Sales lead qualification criteria for organizations

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element terms one of the biggest learning curves I had when I first started in tax sales was getting caught up to speed with all of the industry lingo and understanding the acronyms we wanted to save you guys the trouble by compiling a list of all of the terms you need to know so that when you are in your interview with the recruiter or hiring manager you sound like you're already in the industry and it will help you get caught up to speed faster let's begin all of the words that you understand that's great the ones that you don't quite understand get out a piece of paper a note card write down the term write down the definition and an example so that you can start to work it into your normal vocabulary account an account contains all the records of customer interactions including contact information preferred services and transactions with your business an account is created after the first time a customer buys from your business so as we talked about earlier in ideal customer profile you identify account company you want to work with you cold call them you sell them a license to your product and all of a sudden that company becomes an actual account that you begin tracking over time in account executive AE closer this is the role I'm in right now and account executive is a sales team member in charge of closing deals by converting qualified leads into paying customers you as the sales development rep you will be setting up meetings and you will bring in your account executive who is the closer to actually work the sales cycle and meet with the customer in account manager you'll see am as an abbreviation farmer a sales team member in charge of managing an upselling existing clients and accounts an account manager isn't responsible for finding new customers they're tasked with retaining and expanding upon the spend of existing customers so think about a farmer an account manager you're working with an existing patch of vegetables whereas a closer is a hunter somebody that's going out into the jungle to go and find new logos annual recurring Revenue ARR the amount of money a customer pays you every year on a subscription model this is what makes software sales so lucrative because if I sell you a one thousand dollar annual recurring Revenue license you'll spend a thousand this year and you'll spend a thousand if not more next year it's recurring Revenue think of it as a subscription like your Netflix each month you have to pay or in the case of most B2B companies it's an annual subscription annual recurring Revenue annual contract value ACV the annual contract value is the average annualized revenue per customer contract ACV is usually compared against customer lifetime value to see how long it takes to pay back the cost of acquiring a customer if I have to pay ten dollars in advertising and I sell you a new contract that cost that you pay me five dollars the annual contract value is five dollars and we can say okay it's going to take me two years of that contract to eventually pay back the cost it took to acquire you so it's really important to understand how much is the customer actually paying you year over year account based selling account based selling is a strategy where the entire company coordinates to pursue high value accounts the Departments that are most typically involved in account based selling are sales marketing customer success I typically coordinate with marketing folks on my most important accounts to send out gifts like books or invites to webinars to my highest potential accounts because it's a creative way to ultimately get the attention of the executives that you want to meet with Business Development representative also known as sales development representative SDR this representative is a sales specialist focused on finding new prospects establishing foundational relationships and updating the sales Pipeline with new leads you guys will hear us use sales development representative technology sales Business Development representative interchangeably they all essentially mean the same thing you are a business development a sales development representative and you are focused with calling emailing reaching out to prospects your buyer Persona within your ideal customer profiles to establish new relationships and set up meetings so that you can begin to generate sales pipeline business to business B2B this is business selling to business so this is an example of Salesforce a leading software company selling their CRM customer relationship management software to another company business to Consumer b2c selling business to Consumer so Netflix Netflix sells their subscription product to UNI consumers Amazon is another example of b2c as it relates to the retail business business Unit A group of people representing a specific department or product within a company such as accounting or Manufacturing think about a business unit basically as a department so you have human resources you have sales you have marketing I.T different units within a company buyer Persona you guys should know this one a buyer Persona is a representation of the ideal customer for your business companies create buyer personas based on marker research and data about existing customers having a binary Persona in mind is important for marketers creating a target audience and for sales representatives qualifying leads the better you understand who your buyer Persona is the better you'll able you'll be able to understand the unique problems they have and articulate the value your solution can have in solving their problems so for example course careers our buyer Persona is somebody that's ambitious that wants to get into tax sales that may not have a degree background or experience so we understand some of the unique challenges you face trying to get in the door so we have created this course to help you overcome all those obstacles to get hired in tax sales buying signal a buying signal is a verbal or non-verbal cue that shows a customer is ready to make a purchase such as signing up for a free trial asking about contract specifics picking up on these signals can help sales reps better focus their attention on customers that are giving off more buying signals so buying signals basically somebody showing interest they're not always going to say I am interested in your product they'll show it directly or indirectly so you as a salesperson need to use different communication strategies and tactics to truly and ask questions to understand what they want so that you can give them what they need sea level c-suite highest level Executives C stands for chief like chief executive officer in the earlier section organizational structure we showed how sea levels are at the top of an organization and have the most decision-making power Champion a prospect within a company that wants to purchase your product or service and is willing to do everything they can to help convince the others within their company to make a purchase as a sales rep I rely on my Champions to do internal selling for me because the challenge with B2B sales is you are not going to necessarily close them on the phone you are going to give them a presentation build a business case and that contact that you're working with ideally your Champion is going to have to then sell to their internal stakeholders and make a decision when you're not even in the room and that's why software sales is so lucrative because it's complex it has massive upside but it requires you being able to build Champions that will advocate for you Channel partner a person or company that offers services or product on behalf of another company so think about this as different partners so we have partners that after I sell a customer and and they buy my product I will have a partner that then implements my product and perhaps that partner can help sell additional products of mine to that company working with them ongoing Channel sales focusing on different sales channels such as in-house sales team retailers referrals dealers so think about this as just different ways companies acquire customers so one channel could be with sales reps like you and I another Channel could be YouTube advertising another Channel could be putting up a billboard different channels to attract attention churn the percentage of clients that leave or stop using your products your services or products within a certain period of time so basically you buy my product and then you end our relationship and decide not to renew the next year you churn closing ratio a closing ratio is the number of deals closed compared to the number of engaged prospects this ratio can be used to evaluate the performance of an individual sales rep in forecast sales so imagine if I work 10 deals I close five of those deals I win five of those deals I have a 50 closing ratio the more efficient you are at closing the more valuable you are going to be to the company and the better you're going to perform as a sales rep clients closed opportunities paying clients and people that your account manager should take care of so I reach out to a company they buy they're an actual account and we consider them a client because they're a paying customer closers coffee is for closers we all want to be closers and we're going to get there closers or account Executives their focus on closing deals and they only prospect a small number of strategic accounts the higher you move up in your sales career the less accounts you'll have because they'll be more strategic and companies that can spend more money when you're just starting in your career you'll probably work with a larger amount of accounts companies that have less revenue and that's really how you start getting your experience working deals and closing cold call you guys make sure to stick around for the cold calling section coming up I've made over 60 000 cold outbound calls and um I think you guys are really gonna like that section because you're gonna be doing a lot of cold calling as a sales development rep an attempt to engage with the prospect that you don't yet have an established relationship with on a call so you're interrupting someone's day you're calling them out of the blue you guys are going to love that section there's a lot of it's an art and a science cold email and attempt to engage with prospects via email sending them a sales proposal to someone that you don't yet have a relationship with so this is basically me emailing you saying hey buy my product customer acquisition cost the cost of acquiring new paying clients so this is pretty self-explanatory if it takes me ten dollars to an advertising to attract a new customer my customer acquisition cost CAC is ten dollars customer lifetime values clv also known as lifetime value LTV the total lifetime value of one client in terms of the revenue they'll bring before churn so earlier we talked about um churn and we talked about total contract value annual recurring Revenue in the annual contract value if you spend ten dollars year one and you spend ten dollars a year too and then you spend ten dollars a year three and then you decide to stop your license you've spent Thirty total dollars so your customer lifetime value is thirty dollars and you take all the customers and figure out what is the total value so you can start to run your business more effectively customer relationship management CRM a software or internet based service that helps business owners and sales professionals manage their sales pipeline track prospects and related activities throughout the sales cycle an example of a CRM is Salesforce and we'll show an example later in the course we'll screen share but it's basically what you use the computer program to manage all of your activities your tasks all the accounts you're working to into and manage everything you do day to day customer success a strategy and a proactive mindset that helps reduce churn rates increase customer satisfaction with a client product and the predictability of recurring Revenue so customer success is a strategy and it's typically a department or a business unit in and of itself it's folks I think of account managers as customer success they are working with existing clients making sure they're happy they're satisfied they have everything they need to be successful decision maker the person in charge of making making the purchasing decision at a company so you are the decision maker to invest in yourself for course careers so the people you're selling into at these companies are the decision maker to decide to buy your product or done Fortune 500 a list of the 500 largest companies in the US based on Revenue so if you're prospecting into Fortune 500 companies large complex deals and this is typically what we would consider Enterprise sales selling into Fortune 500 companies gatekeeper I'm sure you guys have heard some scary stories about gatekeeper the person who answers the corporate phone and decides to let you talk to the decision maker or not so think of the gatekeeper as a secretary or a personal assistant I'll share some strategies in the cold calling section how to get past the gatekeeper but it's all about sending an email to the decision maker and being nice to the gatekeeper and really saying hey I don't expect you to send me through right now but let Susie know I send her an email and that's all you should ask for ICP this should sound familiar ideal customer profile is a profile of the ideal client for your business so basically the person who could most stands to benefit from your product inbound interest that comes in received cold calls submitted forms so as a sales development representative most companies have an outbound and an inbound function if you are on the inbound function you are only calling warm leads all day so your company will pay for marketing or have a website and folks will naturally request to be contacted and you as an inbound rep will reach out to these folks who are interested in speaking inbound sales that happen as a result of customers directly approaching and engaging with the brand company so once again folks that reach out wanting to be spoken to lead we want a lot of leads guys someone who is a potential fit to purchase your product or service so you could you might hear hot leads or leads and say we got to go find more leads basically people who stand to benefit from your product lead generation all of the activities that have a goal to generate interest around a product or a service through different methods content marketing PPC referrals outbound marketing Partnerships so this is basically different ways to generate leads I could run a campaign on LinkedIn I can make a post and all of a sudden people start saying yeah I want to speak or I could do a webinar and folks show up and then I try and sell them afterwards I could write a book and start to find leads to that way so there's different ways to acquire leads lead nurturing engaging and building a long-term relationship with existing prospects so this is basically just adding value the more you can build a relationship the more you're going to be able to ask for in the future lead qualification and guys we're about halfway through the list so stay engaged keep focusing take your notes if you need to pause and take a quick bathroom break take a drink of water I'm gonna take a drink of water now we're feeling refreshed and let's keep going lead qualification a process of qualifying if a lead is a good fit to purchase your product or service so this is basically you're doing some Discovery you're understanding are they qualified to buy do they have a budget do they have a timeline why would they buy now lead scoring assigning a value to every lead based on predefined criteria in order to rank leads in terms of engaging priority so you could think of this as warm leads so folks who are more qualified to buy versus less qualified to buy influencer someone who has a strong influence over the purchase of a product or service but isn't the final decision maker when you're calling into accounts this may be the person you have to start with and you have to influence them because they're going to influence other people in the account that actually can make the purchase decision marketing qualified lead mql a lead that will most likely become a paying client based on what pages the lead visited what actions they took on the company's website and other online engagement so this is basically just another way of qualifying a lead in scoring and saying hey we qualify them because they meet a certain criteria maybe they've watched the webinar for at least 50 percent and we deem that to be a qualified lead monthly recurring Revenue mrr the amount of regular and predictable inter income a company expects to receive every month earlier we talked about annual recurring Revenue monthly recurring revenue is just a different way of selling rather than making someone commit to a year you're just making them commit to a month Netflix is an example of monthly recurring Revenue onboarding a set of actions or a process of introducing a new client with a service or product setting up an account and introducing the client with their point of contact at the company so you buy my product and I have to then onboard you with the product so some of these Technologies you sell may be complex and require implementations that take months to actually fully set up opportunities this is what it's all about a qualified lead that is a good fit for your solution an SDR sales development representative has qualified this person as someone who has the need and ability to purchase as a sales development rep my quota was opportunities per month so I needed to set up meetings and if that meeting was a good meeting and we decided to continue speaking with them because we thought they were a good fit that's considered an opportunity outbound sales this is where the majority of you guys will probably start in your SDR career you will be cold calling cold emailing social selling with the goal of initiating contact with the prospective client and ultimately closing the deal you're reaching out to folks you are purely outbound and this is a hunter point of contact this is something you'll hear all the time a person or a department within a company that the client can reach out to with questions or specific requests so you as the rep will be the point of contact between your company and the client you're working with profit margin profit margin is a ratio of profitability that reveals how much money a company actually makes it is the amount by which revenue from sales exceeds cost to calculate profit margin divide your gross profit Revenue cost of goods sold by Revenue so think of this basically as you pay me ten dollars for my product it cost me two dollars to make my product my profit margin is eight dollars the higher the margin the better the business and this is why software is so lucrative prospects a list of names and contact information in some type of list database CRM your prospects are all of the contacts that you're reaching out to day in and day out trying to set up meetings with to qualify into opportunities referral method of generating new sales leads where someone refers a potential client to you so let's say you have a really great experience with course careers you then refer a friend who's also looking to get in tax sales and you say hey go check out course careers something we really appreciate and we obviously want to make sure people have a great experience so that they refer others and that's ultimately good business return on investment Roi shows the effectiveness of the initial investment it is a ratio between net profit and the cost of investment when you are selling deals the company is going to say okay you are charging me a hundred thousand dollars for this product why should I buy it and you got a bill to say well the return you're going to see you're going to save 500 000 through automation it's going to save your team time and save money that's a return on investment Revenue the amount of money one business generates in a specific period of time a quarter a year so think of this as money coming in a business is an entity that has Revenue money coming in SAS an acronym for software as a service if you work in Tech sales you can sell different types of Technology but the most common and the most popular what I do and what I recommend is SAS you're selling software sales acceleration speeding up the sales process using different tools and Technologies to boost productivity and efficiency so sales acceleration we'll have a section later in this course talking about sales Tech but this is using a CRM customer relationship management and using tools for auto dialing and finding prospects direct dials basically making you more efficient sales automation a process of automating sales workflow by using a software or an online tool it can help simplify speed up streamline the sales process we'll have a section later talking about sales Loft and basically this is a tool that helps you automate making cold calls sales Cadence a determined sequence and this one's really important guys to make us make a star of it you'll hear this a lot and it was confusing to me at first sales Cadence a determined sequence of sales activities and the frequency at which the sales team interacts with leads so an example sales Cadence is a combination of steps so if I add you to my sales Cadence I'm going to cold call you on day one on day three I'm going to send you a cold email on day four I'm gonna cold call you and then I'm gonna do that I'm gonna make calls and emails over the course of a predefined number of days that's a Cadence sales cycle predictable sequences and stages that a company goes through as they sell their product or service so an example sales cycle for software is the first meeting is just an introductory quote in and we call it an iqm an initial qualifying meeting if it goes well it progresses into a qualified opportunity that opportunity if it advances to the next stage it will be a discovery call where we ask a lot of questions if it advantages to the next stage in the sales cycle it'll be a solution presentation we give a demo and then the next stage is business consideration and then negotiation and that's an oversimplified sales cycle for software sales demo an event that serves as a Showcase of the product or service that the company is selling so this could be an example of a demo you will be screen sharing or sending a video showing how your product actually works sales development representative SDR or SDR sales representative focus on prospecting finding new sales opportunities that's what we're all going for here sales development representative sales enablement providing sales professionals with necessary tools technology training and other resources in order for them to have better performance at customer engagement so think of sales enablement basically as people that do sales training on the team and this is a specific business unit within most companies sales funnel A visual representation of sales processes with defined stages that every potential client goes through as they are let towards a final decision buying out a product or service so think of a sales funnel as you visit a website the next stage of the funnel is you click on the product the net stage of the funnel is you added to your cart the final stage of the funnel is you making the purchasing decision so that that's an example of a website but you as a sales rep there's different funnels with stages and this is similar to sales cycle sales pipeline very important A visual representation of a sales process and stages of each individual Prospect so all of the existing opportunities that you're working so the meetings you set up that progress into more meetings that's considered Pipeline and in an oversimplified way of thinking about this is if you work at company a and your company a is it has 500 employees I know that your company might be able to spend ten thousand dollars with me so I'm gonna add that opportunity value at ten thousand dollars that's what I'm eventually going to try and quote you for the deal sales prospecting a process of finding and identifying new prospective clients using different outbound methods cold calling social selling advertising this has an entire section dedicated to it guys we're just starting with the basics but we're going to talk about all of the tricks best practices based on what I've learned generating over 10 million dollars in pipeline I've made a lot of calls a lot of emails and there's there's many different strategies to prospecting and that's primarily how you'll be spending your time as a sales development rep sales qualified lead SQL a potential client that already met all the necessary criteria and is forwarded to the account executive to close the deal so this is basically someone that meets the certain criteria and is able to buy scraping data extraction of large amounts of data from websites so this is a process of finding direct phone numbers and different data points that help you more effectively Prospect segmentation a process of dividing a large Market or a contact list into smaller segments based on different criteria location company size Revenue so this is basically categorizing your bucketing ideal customer profiles for example and saying hey we're going to just Target Banks that's the segment we want to focus on today social selling a sales tactic that involves using social media as a sales Channel sdrs engage in create relationships with prospects by probing their needs and providing relevant and valuable Insight so an example of social selling you go connect with a bunch of your buyer personas on LinkedIn so you connect with 100 HR leaders and you start posting every day a relevant article talking about just industry best practices and Trends and you're able to gain their attention through social selling top of funnel a term that refers to the top of the sales or marketing funnel where all prospects go through a qualification process both from inbound and outbound efforts so top of the funnel is your responsibility as a sales development rep you are reaching out to prospects doing the initial qualifying you might be doing inbound outbound prospects maybe coming to you you may be going to them in top of the funnel is generating Pipeline and just getting your foot in the door and getting folks that want to speak with you unique selling point proposition unique features of a business that sets it apart from competitors so this is basically your differentiators in the market so I said we both sell hair dryers my hair dryer is cordless yours is has a cord my differentiator is it's cordless that's a unique selling point the final Point here guys vertical a specific segment of the market where a business targets only a specific industry sector or Niche so this is very similar to segmentation but it's just a vertical of I'm only going to focus on financial service companies I'm only going to focus on Hospitality maybe I'm just going to focus on Health Care this will be dependent on what you're actually selling and who you're selling to make sure to go back review each of these terms some of them will be on the final exam so write down the ones that you do not understand and the better you understand these words the more you'll be able to speak the actual speak talk the talk so that you can walk the walk and perform and really show off during the interview sales development directly from the course of course careers I am going to post below this video description Trends YouTube channel which has an abundance wealth of knowledge that you can continue to have so look for his Link in the video description directly to his YouTube channel I will see you guys in the next video see ya