Académique Documents
Professionnel Documents
Culture Documents
Halligan Background Enterprise Sales Management Topics Enterprise Sales Strategy 101 Enterprise Case Study: Groove SMB Sales Management Topics SMB Case Study: Hubspot Sales Strategy Reading List Sloan Info Tech Entrepreneur
Groove Networks
2001-2005 Started sales org Helped raise $130m in funding, incl $75m from Msft Grew sales from
01: 0 people, $0 rev 04: 30 people, $19m rev
Territory distribution Compensation plans Rep development: Calls, forecast reviews, account reviews
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
Stock options less important Presidents Club Top reps pay > CEOs Measureable & Accountable high turnover accepted
Nuclear unit SR, SE, Cnslt, Mgmt Power Selling Champions Coaches Economic Buyer IT, LOB IT, LOB, Prchsg Legal, Finance, BOD Find Pain, Find $ Ask questions/listen/non-verbal
Army: Stryker 125th TF Olympia KPMG - Services BAH / Centrix NG / State Near East Bureau CARE Tyco - software CA Dept of Justice Microsoft SPAWAR-DM,B/U Svr DARPA (SAIC/Hicks) EDS Praxair State of FL LDS - Deseret Mgt P&G VA - Infrastructure (Albany NY Buyer) Shell - trial extension SPAWAR Europe/Ivan(2) Army Corp. Of Engineers EY - enterprise Army: HQ Hitachi Data Systems GSK PM RESET (Aviation) Lowe/Draft Praxair VA Florida Ohio buyer GTSI CCAIG State of FL Intermec American Express Intel KPMG - Servers USG - New project Siemens Siemens La-Z-Boy
Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y y Y Y y y Y N Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y N Y Y N N Y Y N Y Y N N Y Y N Y Y Y N Y Y Y y y y y y y N Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y Y
50% 80% 95% 80% 70% 95% 70% 90% 90% 90% 75% 40% 60% 35% 75% 50% 50% 65%
50% 90% 95% 80% 90% 90% 50% 90% 90% 100% 80% 75% 40% 60% 35% 50% 60% 60% 65%
Accounts Reviews Recruiting (profile) Territory Distribution Compensation Plans Sales Rep Development Sales Process & methodology
CRM
CONSULTATIVE
Differentiated Customizable Hidden Capabilities
ENTERPRISE
High Strategic and/or cost importance Limited substitutability
Time horizon
Nature of relationship
Access to influencers
Problem solving
Agenda setting Boundaries blur- unclear who is selling and who is buying
Cost
Sales 1
Sales 2
Sales 3
Sales 4
Sales 5
Return
0%
Sales 1 Sales 2 Sales 3 Sales 4 Sales 5
Quotes from Rethinking the Sales Force. Neil Rackham & John DeVincentis
COST OF SALE
REVENUE
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 standard desktop DNA Integrate w/ Ent Apps Groove broadly deployed and used throughout value chain
2 months
2-3 months
6 months
ongoing
Underserved market that is hard to sell to economically. Its all about experiential adoption
Web+e-comm+inside-handholder+wom=$$
Use channels
Channels
Terms Base $50k, 10% Commision, Recoverable Draw 20% on SaaS (get free service if refer five paying customers)
Profile
Timeframe 06 only designed to get early adopters and learn best practices
Telemarketing
Our own employees (2-3) Successful customers who want free SaaS.
Customer (w.o.m.)
Partner Franchisee
20% SaaS 20% SaaS, 80% PSO, $4k/mo recoverable draw for 6 mo.
Small IT consulting shops who will offer value add to customers Major source of leads from '06 onward Recent college grads, telesales Start program in '06, but focus on it in folks who want own business. '07
Private Label
20% SaaS
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.
Further Reading
Attendees
VCs Angels Service folks lawyers, etc. Entrepreneurs Potential hires Students (50k, New Enterprises)