Qualtrics – Scaling Inside - MIT OpenCourseWare MIT Entrepreneurship Center . 3 . SALES &...

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2013 MIT Entrepreneurship Center

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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What is ‘inside sales’?

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What is ‘field sales?’

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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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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

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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

MIT OpenCourseWarehttp://ocw.mit.edu

15.387 Entrepreneurial SalesSpring 2015

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Qualtrics – Scaling Inside - MIT OpenCourseWare MIT Entrepreneurship Center . 3 . SALES &...

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Transcript of Qualtrics – Scaling Inside - MIT OpenCourseWare MIT Entrepreneurship Center . 3 . SALES &...