Qualtrics – Scaling Inside - MIT OpenCourseWare MIT Entrepreneurship Center . 3 . SALES &...
Transcript of Qualtrics – Scaling Inside - MIT OpenCourseWare MIT Entrepreneurship Center . 3 . SALES &...
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Qualtrics – Scaling Inside Sales
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Quick review where are in the course
� Making a sales call � Basic sales management � Advanced sales management � Startup tool kit � Tying together with sales learning curve
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Sales Channels
Target Customers
Your Company
Value-Added Resellers (VARs)
“Direct” Sales Force
Channel SF
Distributors (Distis)
Channel SF
OEMs OEM SF
Target Customers
Target Customers
ssssss
Target Customers
Target Customers
Targ
et C
usto
mer
s
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The Facts of the Case
� Survey software � Cash strapped � Growing nicely � Taking on series A round � Hired new VP WW Sales � Transitioning to new target markets � Going international � Need to decide sales choreography
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What’s your decision?
� Scale the inside organization? � Hire a large field team?
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Inside sales
Pros cons � Tight control over � Hard to crack large
activities and message enterprises � Low cost of sale � High turnover � Fully scalable � Not as professional as � Enter all information into field sales
CRM system � No face to face selling � High training costs
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Field Sales
Pros cons � In person selling � expensive � Great managing complex � Hard to control message
accounts � Hate to enter data � Scalable into major � Harder to understand
markets activity levels � People with proven track � Removed from office
records � Lone wolf
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Coverage vs. Cost to Serve
Global Accounts
Large Enterprise Accounts
Enterprise
Small and Medium Business (SMB)
Small Office/Home Office (SOHO)
# and $/Acct
10s, $100M+
100s, $10M+
1,000s, $1M+
Ms, $10k+
10Ms, $100+
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Conventional wisdom
� Inside sales is a sweatshop
� Inside sales won’t work with the enterprise
� Inside sales won’t work internationally
� Inside sales can’t close big deals
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Inside sales models
� Traditional � Large companies � Marketing 2.0
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Traditional
� Inside reps qualify leads for field reps � Keep field reps focused only on large
deals � Requires SLA between inside rep and field
rep � Tightly coupled with marketing campaigns
• Butts in seats at events • Follow up on marketing mailers
� Field reps clearly senior to inside reps
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Big Company models
� Inside reps sell to current customers � Upsells of new products � Upsells of add-on products � Maintenance contracts for existing
customers � Inside reps sell to SMB market but not
to enterprise
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Sales and marketing 2.0
� Inside team carries quota � Sells into all markets
� SMB � Enterprise
• Land and expand
� Scale ‘buses’ of reps � Low cost of customer acquisition and
rising ASP
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Economics of inside sales
� No salary and commission � Low salary and commission
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LTV to CAC ratio
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Introducing the hybrid rep
� Lives with inside � Closes deals on phone � Flies to big accounts
when necessary � Knows your culture � Scales your culture
when you move him to management
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Inside Sales & the Sales Learning Curve
Sal
es y
ield
Time
Revenue Gap
Standard Quota
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Ramping inside sales S
ales
yie
ld
Time
Initiation Transition Execution
Break-even point (1x)
Traction point (2-3x)
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One way to organize
BDR
Geo ISR Geo FSR
MQLs Outbound Prospecting
EIT ADR*
Commercial Team Enterprise Team
Where Lead Comes From
Creates SQO and Closes
MQLs in Target Accounts
Transfer of opportunity if needed, based on potential account ACV
Creates The SQL Tech ADR*
*Further vertical separation over time; to start, separate tech and EIT ADR teams will prospect specifically into those verticals; the positioning and personas are different in each segment
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Committing to Inside Sales � Need the right leadership � Commit to extensive training
� Sales training � Product training
� Measure, measure, measure � Calls � Connects � Demos � Opportunity creation
� Combine sales and marketing goals
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Sample companies with inside only model
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15.387 Entrepreneurial SalesSpring 2015
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