The document discusses the evolving role of inside sales in technology companies, especially with the rise of cloud computing. It makes three key points: 1) Technology has transformed customer buying behavior to be more self-service oriented and cloud models have changed go-to-market strategies. 2) Inside sales is evolving from a focus on lead generation efficiency to generating top-line revenue through specialized sales skills across the customer journey. 3) Companies need to deploy specialized inside sales teams and roles tailored to segments like enterprise, mid-market, and SMB, and focused on acquisition, consumption, and retention.

1. April 21, 2016
“Bottom Line Margin to Top Line Revenue”:
The Evolving Value of Hi-Tech Inside Sales
Tim Killenberg, SVP-Sales + Marketing @ N3
Sean Ryan, Principal @ Alexander Group, Inc.

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A Shared Passion for Technology Sales Success
• 10+ years of global outsourced Inside Sales execution
• Technology + Software focus; Cloud Sales expertise
• Demand Generation + Full-Cycle Sales partnerships
with Microsoft, IBM, HP, Dell and more
• 30+ years of sales effectiveness consulting
• Heavy focus on high-tech sector
• Dozens of Inside Sales engagements with both "new-
build" and existing IS organizations

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Key Themes…
• Technology has Transformed Buying and Selling Behavior
• Cloud Technology is Radically Changing GTM Strategies
• Roadmap for the New Inside Sales Model

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5. Copyright N3, LLC
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Technology Transforms Customer Buying Behavior
• Services are bought and delivered when and where the buyer needs them
• Buyer only pays for the portion of the services they use
• Buying the service is easy to do independently
• Buying process allows you to pick and choose services vs. “all in”
• Buyer is not responsible for the cost of maintenance associated with the service

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Cloud Technology is Changing GTM Strategies
• OpEx vs. CapEx
• Monthly Subscription vs. Million $ Metal
• Low Cost of Entry / Exit vs. “Moat Mentality”
• Unlimited Target Market vs. Enterprise-centric
• Individual Buyer vs. Buying Team; LOB vs. IT

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How is Cloud Redefining GTM Sales Opportunity?
• Net New + New Revenue Levers
• Multiple/Differentiated Sales Motions
• Scale + Speed of Voice of Customer
Territory Coverage
Enterprise Mid-Market SMB
Adoption
Sale
Consumption
Retention
SalesSkillset
Inside
Sales
Field
Sales
Inside Sales value evolving to “Top Line Revenue” and “Specialized Sales Skills”
vs. “Bottom Line COS Margin Efficiency” and “Early Stage Lead Gen”

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Sales Roles are Becoming More Specialized
THE TRADITIONAL SALES
STRATEGY MATRIX…ProspectsCustomers
Buyers
Products / Services
Current New
Today’s
Rep Focus
Prospects
ExistingClient/
NewBuyer
Existing
Buyer
Buyers
Products / Services
Current New
…HAS EVOLVED TO REFLECT
CLOUD BUYING PROCESSES
Hunting in the Wild
Hunting in the Zoo
Customer Success
Contract RenewalsSource: AGI Cloud Sales Index (2014-16)

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Essential IS Roles for Selling in the Cloud
Enterprise Mid-Market SMB
Adoption
Sale
Consumption
Retention
SalesSkillset
ICSM
Territory Coverage
Qualification
Lead Gen
ISS
IOGR
IOGR: Inside Opportunity Generation Rep
• Opportunity ID (below Enterprise)
• Communicate value to customers, qualifies beyond
BANT
• Convert Opportunities into Revenue
ISS: Inside Sales Specialist
• Pre-sales Technical Support
• Convert Opportunities into Revenue
• May also support Renewal efforts
ICSM: Inside Customer Success Manager
• Drives onboarding and adoption
• Ensures solutions are creating customer value
• Creates a hedge against competitive threats
Source: http://www.alexandergroup.com/blog/inside-sales/the-rise-of-inside-sales-and-three-inside-roles-you-should-consider/v

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Sales Roles Deployment by Segment
Source: AGI Cloud Sales Index (2014-16)

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Customer Needs + Economics Drive IS Proliferation
1. Transactional sales
motion
2. Mature customer
relationships
3. Unworkable account
spans
4. Unproductive Field
prospecting
5. High nurturing
requirement
Traditional
Inside Sales
Criteria
Cloud
Accelerators
1. Multiple (dispersed)
influencers
2. Shorter sales cycles
3. Smaller initial deal
size
4. Try and buy
acquisition
5. Easy demo
configuration
Source: AGI Cloud Sales Index (2014-16)
$625
$950
$450
$750
$- $500 $1,000
2014
2016
Inside
Outside
Average BD Rep
Annual Contract Value
(all participants, $K)
 Gap between Outside and Inside
productivity per rep declined from
~30% in 2014 to ~20% in 2016
 Factoring in IS cost advantage-
Inside Sales selling motion is ~16%
more efficient on a bookings yield
basis than Outside

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KPIs for Inside Sales Success in Cloud Marketplace
• Conversion: Quota-based Revenue Delivery vs. Lead Generation
• Competency: Sales Acumen across Acquisition and Consumption
• Coverage: Segment-specific Fluency vs. Volume Management
• Contribution: Scale Potential to Drive Financial / Strategic Growth
In a recent Alexander Group survey*, 1,300+ Field Sales Reps estimated
that about 70% of their contact time with customers was over the phone,
email or video-conferencing, begging the question, what is the difference
between field and inside sales?
Source: http://www.alexandergroup.com/blog/inside-sales/the-rise-of-inside-sales-and-three-inside-roles-you-should-consider/

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KPIs for Outsourced vs. Insourced Model
• Extensive Cloud Sales Experience
• Proven Cloud Sales Expertise
• Consistent / Compelling ROI Delivery
• Scalable / Global Platform
*Source: SiriusDecisions
In a recent SiriusDecisions report* on outsourcing Inside Sales, “…for long-
term success, marketing and sales leaders should foster a more holistic
relationship that embeds the vendor as a true partner operating as an
extension of the organization’s team.”

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Microsoft Azure Case Study
Azure Goals Results
• Accelerate adoption of
Azure by converting free
trials to ongoing paying
customers
(ACQUISITION)
• Enable current
customers to increase
consumption
(CONSUMPTION)
• Increase overall Azure
revenue (ROI)
N3 Deployment
• Deploy team of LOB and IT
Inside Sales Experts in 5
countries in 4 weeks
• Segment sales motions
across specialized team
resources covering Buyer
Journey + Revenue stages
• Leverage MAP strategy to
prioritize and customize
sales engagement
• Drove 10s of 1,000s of
net new Azure
customers
• Delivered +115% of
Revenue goal for two
consecutive years
• Over 83% of program
revenue attributed to
Tele-Sales motion

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Roadmap to the New Hi-Tech Inside Sales Model
1. Don’t Just Challenge “Conventional Wisdom”, Change it!
2. Race to the Top vs. Focus on the Bottom
3. Buyer AND Seller Journey Never Ends
4. Invest in Expertise
5. Speed to Scale