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You're Hired to Lead a Startup, What's First?

Posted by Trish Bertuzzi on Tue, Mar 27, 2012
 


A few weeks back, I came across this scenario on LinkedIn (slightly anonymized to protect identities).

The CEO of a growth-focused company has hired you to oversee Sales & Marketing.

Her company is doing north of $10M in revenue and just took a Series A round of funding to “aggressively grow its sales and marketing activity.”

She has been focused like a laser beam on product and delivery. Marketing efforts consist mostly of tradeshows and webinars, generating leads for their Field team of 6.

There isn’t great consistency in terms of how Sales is talking about the product or who they are targeting. She is concerned that the lack of a cohesive prospecting strategy won’t allow them to scale to hit new revenue targets.

What are your top three priorities for the first 90 days?

Great question right? Recently I’ve been talking with the folks at PR 20/20, an inbound marketing agency, about doing something around “Sales said / Marketing said” – trying to see where our approaches overlapped and where they diverged.

When I saw this scenario, I thought I’d take up the Sales side and Laurel Miltner (AVP at PR 20/20) could take up the Marketing angle. I wanted to highlight a piece from Laurel's response that I thought was especially relevant:

Define and Prioritize Buyer Personas, Hone Messaging

Create clear buyer personas, and prioritize them. Hone your messaging for each target audience, and understand what resonates with them along the entire purchase path. Both marketing and sales will need to understand these archetypes and their key needs/desires, but speak to them in different ways.

I think this is spot on. It is surprising that more companies don’t understand the value of buyer-based messaging. (Make sure to check out Laurel’s entire response)

I’m currently reading The Challenger Sale and the authors talk about the ‘layers of tailoring’ which Reps needs to master: Industry -> Company -> Role -> Individual.

They argue “as a starting point, marketing can add a tremendous amount of value simply by helping sales reps to tailor at the industry and company levels…When a rep comes in not just with a sales pitch, but with a sense of what’s going on in that customer’s company and industry, you’ve got the beginnings of a tailored message.”

This segues nicely to my “top three priorities” as a new Sales Exec.
---

#1: Understand our type of sale to determine approach

In a new role, the new Sales Leader has one distinct advantage – they get to ask the dumb questions. Often, companies will describe their sale in terms of:

  • Who they are (we’re a startup)
  • What they sell (widgets in the cloud is the future)
    -or-
  • Who their buyers are (we sell to forward thinking CIOs / we target leading consumer brands)

These are important questions – but they don’t answer where your solution sits in the technology adoption life cycle.

I’ve always used the language in Geoffrey Moore’s Crossing the Chasm to talk about this problem, but have found that language no longer resonates as strongly as it once did with CEOs and VPs of Sales or Marketing. That’s why we have transitioned to referencing SiriusDecisions’ “Demand Spectrum”.

In a nutshell, it segments into three categories:

  • New concept – buyers don’t know they have a solvable problem, we are a disruptive product, “evangelical” sale,
  • New paradigm - buyers are solving the problem with inefficient/legacy methods, we are a more effective solution, “quantifiable reason to change” sale,
  • Established Market – well-defined space, “differentiation” sale

Our approach should be based on where we fall in the spectrum. The entire model should be dictated by the answer to this question!

#2: Remember, those who focus are those who win

When I  ask an Exec about their Ideal Customer Profile (ICP) and they answer “Fortune 500” or “we’re a horizontal play,” I know I’m in trouble. Growing companies will often argue they can sell to anybody. But to scale, you need to know where you’ll find repeatable & profitable success.

Defining our ICP isn’t about creating a named account list, but it is about identifying where our optimal buyers reside. Including:

  • Embracing the philosophy that not all prospects are equal
  • Focusing outbound activity towards the accounts with the highest likelihood of success
  • Triaging inbound activity - by aligning effort to opportunity
  • Identifying market segments with future potential

The ICP should be central to a host of sales and marketing discussions and decisions.

How do we create territories? (Think: how many accounts fit our ICP in a given region) Who is the hero in our content marketing? (Think: it better be within our ICP)

You get where I’m going, but let me say it one more time: those who focus are those who win.

#3: Leave our baggage at the door

A common pitfall I see Execs grappling with is treating past success as an indicator of future performance.

We are all guilty of wanting to stick within our comfort zone. All too often we'll say – “This model worked really well at my last role/for our competitors/at a Board member’s other company. I’m just going to create that same model here.”

Unless you have the exact same type of sale and ICP - don’t do it! If success was so programmatic, algorithms would run Sales - not people. 

Scaling is about developing a cohesive go-to-market strategy that answers the hard questions first. Then we need to take that knowledge and combine it with our experience, expertise and people to craft something that is right for the NOW.

I'm very interested in how you would respond to this scenario. Please share a thought or two in the comments.

(Photo credit: R/DV/RS)

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COMMENTS

I've building and scaling inside sales teams for 20+ years, I recently wanted to re-boot my process and took a Customer Centric Selling Course with Frank Visgatis. Combining Frank's methodology for selling and prospecting and integrating best practices from my best has streamlined and align our marketing messaging and sales process. Frank offers open forums for his courses and I have to admit it was refreshing and (re)confirmed the need for best practices.

posted @ Tuesday, March 27, 2012 8:52 AM by Karen Doherty


Fantastic post Trish!!! Coming from a finance/ops background, and struggling to build a recurring sales program, this hits on exactly what points are required. All 3 are equally critical as well, as it takes 3 equal triangles to form that perfect point at the top.  
 
My only addition (given my background...:>) ) would be that the sales comp plans must also align with the sales strategy, but perhaps that falls into a stage 2 category.

posted @ Tuesday, March 27, 2012 9:42 AM by Bob


Excellent points, Trish. This offers great insight into the sales strategy thought process for those of us on the "marketing side" to understand, learn from, and coordinate with. 
 
Thanks for participating in this little experiment with me.  
 
Laurel  
@laurelmackenzie

posted @ Tuesday, March 27, 2012 9:48 AM by Laurel Miltner


This article is spot on. If you think you have a product that appeals to a broad market, it is very tempting to try and take the whole market. It becomes clear very quickly that even though you COULD serve a broad market, you dont have the resources to effectively market and sell to a broad market.. If you dont have a ton of funding and a huge team you have to focus on the low hanging fruit first.

posted @ Tuesday, March 27, 2012 12:47 PM by Tim Macchi


First thing is I'm calling everyone together from the CEO, marketing sales, operations and customer service. We're going to sit down together and have a roundtable discussion to clarify all messaging and align on the value and vision of the messaging, profiles, etc... From there I'm going to hire two teleprospectors to help drive opportunities using this messaging. This also allows me to test messages inside and better track opportunities handed off to my field reps. In that first 90 days I'd focus solely on alignment, branding and demand generation/nurturing.

posted @ Tuesday, March 27, 2012 3:15 PM by Jason


Bullseye! How many startups, especially those in the "happy" predicament of sustaining growth via Series A funding, find themselves implementing status quo approaches? Mature companies have the same problem when trying to develop new markets. Instead of marginalizing the sales and marketing disciplines, how about collaborating? Thank you for this tremendous post!

posted @ Tuesday, March 27, 2012 7:14 PM by Babette Ten Haken


It is always interesting to talk to sales and marketing leaders about their views on what is important. Thanks for contributing!

posted @ Wednesday, March 28, 2012 9:08 AM by trish bertuzzi


As the new VP, you are between a rock and a hard place 
 
1 Its all about the customer / target market 
Learn everything you can about the target, engagement processes, issues, problems, locations, purchasing patterns, channel prefs, etc 
 
2 Learn why your CEO has the issues she has, what;s behind her fear / concerns, her bosses concerns, commitments she's made, what they are based on, and so on 
 
3 Address issues related to driving and fulfilling demand : nothing cures headaches like orders!

posted @ Wednesday, March 28, 2012 2:25 PM by marty


Spot on, as always Trish! 
 
I'd add one caveat for earlier stage companies, those that have not passed the $10M mark as in your example. Who you think your ICP is and who it ultimately becomes can often vary. The point is, in earlier stage companies, focus on your assumed ICP, but be nimble. Every discussion with a prospective customer will provide you with valuable information as to who is or is not going to be your ICP. I recently observed one early stage company who's original ICP was a VP Sales, but they soon learned sales managers and directors were the real targets.

posted @ Friday, March 30, 2012 9:14 AM by Brian Geery


To build upon ICP, ULD and Lead Scoring per Brian's comment I want to add that you have to add certain values and ranks to specific titles and roles of decision makers. Managers and Directors can be great influencers and champions but utlimately a decision involving a complex sale still requires the buy in of executives. In larger organizations Directors can have significant budgets. In smaller organizations a Director can be a top title. So it requires careful crafting and training of your marketing, business development, lead generation and sale staff to completely optimize the process. With R&D through lab based processes you can refine your messaging and processes to build a leak free funnel.

posted @ Friday, March 30, 2012 9:19 AM by Jason


Trish, Thanks for the post! 
 
A quick question: in the scenario you described, most of the inbound leads are coming from webinars and trade shows. Do you have any advice for what resources are helpful in generating prospects in a proactive way? In other words, what resources have you found to be most helpful in b2b sales when you're looking for new companies that may be customers of your product? 
 
Insight appreciated!

posted @ Wednesday, April 11, 2012 7:19 PM by Kevin bebak


We are big believers in being proactive and supplementing inbound activity with intelligent outbound work. #2 in the post above talks about some things to think about in that area. But you ask about resources that are helpful...  
 
1. Data. The more data you can provide your reps about who to target at the company and contact level the more productive your team will be. Data goes beyond just generic company names and titles. Give them the contact names, direct dial phone numbers and email addresses. The more time they spend hunting for this information the less time they spend talking to potential buyers.  
 
2. Productivity tools. Lots to talk about in this area but here are some of our faves: InsideView, TimeTrade, ConnectAndSell, Insidesales.com, Visible Gains. Each has their own unique value proposition so check them out.  
 
Hope this answered your question at least a bit!

posted @ Thursday, April 12, 2012 7:12 AM by Trish Bertuzzi


Thanks for the note, Trish - giving reps specific contact levels to aim for as well as #'s and email addresses makes good sense. I also use salesforce.com as a productivity tool and will go ahead and check out the others you've recommended.  
 
My sales background is in life science research products, where it's relatively easy to find new prospects. All researchers publish articles which become available in the public domain. If you are selling a product for, say, cancer research, then you know you can find prospects by searching for academic articles on cancer.  
 
Have you had any success using tools like data.com, or linkedin's "search for company" feature as resources for finding new leads? 
 
I will be starting B2B sales soon and on the surface data.com and linkedin look like they may be promising places to start.

posted @ Thursday, April 12, 2012 1:29 PM by kevin bebak


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