7 Data-Driven Sales Development Trends

(and what to do about them)

Craig Rosenberg @funnelholic

#Rainmaker2015  

Craig Rosenberg Chief Analyst and Co-Founder TOPO

#Rainmaker2015  

Sales Development is Old School

Sales Development has been one of the key strategic levers for high-growth companies for longer than we think.

#Rainmaker2015  

Sales Development is Table Stakes

Now, every fast-growing company has a Sales Development team…which brings us here today.

#Rainmaker2015  

7 Data-Driven Sales Dev. Trends

#Rainmaker2015  

1.  The State of BANT 2.  The Rise of Specialization 3.  Tight SDR Ratios 4.  SDR Tenure 5.  The Touch Pattern 6.  The LinkedIn Touch 7.  Technology

DEMOGRAPHIC  DATA  

Growth  Rate   63%  

Total  Revenue   $11.7B  

Average  Revenue   <$10M  –  40.9%  

$10M-­‐$100M  –  45.5%  

>$100M  –  13.6%  

The Bear Market on BANT

73% of high-growth companies have looser SQL definitions. Many companies moved from BANT to alternate definitions in 2014.

#Rainmaker2015  

27.0%  

35.1%  37.9%  

BANT   ANUM   AN  

COMMON  SQL  DEFINITIONS  

Target Market Defines Your SQL

•  Identify your ICP •  Understand how they

buy •  Build a definition that

supports this market

#Rainmaker2015  

Model   Key  Dynamics  

BANT   •  Large  number  of  buyers  •  High  volume  inbound  traffic  •  Short  sales  cycles  •  Mature  market    •  Project-­‐centric  buying  process  

ANUM   •  High  ASP/LTV  •  Dependent  on  outbound    •  Longer  buying  cycles  •  New  markets  •  Narrow  target  markets  •  Entry-­‐level  product  available    

AN   •  High  ASP/LTV  •  Dependent  on  outbound    •  Longer  buying  cycles  •  New  markets  •  Narrow  target  markets  •  Entry-­‐level  product  available    

Specialization is the New Black

60% of companies have created specialized roles to handle inbound versus outbound.

#Rainmaker2015  

41.3%  

58.7%  

Hybrid  

Specialized  

COMPOSITION  OF  SDR  ROLES  

Key Considerations for Specialization

•  MQL volume – 200+ •  Differentiated buyers

(vertical, buyer type) •  Differentiated products •  Company size

#Rainmaker2015  

Tight SDR-Sales Ratio = High Growth

#Rainmaker2015  

50.0%  

23.5%  17.6%  

3.0%  5.9%  

1  to  1   1  to  2   1  to  3   1  to  4-­‐5   1  to  6+  

SDR  –  SALES  RATIO  UNDER  $25MM  

Average:  1  to  1  

50% of companies under $25MM have a 1 to 1 ratio of SDRs to Sales reps. Over $25MM, the ratio is 1 to 4.4.

Building a Big SDR Team

•  Systematic hiring strategy

•  Scalable hiring profile •  Rigorous onboarding

#Rainmaker2015  

You Get SDRs for a Cup of Coffee

SDRs are only in the seat for a little over a year.

#Rainmaker2015  

3.6%  

40.0%   41.8%  

14.6%  

6  months  or  below  

7-­‐12  months   13-­‐18  months   19+  months  

Average:   14.2  months  

AVERAGE  SDR  TENURE  

Average:  14.2  months  

Managing the SDR Lifecycle

•  SDRs ramp = 1 month. •  Put SDRs on PIP after one

month of underperformance. •  Create certifications for

growth (e.g. sales)

#Rainmaker2015  

The Numbers Game is Still in Vogue

The key factors driving high touch numbers are technology, process, training, and management.

#Rainmaker2015  

112.5  

94.5  

63  

47.5  

30.4  

Total   Meaningful   Emails   Dials   Voicemails  

AVERAGE  DAILY  TOUCHES  PER  SDR  

The Multi-Channel Touch Pattern

•  Develop a multi-channel, multi-touch pattern

•  Manage process with a cadence management solution

•  Optimize over time

#Rainmaker2015  

Touch   Day   Step  

0   1   Research  

1,  2   1   Triple  Touch  

3   1   War  Dial  

4,  5   2   Double  Touch  

6,  7   2   War  Dial  

8,  9   4   Double  Touch  

10,  11   7   Double  Touch  

12,  13   10   Hail  Mary  

Ongoing   Ongoing   Nurture  

The LinkedIn Touch is Here to Stay

LinkedIn has risen from a social media site to a critical channel in Sales Development efforts.

#Rainmaker2015  

50%  

37.5%  

5.6%   2.8%   2.8%   1.4%  

Email,  Dial,  

Voicemail,  LinkedIn  

Email,  Dial,  

Voicemail  

Email,  Dial  Voicemail,  All  Social  

Email,  Dial  Voicemail,  LinkedIn,  Chat  

Email   Dial,  Voicemail  

TYPES  OF  TOUCHES  USED  TOGETHER  

LinkedIn in the Touch Pattern

•  Don’t send invitations to connect

•  InMail or Messages w/ email and voice

•  Like or comment on content

#Rainmaker2015  

Quick Calls = More Pipeline

20% of companies with looser SQL definitions complete calls in 5 minutes or fewer.

#Rainmaker2015  

16.1%  

21%  

32.3%  

14.5%   16.1%  

0-­‐5  minutes   6-­‐10  minutes  

11-­‐15  minutes  

16-­‐20  minutes  

20+  minutes  

LIVE  CALL  LENGTH  (%  OF  COMPANIES)  

Keys to the 5 Minute Call

•  Tight list alignment with your ICP

•  30 second and 2 sentence value props

•  Turn objections into closes

#Rainmaker2015  

The Rise of the Machines

The top Sales Development teams are typically the most automated.

#Rainmaker2015  

Average:   14.2  months  

Technology  

Level  1  

CRM  

Sales  Intelligence  

Cadence  Management  

Sales  Email  Tool  

Data  Tools/Services  

Level  2   Auto-­‐Dialer  

Level  3  

Prediccve  Analyccs  

Gamificacon  

Thank You!

#Rainmaker2015