sales presentation rev 9
TRANSCRIPT
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Brian Halligan Agenda
Halligan Background
Enterprise Sales Management Topics
Enterprise Sales Strategy 101
Enterprise Case Study: GrooveSMB Sales Management Topics
SMB Case Study: Hubspot
Sales Strategy Reading ListSloan Info Tech Entrepreneur
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Halligan Background Professional Experience
Parametric Technology
1990-2000200themployee 5000 in 00
1stInside Sales Rep
Started Asian org lived inAsia for 7 years
Grew Pacific Rim from
93: 0 people, $0 rev
97: 200 people, $100m rev
Groove Networks
2001-2005Started sales org
Helped raise $130m infunding, incl $75m from Msft
Grew sales from
01: 0 people, $0 rev
04: 30 people, $19m rev
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Enterprise Sales Management topics
Harsh reality
The number!Sales Representatives
Strategic Selling
Predicting the future
OtherAccounts Reviews
Recruiting (profile)
Sales Process & methodology
CRM
Territory distribution
Compensation plans
Rep development: Calls, forecast reviews, account reviews
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Enterprise Sales Management Topics (Harsh Reality)Tell the salesman to go away, Im busy
Flat Growth
Oligopoly
Little Differentiation
Too much inventory
Too many vendors
Flight to incumbency
Aspirin not vitamins
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Sales Management TopicsThe Number
Quarteritis!!!!!!!!!!!!!!!!!
The sun rises & sets on the quarter
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Sales Management TopicsSales Representatives
Sales Rep Profile
Personable, builds trustHigh energy
Aggressive
Street Smart (v. book-smart)
Listeners/nonverbal
Motivated by money20-80 rule
CompensationBase $90k - $100k
Commission $125k (plus draw)0%-50% quota = x%; 50% -100% quota = 2x%; > quota = 3x%
Stock options less important
Presidents Club
Top reps pay > CEOs
Measureable & Accountable high turnover accepted
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Sales Management TopicsEnterprise Selling -- Customers
Nuclear unitSR, SE, Cnslt, Mgmt
Power SellingChampions
CoachesEconomic Buyer
IT, LOB IT, LOB, PrchsgLegal, Finance, BODFind Pain, Find $
Ask questions/listen/non-verbal
BOD
CEO
LOB LOB LOB LOB LOB IT Finance Purchasing Legal
VP Enterprise Apps
Bus IT Bus IT Bus IT Bus IT Bus IT VP Enterprise Infra
CTO
Etc
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Sales Management topicsPredicting the Future Accurate Forecasting
Closed Likely Upside Q+1 P E D D I C C RD% VP% Fcst Upside
eCommerce 248,405 47,250 15,000 10,000 9,025 9,000
Inside Sales 207,900 10,000 - - 1,000 -
Salva Army: Stryker 125th TF Olympia 151,662 - - - - -
McPartland KPMG - Services 150,000 - - - - -
Black BAH / Centrix 78,183 - - - - -
Okada NG / State Near East Bureau 62,894 - - - - -
Okada CARE 60,266 - - - - -
Foster Tyco - software 56,389 - - - - -
Marcus CA Dept of Justice 56,279 - - - - -
Wilson Microsoft 54,856 - - - - -
37,021 - - - - -
Smith SPAWAR-DM,B/U Svr 36,794 - - - - -
Black DARPA (SAIC/Hicks) 32,218 - - - - -
Tyre EDS 28,265 - - - - -
Foster Praxair 23,977 - - - - -
Marcus State of FL 22,943 - - - - -
Shartzer LDS - Deseret Mgt 18,483 - - - - -
Shore P&G 17,987 - - - - -
Manniso VA - Infrastructure (Albany NY Buyer 15,120 - - - - -
Tyre Shell - trial extension 15,000 - - - - -
Smith SPAWAR Europe/Ivan(2) 14,075 - - - - -
Salva Army Corp. Of Engineers - 1,808,559 - - Y Y Y Y Y Y Y 50% 50% 904,280 -
McPartland EY - enterprise - 787,000 - - Y Y Y Y Y Y Y 80% 90% 78,700 -
Salva Army: HQ - 439,480 - - Y Y Y Y Y Y Y 95% 95% 21,974 -
Shartzer Hitachi Data Systems - 192,465 - - y Y Y y y Y N 80% 80% 38,493 -
Shore GSK - 104,000 - - Y Y Y Y Y Y Y 70% 90% 10,400 -
Salva PM RESET (Aviation) - 93,417 - - Y Y Y Y Y Y Y 95% 90% 9,342 -
Shore Lowe/Draft - 65,000 - - Y Y Y Y Y Y Y 70% 50% 32,500 -Foster Praxair - 59,000 - - Y Y Y Y Y Y Y 90% 90% 5,900 -
Manniso VA Florida Ohio buyer GTSI - 46,125 - - Y Y Y Y Y Y Y 90% 90% 4,613 -
Hommes & Process (Fr) CCAIG - 40,000 - - 100%
Marcus State of FL - 22,943 - - Y Y Y Y Y Y Y 90% 80% 4,589 -
Edginton Intermec - 21,893 - - Y Y Y Y Y Y N 75% 75% 5,473 -
Tyre American Express - - 678,000 - Y Y N N Y Y N 40% 40% - 271,200
Wilson Intel - - 310,126 - Y Y N N Y Y N 60% 60% - 186,076
McPartland KPMG - Servers - - 132,600 - Y Y Y N Y Y Y 35% 35% - 46,410
Marcus USG - New project - - 125,000 - y y y y y y N 75% 50% - 62,500
Foster Siemens - - 86,000 - Y Y Y Y Y Y Y 50% 60% - 51,600
Foster Siemens - - 55,000 - Y Y Y Y Y Y Y 50% 60% - 33,000
Boyd La-Z-Boy - - 45,850 - Y Y Y Y Y Y Y 65% 65% - 29,803
Prob AdjustmentsSales Qualifiers
Rep Account
Current Quarter's Forecast
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Sales Management topicsOther
Accounts Reviews
Recruiting (profile)
Territory Distribution
Compensation Plans
Sales Rep DevelopmentSales Process & methodology
CRM
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Enterprise Sales Strategy101Crossing the Chasm
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Enterprise Sales Strategy 101Model Comparison
TRANSACTIONAL CONSULTATIVE ENTERPRISE
Product or service
characteristics
Well Understood
Readily substitutableStandard items
Differentiated
CustomizableHidden Capabilities
High Strategic and/or
cost importanceLimited substitutability
Key buyer concerns anddecision criteria
Price
Availability risk
Ease of acquisition
Importance of problem
Solution fit
Price-performancetradeoffs
Platform fit
Values fit
Sustainability
Time horizon Event Purchasing stream Strategic plan
Nature of relationship Cost - based
Buyer-seller
Confrontational
Benefits based
Client-advisor
Cooperative
Trust based
Business equals
Insider
Both parties changefundamentally
Prerequisites forsuccess
Access to decision maker Access to influencers Access to strategy
Nature of sale Doing the deal Problem solving Agenda setting
Boundaries blur- unclearwho is selling and who isbuying
Source: Rethinking the Sales Force
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Enterprise Sales StrategyReason for shift to consultative model
Sales 5
Resource commitmentneeded for consultative selling
Sales 4Sales 3Sales 2Sales 1
$Cost
Source: Rethinking the Sales Force
Sales 5Sales 4Sales 3Sales 2Sales 1
%Return 0%
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Enterprise Sales StrategyConsultative Model
Listening and gaining business understanding are more important selling
skills than persuasion; creativity is more important than productknowledge.
The only single truth that seems to be holding true for all sales forces is
that they have to create value for customers if they are to be successful.Just communicating the value inherent in their products isnt enough.
Its a risky strategy in a consultative sales to go to a senior-level decision
maker before thoroughly understanding the issues and problems where youcan create value. Most good consultative salespeople will first do theirhomework by working with those influencers in the buying organizationwho have the best knowledge of the problems and opportunities where theselling organization hopes to create value.
Quotes from Rethinking the Sales Force. Neil Rackham & John DeVincentis
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Enterprise Case Study: Groove Networks
P0: Evaluation P1: Validation P2: Initial Rollout P3: Enterprise Rollout
REVENUE
COST OFSALE
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Enterprise Case Study: Groove Networks
P0: Educate P1: Validate P2: Initial Rollout P3: Enterprise Rollout
SALES ACTIVITIES IT call(s)
Orientation
LOB/LOB IT calls Validation
2 Track Pilot Trial:- IT validation- LOB pain project
Implement seats &gather metrics
Penetrate new LOBs Engage enterprise apps Horizontal bus processes
Groove as standarddesktop DNA
Integrate w/ Ent Apps Groove broadly deployed
and used throughoutvalue chain
LOB Pain IDdIT Champ
Validation Process
Pain ValidatedIT Validated
$100k+
Multiple Pain/LobIT Service Offerg
$500K+MSLSA
$1m/yrEvery desktop
2 months 2-3 months 6 months ongoing
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Enterprise Case Study: Groove NetworksQ1 (P)hase Movement
P1s
Lowe $46K
ESP $50K
AMEX $40K
Mattel $35K
Intermec $22K
P2s
HP Mktg $770KOCPA $691K
Siemens $111K
SAIC $142K
Praxair $100K
Novartis $86k
VLH $522K
Army $154K
HP C&I $106K
KPMG $100K
P0s
SPAWAR $18KHitachi $10K
CARE $7K
DuPont $7k
Verizon $6K
ServiceCo $16k
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SMB Sales Management Topics
Underserved market that is hard tosell to economically.Its all about experiential adoption
Web+e-comm+inside-handholder+wom=$$
Use channels
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SMB Case Study: HubspotExperiential Adoption Funnel
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SMB Case Study: HubspotChannel Description
Channels Terms Profile Timeframe
Telemarketing
Base $50k, 10% Commision,
Recoverable Draw Our own employees (2-3)
06 only designed to get early adopters
and learn best practices
Customer (w.o.m.)
20% on SaaS (get free service if
refer five paying customers)
Successful customers who want
free SaaS. Major source of leads from '06 onward
Partner 20% SaaSSmall IT consulting shops who willoffer value add to customers Major source of leads from '06 onward
Franchisee20% SaaS, 80% PSO, $4k/morecoverable draw for 6 mo.
Recent college grads, telesalesfolks who want own business.
Start program in '06, but focus on it in'07
Private Label 20% SaaS Amex, ADP, others An '08 initiative
Comments:1. The 3rd party channels are all basically the same, just packaged differently for different targets.2. Third parties make more sense as it shifts the risk and financing onto third parties while ensuring owner/operator quality.3. Our best channels should shift down this list as time goes by.
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Further Reading
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SITE Sloan Info Tech Entrepreneurs
AttendeesVCs
Angels
Service folks lawyers, etc.
Entrepreneurs
Potential hires
Students (50k, New Enterprises)
October 26that 6:30.
221 Columbus Ave, Apt 602, Boston