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
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5. The Problem
How do resource constrained start-up companies quickly ramp sales in emerging markets as cheaply as possible?
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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
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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
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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”
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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
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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
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11. Three Necessary Components For Successful In-house Sales Development Teams
People
Processes
Systems
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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
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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.
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14. Processes Why is this so important? Volume Productivity
Scalable and repeatable
Measurable results
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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
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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
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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
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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
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19. Sales Development End Results
Measurable
Predictable
Scalable
Visible
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20. Sally Duby President 510-749-9073 sduby@phoneworks.com
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21. Developing an Effective Sales Pipeline - Real Life Examples
Glen D. Vondrick
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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
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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
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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
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