WeDesign,Build,andScaleSalesOrganizations

ANNEX.ADDITIONALINFORMATION


ANNEXA RECOMMENDEDREADING

ANNEXB GLOSSARYOFTERMS


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AnnexA:\RecommendedBooks

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AnnexBGlossary

CustomerCentricSelling
OSHIT Themomentwhenaclientrealizestheyhaveaproblemthatneedstobefixed.This
stageisalsocalledAwareness

AHA Themomentwhenaclientrealizesthereisasolutiontotheirproblem.Thisstageis
alsocalledEducation.

WOW Theexperiencewhenaclientisimpressedbytheexpertiseofyoursalesteamin
helpingthemwiththeselection/trade-offprocessoffindingtherightsolutionfor
them.ThisstageisalsocalledSelection

YEEHAW Thefeelingacustomerexperienceswhentheygettofirstvaluetypicallywithin30
daysofbecomingcustomers.ThisstageisalsocalledOnboarding.

AWESOME/YAY Thefeelingacustomerexperienceswhentheygetrecurringvalue,achievingtheir
desiredoutcome.ThisstageisalsocalledUsage

OMG Theexperienceacustomerhaswhentheoverallselection/deploymentexperience
wassogreatthattheywanttoshareitwithotherscreatingwordofmouth.This
stageisalsocalledCross-sell/Upsell.

Orchestration Therearetwoorchestrationpoints:
SalesOrchestrationpoint(alsoknownasthevaluecreationpoint):This
pointoccursintheoverlapbetweenOSHITandAHA.Ifthismomentis
facilitatedbyasalesprofessional,itallowsthemtoorchestratetheentire
salesprocess.Thosewhohelpaclientatthisstagearemostlikelytowin
thedeal.
CustomerSuccessOrchestrationpoint:Thishappensrightaftertheclient
signsandiswillingtoconfideeverythinginyoutoachievesuccess.Thisis
yourmomenttosetthestagefortherenewal/upsellandcrosssell.

SizeofBusiness(inorderofsize)

Freemium Individualnon-payinguseroftenaddressedthroughselfservice

User Individualpayinguseroftenaddressedthroughselfservice

Pro-User Payinguserthatbuysapremiumpackageoftenaddressedthroughwebsales

VSB VerySmallBusiness(often<20employees),oftencalledonbyAE1s

SMB SmallBusiness(10-250employees),oftencalledonbyAE1s

MidMarket Businesseswith100-1000employees,oftencalledonbyAE2s

Enterprise Businesseswith1000+employees,oftencalledonbyAE3s/FAEs

F100/F500 Fortune100/500accounts,oftencalledonbyadedicatedAccountExecutive

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LeadDefinitions(Inorderofdevelopment)

Suspect Aname,phonenumber,emailaddressofaperson.

Prospect Aname,phonenumber,emailaddressofapersonwhomatchesourcustomer
profile

MQL MarketingQualifiedLead:Aprospectwhomeetstheminimumrequirementsof
beingapotentialcustomer.Theyhavetypicallytakenanon-personalaction,suchas
providedtheiremailtodownloadawhitepaper,clickedaroundonthewebpages
(pricing,productetc.),orclickedoncontactus.Themostcommonformis
RequestedDemo.AnMQLneedstobereviewedbyarealperson(usuallythe
MDR)todetermineifitfallswithinthesetcriteria.

Target Targetispre-qualifiedbasedonresearch.Oftenthesearepremiumcontactsfrom
thedatabase.However,aTargetstillmustconfirmtheyarewillingtohavea
meetingtoqualifyasanSQL.

SQL SalesQualifiedLead.ArealleadverifiedbyanSDRthatmatchourprofileand
whoiswillingtotalktoasalesexpert.Thiscanbeforaqualificationordiscovery
call.

SAL SalesAcceptedLead.Followingthediagnosecall,theAE/AM/SMconfirmsthelead
byconvertingittoanSAL.ThismeansthattheSDR/BDRcanbepaid.

LeadGen ProcessofgeneratingMQLs.StandsforLeadGenerationandistypicallypartofthe
marketingteam.

LeadDev ProcessofconvertingMQLsorreferralsintoSQLs

Titles,RolesandResponsibilities

ADR AccountDevelopmentRep:OftenusedtodescribeanSDRwhoprospectsinto
existingcustomerstodrivecross-sellsandupsells.Entirelyfocusedonsupporting
theAMwithexistingcustomers.ADRshelpwithRenewals,UpsellandCrossSell,
thesamewaythatSDRsworkonAcquisitionsales.

AE AccountExecutive:Typicallyasalesrepresponsibleforclosingbusiness.
Commonlyoperatesinaninsidesalesrole.Therearethreekindsofseniority:
AE1:CallsonVSB/SMB
AE2:CallsonMidMarket
AE3:CallsonEnterprise
Thenextlevelis:
FAE:Arolededicatedto1-2accounts(thinkFAEonAT&T)

AM AccountManager:Apersonworkingonpost-sales,responsibleforrevenue
generationfromexistingaccounts.Mostcommon:Renewals,UpsellandCrossSell

BDR BusinessDevelopmentRep:OftenusedtodescribeanSDR.Butthisshouldbea
personwithSDR-likeresponsibilities,thoughentirelyfocusedondevelopingleads
withpartnerssuchasSalesforce.

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CXO SomeoneintheC-suiteorChief[something]Officer-suchasChiefCustomer
Officer,ChiefExecutiveOfficer,orChiefFinancialOfficer

CRO ChiefRevenueOfficer:OverseesAcquisitionandRenewalsales

CSM CustomerSuccessManager:Thisroleisvariedandoftenusedtodescribeaseries
ofverydifferentrolesthatshouldbesplitinto4differentroles-inorderof
development:
ONB-Onboarder,focusedonachievingfirstvalue
CSM-CustomerSuccessManager,focusedonachievingrecurringvalue
AM-AccountManager,focusedoncapturingrenewals,up/crosssell
EVANGELIST-Responsibleforcommunityandadvocacy

CFO ChiefFinancialOfficer

FAE FieldAccountExecutive:ThemostseniorformofAE.DiffersfromanAEinthatthe
roleislocatedinthefield,andtheyareexpectedtobeself-motivatedandableto
workrelativelyunassisted.

MDR MarketDevelopmentRep:ThemostjuniorroleoftheSDR.Differsinthattheyonly
respondtoinboundandthereforedonothavetodiagnose,prescribeorhandle
objections.

PM ProjectManager:Apersononthebuyerssideresponsiblefordeployingthe
purchasedsolutionsmoothlyandontime.

SDR SalesDevelopmentRepresentative:Themostcommonnamedescribingaperson
responsiblefordevelopingleads.TheSDRrolehas5levelsofseniority:
MDR:MarketDevelopmentRep-onlyperformsinboundsLeadDev
SDR1:PerformsOutbound1-1/EventbasedLeadGen
SDR2:PerformsOutbound1-Few/1-ManyforLeadGen
SDR3:SocialSellerthatgeneratesandusescontentforLeadGen
ADRandBDR:
ADR:Developsupsell/crosssellopportunitiesinakeyaccount
BDR:DevelopsSQLsinvolumethroughapartner

SE SalesEngineer:SimilarroleasaCSMexceptwithin-depthtechnicalexpertise,often
usedasanonboardingspecialistonservicesthatrequiredeepintegration,security
protocolsordesktopintegration.

VPM VPofMarketing:ResponsibleforLeadGenerationandLeadDevelopment(also
branding,advertising,andsearch,butthisisoutsideofourcontext).

VPS VPofSales:OftenoverseesAcquisitionSales.IftheyalsooverseeRenewalsales,
theirtitleoftenisCRO.

SaaSBusinessTerms

ABM AccountBasedMarketing:Callingonaccountsversusindividuals

ACV AnnualContractValue,12monthsofMRR+Installation/Services

ACRC Costsassociatedwithrenewalsonly

APAC AsiaPacific

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ARR AnnualRecurringRevenue:SimilartoACV,butARRonlycoverstherecurring
revenueofthedeal(i.e.notSetUpFeeor1-timeservicecharges).Thisiscalculated
byMRRx12

B2B BusinesstoBusiness,suchassellingsoftwaretoacompany(e.g.,Salesforce)

B2C BusinesstoConsumer,suchassellingtoanindividualconsumer(e.g.,adad)

CAC ClientAcquisitionCost:Costofacquiringacustomer.Oftenestimatedbyadding
thepreviousmonthofmarketingandsalescostsdividedbythenumberofclients
won.

CR ConversionRatio:Canbeappliedtolotsofmetrics-specifically,salesfunnel
metrics.

CRC ClientRetentionCost:Costassociatedwithkeepingthecustomer.Thisisthetotal
costoftheCSorganization,includingheadcountofONBsandCSMs.Inmany
cases,itdoesnotincludeAMsand/orEVANGELISTs.

CRM CustomerRelationshipManagement:Oftenreferstothesoftwarethatyouusefor
managingyourcustomerinformation(e.g.,Salesforce).

CrossSell Thisisanopportunitytosellwithinanexistingcustomeraccounttoadifferent
teamthatholdsadifferentbudget.Thisisbringinganewdeal,butnotanewlogo
ornewbusiness

LTV LifetimeValueofaCustomerisanestimateoftheaveragerevenuethatacustomer
willgeneratebeforetheychurn.InSaaSsales,thisisoftencalculatedbyACVfor
yearone+2xARRtocoverapproximately3yearsofrevenue.

MAS MarketingAutomationSystem:ToolusedforLeadGenandLeadDev(nurturing)
oftenusedbyMDRsandmarketingteams.CommonexamplesareMarketo,
Eloqua,PardotandHubspot.

MRR MonthlyRecurringRevenue:Thesumofthemonthlyfeepaidbyeachofthe
subscribersinyourcustomerbase.

RoI ReturnonInvestment.Expressesprofitability,ortheefficiencyofaninvestment.If
yougeneratemorerevenuethanyourcosts,youhaveapositiveRoI.MostSaaS
servicesmustofferaclienta10xRoI(e.g.,forevery$1theyspendonyourservice,
yourservicemustdirectlycontribute$10totheirtopline,orsaveonthebottom
line).

SaaS SoftwareasaService-Ifyouhavetolookitupthisbookisnotforyou.

Upsell Upsellisadealthataddsmorevaluetoanexistingcustomercontract.Thisisby
addingmorelicenses,increasingthepriceyearoveryear.Thisisadistinctsales
processfromCrossSell(differentteamorbudget).

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