Sales teams – From Hunters to Fly Catchers

Based on article by Guido Kuznicki 

Group targets by Elephants , Deer , Rabbits , Mice and Flies – based on the ARPA (Annual Revenue Per Account)

Size of account varies from industry to industry so research this before segmenting opportunities

Elephants – Enterprise Sales

  • Long sales cycle with many stakeholders
  • Expect a procurement process
  • Value of a single contract is significant
  • Expect high levels of customisation and service
  • Expect long payment periods
  • Expect long contract periods
  • Requires experiences team of sales people and account managers
  • The level of your point of contact and their ability to advocate in the organisations structure is key to closing
  • Pre-existing relationships and getting powerful stakeholders to seek you out Is more efficient that pure outbound sales
  • The number of prospects is low enough that a tiered sales team with BDRs is not required

Deer – Predictable Revenue 

  • Longer sales cycle, with multiple stakeholders
  • Expect a procurement process
  • Expect high levels of service, but less demands on customisation
  • Expect longer payment periods
  • Requires outbound sales efforts from BDRs, and strong experiences sales people to close
  • Requires account managers to support
  • Large enough that you can forecast business models with them
  • Large enough that a loss of an account would be troublesome
  • Ideally you wan these accounts to renew consistently
  • Cold calling and outbound sales is an efficient route to new business
  • Leverging sales partners to help close these deals can also be beneficial
  • Aim for a prix-fix style menu for customization

Rabbits –

  • Ticket is lowers so you need more to sustain your business
  • A combination of outbound in a Deer style, coupled with marketing that drives inbound leads works best
  • Leverging sales partners to help close these deals can also be beneficial
  • Deals should close relatively quicker with more standard offerings and contract terms
  • Payment terms should be upfront or with very short payment cycles
  • Avoid customisation or service in the offering. 
  • Aim for a prix-fix style menu for customisation.
  • You can expect higher churn and more competitor comparison in this type of client
  • Onboarding and experience interacting with your business is key

Mice and Flies –

  • Small accounts
  • Sales process should be focused on marketing efforts pulling in leads
  • Paid media can be an option so long as you can manage the costs and margins relative to LTV
  • Aim to automate the sales process as much as possible
  • Aim to automate the support and client success as much as possible
  • Aim to automate the renewal experience as much as possible
  • Tools and processes designed for managing these size of clients is essential
  • Churn and Retention are important but need to be scalable and automated

You probably want to start with Deers, gaining a reasonable base on recurring revenue and suing the deer to establish consistency and process before expanding to Rabbits which provide you with a chance to establish partnerships and build a reputation, and allow you to systemise and automate your processes, then you can establish initiatives that target elephants and finally mice and flies.

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