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Building the Sales Pipeline

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Presentation on theme: "Building the Sales Pipeline"— Presentation transcript:

1 Building the Sales Pipeline
Sevin Rosen Funds Marketing and Sales Roundtable July 2004

2 Agenda – Building the Sales Pipeline
Introductions Marketing and Sales Closed Loop System Overview Sally Duby Presentation Glen Vondrick – Case Study Wrap Up ©2004 Sevin Rosen Funds. All rights reserved.

3 ©2004 Sevin Rosen Funds. All rights reserved.

4 Building The Sales Pipeline
Phone Works Copyright 2004

5 The Problem How do resource constrained start-up companies quickly ramp sales in emerging markets as cheaply as possible? Phone Works Copyright 2004

6 Solution: Sales Development
Increase revenues with lower sales costs Maximize appropriate face-to-face time of direct sales with prospects Use lowest cost channel to present the value proposition at the beginning of the sales cycle Have control on the skill set and presentation abilities of the prospects’ first contact with the company Be able to quickly train resources to introduce new products to prospects with direct feedback loop to Product Marketing Put sales controls on marketing program quality Bring visibility of process and pipeline to executives and board Phone Works Copyright 2004

7 Possible Sales Development Approaches
In-house Field Sales Rep’s personal rolodex Send Marketing generated inquiries directly to field sales reps Build your own Sales Development team Outsourcing Phone Works Copyright 2004

8 Philosophy of In-house Sales Development Teams
Requires executive buy-in and support Management of the team is a skill Inside teams require different management than field sales Sales Development is a science rather than “art” if done properly Infrastructure is critical Adherence to metrics management Brings Sales and Marketing together, aligns goals More to inside sales than “hire someone and give them a phone” Phone Works Copyright 2004

9 New Customer Marketing Field Opportunity Mgmt
Sales Development Process Inquiry–Qualified–Opportunity–Close Marketing Inquiries New Customer Marketing Inquiry into Tracking tool Inquiry  Qualified  Opportunity  Close Tracking Tool Field Opportunity Mgmt Requalify Sales Development Lead funnel mgmt New to Qualified A lot of you have asked what it is Telebusiness does. This picture illustrates Opportunity Qualified Lead Cold Calling No incoming inquiries Sales Development to Field Pass Phone Works Copyright 2004

10 Pitfalls to Avoid No Field Sales follow-up accountability
No Sales Development quality accountability Bad 1st impression of company with untrained, unskilled inside representatives with no direction Incorrect incentive compensation goals Relying solely on Marketing to produce qualified leads Not tracking, measuring and reporting activities & results- more than just # of calls Phone Works Copyright 2004

11 Three Necessary Components For Successful In-house Sales Development Teams
People Processes Systems Phone Works Copyright 2004

12 People Understanding the true role- lead qualification or selling?
Skills match job requirements Documented job requirements and candidate profiles Compensation plan aligned to goals and objectives Representatives are held accountable for specific goals they have control over Given the proper tools to be successful Training On-going coaching Phone Works Copyright 2004

13 Compensation Sales Professionals at Technology Companies in the San Francisco Bay Area Average annual base salary and total compensation Position Base salary Compensation Sales development Director $102,000 $167,000 Manager 75, ,000 Senior representative 70, ,000 Representative 50, ,000 Telesales Director 102, ,000 Manager 88, ,000 Senior representative 55, ,000 Representative 53, ,000 Source: "2004 Inside Sales Compensation Report," Phone Works, San Francisco. Phone Works Copyright 2004

14 Processes Why is this so important? Volume Productivity
Scalable and repeatable Measurable results Phone Works Copyright 2004

15 Process Detail Productivity metrics and activity levels required to achieve targets Lead qualification, rating model and lead distribution Lead and product fulfillment Call guides, qualification criteria, VM, & messages defined in writing, call process, hand-off process Call lists Tracking and reporting systems design, lead feed back Work environment and equipment requirements On-going training and coaching Phone Works Copyright 2004

16 Accountability Is Key Field Sales Responsibilities Sales Development
Qualified suspect follow-up within 2 days of receipt of lead Move to appropriate funnel/forecast status Participate in weekly lead review call with sales development rep Communication and direction from field sales important- example: provide sales development with your top 20 accounts Sales Development Inquiries followed up on in timely basis, appropriate # of cold calls made Qualified according to agreed upon criteria Move to appropriate qualified status and assign new task to appropriate field rep Participate in weekly lead review call with field sales rep Adherence to processes Phone Works Copyright 2004

17 Sample Metrics Sales Development Productivity
# outbound calls & per day/week/month 50/250/1000 Contacts (connects, returned calls and returned s) per day/week/month at 15% rate 8/37/150 % of contacts in B lead category 7.5% # of contacts per month in B lead category 11 % of contacts in A category % # of contacts per month in A lead category 4 Average deal size $20K Pipeline value per month (A leads) $80K Pipeline value per month (A/B leads) $300K Phone Works Copyright 2004

18 Systems Automate as much as possible
SFA, phone systems, fax, web, web presentations Web leads entered into SFA, leads automatically assigned to reps Sales process integrated into SFA Reports automated from SFA and phone system Phone Works Copyright 2004

19 Sales Development End Results
Measurable Predictable Scalable Visible Phone Works Copyright 2004

20 Sally Duby President 510-749-9073
Phone Works Copyright 2004

21 Developing an Effective Sales Pipeline - Real Life Examples
Glen D. Vondrick Phone Works Copyright 2004

22 First Priority - a Lead Machine
Leads prime the pump for the pipeline Inside reps want them Outside reps cannot sell without them Channel partners require them Marketing programs effectiveness measurements depend upon them CEO and Board visibility for sales predictability mandates them VP Sales can replicate sales successes Attract, hire, and retain staff Training and scaling the organization Balance short and long term expectations Phone Works Copyright 2004

23 Proven Results Implementation driven by “services contract” with milestones signed off by all players Lead Gen expense became most valuable and protected company budget assets Sales methodology, training, and forecasting became standardized for all reps Able to hire/staff to fit own process without relying upon”candidate rolodex” and style Phone Works Copyright 2004

24 Impact Lead Generation Pipeline 3X increase in 90 days
Time of initial contact to close to < 90 days Compensation plans aligned between various positions Accurate sales force productivity metrics collected and reported upon at Board level High confidence across various depts in the ability for Sales to track, forecast, and close leads Record quarterly revenue results attained Adjusted same model to different products and different markets at different times Phone Works Copyright 2004

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