Download - Selling for the Lean Startup
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+
Selling for the Lean StartupScott Sambucci | SalesQualiawww.salesqualia.com
Lean Startup Circle2013-03-05
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+Workshop Assumptions
You think know your customer segment (for now)
You think know your business model (for now)
You are not pivoting (right now)
You are doing sales calls, not customer discovery calls
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+Your Goal
Develop a predictable, replicable, scalable sales framework that you
can scale and manage.
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+What we’ll cover today
Developing a Lean Sales ProcessBuild, Measure, LearnValue StatementsCustomer Personas
Measuring Your Sales ProcessEnterprise SellingAARRR
ProspectingFinding, Researching, CallingConferences
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+
Frameworks:The Plan
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+The Mathematics of Love
Solving Problems > Building Products
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+
SALESPROCES
S
Build. Measure. Learn your Sales Process.
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+It’s not you. It’s me.
Product Problem
Market Problem
Sales Problem
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+Ash Maurya – “Running Lean”
1. Document Plan A
2. Identify Risk
3. Test Your Plan
Source: “Running Lean”
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+Why do people buy?
1. Increase revenue
2. Reduce costs
3. Increase efficiency
4. Reduce Risk
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+ “What job are your customers hiring you to do?”
-Clayton Christensen
Frame your product in terms of the customer’s problem, not your solution.
[EXERCISE]
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+ EXERCISE
Write your Value Statement for your product or service.
Hint: Remember the four (4) reasons people buy.
[5 minutes]
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+
People:Living
organisms that buy your stuff
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+Buyer Types
USER BUYER
ECONOMIC BUYER
TECHNICAL BUYER
CHAMPION
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+Personas Case Study:
https://www.facebook.com/pages/Katzkin-Leather/118280084893986?sk=app_403359706360567
Who are the Buyers for a Wildfire sales rep?
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+Personas Case Study
CMO “I’m interested in any tools that will increase our ROI.”
Director of Marketing “Social Media should support us at conferences and drive
traffic to our website.”
Director of Social Media
“Are you tell me I can’t do my job?”
VP of Sales “Yes! Our sales reps can certainly handle and close
more leads!”
VP of Product “The sales people suck. The product sells itself.”
CEO “I just set my my website on The Facebook. What’s the
Twitter?”
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+
Personas enable us to identify the purchasing motivation for each buyer
[EXERCISE]
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+Value Statement ≠ Value Proposition
Source: http://www.businessmodelalchemist.com/2012/08/achieve-product-market-fit-with-our-brand-new-value-proposition-designer.html
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+EXERCISE
Use a current sales situation & your points of contact
Draw a 2-column grid, then list your Buyer Types.
Buyer Type (Persona) | Name of Person
Write down each person’s motivation to purchase your product.
How does your Value Statement change for each person?
[10 minutes]
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+
The Rules of Enterprise Selling
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+Random Rules to Enterprise Selling The sale always takes longer
than you think it should and the prospect tells you it will.
There is always more than one decision-maker.
The decision-maker that counts the most is generally invisible to you.
Assume 1 month per $10,000
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+Sales Conversions per Revenue
Revenue per year# of sales
conversations$1-10 1
$10-100 2$100-1000 4
$1000-10,000 8$10,000-100,000 16
$100,000-$1,000,000 32$1,000,000-$10,000,000 64
$10,000,000-$100,000,000 132
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+Stages of the [Enterprise] Sale
1. Needs Analysis
Your Value Statement & Initial
question
3. Resolution of Concerns
”Show the team”/ Objections
2. Evaluation of Options
Product Demo
4. Implementation
Decision/Contract
[EXERCISE}Source: “Major Account Sales Strategy” by Neil Rackham
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+Committees
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Hey Scott,
Received this email from Damien at The Presidio last night. This basically confirms what you were talking about yesterday; let me know what kind of a response you believe I should get back to him with.
Thanks,-----
---------- Forwarded message ----------From: ______Date: Thu, Feb 28, 2013 at 6:07 PMSubject: RE: _____follow upTo: ________
Hi ----, Thanks for stopping by. As mentioned we don’t have a budget to work with at the moment. That might change by summertime. Please give me a buzz then! Thanks~ -----
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+EXERCISE
Draw a 3-column grid.
Label four (4) stages to the sale.
Stage of the Sale | Opp Name | How do you know?
Think about 2-3 sales opportunities you are working right now.
Place each opportunity into the correct stage.
How do you know? (Hint: Remember the Buyer Personas Exercise)
[10 minutes]
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+
ProspectingResearching
FindingCalling
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+Prospecting is coding
Need to do it consistently for long, focused stretches.
And you need to do it. Code won't improve itself and neither will your sales channel.
Build. Measure. Learn.
Work smarter, not harder.
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Source: “The Entrepreneur’s Guide to Customer Development”
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+Cold Calls are dead. New Calls are necessary.
Find a handle. Add value. Customize your message. (Remember our Value Statement exercise)
Look for Groups and Titles that match your economic buyer & user buyer. (i.e. Analyst, VP, Managing Director, Director of
Marketing, VP of Sales, CFO, CTO)
The “Predictable Revenue” approach (Aaron Ross)
Structure your calls: Confirm. Ask. Explore.
[EXERCISE]
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+EXERCISE
Draw three (3) columns on a sheet of paper
Confirm | Ask | Explore
Develop 2-3 questions for each of these three areas for your next planned sales call with a current or target prospect.
[10 minutes]
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+
Measurement
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+Funnel Stages
Source: “The Entrepreneur’s Guide to Customer Development”
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+Remember: Stages of the [Enterprise] Sale
1. Needs Analysis
2. Evaluation of Options
3. Resolution of Concerns
4. Implementation
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+Dave McClure AARRR
Source: “The Entrepreneur’s Guide to Customer Development”
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+Case Study Registrations : New Accounts
May
-07
Jun-
07
Jul-0
7
Aug-0
7
Sep-
07
Oct
-07
Nov
-07
Dec-0
7
Jan-
08
Feb-
08
Mar
-08
Apr-0
8
May
-08
Jun-
08
Jul-0
8
Aug-0
8
Sep-
08
Oct
-08
Nov
-08
0
50
100
150
200
250
0510152025303540
Registrations New_x000d_Accounts
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+Registrations : Net New Accounts
May
-07
Jun-
07
Jul-0
7
Aug-0
7
Sep-
07
Oct
-07
Nov
-07
Dec-0
7
Jan-
08
Feb-
08
Mar
-08
Apr-0
8
May
-08
Jul-0
8
Aug-0
8
Sep-
08
Oct
-08
Nov
-08
0
50
100
150
200
250
0
5
10
15
20
25
30
35RegistrationsNet _x000d_New Accounts
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+Registrations : Net New Accounts (including Jan ’09)
May
-07
Jun-
07
Jul-0
7
Aug-0
7
Sep-
07
Oct
-07
Nov
-07
Dec-0
7
Jan-
08
Mar
-08
Apr-0
8
May
-08
Jun-
08
Jul-0
8
Aug-0
8
Sep-
08
Oct
-08
Nov
-08
Jan-
09
Feb-
090
100
200
300
400
500
600
700
0
5
10
15
20
25
30
35
Registrations Net _x000d_New Accounts
[go to spreadsheet]
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+Measure Twice, Cut Three Times
Conversion rates
Sending sample personalized reports no additional conversion, it just wasted 20 minutes per prospect
Long emails describing the product didn’t work Keep emails short.
Better Questions Situational & Needs Analysis “What brought you to our site?”
Smarter Research on Leads Look for agents updating websites
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+Measurement: Case Study
63 inbound leads sent an email 23 conversations 2 demos -> 2 proposals.
What about the other 40 that you didn’t hear from?
What about the 21 that didn’t convert to demo? THEY saw a match based on your initial
communication, then THEY decided it wasn’t a fit?
Categorize the failed conversions and look for trends – wrong fit, wrong person, price, have a system.
Categorize your objections
[EXERCISE]
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+EXERCISE
Write an email to an inbound lead designed to create a specific action or advance.
(HINT: Include permission to call that person at a specified time.)
[10 minutes]
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+
Prospecting:Go Forth &
Multiply
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+LinkedIn: Case Study
Agency CMO & RMBS Group
Lead: Neal Aggarwal, Jeffries & Company Formerly with C12 Capital
Google Search: Jeffries & Company
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+
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+Value Statement
“We’ve developed a mortgage risk indicator that can predict defaults in performing mortgages assets with a 75% accuracy rate. For a typical non-agency RMBS, that equates to more than a $500,000 differential over the life of the security.”
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+ “Hi Neil. This is Scott Sambucci with
CoreLogic. I saw that you were a member of the RMBS group on LinkedIn and thought you’d be a good person to call.”
“Are you primarily trading non-agency RMBS?” (Confirm)
“How are you evaluating potential defaults of currently performing assets in your securities?” (Ask)
[Value Statement] (Explore)
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+Stop calling people
Cap yourself at 2 VMs, then push to drip campaigns
If they're not returning your call, the prospect is: Not interested You're using the wrong medium They are really busy, in which case they are
an ideal candidate for your product… Your Value Statement needs work
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+Prospect Call Framework
For Every Call…1. Value Statement2. Prepare Your Voicemail Message3. Industry Topics• Recent news article• Upcoming or recent Conference• Press Release about their company
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+EXERCISE
Locate a target candidate
1. Develop a Value Statement for THAT person
2. Script a Voicemail
3. Locate three (3) “Go-to” topics for the conversation
[15 minutes]
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+Find Your Inbound Leads
Huh?
Remember: No one cares about you.
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+
Add value, add value, add value
Drag picture to placeholder or click icon to add
“I saw this article on HousingWire. What do
you think about...?”
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+EXERCISE
• Find two (2) places where you can contribute to your industry’s conversation.
• Outline two (2) topics that you can write about by Friday.
[10 minutes]
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+
Prospecting@Conference
s
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+ Pre-Conference
Drag picture to placeholder or click icon to add
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+Pre-Conference Use the conference agenda to find speakers.
Add value, add value, add value.
Set up meetings before the conference
Set meetings first before you buy a plane ticket. My rule is 3 meetings/day
Offer to volunteer in exchange for a badge
Make a friend with someone who can get you attendance list Marketing agencies, sponsors, big
customers
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+The email text(~1000 sent , ~60 replies)
Just a quick check in to see if you're attending next week's ASF conference in Orlando. I'll be there with our Market Analytics team (booth and all!) from Sun-Wed. We've got some very cool new applications launching soon - would love to give you a sneak preview.
If you are, shoot me a quick reply so we can get together - - coffee, meeting before/after sessions - whatever works. (I know these conferences don't always line up with your day-to-day work, but figured it's always good to ask.)
Many thanks - looking forward to your reply.
- Scott
[spreadsheet]
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Pre-Conference
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Pre-Conference
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+ At the Conference
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At the Conference
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At the Conference
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+
Don’t Sell. Discover.
At the Conference
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At the Conference
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+At the Conference
Set day/time block goals & objectives
Blog & Post about speakers
Discover, don’t sell
No Demos
Stick & move
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+ Post-Conference
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+Post-Conference
"I was at Dreamforce last week and saw a really interesting presentation that think you'd be interested in…”
Add value, add value, add value.
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+EXERCISE
• Identify two (2) industry conferences in the next six months
• Find the speaker & attendee list
• Find the conference organizer and schedule a time to contact them directly.
[15 minutes]
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+
Free Book(Because that’s how I roll)
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+Find Me
Scott Sambucci| SalesQualia
@salesqualia | www.salesqualia.com
www.youtube.com/salesqualia
www.quora.com/scott-sambucci-salesqualia
415-596-0804 | [email protected]