unSEXY Conf 2013: Jamie Sutherland, Xero

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unSEXY Conf 2013: Jamie Sutherland, Xero

  1. 1. Beautiful accounting software Selling un$EXY Insights from building a sales team Friday, August 9, 13
  2. 2. “If you hire clowns you’ll end up with a circus” Friday, August 9, 13
  3. 3. President, Xero US @sutherlandjamie Hi! I’m Jamie Sutherland. Friday, August 9, 13
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  5. 5. •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
  6. 6. Insight 1 Define your business goals Friday, August 9, 13
  7. 7. Business goals Business goals Friday, August 9, 13
  8. 8. Business goals Business goals Market share Friday, August 9, 13
  9. 9. Business goals Business goals Revenue Market share Friday, August 9, 13
  10. 10. Business goals Business goals Profitability Revenue Market share Friday, August 9, 13
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  12. 12. Insight 2 Appropriate sales structure Friday, August 9, 13
  13. 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
  14. 14. Commission plans Compensation • Base salary • 50-100% commission / quota • Equity Onboarding / Ramp • Management by objective (MBO) • Recoverable & guaranteed draws Friday, August 9, 13
  15. 15. Insight 3 Sort out your recruit strategy Friday, August 9, 13
  16. 16. 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
  17. 17. 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
  18. 18. Insight 4 Metrics matter Friday, August 9, 13
  19. 19. Metrics matter Sales rep metrics # calls # connections # closes % Web metrics # unique visitors # trials # paid % % % Friday, August 9, 13
  20. 20. 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
  21. 21. Rule of thumb CAC = sales/mktg expenses # of customers acquired Friday, August 9, 13
  22. 22. CAC = sales/mktg expenses # of customers acquired LTV = ARPU cost to serve 1 x churn Rule of thumb Friday, August 9, 13
  23. 23. CAC = sales/mktg expenses # of customers acquired LTV = ARPU cost to serve 1 x churn Rule of thumb Friday, August 9, 13
  24. 24. 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
  25. 25. 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
  26. 26. Insight 5 Have fun Friday, August 9, 13
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  31. 31. No matter how great of a product you build, it only matters if people buy it Friday, August 9, 13
  32. 32. “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
  33. 33. Beautiful accounting software Thank you Jamie Sutherland President, Xero US @sutherlandjamie Friday, August 9, 13

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