Today’s Revenue Tomorrow’s Pipeline

1. Today’s Revenue Tomorrow’s Pipeline Build Lead Qualification That Fuels “Making Your Numbers” Stuart Silverman, CEO

2. Today’s Topics • Focus on Revenue • Defining Truly Qualified Leads • Problems Indicating Need • Value • Arriving at Revenue Target • Infrastructure Trade-offs • Take Away Tools

3. , Revenue , Revenue The Focus is Revenue $$ Now All about Direct Sales Current Quarter Mentality TQL Pipeline { Unidentified Raw Inquiries All about Lead Qualification Feeding the family 6-9 months from now In the Current Economy, Revenue & Cash Position are King

4. , Revenue , Revenue The Focus is Revenue $$ Now Pipeline Opportunity Cultivation In the Current Economy, Revenue & Cash Position are King All about Direct Sales Current Quarter Mentality { PIPELINE CONSTRUCTION How can we invest in doing this better?

5. Defining Good Leads

6. TrulyQualifiedLead TQL • Target Market/Company Size • Decision Maker/Recommender • Pain/Interest • Environment • Budget • Timeframe • Willing to meet Salesperson

7. Problems Indicating Needfor Lead Qualification

8. Experiencing the Following? • Direct Sales Team Wasting Time Cold-calling • Not enough time “at bat” – direct face-time on closable opportunities • Wrong or Low-probability Prospects • Evangelical Selling • Taking up large amount of sales time due to “in-field” testing of messaging • Exposed with Management & Board, Due to Poor Deal Conversion to Closures • High percentage of forecast not closing within the predicted timeframe and dollars, and not with predicted account names.

9. 90 80 70 60 50 Forecasted Revenue ($M) 40 30 20 10 0 Before The Board Meeting After the Board Meeting The Forecast Problem

10. Value

11. Major Steps in a Sale 70 dials = 1 TQL Generation Direct Sales Cycle Qualification Validate Develop Propose Negotiate Close Get A Raw Inquiry Qualify Opportunity (Get TQL) $250K Resource $80K Resource Time & Effort Value of Lead Qualification Engine How many dials do your direct salespeople have time to make?

12. 6 mo from now, another 420 dials * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * Raw Inquiries, & Cold Outbound Qualified Opportunities Quantifying the Effort to Get Good Leads 630 dials Closed Loop Process

13. * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * Sales Experience Before the Lead Qual Engine Sales Experience After the Lead Qual Engine Benefit To Sales Reps: Fuller Pipeline of Qualified Opportunities

14. Face To Face Selling Time Face To Face Selling Time $$ Qualifying, Administrative Time Qualifying, Administrative Time Before After Direct Sales –“More Time at Bat”

15. Why Invest in Pipeline Construction? • Rapid and Well-Qualified Lead Flow to Sales Channel • Shortens Direct Sales Cycle • Efficient Testing and Validation of Messaging • Measures and Maximizes Return on Marketing Program Spending • Minimizes Cost Per Order Dollar (CPOD) • Focuses expensive Direct Sales Resources on qualified prospects and deal closure • Minimizes Risk • Creates a “bankable pipeline” • Enables reporting of projections and timelines to Management & the Board, with definitive information and facts backing it up

16. Arriving at Revenue Target

17. How do I know if I’ve got enough incoming inquiries, and resulting qualified leads to make Revenue Target?

18. Marketing Programs Raw Inquiries Need 700 inquiries SFA 10X Lead Qualification Engine Need 70 TQLs Truly Qualified Leads (TQLs) 7X Sales Reps 10 orders, Q4 10 Orders Q4 Process to Arrive at Revenue Target Lead Pipeline Sales Pipeline

19. # Inquiries Needed vs Planned To Produce $50M Annual Goal 4500 Worst Case: 8 inq/QL, 8 QL/order 4000 3500 3000 # Raw Inquiries 2500 2000 1500 Best Case: 4 inq/QL, 4 QL/order 1000 500 0 Raw Inquiries needed Raw Inquiries planned Setting up for Success This disconnect must be addressed with cohesive Lead Generation & Pipeline Construction processes

20. Yes, there’s math and logic behind those huge numbers! Assumptions # of inquiries/qualified lead (QL) 8 # QLS/order 6 Sales Cycle (months) 3 % inquiries that are reusable in 4 mo 0.5 # months to qualify an inquiry 2 Ave revenue per unit ($k) over 1 year 100 Conclusion: To close 78 orders worth $5.7M, we need 3144 inquiries, 540 qualified leads, and 5 Lead Qualification Reps Sample Analysis That Aligns Orders, Qualified Leads, and Inquiries

21. Infrastructure and Trade-offs

22. Putting Infrastructure & Process in Place Goals and Business Profile Drive Your Lead Qualification Strategy and Decisions • Channel Structure • OEM, Direct, Indirect? • Overall Goals for Lead Qualification Results • Long term, strategic, repeatable? • Short term, tactical, quick one-time hit? • Budget and Time Restrictions • Afford more Direct Sales? • Indirect or OEM Channel set up? • Ratios to consider

23. Putting Infrastructure & Process in Place • Product and Company Profile • Complex Product? • New Market paradigm or technology shift? • High ASP? • Long Sales Cycle? • Need to measure effectivity of lead sources? • Inside, or Outsource? • Reporting Structure • Marketing or Sales?

24. Can I Actually Sell Over the Phone? Sales Closure vs. Pipeline Construction • Product Criteria must fit following: • Not strategic to the customer • Costs less than $20k • Is not a new product category • Can be easily explained or demonstrated in a CD or over the Web

25. Take-Away Tools

26. Tools to Take Away from Today’s Session • Lead Qualification Strategy Decisions • Lead Qualification Inquiry Calculation • Roadmap: Building a Lead Qual Engine • Formulas for Lead Qualification Success

27. Summary • Focus on Revenue • Defining Truly Qualified Leads • Problems Indicating Need • Value • Arriving at Revenue Target • Infrastructure Trade-offs • Take Away Tools

28. Pipeline Construction Inside Sales Development Market and Positioning Customer Studies 2672 Bayshore Parkway Suite 605 Mountain View, CA 94043 Phone: 650-404-1680 Fax: 650-864-9209 www.salesramp.com