B2B Revenue Acceleration
B2B Revenue Acceleration

Episode · 2 years ago

60: It’s Time to Value Sales Development and its Role in B2B Marketing Success w/ Garrett Mehrguth

ABOUT THIS EPISODE

The reality of an Amazon and Yelp world is that people are going to do informational searches before they visit your website.

If you’re only measuring whether your brand shows up when people are searching for it, you’re completing ignoring whether it’s what your searcher wants in the first place.

On this episode of B2B Revenue Acceleration, I interview Garrett Mehrguth, CEO at Directive Consulting, about why sales development is so undervalued in B2B marketing — and what we can do about it.

What we talked about:

  • Why it’s time to value sales development
  • 3 best practices for developing good sales development timing
  • The only 4 metrics you need to be tracking
  • Focusing on your brand, not your search results

To hear this episode, and many more like it, you can subscribe to The B2B Revenue Acceleration Podcast.

If you don’t use Apple Podcasts, you can listen to every episode here.



You're listening to be to B RevenueAcceleration, a podcast dedicated helping software executives stay on thecutting edge of sailes and marketing in their industry. Let's get into the show hi welcome to be to be a revenueacceleration. My name is orany a mit here and am yer today with GarretMaygood, see you a directive concurlating. How are you doing today,Ge Right, I'm doing well, thanks for having me excited to Shatt, Yoray andglad a beer. The ADU absolute pleasure swhat on my side, so autopic for todayis its time to value, sells development and its role indeed to be marketingsuccess. It's a long time all, but I like the adbind it and I'm veryexcisable at conversation today, but before we go into the detail Garet,could you peasintroduce yourself as well as Ou Ow, give us mo informationabout your company Directiv Yeah, so I started directto about five years ago.Almost six! Actually now so like five and a half years ago, and we do searchmarketing for enterprise brands lot in the BTB space Storlu last two threeyears would really focused on BDV and yeah. We essentially partner withINOUSE marketing teams in the BTB spase a lot of times e demand generation andhelp them hit their goals and their gap es around the leads and opportunitiesdeals and revenue. So yeah. We focus a lot in that area and mostly so and PPCexcellent. What that's and that's? What's quite intriguing for me, becausetoday we would have expected to probably have more conversation withyour on Dutal Marketing Ns. But I like the fact that your company on DheStandard Dal job is not just T deliveor LEDs. It's you care as an organizationabout what actually happens to the leads. After you end, the mov ou to tothe cells, development am of your clients, and I think that s that's seenvery abole, but you know we know that when the sellis development to do slidson, obviously there will be different kind of outcome that you can expect. Itcould be an opportunity. It could be a nulturing apottuminty ike would be noPortunity a wrong person wrong company Wen wrong contact. But coming back tomy main question and my opening question: Why is it time to Vau cellsdevelopment and why do you think it is an value Deouh at the moment, sodevalmat build a couple ways right so a lot of times the reason sellsdevelopment, I want to say scills, Zolma, isn't necessarily valued in highgrowth organizations. I think in legacy organizations sells development isn'tas valued, and I think one of the reasons is you know inbtob. When youhave a higher purchase like I've learned. Two things are reallyimportant to why Celles development works or not one of the things that'simportant for sales development works or not. As timing, I found that themost important thing is sells. Development is getting the timen right,Wers Soe, cool tactics that we developed here to get the timing rightmore often, so that's really important, but it depends if you were replacementproduct or an adom product or replacement service or an adon service.So if you're a replacement service, that means intrinsically for someone tohire you they have to fire someone, and if your industry relies on more longterm contracts or six or twelv month...

...contracts, then once again, it goesback to timing because they couldn't even hire you even if they wanted to alot of the taks. And so you have to sart to understand intil develoment.When you have high purchase prices, a replacement product, you have to learnto get the Timeyou Wright as there's a lot of things that go into it. If youdon't understand all that, and you kind of think that you're just going to sendout a hundred emails and get three responses and then set two meetings andget one deal, it doesn't actually work like that, and so I think a lot oftimes. People go in with the wrong expectations and theydon't realize that takes six months to ramp up an SDR sometimes or it couldtake o. You know two years of investment to build off the team beforethey even get to positive Roy and a lot of people. Don't want to invest thattype of capital yeah and I think the timing is Ke. You know we've seen it all, and probably so sohave you, but I think if someone don load twentypages white paper following up with them within five minutes of them doingthe Donrol, it might not be realy relevence, because Nomo e read that itokayhowever Yos ar end. You know we ere so deal with chat, so we may havesomeone coming up on to a chat and the prieme Wis trage that you often havepeople asking you question about the prodect aalreay got and that's reallytrained to bys those for Chato. You know you may always have a lot of time,Waisto but wi charge. You need to be very quick because if I want, if I'mdoing a chat and actually had an example in my personal life, I was wastraying to deal with someone and the chat window open for probably like fiveminutes and then what Sol? Do you open another window and you carry on yourday? You do something else and then, when you come back, the Shet isfinished. Yeah. You've got to start the process again. So tell me a little bit more about thetiming and what you see as best practises. I agree with you. There is awide rang, so it may be a tricky question, but ca just develop a littlebit more or share with us a you wor stories about wher. You see nthetimingbeing very important and successful for your clients yeah one of the things wefound timing is it's critical to map accounts, and so what we learned is alot of times when you're trying to sell someone or build a relationship weoftentime, we ask for too much. We start theconversation with asking for their time, which is the most valuable thing to anyprofessional you're actually trying to get their business from, and so we askfor a meeting the for Fiftyn minute call book a time here. intro calls andwhat I found is it's actually better to learn about their current situation. Dothey have an agency or not? Are you already using a sales platform? Okay,when's, that contract up? Are you the best person t talk with so we actuallyfocus on here at directed mapping accounts, that's our primary initialKBI and by mapping accounts. We can then build in our sales for database.We know when every account is up and we know, then we can essentially giveourselves envelopment team, okay in six month, this contracts up and eventuallythey have thousands of accounts where they actually already know when thetimings right, which makes us incredibly successful. That lay so it'skind of a grace svalured before the...

...renewt is juice. If you had, someone isGoin, no run you something in January, O thousand and twenty, and you knowthat you've got a two months or cycles. You probably want to contact theMoctober to Sayey. You remember the conversation we had. We have metfaksense FA product right. You couldn't remember if you're asking for an intralcall and they can't even hire you, you know what they do right. That's theninety seven percent of people that don't respond, and so we don that isless engaged with the people that aren't responding because they don'thave any timing, not that the message isn't necessarily relevant and theywouldn't hire us o set the Timis so wrong that they can't euknow worryabout it right now. So instead we ask questions that are not timing,dependent to learn more about them, and then we can get the timing right andthen not bug them, and it doesn't feel salesy because they're actuallygenuinely thinking about a new organization, wo Software New Agency tosupport them at that time. And so, when we reach out, we get to have a lovelyconversation. We get a meeting and then we get to help them make a purchasingdecision, because we know the time ins right, that's a really important part.So so you had some Thi that you do sort like a progressive profiling type ofapproach. So I don't know you've got. Let's say: YOU'VE GOT Honord ofquestion to ask me. You know, in order to put me in the right segment in ardorto disposition me as a contact for Tye organization doesn't mean that everysingle time you've got an interaction with me. You will ask me a differentquestion so, as time goes by and while you may not be getting my time yet, butyou may be getting information that will help you to go further and furtherinto whois that guy with what is he doing in the company and what does HEUreally care about that? Is that what you guys? Do we go more relational, sowe'll just tr learn about you will find out what you like will probably sendyou. A gift will call you linkedin message: Youwill email, you will show up in person well, eventually figure out when raywe'll figure out. If erhe wants to hiher an agency if he doesn't, if hecurrently has one and if he does currenly have one when ies thatcontract up, we don't want to bug you. We just want to let you know that weexist and we want to get the timing right so that you can focus on what youdo and that you know about us when you're focused on what we do and yeahby aligning ourselves in that way. It makes us less salesy and more helpful,and we just learn about you. We build a relationship and we figure out when thetimeings right and then we don't bug you. We might shoot you a case studyevery month, every two months, but we let you do your job and we know as longas we reach out sity days. Ninety days before you're going to make apurchasing decision now we can start to have a sales conversation before thatwe have relational conversations, I'm certaly and I think it's the right wayto do it. The right way to do it because you want people particularly olline of business, is very similar toall ind O Businessao poritics. We sell services. Unfortunately, there is lotsof people in my domain al. There is a lot in yer domain that make that makeyour demain look bad and mad. The man look bad, because there is lots ofpeople that will come with crazy...

...business model, crazy solutions andprobably oversell over promising on the Deriver, which you then kin of impactus, because we speak to people who have atte Tingor bons yeah. Now they gottaagree with you yeah. You know I agree with you mean I get actually evensometimes contacted by companies, wer direct competitors of US and TheAs bfniDe Services and I'm sure you've got the SAMEAND. You know it's the same with. Ithink for critment, an oldeohe type of servicis that our little bit morewhethere is lots of competition and ithing. There is to thing not onlyyou've got to respect the prospect, but your so need to add the outset very,very quickly, put in front of them what makes unique in the market and whatchange, what difference you can create for them and and then those differentsshould be probably two or relittl stone that they've got in their shoe and asthey're carrying on with the currencyplier. Can they carry on withan I is I I witha Studin the shoe thethe stuent, the genof that actuallythey need to do something about it now, but but we do use the same approachthat, like a soft touch approach, a respectful approach, because I thinkthat professional Yeu an now you would tread that prospect, which outimate isquite important. I believe yeah it just. You know the it's always a weird place:rigt I balancing volume. So you can get the timing right more often and thenpersonal, where you, where you're building relationships and so Youl forus, we segment and we say: okay, each SBR has a hundred and ten accounts thatwe know by name that we fully mapped and those are the CCOUNTS that they'rereally focused on that. If we get them now or if we get them in five years, westill want them and it's worth it, and so we invest a lot there and then weuse other things to scale up our volume for the rest of that market, so thatyeah, we always have essentially our account based, sell devoloment model aswell as kind of a vertical base sales with all me model, and we kind of blendthe to help us it volume goals as well as personal gals. That makes perfectsense and who should the SE development teams report to primarily from yourperspective, you think they should report to marketing or do you think itshull repot to cells? Oh, I think they need to report to sales, but I thinkthey can report to like w. The way we ROK operated is. I have shared goalsbetween Mark Ande and sales development and when we do a lot of events we do alot of like. So we do two events: a month: Ind almost every major city thatfrom our map accounts based on like where the geography, its old er twoevents a month and then Wat that does is. It gives Er st R team a way todecrease sychological friction because now they're giving the prospectsomething that's and theyre, inviting them to something instead of askingthem for something, and so it changes, ther relationship at SDR and thenmarketing as the host event. And then they share essentially opportunities.So we have an opportunities, deals, ind revenue goal for the entire gowthdepartment that Marteninga Seles e almant share right. I found selfdevelopment struggles with messaging marketing struggles, sometimes withpotas and kate the eyes, and so we kind...

...of blend the two Bot there. I do have adirector of sales development and I do have t e director of marketing and thenI have a separate CCOUNT executive team, which yaure just kind of senior guysthat operate a little bit on their own, but all three exist within a growthdepartment which I still head up and so I'm kind of like thef revenue officer.In that sense, and then I have a director o marketing a seniorcountyexecutive, a client facing a countyxecutive, and then you know adirector of sales development and then those people essentially report into me,but they're all sharing the same numbers. Actually, of course, yeah.That's Mixi. What do you think is the you mentioned there is on. There is arequirement fon agreement between selles marketing and Servi developments,O that magic pipeand generation triangle. What are the key KPI is thatshe would recommend to aligence to look at An- and this is a question thatwhoas cal lot in that podcast, because it's so important on Doson. Actuallywhat you should look at Quat Itative as wes quantitad her. It's always a bigbig question, but is anything in particular art? You look at inteme ofalignment and Kep pis yeah, so I track counts, mapped because remember. Ireally want to build my Dataset and no Wen contracts are up because then I cancrack the timing code and it makes it so much easier to sell so it counts.MAPP is a really important, CPE Pi to me. Intro calls so essentially colikenot conversations but like essentially initial meetings, then proposals ordemo so opportunities. So we call anything where proposals give in. WeCalle it an opportunity and then deals some revenue and that's it. I tried.Actually I let my director sales development track, a lot of otherthings like conversation length and dials and emails. What ive realized is,if you create two strength of a recipe for a sales development rep every son,the Roman rept, has interpersonal and things that make them unique as aperson as a human and a lot of times set input numbers like two hundreddials or fifty dollars or two hundred emols. I ther it doesn't allow oneperson where a woman might be phenomenal and linked in and she canjust hither numbers every time doing just liked din another guys, terrible,an Lakedim but he's world class on the phone. Another guy's terrible in theFHOM, but he's amazing a d writing copy, and what I found is if I try to makeall three of them the same SDR, I get lower performance. So I really worry alot more about my output management that I do on my input management, andso I give people a lot of freedom to hit their accounts, mapped in Tro, caland opportunity goals on the sells of onmint side, more than heading theircall goals or their email goals, and if they're not calling remailing andthey're not aing their numbers, then you can kind of do a performance viewer.Let them go! You have to give them the freedom to figure out if they're,better on the phones, ore, better on the email or better on social and thenjust hit their opportunity deals a revenue goal from there course, ofcourse, not. That makes perfect sense and I'm going to move on a little bitfrom from Thesda Bidal sers development in general, and I know that Youas frombelieving the concept and why you need to focus your attention on your brandand and not honestly, on your search resurts Ye. Can you please elaborate onthat foraudience yeah, so you work with...

...a lot of software companies right? Yes,we do you most most of the Fal cone sectually. Probably Eighty five percentof four clients, our software company- So yes, we do so pretty much the samewith myself. I'd say: I'm about you know: Seventy five percent SASSAND.What I found is like, if you go on Google right now, and you search topERP software Oracle, Microsoft Dynamics and whoever's alse in that space theydon't rink and that's not because Oracle and Microsoft have terriblewebsites and terrible brands and no pages and no SEO, because Google hasdecided that at the bottom of the funnel, when people are looking for apurchasing type decision, they're doing comparison shopping. People want tolook at review sites, thats G to crowd software vice cap terror. These aresites that you might scrape ray or you might be duing for Lhist building.These are on my gartener forester and other players in the space. I point isthat Calles t the ELP in the Amazon effect. If we look at yelp before webuy a five dollar breakfast Bredo, we sure, as heck, are going to look atsoftware advice before we buy a quarter million dollar software, and so itdoesn't matter if your website shows up or your brand shows up. The point isthat you're, discoverable and so ha. We help these organizations LARN and wemeasure and we manage for them, is how often their brands are showing up whenpeople are searching, because, if you're only measuring, if your websiteshows up but Google saying your website isn't going to show up, because that'snot what our searcher wants, then you're trying to do something thatisn't actually feasible. So, if you're telling that your client, obviously theclients going to fire you, because you didn't do what you said, you wouldthere's nothing to do with your ability as everything to do with your reality.And so we look at the reality of a search engine, the reality of a buyingjourney, and then we position our clients to be discovered at every pointof that, whether there's informational intent or purchase intent. And then weessentially measure that reallicate funds and time and effort so that ourclients drastically increase pipeline and then grow opportunities, deals andrevenue and we've been hypereffected with brands like pseumologic and sure.Well, we're just started working with betterment. We do everything for allstate and CISCO AND SANDSONG and ten cent- and you know countless SASScompanies in the mid markets and enterprice space by helping themessentially be discoverable and from there grow. Exceptionally, I mean youare in the sale space. We worked with exactly for over two years, nd when wefirst start with them. We grew their pipeline by over three hundred percentin the first quarter, by just helping them get on review sites and be morediscoverable and show up when it mattered and they were hiper successful.It really does work, and that makes perfect sense you now I mean this isI'm moving into a new house now, and my wife is asking me to by you knew I waslooking for a wine fridge. Telei Tonet sounds very, very cratiou for a Frenchman, but there you go. I had no idea what o Gould wiine for Jes and I didexactly what you you mentioned: o N Youtuk, the example of a burito whichalso like, but I went on comparation websites and basically both the fraingethat I think was plasing most of the people that line thes an sort ofwaas. Iright exactlyg to thei website right. You just want to a review site. Youlearned about him and then you went to their website. Yeah Yeah, marketing andGroth people want people to first go to...

...their website, but that's not actuallyhow a purchasing journey works, and so, but the problem is, is because theycan't track how well they're doing on the other site. They don't value itbecause they have to report on metric and because they become so capy Iobsessed and so obsessd on the metrics that they can report on. They don'tvalue the things that are actually going to grow. The most importantmetrics like opportunities deals in Repident, and so we try to help educatepeople and we help them measure and track it using sequel databases and ourkind of engineering team to actually show look. We can actually track thosethird party sites show the value and allow you to be a much better demandgeneration or search marketer and drive opportunities deals revenue for yourSASS company course. Then I interete to to assume one less question. That'salong marketing attribution we've got a large part of audience, while marketingprofessional in software companiies of YOU KN W, be to be, I ovel sarvcs typeof companies, and we often speak to them about marketing, attribution andputtually. When you do a lot of online stuff or PA and allthat sort of greatthings. But how can you ttrack your investment in Grand Duinding andattributing back to marketing after conversion to abostmisor revenue? Youcan do it in certain areas like with few through conversions. So by settingup thescript properly inersight, you can see Yeu through, but here's what Iwould argue right. We need to just take a deep breath and use commen sensesometimes, and the problem is ot really attributed yet that well, but becausewe're so desperate to attribute everything we forget about the value ofbrand and whan I mean by that is we want to be the largest company, but wedon't ever think about being the most well known company. You know it's crazyright. In two thousand and nineteen, we forgot about all the basics ofadvertising and marketing that have worked so well. The reason why SuperBowl commercials are still thing, the reason why the we all purchase frombrands, we recognize imagine how much more successful an effective salesdevelopment is. When you call people and when you say who you are they'veheard of you before like that is a huge factor- hen close rate in a acquisitionof new business yeah, because you can't say, Oh, which ad did they see beforethey saw we stop investing in brand building, because we can't measure itperfectly to the deal and we then invest in a higher acquisition channels.Li Esteon PPC, which I also a hundred percent, believe in, but then wedevalue brand right now. My business is getting twenty million impressions forfour Osand dollars a month and we've had enterprise brands that we dreamedabout fillout our form since launching the campaigns who didn't fill out ourform before, because they've heard of us now, and not only ha, they heard ofus when they search for so agency when they search for PBC agency. They findus and now, instead of being the brand they haven't heard of now, or the brandthey've seen they've heard of and has great reviews and now we're able towork with them. Twey have our positioning right. We have ourawareness and it equals revenue generation the other way they can trackit, the Raghe, because I don't want it...

...to be like you can't track it at all.You can use the view through conversions and you can look at yourdirect traffic to your brand, so you can go look at direct trafficking,Google and see if that's growing, AK more people. Just knowing about you,you can look at a tool. Ike Scm rush or Ahfs and then sort your brand name andsee how many people are searching that a month and then you can measure ifthat goes up or down, there's a lot of ways to do it and I'm actually buildinga software that'll be launching sometime in the next six months thatmeasures your brand discoverability across versus you and your top tocompetitors. So you can put in a thousand key words and see how oftenyour brand shows up, not just your website. So if you show up on somebodyelse's site, if you have Chopin ads, if you shhow up on a review side, if youshow open the map, if you show en shopping campaigns will be able tomeasure all of that in then bench parket against your competition andthen every month, ye'll see if you're becoming more or less discoverable hand.I do believe that the future of search marketing is making brands discoverablefor keywords that people are looking for and it's going to be a crucial partthat is not being valued nearly enough today and I agree with you absolutelyHuni Person Bull. Unfortunately, we comin to Jeni shame because I probablycan think about another twenty question. I can ask you, but you know we need tokeep them shot. If not, that W we're just coming out of the attention. SPAorthe the CIRDTY minutes, Commute Odan Pett. I want you to sank you foryour insight today, Erigt. I really appreciate H, thefelet you to your timeto get together with me and share all your sores and annons all the question.I had to ask you if anyone wants to get in touch with you to follow a speakabout directive. Just as you question about what we discuss today, hat wasthe best way to get old of you yeah. You just go a directive consultingcomand you know we have live chat. We have a form there. You can also email us fornew business at sales at Directiv, consultingcom o you just want to chat,feel pretty fect met Linkin or twitter, it's g and then my last name maribudeacross all those platforms. Gear Mar you'll find me, I'm the only one in theworld, so love the Chow Wuld. You love to connect. Answer any questions youhave, if you're trying to think about how to grow your lead volume or giveyourselves development team better leads potter, leages warmer leads, andthis grow over overall tipeline at assass company or in a enterprise brand.We woe'd love to support you and the love to chat and see if it's a fitsounds great. Well many things. Once again, it was great to have yonder shoto degeit all right. Thank you. So much right, oper adics has redefined the meaning ofrevenue generation for technology companies worldwide, while thetraditional concepts of building and managing inside sales teams in househas existed for many years, companies are struggling with the lack of focus,agility and scale required in today's fast and complex world of enterprisetechnology sales. Seeo operatics can help your company accelerate pipelineat operatics. Dot Net you've been listening to B, to be revenueacceleration to ensure that you never miss an episode subscribe to the showin your favorite podcast player. Thank you so much for listening until nexttime.

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