This column strives to achieve some insight into “best practices” through some of Mike’s own worst practices. Every Tuesday he offers up the biggest mistakes, oversights, blunders and bonehead moves he commits in the fast-paced world of software-as-a-service, where he’s a Marketing Manager moonlighting as a Sales Account Executive (at the same company.) Perhaps, in the process, we may learn a thing or two.
I’m happy to say, I closed my first new account of 2009! Since I’m in a good mood, I thought I’d mix it up a bit this week and analyze the pros and cons of the sales cycle for this win.
Some key stats:
- Turnaround time from lead to close: 23 days (16 business days)
- Number of formal meetings: 1 online, 1 onsite
- Lead source: Channel partner referral
- Relative value: 60% of my Monthly Quota
Pros:
Leveraged partners: As this was a referred by a channel partner, I paid extra attention to key relationships. I became the “project lead,” coordinating the efforts of the channel partner (operating 2,500 mi. from both myself and the prospect) as well as a third partner vendor recommended and demo’ed by me. I maintained control of the communications to the prospect, preventing mixed messages from the multiple parties, and representing a unified front. With all parties completely satisfied by the end, I feel I accomplished this.
Leveraged internal champion: The initial phone conversations and online meetings served as a great way to connect one-on-one with the primary contact, who quickly became a champion and advocate for our solutions. This relationship led to instructive preparation for the on-site visit, suggested by me. The champion wanted the on-site demonstration to go well, and did everything in their power to help me achieve success on that front (despite my nerves.)
On-site visit: This was my first ever solo sales call on-site with a prospect. I was apprehensive and a bit uncomfortable at first, but the key players at the meeting were very down to earth, and I quickly settled into a groove. Though not without hiccups, the on-site visit served to create a sense of “realness” to the often ethereal concept of software-as-a-service. Also, I felt my presence and willingness to meet face to face increased the overall credibility and viability of our organization as a potential “trusted adviser” and solutions provider.
Tireless follow-up: From the moment I heard a verbal cue that I was winning the business, I made closing the deal a top priority. In about a week’s time, I made sure to communicate with the decision-maker each day, as well as continuing coordination with the 3rd parties. Contract negotiation involved calls to their lawyer, nitty-gritty attention to legal detail, and hassling my own CEO/legal counsel for answers. I feel by making it my top priority and not allowing any substantial gaps in activity during the process, I made it impossible for anyone to drop the ball and delay the close.
Cons:
Mastery of technology: I made a huge mistake at the on-site visit by bringing a brand-new laptop…that I had never used before…with Windows Vista on it. This would be the cause of the aforementioned hiccups. It wasn’t entirely the computer’s fault; I only spent about 30 minutes on the machine prepping for the demo. I mostly just tested the projector and opened our application in one browser. I ran into several issues, including delaying the start of the meeting by about 10 minutes because I couldn’t get GoToMeeting to run.
On-site environment prep: It never occurred to me to ask if there was going to be a phone in the meeting room with which to conference in the channel partner. So he ended up on the built-in speaker of one of the prospect’s iPhones, which doesn’t exactly project. As he lost the ability to contribute, I had to pick up the slack and spend more time presenting. I also did a terrible job of preparing for internet connectivity. I failed to bring a network cable, I brought a Sprint wireless card that provided unacceptable bandwidth to demonstrate web apps, and I was incredibly lucky that they had reserved a private wireless network from the hotel where we met. Close call, and SO easily avoided.
Contract preparation: Really, the main reason it took a week to close the deal was my lack of attention to detail on the legalese of our contract. It was mired in inaccuracies that didn’t apply to this type of channel sale, and mostly served to confuse the prospect and their lawyer. This led to several back and forth communications that could have been avoided with some foresight – or at the very least closely reading what I gave someone to sign!
Rookie mistakes…right? I’d love to hear some of your Sales and Marketing horror stories… Please post below!
{ 2 comments… read them below or add one }
Congrats on your first sell of the year!
Nice work, Mike, and looks like you learned alot on this solo flight.