7 Fatal Sales Mistakes CEOs and VP Sales Make

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7 Fatal Sales Mistakes CEOs and VP Sales Make
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www.PebbleStorm.com/cpr
www.PebbleStorm.com/coaching

Shared by: Aaron Ross
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4860
posted:
12/3/2009
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English
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40
From A Salesforce.com Executive:

How To Avoid The 7 Fatal Sales

Mistakes CEOs And VP Sales Make

& Grow Revenue 40% (Or More)

My Story

• Stanford Undergrad + GSB dropout.

• CEO of LeaseExchange: -$5 Million

• Ironman Triathlon, Boulder Outdoor Survival School

• Sr. Director at Salesforce.com: $100 Million

• Sales book deal with Wiley (#1 business publisher)

• ‘Entrepreneur-in-Residence’ at Alloy Ventures ($1B)

• On 10 advisory boards + investor in six companies

• PebbleStorm, with three coaching programs:

1. Sales Machine: “Create Predictable Revenue”

2. CEOFlow: “Turn Your Employees Into Mini-CEOs”

3. Unique Genius Coaching for individuals

Four Years At Salesforce.com

I created a “Cold Calling 2.0” process and team that sourced

$100 million in recurring revenue for salesforce.com

And Years Of Consulting/Advising

Why Am I Doing This?

• After so many years of coaching/advising CEOs

and VP Sales…

• I see the same mistakes made over and over

again

• I made them myself as a CEO

• They are simple to avoid!

A Wave Of Change

What Works In Sales Has Changed

1.0 2.0

Field Sales = 90% of prospecting Sales Dev = 90% of prospecting

ABC / Always Be Closing Is there a mutual fit?

Dials per day, appointments Qualified opportunities / month

Cold calls Research, referral calls

Cheesy sales tricks work Authenticity works

“I hate this job” “I learned a lifetime skill”

Long letters & emails Short and sweet text emails

CRM hurts productivity CRM multiplies productivity

The 7 Fatal Growth-Killing

Sales Mistakes CEOs and VP

Sales Make

1. Not Taking Responsibility For

Understanding Sales & Leadgen

• Everything begins with the CEO

• The CEO must understand the fundamentals

of sales and lead generation

• Avoid arbitrary goals, assumptions and plans



Solution: the CEO must take full responsibility for

educating & developing themselves

2. Thinking Salespeople Should Prospect

(Make Salespeople Jacks-Of-All Trades)



• Salespeople should fulfill deals

• Only prospect 20% of the time, to Top 10

Strategic Accounts or to current customers

• “Lumping” is when salespeople do it all:

qualify, cold call, close and manage accounts



Solution: specialize! You only need two

salespeople to begin to specialize

Separate the Four Core Functions

Customer

Organic & Frontline Success &

Marketing Leads Sales Sales

Renewal





“Outbound”









Qualified New

“Inbound” Opportunities Customers

3. Assuming Channels Will Do Your

Selling For You

• They won’t

• You have to control your own destiny

• The channels will come AFTER you are

successful







Solution: you must control your own destiny

first. Focus on direct sales success before

counting channel chickens.

4. “Sales 1.0” Talent Approach

(Hiring, Training, Incenting)



• Hiring wrong, especially in sales leadership

• Insufficient training (esp. new hires)

• Misguided expectations, esp. on ramp times

• Promoting the wrong people

• Using comp as the main motivator



Solution: get coaching on how to hire, train &

incent, or find local companies to model.

Train New Employees In Support/Services



Example: training salespeople in non-sales roles





Call Cold

Executives

Call Fresh

Degree of Risk









Leads / Stale

Opptys

Call Stale (1-2 Weeks)

Leads

(1 Week)



Intern With Services or

Lead Qualification

(2-4 Weeks)





Time

5. Being “Product-Out” Rather

Than “Customer-In”

• Unclear Ideal Customer Profile

• No one cares what you do, they only care

what you do for them

• Little executive time spent with customers

(should be 25% of your time)



Solution: talk to customers to get clear on what

you do for them, rather than how you do it.

Nail Your Ideal Customer Profile

• Industries?

• Geographies?

• Revenues/employees?

• Culture clues?

• Key metrics/datapoints?

• Dealbreakers?

• Dealmakers?

• Ideal contact at targets?

6. Sloppy Tracking And

Measurement

• You have no predictability without a funnel

• Are you measuring and tracking what you do and

produce, or putting it off?

• “We’ll do that next [week, quarter, year…]”

• Unless you understand what works and doesn’t

work, you are guessing at how to improve



Solution: Start tracking 2-3 key activities / results now.

Add something new each month.

7. Command-And-Control (“Push”)

Management

• Employees have few opportunities to contribute

beyond their roles

• More motivation than inspiration

• Using long hours/hard work instead of creative

problem solving

• Exhausting employees (and management)





Solution: read “The Seven Day Weekend” by

Ricardo Semler. Subscribe to CEOFlow.com.

CEOFlow: “Pull Management”

Bonus Mistake: Underinvesting in

Customer Support

• Too focused on new customer acquisition?

• Ignore account management and support at

your peril

• We have a world of “Frictionless Karma” – bad

customer experiences get around instantly



Solution: love & handhold your first 50

customers

Trust => Extraordinary Growth

The CEO Is The Pebble In The Pond

CEO Sweet Spot

Understanding Leads:

Seeds, Nets & Spears

Distinguishing types of leads

Distinguishing types of leads

___ Website MARKETING

Visitors

__% Conversion

Nets Funnel

___ Leads SALES

(Registrations)

DEVELOPMENT

__% Converted









Cost per Lead ___ Qualified

$___ Leads

__% Accepted





___ Qualified SALES

Opportunities

$___ Avg /Oppty

__ Lead Qualification Reps

per __ Leads per Month

$___ Pipeline

___% Close

__ Account Execs per $__

Pipeline per Month Sales Cycle

Length ____ $___ Bookings

Example Spear: ColdCalling 2.0









28

Spears Funnel

Define Ideal Target Profile



Prepare Add Target Accounts



Add Contacts





Send __ Cold Emails / Make __ Mapping Calls



Work Responses (9% Response Rate)

Prospect

__ Call Connects



__ Demos/Appointments







Begin Sales __ New Opportunities

Cycle

__ Closed Deals

Prospecting Emails: Less Is More



1. State simply why you are reaching out –

and be honest! (In every way)

2. Offer credibility (ex: customer names)

3. Make the email easy to read and

respond to on a blackberry/mobile

• No more than one question per email

• Don’t make them think

Sell To Success

How most companies sell









33

“Sell To Success”









34

Create Predictable Revenue /

Sales Machine

Coaching Programs

The Transformation

• An easy-to-follow sales development process that leads to

predictable sales revenue and an ever-expanding pipeline

with 20% close rates

• Go from erratic and unpredictable leads and sales results to a

reliable sales machine that generates pipeline even when no

new marketing leads are coming in.

• A clear step-by-step system to attract, develop, and retain

the top sales people that will bring in the highest sales with

the least amount of turnover, training and ramp time.

• Free up your time and energy by making sales a self-

managing system that runs itself.

What’s The Value Of…

• A clear, step-by-step plan?

• Even one incremental customer?

• The ability to repeatedly source leads and close

customers who aren’t calling you?

• World-class sales talent and sales systems?

• The trust of the board and team that comes from

more predictable sales?

• Peace of mind and freedom of predictable results

and self-managing systems?

Testimonial: WPromote

Michael Stone, VP Sales, WPromote (#1 ranked Search

Marketing Firm on the Inc 500):

• “Working with Aaron Ross has been nothing short of

amazing…

• His methods produced a profitable and scalable new stream

of predictable revenue.

• We saw at least 40+% new business growth.

• Deal size is still growing.

• We’re getting in the door with brands like Overstock, AT&T,

IBM, etc. – people that would have never come to us.

• The best part is, we had a blast while doing it!”

What Others Have Said

• Our company’s investment in Aaron’s services paid off at least a 10x /

1000% return in terms of increased revenue and productivity. I highly

recommend him.” - Steven Lurie, CEO AdviceCO



• “To say that I’d ‘highly recommend’ you would be an understatement –

any company’s damn lucky to have you.” - Andrei Stoica, CEO of

ConnectAndSell



• “The companies I’ve seen that have followed Aaron’s advice have

outperformed. What more can I say?” Tim Connors, General Partner, US

Venture Partners



• “Two things that made a big difference: your knowledge of salesforce.com

& your approach in working on a granular level to improve salespeople

productivity.” - Roberto Angulo, CEO of AfterCollege.com

Free Trial Coaching Session: Get Two Killer

Sales Ideas/Actions You Can Do NOW



• Free 30-Minute Consultation & Action Plan Session

($375 value)

• You will get at least two killer actionable ideas or next

steps to take right now – Guaranteed.

To register:

www.PebbleStorm.com/coaching

ranteed.

To register:

www.PebbleStorm.com/coaching


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