22 Aug When it comes to sales, small changes = big impact
If you think you’re not hitting quota because you don’t have enough leads, you’re looking for answers in the wrong place. The great Jacco vanderKooij tells us why.
In June we staged our first Sales Confidence conference at HereEast, in London’s Olympic Park. We called it SaaSGrowth2018. We had over 200 SaaS professionals in the audience, watching more than 30 of London’s foremost SaaS experts share their knowledge. Even if you couldn’t make it, we want to share the inspiration and education with you through our SaaSGrowth2018 articles.
It was a thrill to welcome Jacco vanderKooij onto the SaaSGrowth stage. After a phenomenally successful sales career, Jacco founded Winning By Design. Jacco and his team go into startups and established organisations and revolutionise their sales processes through training and strategy. He is an extraordinarily charismatic and emotive speaker, and I’m sure I speak for everyone who saw him at SaaSGrowth when I say his talk was a real highlight. The talk was titled ‘Sales as a Science’.
Jacco used a whiteboard to show how small improvements to your sales metrics can make a significant impact on your revenue. I’m going to try and repeat it here!
Get more from your leads
Take 1000 leads generated using the inbound model, going through the following sales funnel.
· Conversion rate after 1st touch = 30%
· Conversion rate after 2nd touch = 20%
· Win rate = 1 in 5
· Average price = $15,000
The Annual Recurring Revenue will be $180K. (Work it out yourself if you don’t believe me!)
If you can improve those stats, even only slightly, it makes a big difference to the bottom line.
With the same 1000 leads:
· Conversion rate after 1st touch = 32%
· Conversion rate after 2nd touch = 22%
· Win rate = 1 in 4.5
· Average price = $18,000
These small improvements make your ARR jump to $281K. A massive 56% increase!
Jacco put it this way.
‘Small changes. Big impact.’
‘This is just what happens before the sell. If you can improve what happens after the sell you can achieve even more.’
‘This is the trick that many organisations don’t understand. When they want to double their revenue, they ask marketing to double the amount of leads they produce. It’s not the volume of leads that’s the problem, it’s the conversion.’
How to make these small improvements
Of course, finding a way to make these improvements is the interesting part.
‘Getting an SDR to improve their conversion rate from 20% to 22%, that’s a reasonable ask. Deploy a best practice on how to improve it.’
For Jacco, sales isn’t a black art.
‘When I closed a multimillion deal with Amazon, they didn’t come up to me afterwards and say, ‘Jacco, that was a brilliant negotiation.’ They said, “Jacco, you were the first person to listen to us. You were the first person who took notes when I was talking. True sales isn’t about negotiation. It should be the last thing that happens. It’s about being on the same side of the table.’
Jacco went on to elaborate on this, on how to create moments that matter to your customer. You can read about the 7 moments that matter here.
Over to you
What do you think of what Jacco had to say? What small improvements did you make to have a big impact on your revenue figures? Let us know in the comments down below.