sales for startups (using the lean automated marketing process)

September 2012

Julian Poulter, CEO www.lamp-360.com

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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

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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

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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)

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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

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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

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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

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

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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

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Content Based: Example Social media network

Hootsuite

Email Messages(LAMP)

Content:Tweets

BlogNews articlesWhitepapers

Twitter

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

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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

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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?

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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

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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

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

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Tip ~7: Measuring performance

Metrics– £ and #Target and actualsForecastPipeline target, achieved, pipeline# Pipeline opportunitiesActivity– Meetings / Calls / DMCs

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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?

Questions and contact info

Thank you

julian.poulter@lamp-360.comwww.lamp-360.comUK +44 (0)20 3397 0725

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