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Sales for Startups: sales are the lifeblood of any company but especially important for Start ups - you need revenue to keep the company going and also to attract investment. This slide deck explains some of the key concepts of Sales and suggests some key processes to put in place. Whilst aimed at Startups it will be relevant to most SMEs with a B2B Proposition.
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September 2012
Julian Poulter, CEO www.lamp-360.com
1
Sales for Startupsor
Lean Business Development
Please note….There are notes with these slides in Slideshare There are multiple versions of this presentation1. This – detailed slides with notes2. Graphical version with notes (tbc)3. Slidecast version with audio (tbc)4. Video version (tbc)
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Tip #1
Agenda
A few tips/issues along the wayStartup demographicsGo to market approachSales processes & definitionsKey Startup sales requirementsOrganisational & other issues
5
Start up demographicsTransient organisation– Find business model (create value through
prod/serv)– Repeatable, scalable1-5 people – advisors, founders etcPre-investment
• No time/money– Post investment
• Less time / More money !– Techies, not commercial – Limited collateral– Need leads & to close deals efficientlyPositive– Little in place – start with best practice6
You have 3 Sales Target Sectors
Prospects > CustomersInvestorsEmployees / Contractors
Also Everybody in your company must selli.e. Developers in lean/agile development methods
Tip #2
Any one can do it– Personable– Knowledgeable– Passionate– Hard work– Tenacity
Typical founders?!Hard work, rejection part of the jobTools to minimise
Sales Model: Go to Market Strategy :
Options:– Direct / Indirect / both– Physical (field sales, shop)– Virtual – Web, cloud, mobile– Telephone
Deal sizeValue Proposition
9
Deal Size vs Sales model
Deal Size / ARPU£0-300 – self service
£300- £2000 – internal / tele-sales
£2k+ – field sales
Telesales – cost £200 per dayDeal value say £300 = Close 1 per dayMarketing requirement?
Customer
Value Propositions20+% founders time in front of customers– Obtain feedback, needs & pains
Define Value Propositions:– Triad of
Crossing the Chasm– Choose 1-2 VPs– Target personas /profiles
• Buyers: Economic, Technical, User• MVP VP = very focussed
– KISS
Sales is a Process: Sales Cycle
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Lead
• Lead (Marketing)• Initial interest - unqualified
Opportunity
• Opportunity (Sales) • Pro-active engagement/qualification
Custome
r
• Customer (Service)• Implement / Deploy / Train / Support
Repeat/Grow
• Repeat / Grow (Account Dev) • Sell More / Reference
Sales is a Process
Process = Repeatable & Scalable
Process 1: The Sales (funnel) Process
Web enquiry Engaging Qualified Selling CustomerStand visitor Downloader
Vague interest Interested We’re interested Progress Keep/Grow
Leads – generate and qualify
Lead Nurtures – build up
Cannot force it
Funnel allows measurement# & £ and Time in each stage
LeadMarketin
g Prospect
MQL SQL Customer
NURTURE
Responsibility in The Sales Process
Marketing validates /
profiles
Marketing qualifies or nurtures to
MQL = sales ready
Sales validates
and accepts or
rejects ownership.
Sales qualifies
MANDACT criteria
Sales Proposal
and closes opportunity
.
LeadMarketin
g Prospect
MQL SQL Customer
NURTURE
Agree “Lead” Definitions
Agreed definitions allow– Measurement– Accountability and responsibilityDefine Marketing Qualified Leads
• Correct profile company• Have a need• Understand we can solve their
problem• Agreed to sales contact • Want to move forward (otherwise
Nurture)
16
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Lead MarketingProspect MQL SQL Customer
NURTURE
Typical Sales Process
Definition of Opportunity (SQL)
How to qualify a Lead to Opportunity– Sales Qualified LeadUnderstand business “pain”, its context, is it worth dealing with?Based on agreed qualification criteria– We use MANDACT or BANT
• Money• Authority• Need ( already part uncovered in MQL) • Decision• Ability• Competition• Timescale17
“Qualification”
The essence #1 of sales– Understand prospects needs– Understand where you can win– Focus YOUR effort – you’ve limited time
NB Losing sales is good
Sales is a: Process & Model
19
Manage the prospect along the process – simple“Sales is managing people who don’t work for you”Agree Prospect’s action, forget until due, then testAlways be closing – start of objection handlingNeed a system / process to manage (CRM/Diary)“Managing sales people is managing people who are unmanageable!” NB They don’t like system and processes!
LeadMarketin
g Prospect
MQL SQL Customer
NURTURE
Tip # : Use of Leads Scoring
Important for modest+ volumes only– Based on qualification criteria
• Interaction type• Content type• Demographics: Job roles type • Etc
– Ensures key leads are handled– Sales only passed qualified (MQL) leads– Not necessary for Startup
• Works with lots of leads
20
Startup Needs Summary
21
Lead GenerationQualification ProcessLead Nurture ProcessClose Opportunities (“Sales”)Customers: keep and growPlus some other things
Lead Marketing Prospect MQL SQL Customer
NURTURE
Need: Lead Generation
Lean Automated Marketing ProcessWho/how do we go and meet/talk?Agree 1-2 VPs & Personas“Marketing”– Many aspects - “internet” usually key – Inbound & outbound methods
Tele-marketing – start of “sales” conversations– Undertaken by founders, initially
Inbound & Outbound marketing
Inbound – best for small bus, long sales, complex – Web site, Google PPC– Social media– Events– Content based marketing
Outbound– Telemarketing – expensive £200-400 pd– Email / direct mail – cheap, low conversion– Advertising – expensive, often un-
measurable
24
Simplifed Internet Marketing Overview
Initial business
assessment
MarketingWorkshop
ProposalMarketing
Plan
PPC Adverts
Main Web SiteLPs & CTAs
MicroSite
MicroSite
CRM Database
Email Messages
Content:Tweets
BlogNews articlesWhitepapers
SocialMedia
Industry Portals & PR
WhitepaperSites
Analytics: Before After
SEO 1 External LinksSEO 2
SEO 3Content:Tweets
BlogNews articlesWhitepapers
E-commerce
Conversio
ns
25
Content Based: Example Social media network
Hootsuite
Email Messages(LAMP)
Content:Tweets
BlogNews articlesWhitepapers
Facebook/Co.
LinkedIn/Co.+Groups
InstagramPinterestMyspaceDelicious
Flickretc
Google+/Co.Company Blog
Whitepaper Sites
PR SitesUK WDPRWeb
Repurpose:InfographicSlideshare
VideoPodcast
etc
Q&AAskvisory, Focus
LinkedIn Answers
Youtube
Important, but….What about the Buying cycle?View the process from the buyer’s perspective How he becomes aware, and his journey along that path…..
Remember many buyers in complex sales (>£20k) – Economic, Technical, User– Each: a person or group or combined
Introducing the Buying Cycle
26www.lamp-360.com
Move them along their “Buyer’s Journey”Tip #3: Agree action – then forget until its done, or remindNB Sales Cycle – helps us (not the buyer) manage and measure the buying process
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The Awareness Cycle #2
Unaware Aware Interested Looking Custome
r
Typical Stages of Buyer’s Journey
Unaware of needUnaware of proposition / solutionAware of problem / solutionsInterested or Nurture – researchCustomer – education / implementationImprove – upsellDead - changed requirements / environment
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Customer Buying Cycle Stages / “Communication Streams”
Combine: The Sales and Buying cycles
CustomerInterestUnaware Aware
Sales cycleMarketing cycleLeadMarketin
g Prospect
MQL SQL Customer
Unaware Aware Interested Looking Custome
r
Processes are “not aligned”Provide Stream of collateral linked to their stage in the Awareness Cycle– Whitepapers, Videos, Podcasts, Slideshows– Segmentation / personas
Stream selection: software & humans
How to engage buyers
Each buyer’s journey needs to be completed step by stepIndividuals in the same company may be at different stages of the same journeyIndividuals start the buyer’s journey at different times and travel at different speedsStreams of communication, linked to each Stage in Awareness Cycle“Streams” ensure right: – Message: – Time: – Channel:30
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Challenges
We need a tool to support the process – LAMP-360 – Marketing AutomationWe need to plan?What / When to say? Nurturing bit in middle is long??Up to 30% of marketing budget/time on collateral
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Create and Distribute Quality CollateralEmail as main outbound channelUse tele-marketing– Rifle shot approach– “Human Touch”, Intelligence based
But needs to be effective– Quality People, Process & Tools– Email & Marketing Automation– Makes T/M reactive and efficient
Suggested LAMP Approach
32www.lamp-360.com
Unaw
are Stream
Aw
are Interested
Custom
er
Whitepaper 1
Whitepaper 2
Whitepaper 3
Video 1
29days29d
Case study 1
Welcome 1
SimpleSurvey
x000 emails1000 per day
T/M Call
Nurture Campaigns
UpsellCampaigns
29d
CRM DatabaseData / Profiles
Email marketing
Repeat Stream
Human thoughtExperience
Prepared Data
Review info: LandscapingSoft leadsNurture leadsIntelligence
Intelligent decision /
recommendation
Progress
Sale
Sales briefing and recommendation
Buyer Engagement Process
Metrics1 Deal
4 Proposals10 Meetings
60 calls per day10 DMCs1 Lead
2 leads per meeting
10 DMCsCold or warm?
Tele-marketing Follow up
Telemarketing– Efficiency vs Cost– Best for med-high value B2B
propositions– Best spread long term– Best calling warm leads – metrics?Calling Interactors (downloaders):– Have a conversation with hooks
a. Responded to email content “x”b. Answered profile survey questions
– Further qualify– Put in the correct Stream– Short circuit automated process– Call within 30m/24hr – higher response
34
LAMP Content Marketing Process
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Unaw
are Stream
Aw
are Interested C
ustomer
Whitepaper 1
Whitepaper 2
Whitepaper 3
Video 1
Podcasts 1
Whitepaper 4
Video 2
29days 29d
Whitepaper 5
Case study 1
Fact Sheet 1
7days 8d
Brochure 2
Factsheet 2
Special Offer 1
Trial Offer 1
29days 29d
Welcome 1
Tips & Hints 2
Cust. Survey1
Tips 2
Newsletter 1
29days 29d
Converts from telemarketing
Click to media changes Stream,
via Survey, chooses Product 2
Click to fact sheet changes Stream
Survey 1& Decision
Survey 3
Survey 2
Whitepaper 6
Case study 2
Fact Sheet 2
7days 8d
Product 1 Product 2
Repeat Stream
Nurture Campaigns
Nurture Campaigns
Who to mail – data?
You have four sourcesExisting customers (if any)Existing prospects (if any)Continually Build: Email list – Inbound marketing, web leads– Harvest LinkedIn etc
Purchased email data– Cold, lower conversion but it works
One More Process! #3 The Sales Model
How you sell within the sales and buying cyclesIn front of the keen buyer, what do you do next? The 2nd essence of sales – “The Close”, always be closing
Typical SaaS software sales model:– Lead > Meet > Demo > Trial > User >
Grow
Use every touch point to understand MQL/MANDACT38
Un
aw
are S
tream
Aw
are In
tere
sted
Custom
er
NurtureStreams
Upcoming events
Trial Follow up
NurtureStreams
Email followUp & offer 2
Website
Call to Qualify(MQL)
CB/demoFollow up
Webinar invite
Webinar Reminder
Lead Gen EmailStreams
Auto responder emails
Purchase
Welcome & upgrade streams
MonthlyNewsletterEmail
Trial
User
Monthly Newsletter & Offers
QuarterlyNewsletter+ offer
Monthly NewsletterEmail
Sales Call
Sales Call
Surveys
Call usDemo Trial
Trial emailDemo email Call email Auto email
PPC Adverts
Email followTerminate freeReview mode
Quote
Quote email
Sales CallDemo
Micro site
Landing pages:WP/Events/Media
NurtureStreams
Pulling it all togetherInboundSocial
Lead Generation Challenges
Needs thought and attention – Timely action– to follow up interactions– for call backs– move to appropriate Streams– clean data
What to do– Qualified, called, but not yet ready?– Aware / interested Stream? Outsource?– The Nurture?
40
Startup Needs Summary
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Lead GenerationQualification ProcessLead Nurture ProcessClose Opportunities (“Sales”)Customers: keep and growPlus some other things
Lead Marketing Prospect MQL SQL Customer
NURTURE
Lead Nurturing
Handle the rump of leads “not yet ready, but interested”Similar process to lead gen – but elongated timescalesEconomics– Email vs tele-marketing – Combine: LAMP Process– More content
Why do lead nurturing?
50% of mew leads, from old nurtured leadsLower cost per opportunityAberdeen Group:– 107% better lead conversion– 40% bigger deal size
Sherpa– 80% of poor prospects go on to buy in 24
months– Communication can be key differentiator
during sales cycle
Other uses – similar process
Customer onboardingTrial managementMaintenance renewalsEvent managementCustomer upsell
Example Case Study
CVLOver 6 months6 Whitepapers22000 records338 “leads”, run rate 70 per monthMQLs 73 c8 per month = c10%SQLs 18
Tip #4: Sales 2.0
1912-2012: B2B fundamentally the sameMobile is different (interface)Sales intelligence: Social Media: 2009+– Extra ways to find out about the prospect
Buyers sophisticated: “75% of purchase, made on web before contacting sales”Prospects engage 6-24 months earlier– But mostly Nurture– Wont buy for 6-24+ months
Nurture programme is key
46
Startup Needs Summary
47
Lead GenerationQualification ProcessLead Nurture ProcessClose Opportunities (“Sales”)Customers: keep and growPlus some other things
Lead Marketing Prospect MQL SQL Customer
NURTURE
Closing Opportunities
You’ve had a few tips already. What else?“Nice” bit – when you have an “Active” prospect!Use the sales tools?
The Sales Cycle “Tools”
PISTDCSPIN
Sales qualifies
MANDACT criteria
Your Sales Model
Lead Marketing Prospect MQL SQL Customer
SPIN & PISTDC
Meeting Structure – PISTDC– Preparation– Interest– Survey– Test– Demonstrate & Close
Spin (survey) Questioning– Situation– Problem– Impact– Need
Sales Tools
SPINMANDACT / BANTPISTDC
Additional topics:– Negotiation skills (negotiate – don’t
discount) – Presenting skills– People skills & 3Ds– Tenacity
Agenda
A few tips/issues along the wayStartup backgroundGo to market approachSales processes & definitionsKey Startup sales requirementsOrganisational & other issues
52
Tip #5: Sales organisation
For more mature organisations:
Accounts vs new business
Lead gen vs sales vs marketing
Internal vs external
Territory allocation / management
Key account strategies
Internal sales
Tip #6: Sales recruitment
Haven’t got time for trainingPsychosRecruitersOutsource or insourceConsider sales outsourcing “solutions”
– Flexible resources– Team solution– Experience– Cost effective– No recruitment fees / employment
liabilities
54
Tip ~7: Measuring performance
Metrics– £ and #Target and actualsForecastPipeline target, achieved, pipeline# Pipeline opportunitiesActivity– Meetings / Calls / DMCs
55
Summary
Sales complexProcess & models = measurableSome intangibles and flairQualify, Close, Qualify, CloseVPs and Persona Streams & TreatmentsFocus on content creationKISS
LAMP-360
Out of the boxLAMP Process supported by softwareLead gen and lead nurtureFor Startups and SMEswww.lamp-360.com
Take Aways
Few hours planningFew days collateral creationTry the questionnaire– See where you are in the skills &
experience
Trial LAMPOut source lead gen?
