Dan Martell - July 30, 2018


How To Measure And Increase Your B2B SaaS Sales Velocity


Episode Stats

Length

7 minutes

Words per Minute

170.19032

Word Count

1,237

Sentence Count

50


Summary

Summaries generated with gmurro/bart-large-finetuned-filtered-spotify-podcast-summ .

Transcript

Transcript generated with Whisper (turbo).
00:00:00.000 Hey there, I'm Dan Martell, technology entrepreneur,
00:00:02.100 investor, and creator of SaaS Academy.
00:00:04.080 In this video, I'm gonna share with you a strategy
00:00:06.440 to increase your SaaS sales velocity
00:00:09.880 without adding any new reps,
00:00:11.580 and be sure to stay at the end where I'm gonna share with you
00:00:13.180 an exclusive resource called the Rocket Demo Builder.
00:00:16.880 It goes over my five principles to close more deals
00:00:20.520 and the nine steps that you're gonna need to follow
00:00:22.720 to make that happen.
00:00:30.000 Maybe you're doing all the demos today
00:00:37.920 or you've got a team of reps
00:00:40.160 that are working with your potential customers
00:00:42.180 and they're just not performing really well
00:00:44.040 and you're frustrated because it's costing you money
00:00:45.960 and obviously lost opportunity.
00:00:48.220 And what you want is essentially a process
00:00:51.320 for bringing on a new sales rep
00:00:52.900 to get them to close faster,
00:00:54.380 to get the deals to get bigger,
00:00:55.700 to essentially increase the total net new MRR,
00:00:58.860 or monthly reoccurring revenue,
00:01:00.260 you're adding to the bottom line.
00:01:01.800 You see, when I was starting my company, Flowtown,
00:01:04.000 we hired our first couple reps.
00:01:05.800 That was always the challenge.
00:01:07.460 As a founder, I could communicate, sell, and do really well,
00:01:11.080 but as soon as I had to have other people involved
00:01:13.480 in that process, it got really challenging.
00:01:15.680 So what I needed to figure out for myself is,
00:01:17.620 how do I measure things?
00:01:19.120 How do I get clear on the specific outcomes I want
00:01:21.980 for my sales reps and my sales process,
00:01:24.420 and really move that forward?
00:01:25.660 And these are the five things you need to do
00:01:27.560 to increase your sales velocity.
00:01:29.760 One, measure your sales velocity.
00:01:32.300 It's a really simple formula.
00:01:33.660 Get out a pencil and a pen and I'll walk you through it.
00:01:36.740 Number one, we need to figure out what is the number of leads
00:01:40.040 that we're actually generating on a 30-day window.
00:01:43.000 Once we have that, then we wanna figure out
00:01:44.520 what our conversion to close rate is
00:01:46.240 or what's called the win rate of our deals.
00:01:48.840 So multiply that by the number of leads
00:01:50.880 and then finally multiply that by the average deal size.
00:01:55.860 Once you have it, then divide those three numbers
00:01:58.860 by the average days to close a deal
00:02:03.040 and that will give you your sales velocity rate.
00:02:06.600 Two, increase the quality of your leads.
00:02:09.600 Now, if you've already mapped out that formula
00:02:12.040 and you know kind of where the leads are,
00:02:13.540 then it's all about improving the quality.
00:02:15.420 So the first thing I'm gonna suggest
00:02:16.720 is sit down with your marketing team
00:02:18.620 and really get clear and define on what's considered an MQL
00:02:22.120 or what's called a marketing qualified lead.
00:02:24.980 The other things you can do is talk to them about introducing
00:02:27.540 lead scoring so that you only get certain opportunities
00:02:31.580 that are actually highly qualified in market,
00:02:34.480 eager to potentially buy your product.
00:02:36.460 Other things you can do is account based marketing list,
00:02:39.100 so essentially being very deliberate on targeting specific
00:02:42.740 companies that you wanna work with.
00:02:44.400 And then for me, finally, it's installing marketing automation
00:02:47.000 because I believe that you should have your marketing take
00:02:49.680 care of the market till they're ready to buy.
00:02:52.240 Three, grow your deal size.
00:02:54.840 Now, this is probably the biggest opportunity
00:02:57.240 for most of you watching this,
00:02:58.840 is if you're doing demos, you're talking to customers,
00:03:00.840 you wanna look for opportunities to upsell and cross sell.
00:03:03.780 Those are pretty traditional things,
00:03:05.240 but is your pricing optimized?
00:03:07.580 Just think about the way you're doing your valuing.
00:03:09.380 Are you pricing based on a value driver
00:03:12.200 and how your customer's gonna use the product?
00:03:14.600 Do you position your product appropriately
00:03:17.500 for the value proposition that you drive?
00:03:19.740 And every industry has a different kind of need
00:03:23.140 that if you can actually use that industry
00:03:25.100 and vertical information to customize the presentation,
00:03:29.020 you can drive up the deal size just by showing other customers
00:03:32.920 that have bought more and got a lot of success
00:03:35.020 with your product and finally,
00:03:36.660 I would say just team training.
00:03:38.060 At the end of the day, if your team doesn't know
00:03:40.320 how to deal with objections, negotiate deals,
00:03:43.160 present properly, then you're always gonna have a challenge
00:03:46.520 around growing the average deal size.
00:03:48.700 Four, decrease your sales cycle.
00:03:51.800 When it comes to looking at the speed of the sales cycle,
00:03:56.100 you need to map it out.
00:03:57.700 You need to break it down step by step.
00:04:00.300 Some clients that I coach, I recommend doing this in a Trello
00:04:03.100 or just on a big whiteboard and just walk through
00:04:05.600 the whole sales process.
00:04:07.200 Who's involved, what are the different steps,
00:04:09.400 the decision makers, et cetera.
00:04:11.100 I teach a framework in my Rocket demo called
00:04:14.500 The Virtual Close to understand who's involved
00:04:16.900 in actually making a decision within an organization.
00:04:19.600 But there's a ton of different techniques
00:04:21.900 to increase the velocity.
00:04:23.480 One of my favorite that I recently learned
00:04:25.240 from my friend Michael Litt, the CEO and founder of Vidyard,
00:04:27.980 was that they have this motto amongst their sales reps
00:04:31.040 is essentially make more friends.
00:04:32.720 Within the organization, if a deal doesn't have enough
00:04:35.480 context assigned to it, the manager will just say,
00:04:38.620 make more friends.
00:04:40.380 And that'll help you increase the champions,
00:04:43.600 the decision makers, the influence your product has
00:04:46.160 within an organization, and will obviously improve
00:04:49.260 your velocity and the time to close a deal.
00:04:52.340 Five, know your numbers.
00:04:55.100 As I mentioned, you need to map it out,
00:04:57.100 you need to break it down, but more importantly,
00:04:59.940 you need to understand the whole pipeline,
00:05:02.880 and that's everything from even measuring
00:05:05.200 the sales velocity, when I sit down with clients,
00:05:06.820 like sometimes they're struggling just to get those numbers,
00:05:09.200 they don't know what their close rate or their win rate is,
00:05:11.020 they don't understand how to measure the average deal size,
00:05:14.400 or they're not measuring it appropriately,
00:05:16.140 so really important to map it out,
00:05:18.840 understand your numbers and really look at
00:05:21.240 the industry best practices, the vertical that you're in,
00:05:24.080 the kind of product that you sell and the companies you serve,
00:05:27.020 what are their numbers based on where you're at
00:05:29.520 so you can benchmark and ensure that you're focusing
00:05:31.920 on improving the right part of the funnel
00:05:33.960 because there is a point of diminishing returns.
00:05:36.260 So the key area is know your numbers,
00:05:38.660 map it to industry best practices
00:05:40.620 and then focus on your least performing process
00:05:43.960 in that pipeline to increase the overall velocity.
00:05:46.860 So quick recaps, one, measure sales velocity,
00:05:50.100 two, increase quality of leads,
00:05:52.440 three, grow the deal size,
00:05:54.740 four, decrease your sales cycle,
00:05:57.240 and five, know your numbers.
00:06:00.580 As I mentioned at the beginning of this video,
00:06:01.840 I wanna share an exclusive download with you.
00:06:03.880 It's called the Rocket Demo Builder.
00:06:05.840 It's linked below, you can click the link
00:06:07.440 and download your copy.
00:06:08.780 I go over the five principles that you need to understand
00:06:11.520 to really close bigger deals faster,
00:06:13.980 specifically the 1080-10 principle,
00:06:16.120 as well as the virtual close strategy.
00:06:18.420 And I even give you the nine step workflow
00:06:20.860 for you to customize the Rocket Demo
00:06:22.520 for your specific situation
00:06:24.320 so you can teach other people on your team.
00:06:26.480 So click the link, download your copy today.
00:06:28.820 If you like this video, be sure to click the like button,
00:06:31.220 subscribe to the channel and share it with a friend.
00:06:34.220 Thanks for watchin', I'll see you next week.
00:06:46.120 Thank you.