Why a $6M Agency Needs a Faster Sales Cycle — Transcript

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1. 0:00video testimonial agency. We sell to
2. 0:03mid-market and enterprise B2B software
3. 0:05companies. So, we help their sales
4. 0:06enablement, social proof. Usually
5. 0:08selling to like director of marketing,
6. 0:10so like not super high. 15,000 average
7. 0:14order value, so it's like, you know,
8. 0:16not huge for them.
9. 0:17Uh 6 million revenue. Um
10. 0:20we'd like to be at, you know, 20. Um
11. 0:24I think what's what's stopping us is
12. 0:27we've grown a lot. Um
13. 0:30To uh
14. 0:30>> To what's stopping you from doing more?
15. 0:32>> So, yes. I've got Okay, so we've we've
16. 0:35grown a lot with um kind of like inbound
17. 0:37word of mouth. Uh
18. 0:39and, you know, we're good at closing
19. 0:41those those leads, right? They're
20. 0:43they're in their buying cycle, right?
21. 0:45We've [snorts] just started
22. 0:46>> right?
23. 0:46>> Yeah, right. Um
24. 0:47we just started getting outbound and
25. 0:50LinkedIn ads to work really well. We're
26. 0:51booking like 100 sales calls a month
27. 0:53right now.
28. 0:54Um but, the close rate is like
29. 0:58half that
30. 0:58>> Can I tell you what I think it the
31. 1:00problem is?
32. 1:00>> Yeah, our sales process?
33. 1:01>> Well, yeah. But, you have a warm process
34. 1:03for cold You're you're using a warm
35. 1:05process on a cold lead.
36. 1:07>> Yeah.
37. 1:07>> That's the issue. So, I'll give you a
38. 1:09rule of thumb for everyone. Uh build for
39. 1:11cold and it works everywhere. If you
40. 1:13build for warm, it only works on warm.
41. 1:14So, like many of like said differently,
42. 1:16like some of you guys
43. 1:18might have So, I launched a book 2
44. 1:19months ago. Um and at that book launch
45. 1:23uh many people, if I had just said I I
46. 1:26probably could have sent an email
47. 1:28saying, "Hey, I wrote 17 extra books. If
48. 1:31you buy a bunch of books, you can get
49. 1:32those free plus our AI thing and it's
50. 1:34awesome."
51. 1:35And I probably would have done a third
52. 1:37of the sales that we did just from
53. 1:39sending a bunch of emails to do that.
54. 1:43But, if I had treated the entire
55. 1:45audience that way, I would have been
56. 1:46under converting by probably 2/3 what I
57. 1:48should have been converting, which is
58. 1:50what we're talking about. So, I think
59. 1:51you probably are in a similar situation.
60. 1:53So, what is the
61. 1:54Um you said the conversion's half. I
62. 1:56don't necessarily think that's bad if
63. 1:58it's compared to somebody who's a warm
64. 1:59introduction. So, what are the
65. 2:01>> be less. It might be less.
66. 2:01>> Okay, so what are the close rates on the
67. 2:03calls that are MQLs or SQLs?
68. 2:06>> So, the on the LinkedIn ads, we're at 6%
69. 2:10um, of leads.
70. 2:11>> Of leads.
71. 2:11>> Okay, well, that depends on the process
72. 2:13and what they're opting in for. So, what
73. 2:14percentage of calls that are SQL like
74. 2:16qualified leads that you get on the
75. 2:17phone with are you closing?
76. 2:18>> Dustin, what's You know that one? Or my
77. 2:20VP of
78. 2:24Straight to call?
79. 2:25>> Yeah.
80. 2:25>> Okay.
81. 2:26>> The
82. 2:26show up rates
83. 2:29>> Amazing.
84. 2:30That's great.
85. 2:31>> a incentive to get them on the call,
86. 2:33too.
87. 2:35>> My head just goes in a bunch of
88. 2:36directions, but cool.
89. 2:38Um, okay. Um, okay. So, you So, you're
90. 2:40giving an incentive. Sorry.
91. 2:43You're giving an incentive uh, to get
92. 2:45them to show up. Uh, so let's say 100
93. 2:47people opt in, you get 85 uh, sorry.
94. 2:50Sorry. 100 people book a call, that's
95. 2:52what you're defining as a lead. Um, are
96. 2:53all these people book calls qualified?
97. 2:56>> Yes, because we were advertising to a
98. 2:58named accounts. So, essentially, yes.
99. 3:00>> Okay, so all of those are qualified as
100. 3:02far as you're concerned. 85% of them
101. 3:04show and you're closing 6% of the 85
102. 3:07that show.
103. 3:11Eight. So, not much better. Okay, got
104. 3:13it. Um,
105. 3:15Yeah, you need just We just need to
106. 3:16build a sales motion, dude. We need to
107. 3:18put a VSL in place.
108. 3:19Um, we have to have a basically a set
109. 3:21qualification and um, a pre-frame for
110. 3:23the close call. And then we have to put
111. 3:25a training cadence in place for the
112. 3:26sales guys to make sure that they're
113. 3:27actually following that process. And
114. 3:29we'll show you how we can test the the
115. 3:30VSL portions to make sure that we can
116. 3:32basically iterate on that process so you
117. 3:33can um,
118. 3:35shorten the sales cycles and increase
119. 3:37close rates. So, if you were calls on
120. 3:39the back end, pull that forward and
121. 3:41that'll actually increase your sales
122. 3:42utilization for the team so you have
123. 3:44fewer sales guys closing more deals,
124. 3:45which allows you to attract even better
125. 3:46sales guys. So, it's a virtuous loop
126. 3:47rather than a vicious one. Does that
127. 3:49make sense?
128. 3:49>> Yeah.
129. 3:49>> That's what we need. That like literally
130. 3:51that's the problem.
131. 3:52>> And then the other thing is like um so
132. 3:55we're we're all project-based.
133. 3:56>> Yeah.
134. 3:57>> Um so, you know, about
135. 4:00>> Is this not recurring?
136. 4:01>> It's not recurring. So, we sell like
137. 4:02packages.
138. 4:03>> like 15k?
139. 4:04>> Yeah, 15k and then they they'll buy
140. 4:06another 15k when they want or 20k. I
141. 4:08mean, some of our contracts are 100k,
142. 4:10but it's like average is 15k.
143. 4:12>> Um so, like we're people you know, we're
144. 4:15trying to figure out like
145. 4:16>> So, it's a service and not a software?
146. 4:17>> It's a service. Yeah, it's a
147. 4:18done-for-you
148. 4:20service. You know,
149. 4:21>> Or
150. 4:21>> Yeah. Um
151. 4:23and yeah, basically it's like how do we
152. 4:26drive repurchase, you know, cuz with
153. 4:28>> have assumed this was continuity.
154. 4:30>> Yeah, no.
155. 4:31>> is it not?
156. 4:33Cuz to Cuz to me if I'm managing my
157. 4:35reviews and and what like said
158. 4:36differently, I want to collect
159. 4:38testimonials this month, next month,
160. 4:39next month, next month. I don't want to
161. 4:40just do a blast and then just get some
162. 4:42five stars and then have it die. Like I
163. 4:43want to always have fresh new reviews.
164. 4:46>> So, it's like our it's like 9k per one
165. 4:49testimonial.
166. 4:50Um
167. 4:51you know, so it's like I think that's
168. 4:53part of it is like people are it's a
169. 4:54premium relatively premium price.
170. 4:56>> Okay.
171. 4:57>> There's like options from 4k to 9k, but
172. 4:59>> Okay.
173. 4:59>> it's not like 50 that it's not
174. 5:01>> So, you reach out to a bunch of their
175. 5:01customers, the ones that seem really hot
176. 5:03and and bothered.
177. 5:04>> intro us to customers who have agreed to
178. 5:06send us a video.
179. 5:07>> fly out or you fly out and like
180. 5:08>> have
181. 5:09subcontractor network.
182. 5:11Yeah.
183. 5:11>> Yeah. Exactly.
184. 5:12>> Yeah. Okay.
185. 5:13>> Um so, like I think the reason that it's
186. 5:15we haven't got continuity yet is cuz
187. 5:17like the price point. They only want to
188. 5:19buy like three or four
189. 5:20>> at a time.
190. 5:20>> So, I would do this. I would I would
191. 5:22bifurcate the offer. So, I would say we
192. 5:24have a quality and a quantity offer. You
193. 5:26need both. And so, like two what ways of
194. 5:27persuading. One is I mean, this is how I
195. 5:29would pitch it.
196. 5:30There's more than one two ways to
197. 5:31persuade, but I'd say like you have the
198. 5:33emotional resonance and then you have
199. 5:34the logical side. The emotional side is
200. 5:35like can we get uh
201. 5:37a representative group of avatars that's
202. 5:38going to make up or comprise the vast
203. 5:40majority of people that you're you that
204. 5:41are coming in the door on the front end?
205. 5:43Uh and so, that's like phase one. That's
206. 5:45the upfront cost. That's 15 or 25 or
207. 5:48whatever. And that's where we to sure we
208. 5:49capture all the ICPs using their
209. 5:51language, right? Now, that being said,
210. 5:54if you have reviews or testimonial
211. 5:56stories that are 18 months old, they
212. 5:58lose relevance. And so, the stories are
213. 6:00relevant, but we want to show that your
214. 6:01company is still up-to-date, still
215. 6:03providing great service cuz things do
216. 6:04degrade. And so, we have a quantity
217. 6:06approach as well, where we're just
218. 6:08getting lots of five stars and snippets
219. 6:09and short kind of UGC style that we do
220. 6:11on a regular basis. And so, this would
221. 6:13be my ongoing package. This is my
222. 6:15>> front. This is big head, long tail.
223. 6:16That's what we're currently
224. 6:17>> Yeah.
225. 6:18>> Love it. Love it. Thank you.
226. 6:19>> Yeah, you bet.
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