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Day 58 in MIT Sloan Fellows Class 2023, Entrepreneurial Sales 4, Field Sales

Strategy communication MIT SFMBA MBA entrepreneur

 

 

For what kind of products we should adopt Field Sales?

Field sales is a DIRECT selling motion referring to the selling of
products or services by sales reps outside the office.
Sales people literally go out into the “field” to meet with prospective
customers, hence the term.
Sales people in some cases source their own leads and figure out
how to convert them.

  • high CAC, large deal size
  • complex products
    • Need to meet in person and educate people

 

The field sales are dead?

No. Still a lot of impact.

Outside Sales is probably what you think of when someone says “salesman”. While the sales ecosystem is shifting, this field still has some of the highest quota attaining percentages out there.

  • Face to face or field sales teams make up 71.2% of the sales force.
  • 65% of outside account executives are attaining quota which is 10% higher than inside reps.
  • Outside Sales Reps Now Spend 89% More Time Selling Remotely Than in 2013.

149 Eye-Opening Sales Stats to Consider in 2022 (By Category)

Characteristic

  • A geographically distributed sales organization that tends to call on customers in person
  • Selling a product or service that benefits from a more consultative selling process
  • Selling “unit” is often infused with technical resources (SE’s and AE’s)
  • Inside resources are often applied to generate or develop leads (BDR’s)
  • Significant management infrastructure required
  • Compensation is the primary tool used to drive behavior
  • At scale, applied with rigorous process (i.e. MEDDIC)
  • Often requires custom, complex contracts
  • Can be segmented / focused
  • Blends the art and science of selling

 

How many we should hire?

You need to hire at least 3 people because you need to compare their performance.

  • You need the right type of person for the job.
    •  “Hunters or Farmers”
  •  You must determine the best supporting
    ratios
  • Commission Plans
  •  Recruiting is a top challenge
  •  Strong management is key
  •  Should you promote your best reps?

3x LTV/CAC is the venture bar, and 7x-10x would be great.

12 months CAC payback is gold standard.

 

When to scale

  • Addition of headcount
    • Management grows proportionately
  • Increase quota
    • As company or region gains traction
  • Improve Ramp Time
  • Add new geographies
  • Sales Operations Function
  • Segmentation
  • Growth companies are always hiring

Pros and Cons

Pros

  • Rapid customer feedback
  • Close larger deals with expansion potential
  • Very predictable when well executed
  • Control over the sales cycle / your destiny
  • Become a trusted partner to your customer
  • Deals can be “engineered” to meet specific needs
  • Can dominate company culture

Cons

  • The most costly GTM model
  • Sales cycles can be long
  • Can dominate company culture
  • Growth throttled by speed of hiring
  • Buyers may not want to talk to “sales guys”
  • Changing market dynamics can break the economics

 

Worth checking these links.

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The Audible-Ready Sales Podcast: An Interview with John McMahon Part 1 on Apple Podcasts