TOPO Craig Rosenberg

7 Data-Driven Sales Development Trends

(and what to do about them)

Craig Rosenberg @funnelholic

#Rainmaker2015

Craig Rosenberg Chief Analyst and Co-Founder TOPO

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Sales Development is Old School

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

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Sales Development is Table Stakes

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

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7 Data-Driven Sales Dev. Trends

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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.

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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

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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.

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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

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Tight SDR-Sales Ratio = High Growth

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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

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You Get SDRs for a Cup of Coffee

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

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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


Managing the SDR Lifecycle

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

month of underperformance. •  Create certifications for

growth (e.g. sales)

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The Numbers Game is Still in Vogue

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

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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

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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.

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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

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Quick Calls = More Pipeline

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

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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

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The Rise of the Machines

The top Sales Development teams are typically the most automated.

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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!

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TOPO Craig Rosenberg

Business

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