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    The Twenty Minute VC (20VC): Venture Capital | Startup Funding | The Pitch

    20Sales: Slack, Atlassian, Dropbox: Five of the Biggest Lessons on Starting, Scaling and Managing Sales Teams from 25 Years Leading the Best with Kevin Egan, Global Head of Enterprise Sales at Atlassian

    Wed Jul 12 2023
    SalesHiringProduct-Led GrowthEnterpriseSales RepsTrust BuildingSales ForecastingDeal ManagementSales TacticsGo-to-Market Playbook

    Description

    This episode covers various topics related to hiring sales reps, transitioning from product-led growth (PLG) to enterprise, sales rep effectiveness, building trust with buyers, sales forecasting, deal management, sales tactics, and a free go-to-market playbook offered by Zoom Info.

    Insights

    Hiring reps in a PLG world

    Hiring two to three reps at a time is favored in a PLG (Product-Led Growth) world.

    A/B testing for rep effectiveness

    A/B testing is crucial for rep effectiveness in the best companies.

    Transitioning from PLG to enterprise

    Chasing both PLG and enterprise from day one is difficult but possible. Sequentially focusing on PLG first and then adding enterprise layers may be more effective.

    Determining rep effectiveness in enterprise

    Determining rep effectiveness in enterprise involves A/B testing between online channels and sales reps. Comparing growth rates can indicate strong effectiveness.

    Building trust with buyers

    Building trust with new buyers involves clear expectations and a partnership approach as employees become more competent.

    Sales forecasting challenges

    Sales forecasting in 2023 has become more difficult due to uncertainty.

    Balancing revenue targets and long-term strategy

    Balancing quarterly revenue targets with long-term pipeline and sales strategy requires leadership support and effective communication with prospects.

    Deal management and weaknesses

    Managers need to focus on why a deal won't happen and identify areas of weakness.

    Sales tactics and transparency

    Sales tactics that have died include withholding information, transparency is now valued.

    Free go-to-market playbook from Zoom Info

    Zoom info is offering their go-to-market playbook for free. It provides insights on using intent data to target prospects and expanding buying committee outreach.

    Chapters

    1. Hiring and Rep Effectiveness
    2. Transitioning from PLG to Enterprise
    3. Hiring and Rep Effectiveness Continued
    4. Sales Rep Specialization and Building Trust
    5. Sales Forecasting and Deal Management
    6. Deal Management and Sales Tactics
    7. Zoom Info Go-to-Market Playbook
    Summary
    Transcript

    Hiring and Rep Effectiveness

    00:00 - 07:05

    • Hiring two to three reps at a time is favored in a PLG (Product-Led Growth) world.
    • A/B testing is crucial for rep effectiveness in the best companies.
    • Early days of hiring reps require individuals with a wide range of skill sets.
    • Kevin Egan, global head of enterprise sales at Atlassian, has over 25 years of experience in enterprise sales and leadership.
    • Salesforce was one of the original product-led growth companies, offering free trials and focusing on solving customer problems.
    • At Dropbox, building trust with large companies was essential for expansion.
    • Slack's success came from engaging large teams and providing value through their platform.
    • A sales playbook is more than just following steps; it involves understanding buyers, user personas, industry, and unique solutions to problems.

    Transitioning from PLG to Enterprise

    06:36 - 13:11

    • Sales motions are more than just a playbook, they involve understanding the buyer, user persona, industry, and business problems.
    • The CEO or founder provides inspiration and high-level talking points, while the sales VP codifies and creates the sales motions.
    • Chasing both PLG (Product-Led Growth) and enterprise from day one is difficult but possible. Sequentially focusing on PLG first and then adding enterprise layers may be more effective.
    • To transition from PLG to enterprise, key elements that need to change include stability, reliability, data residency requirements, process controls, encryption, loss prevention measures.
    • Transitioning to enterprise requires ongoing compliance with stringent requirements like GDPR.
    • The structure of sales teams may change when moving from PLG to enterprise. Initially, it's important for the sales team to provide customer feedback into product development before building a more traditional sales team structure.
    • Determining rep effectiveness in enterprise involves A/B testing between online channels and sales reps. Comparing growth rates can indicate strong effectiveness.
    • Testing should involve managing cohorts of customers through web channels and sales reps to measure outsized growth managed by reps.

    Hiring and Rep Effectiveness Continued

    12:48 - 19:06

    • Outsized growth in sales reps cohort indicates strong effectiveness in sales chat
    • Hiring two to three sales reps at a time is a great indicator of their effectiveness
    • Multi-step hiring process with mock scenarios helps assess candidate's problem-solving and presentation skills
    • Differentiating between using fictitious company or their own service in mock scenarios has advantages
    • Consistency throughout the interview process is key to identifying good versus great candidates
    • The type of person needed depends more on the timing of the company than PLG versus enterprise motion
    • Early days require renaissance reps, while scaling requires reps focused on quotas and accounts
    • Coin-operated sales reps are not ideal in the early days, but specialization becomes important as the company grows

    Sales Rep Specialization and Building Trust

    18:47 - 25:00

    • As a company grows, sales reps become more specialized in bringing in customers and growing revenue.
    • Hiring sales reps based solely on their previous company logos may not work out well.
    • Intellectual range is important when hiring an initial sales leader who will have to take on various tasks.
    • Compensation packages should be fair and candidates should be interested in the long-term journey with the company.
    • Building trust with new buyers involves clear expectations and a partnership approach as employees become more competent.
    • Hierarchy in the manager-employee relationship requires appreciation for the manager's workload and direct feedback when necessary.
    • Direct feedback should be provided as a moment in time, not constant criticism, and employees appreciate receiving feedback.

    Sales Forecasting and Deal Management

    24:42 - 30:43

    • Feedback is important for employees and should not be avoided
    • Sales leaders should provide feedback that is not diminishing, overbearing, or too frequent
    • Sales forecasting in 2023 has become more difficult due to uncertainty
    • Reps need to be clear on the business problem their solution solves and why the company would spend money on it
    • CFO involvement in a deal indicates its strategic importance, and sales teams should provide a clear picture of the return on investment
    • Balancing quarterly revenue targets with long-term pipeline and sales strategy requires leadership support and effective communication with prospects
    • Creating ample pipeline throughout the year helps avoid cramming deals at the end of the quarter
    • Discounting should be organized by the CFO's office based on margins and volumes
    • Startups face more pressure to discount when selling through procurement, but conviction in the product can help hold firm on pricing
    • Deal reviews happen at different frequencies depending on organizational level, with good reviews focusing on identifying weaknesses and gaps in deal plans

    Deal Management and Sales Tactics

    30:28 - 36:56

    • Managers need to focus on why a deal won't happen and identify areas of weakness
    • When a deal slips to the next quarter, it's important to understand if it was committed to the current quarter or if it can be pulled in
    • Sales tactics that have died include withholding information, transparency is now valued
    • New sales leaders should avoid pattern matching from previous companies and spend time understanding the broader organization
    • AI can be used to help sales reps understand the best next step for customers and provide more great ideas
    • The hardest part of the job at Atlassian is providing an opinionated solution on how their services help customers
    • Snowflake is a company with great alignment and customer-centricity in their sales strategy
    • Pocus is a revenue data platform that helps go-to-market teams analyze, visualize, and take action on data about prospects and customers without needing engineers

    Zoom Info Go-to-Market Playbook

    36:28 - 36:56

    • Zoom info is offering their go-to-market playbook for free.
    • The playbook provides insights on using intent data to target prospects and expanding buying committee outreach.
    • To access the playbook, visit zoominfo.com/20VC and sign up for a free trial of the Zoom info platform.
    • Stay tuned for an upcoming episode with Shiel Monat, co-founder of Better Tomorrow Ventures.
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