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The Clear & Complete Guide to Account Based Sales Development

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The Clear & Complete Guide to Account Based Sales Development The Clear & Complete Guide to Account Based Sales Development Your guide to smart prospecting in an Account Based Everything world Contents Introduction 3 Part 7 33 Part 13 127 A bold strategy for companies that don’t The WHO of Account Based SDR tools and technology want to wait around for revenue to show up Sales Development Part 14 134 Part I 4 Part 8 46 Conclusion: an idea whose time A new kind of sales development The WHAT of Account Based has come Sales Development Part 2 8 About Engagio 136 The rise of account based thinking Part 9 59 The WHERE of Account Based Sales Development Part 3 13 Account Based Sales Development: two big ideas brought together Part 10 84 The importance of coordination Part 4 19 Silos don’t work in an account based world Part 11 95 Growing and managing a sales development team Part 5 23 Hello, Account Based Everything Part 12 120 ABSD metrics Part 6 31 The WHO, WHAT and WHERE of Account Based Sales Development 2 Introduction A bold strategy for companies that don’t want to wait around for revenue to show up There’s never been a more exciting or a more rewarding time to be in B2B sales & marketing. After decades of hunch-based, adrenaline-fueled, Hail-Mary revenue generation, we’re entering a completely new era. An era steered by strategy, tuned by technology and driven by data. It’s all coming together right now, as you’re • Across both – the lead-centric approach is or business development is giving way reading this sentence – a perfect storm of giving way to an account based strategy to a far better mousetrap: Account Based innovation that’s giving enlightened companies that aligns everyone around the deals that Sales Development (ABSD). an unprecedented degree of control over their matter most own fortunes (and an unfair advantage in the That’s what this is all about: a new sales marketplace). Put all three of these together and a hugely development role that lives at the center exciting model takes shape. And it works: the of a coordinated, integrated Account Based We’ve already experienced Phase One—a wave companies following this new model are Everything approach. of transformation in the people, processes and growing like wildfire and running circles around technologies that create and convert their old-school competitors. If you’re in marketing, sales or sales opportunities: development, this is the beginning of Pick any B2B company that has experienced an exciting new phase of your career. • In marketing – ideas like marketing automation, insane growth over the last 12-18 months. inbound tactics, content marketing, lead Chances are, they’re using the strategy that Hang on to your hat. scoring and nurturing have re-invented you’re about to discover. demand creation • In sales – the increasing specialization and This is Account Based Everything (ABE) – professionalization of sales development is and it’s driven by a new incarnation of the sales replacing cold calling with intelligent, laser- development discipline. Today, what used to targeted prospecting be called prospecting, inside sales, telesales 3 Part 1 A new kind of sales development 4 A new kind of sales development 1 Part sales kind of new A development In some form or another, sales development “Throughout history, specialization “For many companies, sales has been around for a long time. In fact, some of the world’s most famous companies (like has been the breakthrough development reps are the first line Salesforce.com) were built on it. to better techniques. It allows of human contact with prospects.” people to excel at a few The idea of breaking out a specialized sales Trish Bertuzzi specific tasks.” development role from the Sales department The Sales Development, is based on unassailable logic: Ken Krogue Playbook • It focuses Account Executives on what they President and Founder, do best: closing deals InsideSales.com • It professionalizes the process of opportunity creation and qualification – giving the job to people who are especially suited to it • It boosts sales productivity, accelerates growth and lowers costs at the same time At the start, the sales development role combined both inbound opportunity qualification and outbound prospecting efforts. It was a big step and the companies that pioneered it grew at impressive rates. But it was only the beginning. 5 A simple model 1 Part sales kind of new A development Traditional sales development was not The transformation in sales development has particularly sophisticated: been driven by two big developments: “59% of sales development • Hire hungry, ambitious young people 1) Separating inbound from outbound organizations create specialized • Stick them on a bank of phones Just as sales development itself is a teams for inbound and outbound.” • Give them big, broad lists of people to call specialization, the new version takes it one TOPO: The 2016 Sales Development (and/or inbound contacts to qualify) step further: creating two teams with very Benchmark Report • And stand back different goals A recent Bridge Group study It was a blunt instrument, but it worked a lot One team focuses on responding quickly showed that inbound/outbound role better than asking Account Execs to waste and efficiently to inbound interest created by specialization resulted in a 16% increase their time hunting for opportunities. marketing (email, advertising, the web, etc.). in Pipeline Power Score (their metric for revenue generation efficiency Two big developments The other focuses on creating opportunities and effectiveness) Today, sales development has become much using outbound tactics (primarily phone and more focused and dramatically more effective. email – more on this later). “Sales development specialization is an accelerator on the path to The new sales development discipline has Both teams are important. But both involve repeatable and scalable pipeline.” been well evangelized by the people who different skills and different tactics. Trish Bertuzzi, pioneered it, in books such as Predictable The Sales Development Playbook Revenue by Aaron Ross and Marylou Tyler; The Sales Development Playbook by Trish Bertuzzi; and From Impossible to Inevitable, by Ross and Jason Lemkin (we highly recommend all three). 6 A simple model (cont’d) Part 1 Part sales kind of new A development 2) Focusing the outbound team on key accounts By the end of this book, we think it’s an idea “If you want to go upmarket, The split of sales development into two teams you’re going to want to pursue. But first, let’s coincided with the rise of a powerful strategy: track back and cover the critical context of the which you absolutely must to an account based orientation (instead of a new sales development approach: account grow, you have to go outbound. lead-centric one). based thinking. Winning large customers is much While inbound teams are heavily weighted to more about causing a sale, not smaller companies (there are just many, many “As soon as the account based just catching one.” more of them), outbound teams can be focused wherever they’ll make the most impact. For any model takes hold, it leads to more Ken Krogue company chasing big deals, the natural focus personalization and more human President and Founder, for outbound sales development teams are the touch. Sales development is the InsideSales.com top tiers of named target accounts. natural place for that.” And when that happens, a new kind of machine is born. Craig Rosenberg Co-founder and Chief Analyst, This whole book is about the collision of TOPO outbound sales development with account based thinking. But for now, think of it this way: creating and training an entire team of specialists whose only job is to penetrate big, named accounts, is a very big idea indeed. 7 Part 2 The rise of account based thinking 8 The rise of 2 Part The rise of based thinking account account based thinking As we detailed in our earlier (and rather awesome) ebook, The Clear & Complete Guide to Account Based Marketing, thinking of accounts instead of individual leads is hotter than a hot thing in an oven full of heat. The first wave of account based strategies were grouped under the Work the whole account or lose the deal misleading name account based marketing (ABM) – probably because Sales had always thought in terms of accounts, while the idea was new 100% for marketing (whose core processes and tools were built around leads). Intent to purchase drops When the decision group increases dramatically when a second from five to six, purchase likelihood decision maker is present further sinks – to a dismal 30% Regardless of where it sat, account based thinking took off because 75% it’s exactly what most B2B companies need most: Buying teams are getting bigger 50% According to CEB research, the average buying team today includes 5.4 people. With increasing risk aversion, technology complexity and compliance concerns, few experts see this shrinking any time soon. 2% As every sales pro knows, the bigger the team, the less likely they are to end up buying. After all, it only takes one veto to kill a sale (or one 0% person on holiday to stop a deal in its tracks). 1 2 3 4 5 5.4 6+ Size of buying team Average buing group size This risk is far higher if you’re tied to a lead-centric approach, talking n =3, 000 to single individuals in isolation. Clearly, winning big deals today means working the entire account. Purchase intent, by buying team size. Percentage of respondents stating “we will definitely buy from this supplier in the next six months” (Answer 8, 9 or 10 out of 10) Source: CEB analysis 9 The rise of account based thinking (cont’d) Part 2 Part The rise of based thinking account Big deals build big businesses Inbound can only get you so far (or so fast) The pioneers proved the model For most B2B companies, Customer Acquisition As powerful as inbound marketing can be, Reports from the front lines of account based Costs and Lifetime Value economics are far ‘fishing with nets’ will always catch a lot more programs have been astonishingly positive.
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