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). ntent to purchase drops hen 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 % it’s exactly what most B2B companies need most:
Buying teams are getting bigger 0% 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 6 Size of bu ing team verage bu ing 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. more compelling in the enterprise market. And small companies than big ones (there are far Account based programs have been shown to for many, big deals are worth 10-20 times more more of them out there). yield the highest conversion rates and greatest than the average deal size. These are company- revenue growth of all the programs they run. making deals and they’re worth building a sales More importantly, inbound programs take And the wider sales and marketing community and marketing strategy around. 6-9 months to start seeing results and a full has taken notice. 12-24 months to start seeing significant value. For a new product or line of business, you have to start that process all over again. Account based marketing
Most companies simply don’t have the luxury delivers the highest Return on of waiting for the lead-centric inbound model Investment of any B2B marketing to ramp up. Outbound, account based efforts strategy or tactic. Period. are a much faster route to revenue. ITSMA Finally, even companies that have already established their inbound machine are finding that they’re starting to reach saturation. It’s just far more crowded out there and everyone is competing against a lot more content aiming at the same audience. For many, inbound is starting to see diminishing returns.
10 The benefits of 2 Part The rise of based thinking account account based thinking
Our Clear & Complete Guide to ABM outlines the industry’s consensus on the benefits of an account based approach. We won’t repeat it here… but we will summarize it:
Efficiency Acceleration Customer experience It focuses time and resources Deals proceed faster when you It delivers the consistently on accounts most likely to drive coordinate efforts around them. relevant experience that revenue. customers demand. Alignment Big wins It tightly integrates your sales Account penetration and The deal sizes are bigger. and marketing teams. expansion It guides intelligent account Close rates Sales excellence expansion at existing customers. It increases the quality of your It enables the challenger sale. biggest opportunities. Not a bad business case!
11 The benefits of account based thinking (cont’d) Part 2 Part The rise of based thinking account
We don’t need to hammer home the argument here: the power of an account based approach has been accepted by virtually every progressive sales and marketing leader – and is being put into practice by every high-growth B2B company that isn’t selling exclusively to small businesses.
Now it’s time to apply it in new ways…
12 Part 3
Account Based Sales Development: two big ideas brought together
13 Part 3 Part Based Sales Account big two Development: together ideas brought A big idea
We’ve seen the rise of the specialist sales development role and the new focus on the outbound side of the discipline. And we’ve seen the rise of account based thinking. Now it’s time to put them together.
Account Based Sales Development is a coordinated strategy that combines personalized, multi-channel, multi-threaded, outbound activities to create high-value opportunities in new and existing customers.
14 Part 3 Part Based Sales Account big two Development: together ideas brought A big idea
It’s all about the orchestration Account Based Sales between marketing, sales development and sales Development is a coordinated Much more sophisticated and effective than ‘hitting Built on relevance and value the phones’ or blasting strategy that combines personalized, for each individual in the out emails multi-channel, multi-threaded, buying team Targeting the entire buying team as a team – not as ABSD never sits back and outbound activities to create isolated individuals waits for opportunities: it goes out and creates them high-value opportunities in new The big deals that It’s just as powerful for fuel hyper-growth and existing customers. customer success as it is for acquisition
15 How ABSD differs from
traditional sales development 3 Part Based Sales Account big two Development: together ideas brought
Account Based Sales Development is a huge TOPO Research, one of the pioneers of account “The new Account Based step from the original telesales ‘boiler rooms’: based thinking and the new sales development discipline, puts it this way: Sales Development leaps • It’s targeted – aimed at selected, named ahead of yesterday’s siloed accounts, not huge, undifferentiated lists “Unlike ‘batch and blast’ outbound sales sales development.” • It’s personalized – based on relevant, crafted development in which SDRs send large volumes conversations instead of standard, one-size- of template-based messages, Account Based Kristina McMillan fits-all scripts Sales Development is personalized to the • It’s researched – driven by systematic insight account and person receiving the message.” Sales Development Practice generation (not two minutes on LinkedIn) Leader, TOPO • It’s multi-channel – maximizing reach by using According to their 2016 benchmark study, all channels, not massive spamming campaigns 45% of sales development teams today are • It’s integrated – a coordinated effort supported already account based (even if not fully by marketing – not another silo evolved); 27% are partially account based; and • It’s patient – with less emphasis on short-term 28% are ‘greenfield’ (reaching out to the whole calls-to-action such as demos and more on market). Three years ago, these numbers high-value engagements such as meetings would have been reversed. ABSD is the new to share insights or trends SD. TOPO again:
“Account Based Sales Development is today’s most effective account based tactic… Rather than rely on the high-volume process of outbound prospecting, organizations now strategically define a smaller, more targeted set of accounts and run personalized, buyer- centric campaigns against those accounts.”
16 When ABSD makes sense 3 Part Based Sales Account big two Development: together ideas brought
Account Based Sales Development isn’t the When you’re selling across disciplines answer for every B2B company or every Big, multi-disciplinary buying teams can kill challenge. But if the following things are true for a deal faster than you can say, “Bob doesn’t The Tiger Team your business, ABSD is probably your best bet: like it.” The more people involved in making Some companies sell to lots of small- or influencing a purchase, the more you need ABSD. and mid-size customers as well as to When big deals matter big enterprises. For this kind of mix, If big deals are 10-20 times bigger than average When inbound just isn’t fast enough we’re seeing a two-pronged approach: deals, ABSD is a no-brainer. These big deals When you can’t sit around waiting for great a general sales development effort for don’t just justify the effort, theydemand it. deals to get swept up into your demand-gen the wider market and a specialist, ‘tiger nets – or when your inbound efforts are starting team’ for landing the big accounts. When you can identify your ideal prospects to see the diminishing returns. If you don’t yet know which accounts might buy, you may not be ready for ABSD. If you do, and can name them, you’re ready. “There’s still a place for what
When your deal sizes are six figures we call greenfield [not account ABSD is required for $100k-plus deals. And it’s a based] sales development. really good idea for $50-100k deals. Below £20k If you can sell to a broad range are probably too small. of customers, it can still make When you need sales efficiency sense. But as soon as you’ve got If boosting your opportunity-to-close rates a focused ideal customer profile, would make a big impact, you want ABSD. account based is the way to go.” But if your sales team just needs more at-bats and the quality or size of opportunity is not the Craig Rosenberg issue yet, you may need to wait a while (after all, Co-founder and Chief Analyst, even low-probability opportunities are better TOPO than none!). Hopefully this state won’t last long.
17 Q&A 3 Part Based Sales Account big two Development: together ideas brought
Matt Amundson, Vice President – Sales Do you think a 100 percent ABSD strategy What would you say to organizations that Development & Field Marketing, EverString is the ideal, or is it a mix of lead based and might think they’re too small to adopt account based? a ABSDR approach? What do you look for when you’re hiring an SDR? From an outbound sales development The magic in combining account based For me it’s all about prioritization and time perspective, yes I’d say it should be 100 percent marketing and sales development is that management. The capacity to transition from account based. Even in high-velocity, smaller organizations can build pipeline to one account to the next – from one message commoditized markets, if you don’t know that support sales team faster than ever before. to the next – and maintain focus. the person you’re calling is a good fit for you, it’s a wasted call. In the past, building a strong inbound engine So I look for nuance and breadth of experience was a numbers game, like fishing with a wide in grads – people who balanced studies with The cost of the false positive may be very low net. It required some brand awareness and a sports, or worked their way through school. (versus the high cost of a false negative), but if level of commoditization – not to mention the That’s more important than grades. Like you have the right structures in place, it’s worth ability to build a strong marketing team, which salespeople, SDRs are determined type-A spending time to personalize your approach. is hard in itself. You needed all three, and it personalities, but they also need to be creative didn’t happen overnight. enough to craft a thoughtful, personalized And you get round one of the biggest problems message that resonates even when it’s cold. with lead based sales development that says if With an account based approach to marketing you can’t get through to your lead then you’ve and sales development, you expedite the And I do like it when they’re straight out of hit a wall. With an account approach, you have process by a huge factor. With a strategic plan college, so they don’t have to un-learn any other avenues that can take you to the account. and a personalized story, you get to the people other companies’ sales methodologies. who make buying decisions, fast – you trade your net in for a spear.
18 Part 4
Silos don’t work in an account based world
19 Silos don’t work in an 4 Part in an work Silos don’t account based world account based world
The pioneers of account based approaches in general – and Account Based Sales Development in particular – have all come to the same conclusion: it works best in companies where all the revenue-generating disciplines are closely aligned.
In short: silos suck.
For this reason, the term ‘account based Teams that work in isolation are the ones that marketing’ is misleading and the wrong term miss opportunities; duplicate efforts; waste to describe the process we’re talking about. insights; drop the ball in clunky ‘handovers’; There’s a danger that it perpetuates the siloed and inhibit every important metric from close marketing that’s holding us back. rates to deal velocity.
What really works in the account based In contrast, teams that work together in model is the close integration of marketing, coordinated programs that target key accounts sales development and sales (plus customer are dramatically and measurably more efficient success for those who have the discipline). and effective.
20 Don’t do this alone 4 Part in an work Silos don’t account based world
If Marketing embraces ABM without a deep Finally, account based sales in isolation results alignment with Sales, you get isolated tactics in Account Executives wasting their time in like ad retargeting and fancy mailers or field prospecting without any support or leverage. events that Sales doesn’t care about or That’s expensive and inefficient. participate in. What works is integration. That’s the heart To really engage with a target account, the of any account based strategy. human touch is essential: someone needs to pick up the phone, send a personal email or make a real connection on social channels. “ABM is a strategic business Only then can the account-focused marketing tactics make an impact. initiative. If it’s only sponsored by Marketing, it becomes Similarly, Account Based Sales Development a campaign.” without support from Marketing leads to a bunch of junior reps generating their Jeff Sands own accounts and writing their own emails – then doubling the volume to try to ITSMA improve performance.
21 Part 4 Part in an work Silos don’t account based world What if you’re not aligned yet?
On the account based journey, total alignment is the goal. But the important thing is to always make progress towards it. You can’t stop your revenue machine, hold everything and wait until you’ve achieved perfect alignment. So get going now:
Start with an alignment Agree on key metrics and Meet regularly – to review workshop – sit down together SLAs – agree on what good processes, metrics and progress. and discuss the account based looks like, what metrics you’ll approach and why you need to track and what commitments Use common data and change the way you work. you’ll make to each other. technology platforms – avoid silo systems! Define your ideal accounts – Build a foundation – implement make sure you’re all aiming for an account-centric data the right deals. infrastructure, including things like lead-to-account matching.
22 Part 5
Hello, Account Based Everything
23
Part 5 Part Account Hello, Hello, Account Based Everything Based Everything
Because silos hold back account based success, more and more sales and marketing leaders are no longer talking about account based marketing, they’re talking about Account Based Everything.
Account Based Everything is a strategic go-to-market approach that orchestrates personalized marketing, sales, and success efforts to drive engagement and conversion at named accounts.
24
Part 5 Part Account Hello, Hello, Account Based Everything Based Everything
With ABE, nothing is random: it’s a systematic go-to-market strategy. Account Based Everything is Not a campaign Delivering a consistent buyer a strategic go-to-market approach experience, with clear, consistent An integrated program that orchestrates personalized messaging from that aligns all revenue- each department generating teams marketing, sales, and success efforts and in every channel
Always a super-targeted effort targeting big to drive engagement and conversion prospects and existing For acquiring new customers. Never ‘spray clients and existing and pray’ at named accounts. customer expansion
25
Part 5 Part Account Hello, Account Based Everything Based Everything
The essence of the Account Based delivered by all departments (Marketing, “This isn’t about account based Everything (ABE) strategy is coordinating Sales Development, Sales, and Customer relevant interactions that span multiple Success). When you can do that, the results marketing campaigns or sales players in the account (decision makers will always be greater than individual tactics, this is Account Based and influencers) andmultiple channels departments working in isolation. Everything.” (email, phone, social and demand gen) Craig Rosenberg Co-founder and Chief Analyst, TOPO
Account Account Based Based Sales arketing “Account Based Everything Development recognizes that it takes a village to zero in on key accounts; that One central account all functions must be integrated, based view from marketing to sales development, sales and Account Account customer success.” Based Based ustomer Sales Tom Scearce Success TOPO
26
ABE and the three critical Part 5 Part Account Hello, revenue objectives Based Everything
Account Based Everything isn’t a specialized The ABE effect In short, the transformation to an ABE approach strategy to keep in a box in the corner. As TOPO Companies that implement ABE see some is essentially the culture change that sales and research slide shows, it’s a strategic initiative unexpected effects: marketing have been waiting for. that addresses the three most important revenue objectives of any B2B company: Morale rises as you escape the discouraging ‘hamster wheel’ of high-volume, low- “Adopters of an Account Based engagement tactics. New customer acquisiton Everything strategy are seeing Performance improves as it takes far fewer significant lift in engagement Helps acquire new customers, leads to secure an appointment. particularly high value targets rates, pipeline per account, The voracious need for net new leads and upsell/cross-sell numbers.” decreases as you waste less time on low-potential situations and invest more Craig Rosenberg Pipeline velocity time in relevant interactions. Co-founder and Chief Analyst, TOPO Accelerates velocity o e isting Mutual respect grows as everyone in sales opportunities at target accounts and marketing recognizes the value and contribution of their colleagues.
You learn faster as more of your team gets direct engagement with the people who matter most. Account expansion
Drives expansion (upsell cross sell You grow faster taking the big revenue steps at e isting accounts that only big deals can deliver.
You scale up based on success, with your costs rising directly with your pipeline.
27
Part 5 Part Account Hello, Inbound + Outbound = Allbound Based Everything
The rise of Account Based Everything has The problem with inbound only The benefits of outbound sparked a debate between the virtues of In the early days of digital demand-gen, some The excitement surrounding the rise of inbound inbound versus outbound models. This is as companies evangelized an all-inbound model. marketing blinded many B2B companies to the good a time as any to try to put this argument That approach has serious limitations: power of outbound. Now it’s back in the to bed. spotlight, and for good reason: Inbound takes a long time to scale – For the most progressive leaders in sales and anywhere from 1-2 years, as discussed above. Outbound delivers big wins faster – because marketing, ‘inbound vs outbound’ misses the it’s more targeted and more proactive. point. Both can be important to the growth of Sales gets dependent on leads – a B2B business, but they do very different things a dangerous dependency. Costs vary with pipeline – double your efforts and require different processes and skills. and you double your output (which doesn’t Inbound marketing can get saturated – happen with inbound). Inbound is an always-on strategy that urgently with less return on incremental investment. responds to demonstrated buyer intent. There’s zero waste – all your effort is focused That said, the answer is NOT to stop inbound on the accounts that matter. Outbound is a thoughtful outreach strategy efforts: they’re too important for that and, once that crafts and coordinates targeted messages up to speed, create a flywheel effect that is You reach higher in key accounts – with to named accounts. an important growth driver. inbound, you’re at the mercy of who comes to you (usually junior people looking for competitive bids). With account based outbound you reach out to senior decision makers with a solution focus. That leads to more strategic deals and can even avoid competitive bake-offs.
The revenue is stickier – smaller, inbound deals are more likely to eventually churn than larger more strategic deals.
28
Part 5 Part Account Hello, The answer is Allbound Based Everything
When asked whether inbound or outbound is important to your company’s “An optimized balance of inbound and outbound growth, just say, “Yes”. The fact is, they both are. marketing techniques, i.e. “Allbound marketing”, consistently generates high quality leads that “After 18 months of building the outbound SDR ultimately produce revenue.” team, outbound accounted for 35% of new ARR. Dan McDade Outbound can make a huge impact in a relatively President and CEO, PointClear short time, especially if there’s already significant inbound traction.” Allbound combines the best of inbound with the best of outbound, deploying each strategy where it makes the most impact. Robby Allen Director of Sales Development, Zenefits