Sales Presentation Rev 9

8/12/2019 Sales Presentation Rev 9

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Brian Halligan Agenda

Halligan Background

Enterprise Sales Management Topics

Enterprise Sales Strategy 101

Enterprise Case Study: GrooveSMB Sales Management Topics

SMB Case Study: Hubspot

Sales Strategy Reading ListSloan Info Tech Entrepreneur


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Halligan Background Professional Experience

Parametric Technology

1990-2000200themployee 5000 in 00

1stInside Sales Rep

Started Asian org lived inAsia for 7 years

Grew Pacific Rim from

93: 0 people, $0 rev

97: 200 people, $100m rev

Groove Networks

2001-2005Started sales org

Helped raise $130m infunding, incl $75m from Msft

Grew sales from

01: 0 people, $0 rev

04: 30 people, $19m rev


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Enterprise Sales Management topics

Harsh reality

The number!Sales Representatives

Strategic Selling

Predicting the future

OtherAccounts Reviews

Recruiting (profile)

Sales Process & methodology

CRM

Territory distribution

Compensation plans

Rep development: Calls, forecast reviews, account reviews


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Enterprise Sales Management Topics (Harsh Reality)Tell the salesman to go away, Im busy

Flat Growth

Oligopoly

Little Differentiation

Too much inventory

Too many vendors

Flight to incumbency

Aspirin not vitamins


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Sales Management TopicsThe Number

Quarteritis!!!!!!!!!!!!!!!!!

The sun rises & sets on the quarter
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Sales Management TopicsSales Representatives

Sales Rep Profile

Personable, builds trustHigh energy

Aggressive

Street Smart (v. book-smart)

Listeners/nonverbal

Motivated by money20-80 rule

CompensationBase $90k - $100k

Commission $125k (plus draw)0%-50% quota = x%; 50% -100% quota = 2x%; > quota = 3x%

Stock options less important

Presidents Club

Top reps pay > CEOs

Measureable & Accountable high turnover accepted
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Sales Management TopicsEnterprise Selling -- Customers

Nuclear unitSR, SE, Cnslt, Mgmt

Power SellingChampions

CoachesEconomic Buyer

IT, LOB IT, LOB, PrchsgLegal, Finance, BODFind Pain, Find $

Ask questions/listen/non-verbal

BOD

CEO

LOB LOB LOB LOB LOB IT Finance Purchasing Legal

VP Enterprise Apps

Bus IT Bus IT Bus IT Bus IT Bus IT VP Enterprise Infra

CTO

Etc


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Sales Management topicsPredicting the Future Accurate Forecasting

Closed Likely Upside Q+1 P E D D I C C RD% VP% Fcst Upside

eCommerce 248,405 47,250 15,000 10,000 9,025 9,000

Inside Sales 207,900 10,000 - - 1,000 -

Salva Army: Stryker 125th TF Olympia 151,662 - - - - -

McPartland KPMG - Services 150,000 - - - - -

Black BAH / Centrix 78,183 - - - - -

Okada NG / State Near East Bureau 62,894 - - - - -

Okada CARE 60,266 - - - - -

Foster Tyco - software 56,389 - - - - -

Marcus CA Dept of Justice 56,279 - - - - -

Wilson Microsoft 54,856 - - - - -

37,021 - - - - -

Smith SPAWAR-DM,B/U Svr 36,794 - - - - -

Black DARPA (SAIC/Hicks) 32,218 - - - - -

Tyre EDS 28,265 - - - - -

Foster Praxair 23,977 - - - - -

Marcus State of FL 22,943 - - - - -

Shartzer LDS - Deseret Mgt 18,483 - - - - -

Shore P&G 17,987 - - - - -

Manniso VA - Infrastructure (Albany NY Buyer 15,120 - - - - -

Tyre Shell - trial extension 15,000 - - - - -

Smith SPAWAR Europe/Ivan(2) 14,075 - - - - -

Salva Army Corp. Of Engineers - 1,808,559 - - Y Y Y Y Y Y Y 50% 50% 904,280 -

McPartland EY - enterprise - 787,000 - - Y Y Y Y Y Y Y 80% 90% 78,700 -

Salva Army: HQ - 439,480 - - Y Y Y Y Y Y Y 95% 95% 21,974 -

Shartzer Hitachi Data Systems - 192,465 - - y Y Y y y Y N 80% 80% 38,493 -

Shore GSK - 104,000 - - Y Y Y Y Y Y Y 70% 90% 10,400 -

Salva PM RESET (Aviation) - 93,417 - - Y Y Y Y Y Y Y 95% 90% 9,342 -

Shore Lowe/Draft - 65,000 - - Y Y Y Y Y Y Y 70% 50% 32,500 -Foster Praxair - 59,000 - - Y Y Y Y Y Y Y 90% 90% 5,900 -

Manniso VA Florida Ohio buyer GTSI - 46,125 - - Y Y Y Y Y Y Y 90% 90% 4,613 -

Hommes & Process (Fr) CCAIG - 40,000 - - 100%

Marcus State of FL - 22,943 - - Y Y Y Y Y Y Y 90% 80% 4,589 -

Edginton Intermec - 21,893 - - Y Y Y Y Y Y N 75% 75% 5,473 -

Tyre American Express - - 678,000 - Y Y N N Y Y N 40% 40% - 271,200

Wilson Intel - - 310,126 - Y Y N N Y Y N 60% 60% - 186,076

McPartland KPMG - Servers - - 132,600 - Y Y Y N Y Y Y 35% 35% - 46,410

Marcus USG - New project - - 125,000 - y y y y y y N 75% 50% - 62,500

Foster Siemens - - 86,000 - Y Y Y Y Y Y Y 50% 60% - 51,600

Foster Siemens - - 55,000 - Y Y Y Y Y Y Y 50% 60% - 33,000

Boyd La-Z-Boy - - 45,850 - Y Y Y Y Y Y Y 65% 65% - 29,803

Prob AdjustmentsSales Qualifiers

Rep Account

Current Quarter's Forecast


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Sales Management topicsOther

Accounts Reviews

Recruiting (profile)

Territory Distribution

Compensation Plans

Sales Rep DevelopmentSales Process & methodology

CRM


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Enterprise Sales Strategy101Crossing the Chasm


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Enterprise Sales Strategy 101Model Comparison

TRANSACTIONAL CONSULTATIVE ENTERPRISE

Product or service

characteristics

Well Understood

Readily substitutableStandard items

Differentiated

CustomizableHidden Capabilities

High Strategic and/or

cost importanceLimited substitutability

Key buyer concerns anddecision criteria

Price

Availability risk

Ease of acquisition

Importance of problem

Solution fit

Price-performancetradeoffs

Platform fit

Values fit

Sustainability

Time horizon Event Purchasing stream Strategic plan

Nature of relationship Cost - based

Buyer-seller

Confrontational

Benefits based

Client-advisor

Cooperative

Trust based

Business equals

Insider

Both parties changefundamentally

Prerequisites forsuccess

Access to decision maker Access to influencers Access to strategy

Nature of sale Doing the deal Problem solving Agenda setting

Boundaries blur- unclearwho is selling and who isbuying

Source: Rethinking the Sales Force


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Enterprise Sales StrategyReason for shift to consultative model

Sales 5

Resource commitmentneeded for consultative selling

Sales 4Sales 3Sales 2Sales 1

$Cost

Source: Rethinking the Sales Force

Sales 5Sales 4Sales 3Sales 2Sales 1

%Return 0%


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Enterprise Sales StrategyConsultative Model

Listening and gaining business understanding are more important selling

skills than persuasion; creativity is more important than productknowledge.

The only single truth that seems to be holding true for all sales forces is

that they have to create value for customers if they are to be successful.Just communicating the value inherent in their products isnt enough.

Its a risky strategy in a consultative sales to go to a senior-level decision

maker before thoroughly understanding the issues and problems where youcan create value. Most good consultative salespeople will first do theirhomework by working with those influencers in the buying organizationwho have the best knowledge of the problems and opportunities where theselling organization hopes to create value.

Quotes from Rethinking the Sales Force. Neil Rackham & John DeVincentis


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Enterprise Case Study: Groove Networks

P0: Evaluation P1: Validation P2: Initial Rollout P3: Enterprise Rollout

REVENUE

COST OFSALE


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Enterprise Case Study: Groove Networks

P0: Educate P1: Validate P2: Initial Rollout P3: Enterprise Rollout

SALES ACTIVITIES IT call(s)

Orientation

LOB/LOB IT calls Validation

2 Track Pilot Trial:- IT validation- LOB pain project

Implement seats &gather metrics

Penetrate new LOBs Engage enterprise apps Horizontal bus processes

Groove as standarddesktop DNA

Integrate w/ Ent Apps Groove broadly deployed

and used throughoutvalue chain

LOB Pain IDdIT Champ

Validation Process

Pain ValidatedIT Validated

$100k+

Multiple Pain/LobIT Service Offerg

$500K+MSLSA

$1m/yrEvery desktop

2 months 2-3 months 6 months ongoing


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Enterprise Case Study: Groove NetworksQ1 (P)hase Movement

P1s

Lowe $46K

ESP $50K

AMEX $40K

Mattel $35K

Intermec $22K

P2s

HP Mktg $770KOCPA $691K

Siemens $111K

SAIC $142K

Praxair $100K

Novartis $86k

VLH $522K

Army $154K

HP C&I $106K

KPMG $100K

P0s

SPAWAR $18KHitachi $10K

CARE $7K

DuPont $7k

Verizon $6K

ServiceCo $16k


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SMB Sales Management Topics

Underserved market that is hard tosell to economically.Its all about experiential adoption

Web+e-comm+inside-handholder+wom=$$

Use channels


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SMB Case Study: HubspotExperiential Adoption Funnel


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SMB Case Study: HubspotChannel Description

Channels Terms Profile Timeframe

Telemarketing

Base $50k, 10% Commision,

Recoverable Draw Our own employees (2-3)

06 only designed to get early adopters

and learn best practices

Customer (w.o.m.)

20% on SaaS (get free service if

refer five paying customers)

Successful customers who want

free SaaS. Major source of leads from '06 onward

Partner 20% SaaSSmall IT consulting shops who willoffer value add to customers Major source of leads from '06 onward

Franchisee20% SaaS, 80% PSO, $4k/morecoverable draw for 6 mo.

Recent college grads, telesalesfolks who want own business.

Start program in '06, but focus on it in'07

Private Label 20% SaaS Amex, ADP, others An '08 initiative

Comments:1. The 3rd party channels are all basically the same, just packaged differently for different targets.2. Third parties make more sense as it shifts the risk and financing onto third parties while ensuring owner/operator quality.3. Our best channels should shift down this list as time goes by.


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Further Reading
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SITE Sloan Info Tech Entrepreneurs

AttendeesVCs

Angels

Service folks lawyers, etc.

Entrepreneurs

Potential hires

Students (50k, New Enterprises)

October 26that 6:30.

221 Columbus Ave, Apt 602, Boston

Sales Presentation Rev 9

Documents

Transcript of Sales Presentation Rev 9