accept excuses from your reps • Sell what you have. Everyone blames marketing/product/service • Sales will “respect what you inspect” • Beyond closed sales, pipeline integrity is critical to maintain. Managers are responsible for Inspecting the data in Salesforce (or other CRM) • Hire for the process, not the person • Don’t buy the rolodex (unless you have to). I choose a rep that fits my process every time vs. someone with a rolodex. 13
    • Summary • MRR (Monthly Recurring Revenue) • Marketing Automation (CRO, not CMO) • Lead Scoring (Implicit/Explicit scoring) • Sales Playbook (1-liner, competitive zingers, etc) • Sales Automation (Pipeline, forecasting) • Sales Methodology (MEDDIC) • Sales Compensation 14
    • Questions? andy@cryingbox.com 15
    • About Me • Co-founder Fogdog Sports, B2C E-commerce site, IPO 1999 • VP Product GSI Commerce, B2B E-commerce platform, $2.4B acquisition by ebay in 2011 • Head of Product, Yahoo! Shopping. B2C Marketing/lead-gen site • Co-founder PowerReviews, B2B Enterprise SaaS Solution, acquired in 2012 for $168M 16