Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Steve McKenzie - Inbound vs. Account Based Selling

770 views

Published on

The world of sales has changed and now, more than ever, the cards are stacked in the buyer’s favor. Progressive sales teams are adapting to leverage technologies and processes that align with the buyer’s journey -- not the seller’s goals. Amongst the approaches that sales teams are adopting, two methodologies have risen to the top: Inbound Sales and Account-Based Selling. Are they bitter rivals, complementary strategies, or something in between? Learn from sales leader, Steve McKenzie, about the benefits of both approaches, and why you might be leaving money on the table if you only ask “Which one is right for my sales team?”.

Published in: Business
  • Be the first to comment

Steve McKenzie - Inbound vs. Account Based Selling

  1. 1. #INBOUND16 INBOUND VS. ACCOUNT BASED SELLING ….. Friends ….. Foes ….. or Frenemies? Steve McKenzie Head of Sales InsightSquared steve@insightsquared.com
  2. 2. #INBOUND16 ACCOUNT BASED SELLING?
  3. 3. #INBOUND16 1. Sales people might be thinking ….. – What is this Marketing Speak? – This is how we have been selling all the time • We focus on accounts • We find the key contacts • Run then through a process • We sell to them 2. Right? ACCOUNT BASED SELLING?
  4. 4. #INBOUND16 GTM MACHINE HAS EVOLVED
  5. 5. #INBOUND16 B2B BUYERS HAVE EVOLVED 1. Buyers are empowered 2. Buying is done by committee
  6. 6. #INBOUND16 B2B SELLERS HAVE EVOLVED 1. Walking catalogue – Look what I have …. 2. Solution selling – Help me understand ….. 3. Challenger Sales – Here’s what I know/how I can help …..
  7. 7. #INBOUND16 1. Organization = Account 2. Person = Contact or Lead 3. Person who is ‘loosely engaged’ = MQL 4. Person who is ‘more engaged’ = SQL 5. Person who a Rep is going to try and sell to = SAL 6. Organization that is engaged = Opportunity 7. People in that organization = Contacts 8. Organization that you have contracted with = Customer DEFINITIONS
  8. 8. #INBOUND16 SPECIALIZE FOR EFFICIENCY
  9. 9. #INBOUND16 DIVISION OF LABOR Marketing BDR / SDR Account Exec CSM
  10. 10. #INBOUND16 INBOUND STRATEGY
  11. 11. #INBOUND16 1. Publishers of content to draw people (leads) in 2. Goal = Opt in to start a digital relationship 3. Further engagement to create ‘Hand Raisers’ / MQL 4. Marketing Optimize for the Denominator 5. Focus is on Quantity 6. Usually stop once Op created INBOUND MARKETING
  12. 12. #INBOUND16 1. MQL handed off to BDR / SDR – SLA – speed to reach out – SLA - number of touches 2. BDR to book meeting / demo for AE 3. AE qualifies and converts to Op 4. AE sells 5. Hands over account to CSM to manage INBOUND SALES
  13. 13. #INBOUND16 1. Higher volume transactions 2. Faster sales cycle 3. Lower ASP 4. Very large total addressable market (TAM) 5. Inside sales predominance 6. Optimized for SPEED and VOLUME TYPICAL INBOUND USE CASE
  14. 14. #INBOUND16 Pros 1. When it works well it’s a machine! 2. Cost effective for broad coverage 3. There is always someone to call! – Good steady lead flow Cons 1. Marketing control who sales sells to 2. Could hit a MQL fiscal cliff (Quantity) 3. Hit an MQL decay curve (Quality) 4. MQL & Op misalignment 5. Division of labor can lead to silos and finger pointing PROS AND CONS
  15. 15. #INBOUND16 ACCOUNT BASED STRATEGY
  16. 16. #INBOUND16 ACCOUNT BASED MARKETING Focus on Accounts, Contacts and Engagement 1. Ideal Client Profile (ICP) definition – with sales 2. Identification of target accounts 3. Identifying / add contacts 4. Specialized content for accounts and contacts 5. Focus on the Numerator - Quality 6. Involved beyond op creation – create broad account coverage / engagement
  17. 17. #INBOUND16 1. Build list of target accounts (with Mkt) 2. Add relevant persona’s / contacts 3. Proactively reach out and try to engage 4. Stay the course with the accounts / building trusted advisor relationship 5. Challenger Sales methodology – teaching on industry trends – Tailoring account / persona specific needs 6. Engaging for the longer haul ACCOUNT BASED SALES
  18. 18. #INBOUND16 1. Smaller well known addressable market 2. Fortune 100 for example would be obvious 3. Larger ASP 4. Longer sales cycle 5. Deeper / complex engagement 6. Broader account coverage required TYPICAL ACCOUNT USE CASE
  19. 19. #INBOUND16 Pros 1. Clearly identified accounts and contacts to go after 2. Can create a deeper engagement 3. Works well when there is good Marketing and Sales alignment Cons 1. If your accounts won’t engage, you are stuck 2. Cost per interaction are higher 3. Harder to scale 4. Works badly when Marketing & Sales not tightly aligned PROS AND CONS
  20. 20. #INBOUND16 MARKETING STRATEGY SUMMARY
  21. 21. #INBOUND16 CASE STUDY
  22. 22. #INBOUND16 1. Sales Goal / ASP = # of Deals 2. # Deal / Conversion Rate % = # of Ops 3. Ops needed / MQL/A to Op conversion rate = # MQL/A’s 4. MQL/A’s needed / Mkt campaign conversion rate BOTTOM UP PLAN
  23. 23. #INBOUND16 BASED ON THIS
  24. 24. #INBOUND16 OTHERWISE WE SHOULD MAKE FRIENDS
  25. 25. #INBOUND16 HEY FRED ….
  26. 26. #INBOUND16 WE KNOW WHERE THIS IS
  27. 27. #INBOUND16 1. Good sense of our Ideal Client Profile (ICP) 2. Could identify Target (ICP) Accounts 3. Value prop non commoditized (consultative selling) 4. Biggest loss reason doing nothing 5. Closed Lost – 2nd time round 2 x more likely to buy 6. Closed Lost – 3rd time round 4 x more likely to buy 7. Therefore ‘Closed Lost’ Accounts = rich vein of opportunity WHAT WE KNEW
  28. 28. #INBOUND16 Total Addressable Market (TAM) Target Accounts (ICP) Named Accounts (A’s & B’s) • Contact • Contact • Contact
  29. 29. #INBOUND16 1. Built list of Target Accounts 2. Scored and ranked them (A’s, B’s, C’s & D’s) 3. Reduced the number of personas we targeted (8 to 3) 4. Identified key contacts and added to accounts 5. Marketing switched from MQL to MQA (engagement) 6. Sales and BDR teams switched to Named Accounts 7. Changed sales behavior to acknowledge the ‘Come Back Kids’ WHAT WE DID
  30. 30. #INBOUND16 EXAMPLE CAMPAIGN - TOFU
  31. 31. #INBOUND16 EXAMPLE CAMPAIGN - TOFU
  32. 32. #INBOUND16 EXAMPLE CAMPAIGN – MOFU
  33. 33. #INBOUND16 EXAMPLE CAMPAIGN - STALLED
  34. 34. #INBOUND16 EXAMPLE CAMPAIGN – LOST
  35. 35. #INBOUND16 1. Volume changed - scary 2. Re think sales activity plans and cadences 3. Plan for world of scarcity rather abundance 4. Had to deliver higher quality smarter engagement 5. Forced to raise our game on sales execution AND?
  36. 36. #INBOUND16 1. Increased ACV by 2.5x in 18 months - √ 2. Sales cycle stayed constant - √ 3. Conversion stayed constant – X ….. but was nerve-racking for a while ………. and the game ain’t over RESULTS
  37. 37. #INBOUND16 Fortune 500 Million SO WHAT’S THE ANSWER? INBOUND Lower ASP Simpler sales process Shorter sales cycle Large TAM Inside sales predominance Lower Mkt. cost per unit ACCOUNT BASED Higher ASP Complex sales process Longer sales cycle Easily identified target accounts Field and Inside sales Higher Mkt. cost per unit
  38. 38. #INBOUND16 NOT ALWAYS SIMPLE MATH 1 + 1 = 2
  39. 39. #INBOUND16 AB IB CUSTOMER EXPERIENCE ??
  40. 40. #INBOUND16 1. Data points – Sales cycle – ASP – TAM 2. How do your buyers buy – By committee / individual 3. Buyer’s expectations – POC / hand holding / self serve CONSIDERATIONS
  41. 41. #INBOUND16 1. Focus on customer experience 2. Account based selling is desirable – it insures against one contact trap – it accounts for buying committee 3. Sales is tethered to Marketing 4. Need to balance between quality and quantity / speed and value CLOSING COMMENTS
  42. 42. #INBOUND16 THANK YOU. Steve McKenzie Head of Sales InsightSquared steve@insightsquared.com

×