Sales Development in the Digital Transformation Era
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Your sales follow up process is broken, and there's a lot more that we all can be doing to acquire and follow up on our leads, and to respect our profession. We're going to talk about sales development in the digital transformation era. Created by Patrick Purvis.
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Sales Development in the Digital Transformation Era
- 1. Sales Development in the Digital Transformation Era DiscoverOrg + ZoomInfo
- 3. …and Our Story Continues 2017 37 SDRs 15 CDRs 40 AEs 50 CSMs $121M in Revenue 2019 90+ SDRs 15+ CDRs 100+ AEs 70+ CSMs $300M+ in Revenue
- 4. We Needed to Continue to Step Our Game Up We knew in order to maintain our growth and succeed as one unified company, we would need to be focused on:
- 5. How Many of You Respond to Your Leads? 5
- 6. What we did Informal experiment: Contacted 30 companies attending a conference via their web forms (form submitted by a CRO). Goal: Measure what responses we got. Conclusion: Many are missing prospects trying to buy from you.
- 7. What? Half of the companies we contacted did not respond to our inquiry. 0 2 4 6 8 10 12 14 16 No response Email * Voicemail Email and voicemail Responses to our request for info * Emails include automated responses.
- 8. Of Those Who Did Follow Up MONDAY TUESDAY WEDNESDAY THURSDAY FRIDAY Call (VOICEMAIL) Call (NO VOICEMAIL) Email Webinar offering
- 9. So What? The odds of calling and connecting with a lead decrease by over 10 times in the first hour. The odds of qualifying a lead in 5 minutes versus 30 minutes drop 21 times. And from 5 minutes to 10 minutes the dial to qualify odds decrease 4 times.
- 10. Your sales follow-up process is br oken 10 There’s more you can do.
- 11. If You’re Not Emailing + Calling – You’re Not Trying 2 4 5 7 8 9 11 12 13 14 16 17 18 19 21 22 23 24 26 27 28 29 2 3 5 6 8 10 12 13 15 16 17 19 20 22 24 26 27 28 30 31 33 34 0 10 20 30 40 50 60 70 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 CUMULATIVE TOUCHES BY CHANNEL BY DAY Phone Call Email 3.8 6.8 NUMBER OF TOUCHES TO GET THE DEMO Calls Emails
- 13. CONFIDENTIAL 13
- 14. We knew who our ideal customers were… • Ideal industries, companies, markets • Ideal titles • Ideal company sizes • ... among other ideal unique data points that we capture This fueled our lead scoring, routing, and outbound prospecting efforts Data at the Core
- 15. Our Data-Driven Lead Routing CONFIDENTIAL 15 Segment 1 of AEs Segment 2 of AEs Segment 3 of AEs Segment 4 of AEs Wave 1 ● Prospect visits our web property to request a trial or execute against a call- to-action. ● Determined to go to Segment 2 of our New Business Account Executives ● MQL is routed “round robin” to a Wave 1 inbound SDR. ● After further qualification and scoring, the lead is placed in the 3rd quintile. ● SAL is routed to a Tier 2 Corporate AE in the 3rd quintile (regardless of team or manager) Wave 2 1 2 3 54
- 16. You Must Be Data-Driven
- 17. You Must Be Data-Driven (Yes, Again)
- 18. We embraced the key tenets to building successful sales development missions.
- 19. The era of Digital Transformation demands more Data-Driven Execution • True digital transformation execution should empower you to know your customer better. • This leads to improved customer acquisition insight and capability. • Must be leveraged in all aspects of sales development Experimentation & A “Fail Fast” Mentality • The market and our customers are evolving quickly…we must evolve with it • Change before you have to • Leverage your data to test hypotheses, learn, and make decisions Leadership Engagement • Leaders must empower core operations with technology • Culture change and evolution is paramount in digital transformation • Be obsessed with data, your customers, growth acceleration, and highly performant teams
Editor's Notes
- Intro – short bio Last time Henry was here he was talking about how we were able to scale post-RainKing acquisition…
- In February 2019, we acquired ZoomInfo to become the world’s best business data solution that delivers the quantity, quality, and depth of data our customers require. We suddenly found ourselves again with a large new team of sales and customer success reps to support and fuel. Our combined sales development teams were: 90+ SDRs, 15+ CDRs, 100+ AEs, 70+ CSMs and 300M+ Revenue
- We knew in order to maintain growth and succeed as one unified company, we’d need to focus on data, operational excellence and leadership engagement – we needed to embrace digital transformation Success in your digital transformation strategies and initiatives to remain relevant and grow requires you to be focused on developing a world-class sales mission Digital transformation is not just about a digital experience for your customers. It also necessitates transformation in how you engage your prospects and win your next customers. Sales development is at the forefront of this. To prove this, we ran an experiment
- Let me ask you all a question - How many of you respond to your leads? Just raise your hands. How many of you respond to your leads? Everybody responds to their leads? Yeah, it’s not that many.
- We know that, because we tested it. We went to 30 websites of the companies who were attending another conference. Form was submitted by our chief revenue officer. We wanted to see how good other SDR teams really are at responding to people who are interested in buying. The conclusion is most of them are not very good at it.
- Half of the companies that we contacted didn't respond at all, not a single response. The rest, who respond to leads, didn't do it very well, didn't do it very consistently. That just told us there's a lack of process in the way that you handle these. If you're looking at this and you're thinking to yourself like, "What a waste of money. We're wasting money. We're spending all this money to get people to our website, to optimize the website, to get our brand right, to get them to fill out a form. Then they fill out a form, and we don't even contact them.“ You're right, but then pause for a second and think about the opportunity cost that is lost because of this. Think about the hours you've spent locked away with your senior leadership team figuring out how do we grow this year? How do we grow 30%? You're probably spending an inordinate amount of time thinking about, "How do we get new customers? How do we grow the business?" Meanwhile, you're not responding to the people who are most interested in your products or services.
- Uneven Cadence of Responses = Lack of Process. Response activity died down after the day of the inquiry (Monday). No one reached out to anyone else in the company beyond the person listed on the web form. In some cases, there was no response despite filling out a long form. Only one company called more than one time. For who did follow up, this is how you followed up. Only four of you called. A couple of you emailed. Most of you actually didn't call or email more than one time. You might be thinking like, "So, what? If I emailed you after you filled out a form, and you're not interested, you probably didn't care anyways. It's probably a [inaudible 00:10:59]." I'll explain why that's wrong. The cadence of responses was all over the place. Right? You called once. You sent an email. You didn't send an email the next day. You didn't really follow up. Only one company called more than one time. What that tells me, and what it should tell you, besides the fact that you don't have a process in place to follow up on your most valuable leads, is that you're leaving this arbitrarily up to somebody in sales and marketing to decide what to do with these. So, just arbitrarily someone in sales or someone in marketing figures out what to do with leads that come in.
- The odds of qualifying the lead in five minutes versus 30 minutes drops 21 times. Just from five minutes to 10 minutes, the chances to qualify a lead, which means set a demo, put them on a calendar, decreased four times. Someone is on your site and interested in your products and services. You need to get them on the phone right away. The public stat is that we call people four times in the first day that they fill out a form on our website. The private stat, which my chief revenue officer was embarrassed about, was that we call them eight times. We'll call you eight times. Fill out a form on our website. Tell us you're interested in DiscoverOrg or Zoominfo. We're going to call you eight times in the first day. Why? Because this happens. One of the other things we found looking at our data on this point too is we realized if we set an appointment with someone who we get on the phone more than five days out, there's almost no likelihood that that appointment is going to happen. Our SDRs strive to get you in a demo today with an account executive. We get you on the phone. You're interested. Do you have time in two hours to jump on a call with our account executives? The conversion rate skyrockets as a result. We spend a lot of money getting you to the website. We spend a lot of money optimizing our forms, so that you fill out the website. We do a bunch of stuff with data on the backend to route the leads to the right people, but if you're filling out a form, you're going to be on the phone with us
- Your sales follow up process is broken, and there's a lot more that we all can be doing to follow up on our leads, to respect our profession. We're going to talk about sales development in the digital transformation era. Digital transformation, the definition is it marks a radical rethinking of how an organization uses technology, people, and processes to radically change business performance.
- If you're not emailing or calling, you're not trying. It takes us 3.8 calls and 6.8 emails to set a demo with a prospect on average. Stop any shorter than that, we don't get the demos, we don't grow the same way that we do.
- Don't give up. If we stopped after our third call, we'd lose 27% of our demos. If we didn't try hard enough, we wouldn't set 27% of our demos.
- The third-place horse in the Kentucky Derby is only .2 seconds behind the lead horse. The third horse is .2 seconds behind the first horse. I put that there for two reasons: First, the difference between bad and good at sales execution is not that hard. Call people. Call them again. Email them. email them again. Have a process to do that consistently, and you're in good territory. You can move from bad to good really, really easily. But the difference between good and exceptional is you're always chasing that .2 seconds. At DiscoverOrg+ZoomInfo culturally who we are is we're constantly chasing that .2 seconds. Because the digital transformation of our company has people, process, and technology circling around it, we're constantly looking to optimize one of those three things. So, an account executive has a bad month. Great. He had a bad month. We're going to go look at the data to try to figure out why.
- We were (and continue to be) data-driven. We know who our ideal customers are. You must write this down and know who your ideal customers are. If you can use data to figure this out, that's great. If you can't, you guys all kind of know. Let everybody know, these are the customers who we do the best with. That might change over time. Use data to inform that. But we know who our ideal customers are. We know what industries they're in, what companies they're at. We know their ideal titles. We know their ideal company sizes. Then over time we realize new, unique data points that feed this to make it better too. This fuels our lead scoring, our routing, and our outbound prospecting abilities Our sales development and prospecting activity used dynamic data intelligence to better engage our next customers and identify the right opportunities for new business – we tracked over 150,000 outbound calls by SDRs last month and those helped inform our business decisions. I don't say that as like, wow, there was a lot of phone calls. There was, but the more interesting thing is can you guys tell me how many phone calls you made last month? Probably not. That's a hard stat to get at. We're down to that level of granularity at DO+ZI.
- Prospect visits our web property to request a trial or execute against a call-to-action. Determined to go to Segment 2 of our New Business Account Executives MQL is routed “round robin” to a Wave 1 inbound SDR. After further qualification and scoring, the lead is placed in the 3rd quintile. SAL is routed to a Tier 2 Corporate AE in the 3rd quintile (regardless of team or manager)
- We understand our customer, so we implemented predictability in our lead scoring. Using more than ten data points for every inbound lead, we predict a win percentage 0 – 100% Lead predictability drives our lead routing. We provide the best leads to our best SDRs, as we want our best business opportunities to be serviced by our best resources
- We also have a practice of routing the best leads to the best Account Executives There is a performance index of our AEs to put them into the same quintiles as our lead scoring “1” leads go to our best SDRs for qualifications, and then meetings are subsequently set for our “1” Aes We route our best leads to our best account executives. You're the best account executive. You've got the got hand. I'm giving you the best lead that comes in that way. That was a hard decision to make culturally, because our team said, "Well, then it's not a meritocracy. It's not Round Robin. Not everybody's getting the same types of leads. It's just not fair." Now, we batted that down with a win rate model. Essentially, we took all of the leads that we've had historically, and we were able to, with all of these attributes that we had penned using our own APIs, we were able to model out, based on the type of lead you are, the chances that you're going to close. So, we know if you're A, B, C, D, F lead. If you're an F lead, you close 12% of the time. If you're an AE who's not doing very well and you're in that F quintile, all you have to do is outperform that quintile's win rate. If you outperform 12%, you're 15% for that month, you move up to the next quintile. If you outperform the leads across that quintile, you move up again. If you underperform, you move down. AEs are maniacally focused on this metric. Everybody wants to be in the top quintile, because they know they want to get the best leads routed to them. Even when they're in the best lead category, they still have to outperform everybody else in that quintile in order to stay in that category. That's how this works
- The era of digital transformation. We talked about data driven execution, always doing experimentation and failing fast. Make sure your leadership is engaged.
- Data-Driven Execution True digital transformation execution should empower you to know your customer better. This leads to improved customer acquisition insight and capability. Must be leveraged in all aspects of sales development Experimentation & A “Fail Fast” Mentality The market and our customers are evolving quickly…we must evolve with it Change before you have to Leverage your data to test hypotheses, learn, and make decisions Leadership Engagement Leaders must empower core operations with technology Culture change and evolution is paramount in digital transformation Be obsessed with data, your customers, growth acceleration, and highly performant teams