7 Fatal CEO Sales Mistakes 042310

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7 Fatal CEO Sales Mistakes 042310 Powered By Docstoc
					                                           	
  
    From	
  A	
  Salesforce.com	
  Execu2ve:

The	
  7	
  Fatal	
  Sales	
  Mistakes	
  CEOs	
  &	
  VP	
  
 Sales	
  Make	
  &	
  How	
  To	
  Avoid	
  Them       	
  




                                                                1
Aaron	
  Ross	
  -­‐	
  My	
  Story	
  


   •    Stanford	
  Undergrad	
  +	
  GSB	
  dropout	
  
   •    CEO	
  of	
  LeaseExchange:	
  -­‐$5	
  Million	
  
   •    Ironman	
  Triathlon,	
  Boulder	
  Outdoor	
  Survival	
  School	
  
   •    Sr.	
  Director	
  at	
  Salesforce.com:	
  $100	
  Million	
  
   •    ‘Entrepreneur-­‐in-­‐Residence’	
  at	
  Alloy	
  Ventures	
  ($1B)	
  
   •  Author,	
  “CEOFlow:	
  Turn	
  Your	
  Employees	
  Into	
  Mini-­‐CEOs”	
  


   •  Now:	
  I	
  help	
  companies	
  with	
  sales	
  organizaTons	
  ‘build	
  a	
  
      sales	
  machine’	
  &	
  create	
  predictable	
  revenue.	
  


                                                                                           2
Created	
  A	
  $100M	
  Inside	
  Sales	
  Team	
  At	
  Salesforce.com	
  

 A“Cold Calling 2.0” process and team that helped increase recurring
revenue for Salesforce.com by $100 million & grew F5000 bookings by
                           more than 60%




                                                                               3
And	
  Years	
  Of	
  ConsulTng/Advising	
  




                                               4
“Build	
  A	
  Sales	
  Machine”	
  Client:	
  WPromote	
  


 Michael	
  Stone,	
  VP	
  Sales,	
  Wpromote	
  
 #1	
  ranked	
  Inc500	
  Search	
  MarkeHng	
  Firm:	
  
 •  “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	
  s2ll	
  growing.	
  	
  
 •  We’re	
  geQng	
  in	
  the	
  door	
  with	
  big	
  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!”	
  	
  

                                                                                                  5
“Build	
  A	
  Sales	
  Machine”	
  TesTmonials	
  

  •  Our	
  company’s	
  investment	
  in	
  Aaron’s	
  services	
  paid	
  off	
  at	
  least	
  a	
  10x	
  /	
  
     1000%	
  return	
  in	
  terms	
  of	
  increased	
  revenue	
  and	
  producTvity.	
  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,	
  Founder	
  	
  
     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	
  
     producTvity.”	
  -­‐	
  Roberto	
  Angulo,	
  CEO	
  of	
  APerCollege.com	
  
Why	
  Am	
  I	
  Doing	
  This?	
  


 •  Aber	
  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!	
  




                                                                         7
Coming:	
  Fall	
  2010	
  




                              8
A	
  Wave	
  Of	
  Change	
  




                                9
 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




                                                                             10
7	
  Growth-­‐Killing	
  Sales	
  Mistakes	
  CEOs	
  
           and	
  VP	
  Sales	
  Make  	
  




                                                         11
1.	
  Not	
  Taking	
  Responsibility	
  For	
  Sales	
  &	
  Leadgen	
  


  •  Everything	
  begins	
  with	
  the	
  CEO	
  
  •  The	
  CEO	
  must	
  understand	
  the	
  fundamentals	
  
     of	
  sales	
  and	
  lead	
  generaTon	
  	
  
  •  Avoid	
  arbitrary	
  goals,	
  assumpTons	
  and	
  plans	
  

  Solu2on:	
  the	
  CEO	
  must	
  take	
  full	
  responsibility	
  for	
  
    educa2ng	
  &	
  developing	
  themselves	
  


                                                                            12
2.	
  Thinking	
  Salespeople	
  Should	
  Be	
  Prospectors	
  


  •  Salespeople	
  should	
  fulfill	
  deals	
  	
  
  •  Only	
  prospect	
  20%	
  of	
  the	
  Tme,	
  to	
  Top	
  10	
  
     Strategic	
  Accounts	
  or	
  to	
  current	
  customers	
  
  •  “Lumping”	
  is	
  when	
  salespeople	
  do	
  it	
  all:	
  
     qualify,	
  cold	
  call,	
  close	
  and	
  manage	
  accounts	
  

  Solu2on:	
  specialize!	
  	
  You	
  only	
  need	
  two	
  
     salespeople	
  to	
  begin	
  to	
  specialize	
  

                                                                      13
 SoluTon:	
  Separate	
  the	
  Four	
  Core	
  FuncTons	
  



  Organic &          Frontline                                       Customer
Marketing Leads        Sales                   Sales                 Success


                   “Outbound”




                              Qualified                  New
                    “Inbound” Opportunities              Customers




                                                                           14
3.	
  Assuming	
  Channels	
  Will	
  Do	
  Your	
  Selling	
  For	
  You	
  


 •  They	
  won’t	
  
 •  You	
  have	
  to	
  control	
  your	
  own	
  desTny	
  
 •  The	
  channels	
  will	
  come	
  AFTER	
  you	
  are	
  
    successful	
  

 Solu2on:	
  you	
  must	
  control	
  your	
  own	
  des2ny	
  first.	
  
    Focus	
  on	
  direct	
  sales	
  success	
  before	
  coun2ng	
  
    channel	
  chickens.	
  

                                                                                15
4.	
  “Sales	
  1.0”	
  Talent	
  Approach	
  	
  	
  


 •     Hiring	
  wrong,	
  especially	
  in	
  sales	
  leadership	
  
 •     Insufficient	
  training	
  (esp.	
  new	
  hires)	
  
 •     Misguided	
  expectaTons,	
  esp.	
  on	
  ramp	
  Tmes	
  
 •     PromoTng	
  the	
  wrong	
  people 	
  	
  
 •     Using	
  comp	
  as	
  the	
  main	
  moTvator	
  

 Solu2on:	
  get	
  coaching	
  on	
  how	
  to	
  hire,	
  train	
  &	
  
    incent,	
  or	
  find	
  local	
  companies	
  to	
  model.	
  	
  

                                                                             16
Chinese	
  Proverb	
  


 •  If	
  you	
  want	
  one	
  year	
  of	
  prosperity,	
  grow	
  grain	
  
 •  If	
  you	
  want	
  ten	
  years	
  of	
  prosperity,	
  grow	
  trees	
  
 •  If	
  you	
  want	
  one	
  hundred	
  years	
  of	
  
    prosperity,	
  grow	
  people	
  




                                                                             17
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

                                                                                         18
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	
  
  •  Liple	
  execuTve	
  Tme	
  spent	
  with	
  customers	
  
     (should	
  be	
  25%	
  of	
  your	
  Tme)	
  

  Solu2on:	
  talk	
  to	
  customers	
  to	
  get	
  clear	
  on	
  what	
  
     you	
  do	
  for	
  them,	
  rather	
  than	
  how	
  you	
  do	
  it.	
  

                                                                              19
Nail	
  Your	
  Ideal	
  Customer	
  Profile	
  


 •    Industries?	
  
 •    Geographies?	
  
 •    Revenues/employees?	
  
 •    Culture	
  clues?	
  
 •    Key	
  metrics/datapoints?	
  
 •    Dealbreakers?	
  
 •    Dealmakers?	
  
 •    Ideal	
  contact	
  at	
  targets?	
  

                                                  20
6.	
  Sloppy	
  Tracking	
  And	
  Measurement	
  


 •  You	
  have	
  no	
  predictability	
  without	
  a	
  funnel	
  
 •  Are	
  you	
  measuring	
  and	
  tracking	
  what	
  you	
  do	
  and	
  
    produce,	
  or	
  purng	
  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	
  

 Solu2on:	
  Start	
  tracking	
  2-­‐3	
  key	
  results	
  metrics	
  now,	
  
     especially	
  “New	
  Qualified	
  Pipeline	
  Per	
  Month”.	
  	
  Add	
  
     something	
  new	
  each	
  month.	
  

                                                                                 21
5	
  Key	
  Monthly	
  Metrics	
  To	
  Track	
  


 1.  #	
  of	
  new	
  inbound	
  leads	
  
 2.  %	
  Conversion	
  rate	
  of	
  inbound	
  leads	
  to	
  opportuniTes	
  
 3.  Dollar	
  value	
  of	
  new	
  qualified	
  pipeline	
  generated	
  
 4.  %	
  Win	
  rate	
  on	
  pipeline	
  (%	
  closed-­‐won)	
  
 5.  Dollar	
  value	
  of	
  closed	
  deals	
  

 And	
  be	
  prepared	
  to	
  analyze	
  each	
  metric	
  by	
  factors	
  such	
  
    as	
  lead	
  source,	
  inbound	
  vs.	
  outbound,	
  etc.	
  



                                                                                    22
7.	
  Command-­‐And-­‐Control	
  (“Push”)	
  Management	
  


 •  Employees	
  have	
  few	
  opportuniTes	
  to	
  contribute	
  
    beyond	
  their	
  roles	
  
 •  More	
  moTvaTon	
  than	
  inspiraTon	
  
 •  Using	
  long	
  hours/hard	
  work	
  instead	
  of	
  creaTve	
  
    problem	
  solving	
  
 •  ExhausTng	
  employees	
  (and	
  management)	
  

 Solu2on:	
  read	
  “ The	
  Seven	
  Day	
  Weekend”	
  by	
  
    Ricardo	
  Semler,	
  or	
  “CEOFlow”.	
  

                                                                          23
CEOFlow:	
  “Pull	
  Management”	
  




                                       24
Bonus	
  Mistake:	
  UnderinvesTng	
  in	
  Customer	
  Support	
  


 •  Too	
  focused	
  on	
  new	
  customer	
  acquisiTon?	
  
 •  Ignore	
  account	
  management	
  and	
  support	
  at	
  
    your	
  peril	
  
 •  We	
  have	
  a	
  world	
  of	
  “FricTonless	
  Karma”	
  –	
  bad	
  
    customer	
  experiences	
  get	
  around	
  instantly	
  

 Solu2on:	
  love	
  &	
  handhold	
  your	
  first	
  50	
  customers	
  


                                                                          25
Trust	
  =>	
  Extraordinary	
  Growth	
  




                                             26
The	
  CEO	
  Is	
  The	
  Pebble	
  In	
  The	
  Pond	
  




                                                             27
CEO	
  Sweet	
  Spot	
  




                           28
Understanding	
  Leads:	
  	
  
                             	
  
 Seeds,	
  Nets	
  &	
  Spears




                                    29
DisTnguishing	
  types	
  of	
  leads	
  




                                            30
DisTnguishing	
  types	
  of	
  leads	
  




                                                       • Lower volume
                                                       • Highest quality
• Lower volume                                         • Harder to increase
• High quality
• Medium work to increase
• Grew Salesforce.com
revenue more than 40%!

                                            • Higher volume
                                            • Low value
                                            • Easier to increase


                                                                        31
 Nets	
  Funnel	
  
 ___ Website
   Visitors
                       MARKETING
           __% Conversion


                  ___ Leads                     SALES
                (Registrations)
                                             DEVELOPMENT
                            __% Converted




Cost per Lead                      ___ Qualified
    $___                              Leads
                                            __% Accepted


                                                   ___ Qualified
                                                   Opportunities
                                                                                           SALES
                                                            $___ Avg /Oppty
    __ Lead Qualification Reps
     per __ Leads per Month
                                                                   $___ Pipeline
                                                                              ___% Close
                __ Account Execs per $__
                   Pipeline per Month              Sales Cycle
 32                                                Length ____                  $___ Bookings
Example	
  Spear:	
  ColdCalling	
  2.0	
  




                                              33
34
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 Conversations

                                __ Demos/Appointments



  Begin Sales                     __ New Opportunities
    Cycle
                                     __ Closed Deals


                                                                     35
ProspecTng	
  Emails:	
  Less	
  Is	
  More	
  



    1.  You	
  can	
  get	
  a	
  9%+	
  response	
  rate	
  
    2.  State	
  simply	
  why	
  you	
  are	
  reaching	
  out	
  –	
  
        and	
  be	
  honest!	
  (In	
  every	
  way)	
  
    3.  Make	
  the	
  first	
  email	
  SHORT	
  &	
  SWEET:	
  
        easy	
  read	
  &	
  respond	
  to	
  on	
  a	
  blackberry	
  




                                                                           36
                      	
  
“Sell	
  To	
  Success”




                             37
How	
  most	
  companies	
  sell	
  




                                       38
“Sell	
  To	
  Success”	
  	
  




                                  39
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?	
  
The	
  “Build	
  A	
  Sales	
  Machine”	
  TransformaTon	
  


 •  An	
  easy-­‐to-­‐follow	
  sales	
  development	
  process	
  that	
  leads	
  to	
  
    predictable	
  sales	
  revenue	
  and	
  an	
  ever-­‐expanding	
  pipeline	
  
    with	
  20%	
  close	
  rates	
  
 •  Go	
  from	
  erraTc	
  and	
  unpredictable	
  leads	
  and	
  sales	
  results	
  to	
  a	
  
    reliable	
  sales	
  machine	
  that	
  generates	
  pipeline	
  even	
  when	
  no	
  
    new	
  markeHng	
  leads	
  are	
  coming	
  in.	
  
 •  A	
  clear	
  step-­‐by-­‐step	
  system	
  to	
  aXract,	
  develop,	
  and	
  retain	
  
    the	
  top	
  sales	
  people	
  that	
  will	
  bring	
  in	
  the	
  highest	
  sales	
  with	
  
    the	
  least	
  amount	
  of	
  turnover,	
  training	
  and	
  ramp	
  Hme.	
  
 •  Free	
  up	
  your	
  Hme	
  and	
  energy	
  by	
  making	
  sales	
  a	
  self-­‐
    managing	
  system	
  that	
  runs	
  itself.	
  


                                                                                                     41
How	
  To	
  Learn	
  More	
  


 •  Subscribe	
  to	
  the	
  “Build	
  A	
  Sales	
  Machine”	
  blog	
  
    (and	
  receive	
  free	
  bonus	
  content)	
  at:	
  
    www.BuildASalesMachine.com	
  

 •  For	
  speaking	
  or	
  consulHng,	
  email:	
  
 	
  	
  	
  	
  info@pebblestorm.com	
  	
  




                                                                         42

				
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