5 Strategies to Accelerate Sales
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5 Strategies to Accelerate Sales
- 1. © 2013 Forrester Research, Inc. Reproduction Prohibited 1
- 2. Mick Hollison › CMO @ InsideSales.com › 23 year industry veteran › Sales, marketing & product leadership roles › Lotus, IBM, Microsoft, Citrix © 2013 Forrester Research, Inc. Reproduction Prohibited 2
- 3. About InsideSales.com › History • Founded in 2004 • HQ in Silicon Slopes, Utah • $40m+ in venture investment • 3 years of 100%+ annual revenue growth • 325 employees and growing © 2013 Forrester Research, Inc. Reproduction Prohibited › Industry leadership • #5 in software job growth in U.S. Inc. Magazine • Always On top 100 private companies • #3 paid app on Salesforce AppExchange • 6 issued patents in web comms and predictive analytics 3
- 4. Lori Wizdo › Principal Analyst @ Forrester › B2B Marketing & Lead-to-revenue management › 25 year industry veteran › BMC, Xerox, NCR, Unisys © 2013 Forrester Research, Inc. Reproduction Prohibited 4
- 5. Rethinking Inside Sales: The Strategic Weapon in Lead-toRevenue- Management Lori Wizdo, Principal Analyst November 15, 2013
- 6. What is lead-to-revenue management? Attract Capture Nurture Convert Expand The managed process that turns leads to prospects and then into customers. © 2013 Forrester Research, Inc. Reproduction Prohibited 6
- 7. The input/output machine needs a tune-up Average conversion ratios from Forrester’s Research MQL TopPerformers Pipeline Won deal 32% 32% 28% 26% 0.75% (N = 211) All SQL End-toend (N = 196) (N = 201) (N = 195) 39% 37% 34% 32% (N = 65) (N = 58) (N = 59) (N = 58) Base: Marketing decision-makers at B2B companies in the US and Western Europe with 100 or more employees; Source: Q4 2012 US and Europe B2B Technology Marketing Tactics And Benchmarks Online Survey © 2013 Forrester Research, Inc. Reproduction Prohibited 1.54% You can’t get there from here. 7
- 8. › 300% Increase in Leads? › No Problem. › We’re automated. © 2013 Forrester Research, Inc. Reproduction Prohibited 8
- 9. Kicking Lead Gen Up a Notch… • Launch 22% more campaigns • Get some Inbound working Sales Accepts Leads Then…. a. Puts lead on ‗back burner‘ to close this Q‘s deals b. Closes lead as ‗dead‘ when they don‘t want a PoC c. Creates 20% Opportunity & Task to call in 3 months • Increase leads dramatically • Nurture each lead, -- 4-touches • Score Leads • Promote Leads to Sales © 2013 Forrester Research, Inc. Reproduction Prohibited 9
- 10. …. And Gets the Same Old Result • Marketing Team is working like demons • Dramatic Increase in Traffic, Leads, MQL, SQL • Minimal increase in marketing contribution to pipeline • Limited contribution to revenue • Relationship with Sales still not all that good © 2013 Forrester Research, Inc. Reproduction Prohibited 10
- 11. It’s time for a new strategy
- 12. It’s NOT about…. …moving masses of ―leads‖ through a sequential process of attrition until tens or hundreds of deals emerge. Attract © 2013 Forrester Research, Inc. Reproduction Prohibited Capture Nurture Convert Expand 12
- 13. Our goal NOW is to… …take a single lead through an optimized process. ...and then repeat that process hundreds or thousands of times. © 2013 Forrester Research, Inc. Reproduction Prohibited 13
- 14. It’s not about your process anymore. Attract Capture Nurture Convert Expand Your managed process . . . . . . must be calibrated to . . . Discover Explore Evaluate Buy Engage . . . the buyer‘s journey. © 2013 Forrester Research, Inc. Reproduction Prohibited 14
- 15. What’s Going Wrong? © 2013 Forrester Research, Inc. Reproduction Prohibited 15
- 16. Here’s how it goes horribly wrong … Attract Capture Nurture Convert Expand What’s working for lead generation? ―I am sending out mailings to segments in our database and targeted names we pull from Jigsaw and RainKing. We‘re using our inside sales team to follow-up. But, our new lead gen rates are too low.‖ © 2013 Forrester Research, Inc. Reproduction Prohibited 16
- 17. Here’s how it goes horribly wrong … Attract Capture Nurture Convert Expand Do appointment setting campaigns work? ―It‘s taking a while for our lead gen efforts to ramp up. I am thinking about running an appointment setting campaign with our inside sales team.‖ © 2013 Forrester Research, Inc. Reproduction Prohibited 17
- 18. How Deals Used to Start © 2013 Forrester Research, Inc. Reproduction Prohibited 18
- 19. How Deals Start Today! © 2013 Forrester Research, Inc. Reproduction Prohibited 19
- 20. Buyer activities Seeking info to raise performance Seeking solutions to known problems. Search for options. Awareness © 2013 Forrester Research, Inc. Reproduction Prohibited Consideration Purchase 20
- 21. The Fine Art of Being Found › Drive people to site with highly relevant campaigns and offers › Target different types of visitors › Gather insight into the visitor experience › Identify patterns, and tune your site to deliver the right information at the right time to drive conversions. › Be Agile; respond immediately to trends © 2013 Forrester Research, Inc. Reproduction Prohibited 21
- 23. You did it! A targeted prospect has found you. Don‘t push them away. © 2013 Forrester Research, Inc. Reproduction Prohibited 23
- 24. Here’s how it goes horribly wrong … Attract Capture Nurture Convert Expand How can I improve conversions? ―How can I improve the conversions on my web forms? I want to ask for less information, but my VP of sales say it‘s not a lead if they won‘t tell us their title, phone number, and size of their sales team at a minimum.‖ © 2013 Forrester Research, Inc. Reproduction Prohibited 24
- 25. Inside sales as “concierge” › › Serves as the primary point of engagement and discovery Acts as a metaphorical ―sherpa‖ to the buyer throughout their sales journey © 2013 Forrester Research, Inc. Reproduction Prohibited 25
- 26. © 2013 Forrester Research, Inc. Reproduction Prohibited 26
- 27. Buyer activities Scope the problem Research solutions. Architect the solution. Build a business case. Establish budgets. Awareness © 2013 Forrester Research, Inc. Reproduction Prohibited Consideration Purchase 27
- 28. The Fine Art of Engagement © 2013 Forrester Research, Inc. Reproduction Prohibited 28
- 29. When and where are you engaging? Create and deliver on a vision 74% 26% Respond to request RFP RFI “How often do you choose a vendor who has worked with you to turn a vision into a clear path to value?”` © 2013 Forrester Research, Inc. Reproduction Prohibited 29
- 30. Buyers reward early engagement Executive Buyers © 2013 Forrester Research, Inc. Reproduction Prohibited 30
- 31. Why the 1st Generation of Lead Nurturing didn’t work. Serial Touches Eventual Sale 1st Generation Lead Generation was, all too often: About US, not the Drip Marketing On Systematic Sales customer‘s journey Steroids Harassment © 2013 Forrester Research, Inc. Reproduction Prohibited 31
- 32. Here’s how it goes horribly wrong … Attract Capture Nurture Convert Expand ―So, I see you just downloaded a whitepaper from our website. Does that mean that you‘re ready to sign up for the free try-and-buy I told you about last week?‖ © 2013 Forrester Research, Inc. Reproduction Prohibited 32
- 33. What is lead nurturing today? © 2013 Forrester Research, Inc. Reproduction Prohibited 33
- 34. “…B2B customers completed nearly 60% of a typical purchasing decision…before even having a conversation with a supplier.” Source: Corporate Executive Board
- 36. › › › Lower cost of sales - between 40% and 90% Increased buyer preference for collaborating & purchasing remotely Improved collaboration technologies – online meetings , video conferencing, etc… › Faster customer response times › Increased revenues from targeted accounts
- 38. Best Practices for Inside Sales Communication
- 39. Time of Day
- 40. Day of Week
- 42. Call Attempts
- 43. Likelihood of Executives Responding at Work 100% 80% 60% 40% 20% 0% Email Text Message Mobile Phone Office Phone Voicem ail LinkedIn Online Facebook Instant Messaging Twitter Fax Video Chat
- 44. Social Media Comparison At Work How likely are you to respond? LinkedIn Facebook Twitter How do you recommend people contact you? LinkedIn Facebook Twitter 40% 18% 17% 28% 8% 10%
- 46. Buyer activities One Million Dollars! Evaluate vendors. Shortlist vendors. Proofs and pilots Negotiate. Awareness © 2013 Forrester Research, Inc. Reproduction Prohibited Consideration Purchase 46
- 47. Here’s how it goes horribly wrong … Attract Capture Nurture Convert Expand Is anyone getting lead scoring to work? ― We‘ve been having trouble with lead scoring. When we set the bar low, sales complains about unqualified leads. But, we‘re afraid to tighten the criteria because we might overlook late stage buyers who don‘t have a long history with us. © 2013 Forrester Research, Inc. Reproduction Prohibited 47
- 48. Lead Scoring Best Practices Not Enough Synch with sales • Define qualified lead with sales, but do hold the standard high. Start Early • From the moment of first capture • Linked with anonymous behaviors Accentuate the Positives • Late-funnel content consumption • Collegial activity levels Embrace the Negatives • Downgrade with passage of time or discover of new negative data Automate • Trigger new offers/workflows/alerts based on score changes. 100% of top performers use lead scoring as a basis for matriculating leads to sales. 150 90 185 55 Measure & Adjust • Revisit attributes, actions and scores on a regular basis © 2013 Forrester Research, Inc. Reproduction Prohibited 48
- 49. Best Practices for Inside Sales Lead Scoring & Prediction
- 50. Excellent Likelihood • Neural Score Neuralytics® score| sort| notify Average Likelihood Poor Likelihood
- 51. Neuralytics® score| sort| notify • Neural Score • Neural Sort Typical List
- 52. Neuralytics® score| sort| notify • Neural Score • Neural Sort Typical List = High Contactability
- 53. Neuralytics® score| sort| notify • Neural Score • Neural Sort Neural Sort = High Contactability
- 54. Rethinking Inside Sales The New Model is ENGAGEMENT Inside Sales Can Discover Inside Sales Can Nurture Inside Sales Can Be the Bridge between Marketing and Field Sales © 2013 Forrester Research, Inc. Reproduction Prohibited 54
- 55. But, there are still some challenges. Attract Capture Nurture Convert Expand How can I get Inside Sales to Follow-up on Leads? ―‖It‘s really difficult for us to get inside sales to pay attention to early stage leads because they are paid on meetings and deals. Any ideas?‖ © 2013 Forrester Research, Inc. Reproduction Prohibited 55
- 56. Best Practices for Inside Sales Gamification
- 58. HBR Job Satisfaction Study › Intrinsic motivators › Extreme job satisfaction › Achievement › Recognition © 2013 Forrester Research, Inc. Reproduction Prohibited 58
- 59. © 2013 Forrester Research, Inc. Reproduction Prohibited 59
- 61. Initial gamification results 30% increase in sales productivity after 60 days © 2013 Forrester Research, Inc. Reproduction Prohibited 61
- 62. › Hyper-educated buyers are changing the dynamics of marketing and sales › Simply generating more leads to move through the same process won’t change the results › Aligning the selling process to the buyer’s journey through inside sales as a “concierge service” is essential › Inside sales needs predictive technology, new forms of motivation and multiple communications tools in order to succeed
- 63. Thank you Lori Wizdo +1 617.613.8805 lwizdo@forrester.com Twitter: @loriwizdo Engage beyond this event Community — http://forr.com/CommunityTM Blog — http://forr.com/BlogTM Twitter — http://forr.com/ForrTwitter
- 64. Mick Hollison mhollison@insidesales.com Twitter @mhollison © 2013 Forrester Research, Inc. Reproduction Prohibited 64
- 65. © 2013 Forrester Research, Inc. Reproduction Prohibited 65
Editor's Notes
- I’d like to throw it to you, Mick, at this point. I’d like to talk about how you can use inside sales to act as a “concierge” at this point. Do you have stats on the value of a fast human touch when someone is looking for info…Is this a good chance to show the predictive dialing capabilities.Perhaps you can share an example of what your inside team does? With “triple A” leads.. Showcasing your product as appropriate….
- I’d like to throw it to you, Mick, at this point. I’d like to talk about how inside sales can be used to develop relationships during the nurturing phase… make the point that you can’t develop good mid-funnel relationships with email touches only… Must get human to human engagement in the consideration phase.
- The Growing Power of Inside SalesThe number of inside sales jobs has increased dramatically in recent years, far outpacing the growth in jobs for field salespeople. We spoke with Mike Moorman, a senior leader in ZS Associates' B2B sales and marketing practice and a leading authority on sales management, about how inside sales (which refers to sales positions done remotely from headquarters, without face-to-face meetings with clients) is transforming the way that B2B companies interact with their customers.Mike, can you give us some examples of companies that are shifting resources into inside sales?Yes absolutely, over the last several years B2B companies have been ramping up their inside sales investment.Astra Zeneca has replaced virtually all of its field sales force support for its mature brand Nexium with a 300-person inside sales team. The team provides for most doctors' basic needs for samples and information at a substantially reduced cost.IBM has invested in social media training, toolkits and personalized digital pages to help its inside salespeople generate leads and manage account relationships. Early results include a 55% increase in Twitter followers and a significant increase in the number of high-quality inbound leads.SAP has refocused its large and growing inside sales team towards working with channel partners, rather than directly with customers, as part of a strategic initiative aimed at increasing channel sales to 40% of the company's total sales by 2015.Many B2B companies are making inside sales a priority. I've seen companies investing to create new inside sales teams, adopt advanced analytics to measure and improve productivity of those teams, realign inside and field sales to optimize market coverage, provide value-based selling tools tailored to inside sales, and upgrade their inside sales customer engagement processes and skills.Why do you think so many companies are turning to inside sales?Three primary factors give momentum to inside sales. First, B2B sellers feel competitive pressure to cut costs, and they're seeking more efficient ways to sell. Second, B2B buyers are becoming more comfortable purchasing and collaborating remotely; they use the web to research product information, are comfortable communicating and collaborating with sellers using methods such as email, social media, and conference calls, and in fact prefer these methods over face-to-face communication for some sales tasks. Third, new easy-to-use online webinar and videoconferencing technologies make it possible for inside salespeople to create customer intimacy without field interaction.What types of selling situations or tasks are most compatible with inside sales?Most B2B selling models include both inside and field sales, and the challenge and the opportunity come in determining the sweet spot for inside sales within an overall selling model. Effective use of inside sales requires partitioning the sales job and dividing it among inside and field salespeople according to some or all of the following dimensions. Different companies divide it in different ways:By market segment. Use inside sales for the entire sales process in small-to-medium-sized businesses that have straightforward needs and moderate-to-low potential. Use field sales to manage large accounts with complex needs and buying processes, and more opportunity.By stages of the customer engagement process. Use inside sales to supplement field sales activities in large accounts, especially early in the sales process (e.g. lead generation) or late in the sales process (e.g. repeat purchases). Use field sales for tasks that benefit from a "high touch" approach.By products/services. Use inside sales to sell transactional offerings and solutions with lower buyer risk that don't require on-site assessments or collaboration. Use field sales to sell more complex products and services that require a consultative approach and customization.By geography. Use inside sales to reach non-strategic accounts in remote areas and field sales to cover accounts in metropolitan areas.How does increased use of inside sales impact the job of field salespeople?I see two main implications for field salespeople. First, many companies are experiencing a bifurcation of sales jobs. Inside salespeople are taking over more sales tasks to drive cost effectiveness. In conjunction, the bar is rising for field salespeople. Buyers are no longer interested in meeting live with "information providers"; they expect field salespeople to bring new ideas and to create and prove substantial value.Likewise, executives are increasingly reluctant to invest in expensive field sales resources unless those resources clearly provide greater customer and company value. The role and profile of a field salesperson is becoming similar to the role and profile of a key account manager — someone who brings business acumen and problem solving skills, and that can help buyers define opportunities and tailor solutions. Field salespeople need to develop new competencies as consultative sellers, and often companies find that some field salespeople who were successful in the old world lack the characteristics required for success in the new one.Second, although field salespeople still have a clearly defined role as face-to-face sellers, technology enables them to accomplish more sales activities remotely to optimize efficiency (smart use of time) and effectiveness (impact with customers). Increasingly, field salespeople are selectively leveraging email, social media, webinars and video conferencing to maximize their own productivity and enhance the customers' experience. In this regard, the line between field sales and inside sales is blurring. For field salespeople, this means developing new technology and communication competencies.What kind of results can companies expect?When appropriately utilized, inside sales reduces cost-of-sales by 40-90% relative to field sales, while revenues may be maintained or even grow. Benefits include:Reduced sales force cost-per-contact and increased number of contacts per dayIncreased revenues in accounts that were lowest priority for field sales, but are high priority for inside salesGreater access and faster response times for customersIncreased effectiveness by specializing inside salespeople by industry, product or activity, without the increased territory size penalty that specialization creates for field sales teamsFlexibility to scale up the size of inside sales teams without relocation of salespeopleBetter coaching and development for inside salespeople who share a working location with their manager, resulting in shorter ramp-up and more apprenticeship.When focused on the right market segments, stages of the customer engagement process, and product/services, inside sales drives huge sales force efficiency improvements with little or no effectiveness loss. As customers get more comfortable buying in this way, I expect the impact will become even greater.
- The Growing Power of Inside SalesThe number of inside sales jobs has increased dramatically in recent years, far outpacing the growth in jobs for field salespeople. We spoke with Mike Moorman, a senior leader in ZS Associates' B2B sales and marketing practice and a leading authority on sales management, about how inside sales (which refers to sales positions done remotely from headquarters, without face-to-face meetings with clients) is transforming the way that B2B companies interact with their customers.Mike, can you give us some examples of companies that are shifting resources into inside sales?Yes absolutely, over the last several years B2B companies have been ramping up their inside sales investment.Astra Zeneca has replaced virtually all of its field sales force support for its mature brand Nexium with a 300-person inside sales team. The team provides for most doctors' basic needs for samples and information at a substantially reduced cost.IBM has invested in social media training, toolkits and personalized digital pages to help its inside salespeople generate leads and manage account relationships. Early results include a 55% increase in Twitter followers and a significant increase in the number of high-quality inbound leads.SAP has refocused its large and growing inside sales team towards working with channel partners, rather than directly with customers, as part of a strategic initiative aimed at increasing channel sales to 40% of the company's total sales by 2015.Many B2B companies are making inside sales a priority. I've seen companies investing to create new inside sales teams, adopt advanced analytics to measure and improve productivity of those teams, realign inside and field sales to optimize market coverage, provide value-based selling tools tailored to inside sales, and upgrade their inside sales customer engagement processes and skills.Why do you think so many companies are turning to inside sales?Three primary factors give momentum to inside sales. First, B2B sellers feel competitive pressure to cut costs, and they're seeking more efficient ways to sell. Second, B2B buyers are becoming more comfortable purchasing and collaborating remotely; they use the web to research product information, are comfortable communicating and collaborating with sellers using methods such as email, social media, and conference calls, and in fact prefer these methods over face-to-face communication for some sales tasks. Third, new easy-to-use online webinar and videoconferencing technologies make it possible for inside salespeople to create customer intimacy without field interaction.What types of selling situations or tasks are most compatible with inside sales?Most B2B selling models include both inside and field sales, and the challenge and the opportunity come in determining the sweet spot for inside sales within an overall selling model. Effective use of inside sales requires partitioning the sales job and dividing it among inside and field salespeople according to some or all of the following dimensions. Different companies divide it in different ways:By market segment. Use inside sales for the entire sales process in small-to-medium-sized businesses that have straightforward needs and moderate-to-low potential. Use field sales to manage large accounts with complex needs and buying processes, and more opportunity.By stages of the customer engagement process. Use inside sales to supplement field sales activities in large accounts, especially early in the sales process (e.g. lead generation) or late in the sales process (e.g. repeat purchases). Use field sales for tasks that benefit from a "high touch" approach.By products/services. Use inside sales to sell transactional offerings and solutions with lower buyer risk that don't require on-site assessments or collaboration. Use field sales to sell more complex products and services that require a consultative approach and customization.By geography. Use inside sales to reach non-strategic accounts in remote areas and field sales to cover accounts in metropolitan areas.How does increased use of inside sales impact the job of field salespeople?I see two main implications for field salespeople. First, many companies are experiencing a bifurcation of sales jobs. Inside salespeople are taking over more sales tasks to drive cost effectiveness. In conjunction, the bar is rising for field salespeople. Buyers are no longer interested in meeting live with "information providers"; they expect field salespeople to bring new ideas and to create and prove substantial value.Likewise, executives are increasingly reluctant to invest in expensive field sales resources unless those resources clearly provide greater customer and company value. The role and profile of a field salesperson is becoming similar to the role and profile of a key account manager — someone who brings business acumen and problem solving skills, and that can help buyers define opportunities and tailor solutions. Field salespeople need to develop new competencies as consultative sellers, and often companies find that some field salespeople who were successful in the old world lack the characteristics required for success in the new one.Second, although field salespeople still have a clearly defined role as face-to-face sellers, technology enables them to accomplish more sales activities remotely to optimize efficiency (smart use of time) and effectiveness (impact with customers). Increasingly, field salespeople are selectively leveraging email, social media, webinars and video conferencing to maximize their own productivity and enhance the customers' experience. In this regard, the line between field sales and inside sales is blurring. For field salespeople, this means developing new technology and communication competencies.What kind of results can companies expect?When appropriately utilized, inside sales reduces cost-of-sales by 40-90% relative to field sales, while revenues may be maintained or even grow. Benefits include:Reduced sales force cost-per-contact and increased number of contacts per dayIncreased revenues in accounts that were lowest priority for field sales, but are high priority for inside salesGreater access and faster response times for customersIncreased effectiveness by specializing inside salespeople by industry, product or activity, without the increased territory size penalty that specialization creates for field sales teamsFlexibility to scale up the size of inside sales teams without relocation of salespeopleBetter coaching and development for inside salespeople who share a working location with their manager, resulting in shorter ramp-up and more apprenticeship.When focused on the right market segments, stages of the customer engagement process, and product/services, inside sales drives huge sales force efficiency improvements with little or no effectiveness loss. As customers get more comfortable buying in this way, I expect the impact will become even greater.
- Review the highlights from the video concerning the four pillars of sales accelerationCommunicationGamificationPredictionData Visualization