Make your business scalable- "Predictable Revenue sales methodology"
The majority of sales reps still don't have time to sit and read the best practices developed by Aaron Ross in his award-winning book, Predictable Revenue.
That's why we decided to summarize core thoughts that evoke from Aaron and Marylou Tyler's best-selling book for sales reps with limited time to spare, but still want to sound like they've kept up with the latest sales reading list.
Essentially, Predictable Revenue is a structure that creates consistency from year to year and delivers business growth based on a formal process - not hustling and guessing at the last minute. This way, you 'predict' how much 'revenue' your business consistently generates.
If you aim to make sure that your company will have predictable revenue Aaron and Marylou say you must:
Understand your funnel
Determine the acceptable average deal size
Define time frames
They also explain that everything must become a system. Without it, there is no predictability.
The authors use several key terms repeatedly throughout their book. Understand them and you will have a basic overview of the thinking behind Predictable Revenue. Feel free to share them on LinkedIn to show off your latest read. So, let's learn how to create a "machine" that generates predictable revenue for your business.
To implement the "Cold Calling 2.0" process, you must have:
One person who is 100% dedicated to pursuing sales opportunities.
Sales opportunities (prospects) who use email
A proven service that generates revenue.
The customer lifetime value of at least $10,000.
Specialise in the four core sales roles:
Sales representatives: seek customers in cold or inactive companies. Organised according to territories that correspond to field and telesales, as it is important for them to build relationships with their sales colleagues.
One sales representative can handle up to 25 customers (account executives). Very large transactions can take place 1-on-1 or 2-on-1.
Market Response Reps: qualifies incoming sales opportunities that arrive via phone or website. For every 400 sales opportunities per month, a company needs one sales opportunity qualifier, who takes care of removing unqualified opportunities, identifies companies that have sales potential and helps increase the closing ratio.
Account Executives: they should not be in the business of making cold calls: because they don't like doing it; they are usually not good at it, and it is a bad use of company resources. Their job should be to create a clearly defined list of sales opportunities on a '5/10' model, keep in touch with their current client base and develop a referral partner base.
Concentrate valuable people on low-volume, high-value activities and select other roles to perform low-volume, high-value activities.
Time: Increasing the Number of New Sales Reps
Measure and pay attention to reality. Time will vary from company to company, depending on the influx of sales opportunities, people hired, training, and whether they're covering established territory or starting completely new ones.
Implement a process for training new sales reps that have worked for other departments in the company, such as customer service. This will make them more effective at their tasks and their development process will go faster.
Time: Search for New Sales Opportunities and Length of Sales Cycle
Sales Opportunity Generation Cycle Length: Measure the time from when a prospect first responds to a campaign to when a quality opportunity is created or qualified. Qualifying for a new opportunity typically takes 24 weeks.
Sales cycle length: Measure the time from when a sales opportunity is created/qualified to when it closes.
Step 1: Ideal customer profile
Who is your ideal customer (based on experience with current customers and prospects)? Find ideal sales opportunities quickly and just as quickly disqualify those that do not meet the criteria. The ideal customer profile description should fit on one page and be easily accessible to the whole team so they can quickly familiarise themselves with which ones they should try to work with and which ones to avoid. Create a total of 1-5 ideal customer profiles.
Smart Targeting: Choose 35 criteria for smart targeting.
Red flags and deal breakers: What signals or signs can you look for as early as possible in the sales process to know that working together would be a waste of time? An example might be abandoning a project when it is EU funded (too much bureaucracy and lack of flexibility)? Specific budget? History? Recent investments?
Main challenges: Simply ask what are the main challenges of the company and people in the buying process. What are your biggest challenges? What keeps you up at night? What are your main frustrations? What are your main fears? What is most important to you? What do you spend your money on? What do you really want?
Step 2: Build the list.
Does the list include decision-makers (or their bosses) and lower-level people? How targeted is the list? Consider the Opportunity Cost of marketing to poorly matched prospects.
Step 3: Run an outbound campaign through the email channel.
Start with email and then use the phone to follow up with people who respond. Send 50-100 outbound mass emails a few days a week as a mass campaign. Target = 5-10 new responses per day. A higher number is difficult to manage.
Filter your lists based on: Area of operation in the organisation, Revenue, Geography, Employees, B2B/B2C, Last contact activity, Last account activity, Contact title, etc.
Email writing: Personalise the message, don't use HTML to format it (this gives the impression of an impersonal message), be precise and specific, don't fo