Basic Framework for a SaaS Sales, Marketing, and Customer Success Organization

              Here is a general framework for the various roles in a Marketing, Sales, and Customer Success organization at an Enterprise SaaS company.  What I am trying to do here is illustrate how they all need to work together to provide a continuous flow for each customer and maximize productivity.

Ideally, you have a savvy or experienced Executive who oversees all 3 departments and ensures collaboration and cohesion. All to often I have seen a big divide between Marketing/Sales/Customer Success. This can be mitigated to some extent if you have a Chief Customer Officer or Chief Revenue Officer overseeing all 3 departments.

Basic Role Types:

·      Marketing

o   Drives top of the funnel

o   Generates brand awareness and more importantly leads for sales

o   Should be “on the hook” for a deliverable for sales

§  A data driven lead gen manager in marketing is critical

·      SDR

o   Sales Development Representative

o   Responsible for qualifying inbound leads and passing on to sales

o   Separate role also responsible for outbound prospecting  which is critical to supplement marketing’s efforts and fill sales reps’s pipeline

·      AE

o   Account Executive, responsible for new business

§  Presenting

§  Finding a decision maker

§  Navigating politics

§  Negotiating

§  Delivering a signed agreement with a new customer

·      CSM

o   Customer Success Manager

§  Pre and Post Sale Consultant. Typically Responsible for educating customers as to how to maximize value of your product/service and driving usage

·      SE

o   Sales Engineer

§  Pre and Post Sale responsible for collaborating with technical representatives at customer (IT/Security) to

·      Pass security review, get their “blessing”

·      Educate as to how technology fits in to their infrastructure

·      Assist with integrations and configuration

·      Renewals

o   Typically a strong former sales rep who is good at negotiating, so upsell upon renewal can be maximized. Responsible for extending agreement with customer once 1^st term expires. Maximizing size and duration of 2^nd agreement.

Customer Cycle

1.     Marketing typically has 2 objectives: 1. Create brand awareness 2. Generate qualified leads

a.     Ideally, Marketing owns a title called Lead Gen Manager who owns a quota for number of “qualified leads generated per month.”

                                               i.     This role partners with sales to define what a qualified lead is, refine their model, and score leads coming in

                                              ii.     Lead Gen Manager will use a series of strategies including:

1.     Email campaigns

2.     Webinars

3.     Events

4.     Whitepapers

                                            iii.     Note: it is critical to have a Lead Gen Manager who is compensated on number of leads they generate that are accepted by sales. Also, everyone’s compensation in Marketing should have a component tied to leads handed off to sales.

                                            iv.     Leads from Lead Gen are handed off to the SDR Team

2.     SDRs  typically have 2 separate roles 1) Qualify Inbound Leads 2) Generate new leads via Outbound prospecting (phone/email)

a.     First, SDRs need to determine what a Qualified Lead is. Then, once they find Qualified Leads they will set meetings with these leads for the AEs to pitch and close.

                                               i.     Typical criteria for a qualified lead

1.     Job title

a.     Ability to influence sale or provide intro to influencer

2.     Do they have a problem to solve

3.     Industry

4.     Size

b.     Number of Inbound SDRs will be contingent on lead flow. Typically an SDR can handle 400 contacts, so assuming 3 contacts per company, an SDR can handle 133 leads/companies.

c.      Typical ratio for Outbound SDRs is 1 for every 2-3 AEs. Ideally the ratio is 1 for every 2 AEs to maximize pipeline and productivity of AEs.

                                               i.     Outbound reps will generally be paired directly with selected sales reps, this can increase productivity as the SDR refines the specific companies and tactics the AE prefers. This relationship will boost the learning curve for SDRs as they progress towards becoming an AE.

d.     Since SDRs are the “front lines” of any sales organization, it is important they are assertive, but avoid being too pushy and burning bridges as a poor reputation can spread quickly and block you from customers for sustained periods of time.

3.    AE and CSM

a.     AEs are responsible for pitching customers, securing trials or evaluations, RFPs, etc.., and ultimately bringing a customer on board via a signed agreement.

b.     AEs receive qualified lads from SDRs and also prospect themselves  into new opportunities

c.      AEs will build relationsihps with customers, demonstrating an understanding of their business, and teaching customers about how they can benefit from using your product or service

d.     CSMs will often become involved in the sales cycle

                                               i.     This offers value in two ways:

1.     Paint a post-sale picture of how CSM helps customer roll-out the product and maximize adoption/value. This puts customer at ease and ensures they are confident they will derive value when they buy.

2.     Project Manage a trial. Training users and executives, gathering feedback, helping aggregate final proposal with trial findings and results.

a.     CSMs typically gain deep access in an account since they are not a sales reps and are trusted more by default

4.     Once AE secures and agreement , they will pass the account on to Post-Sale CSMs and the Renewals team

                                               i.     Unless there is significant growth available, it is best to have the AE step aside and focus specifically on generating new business

1.     Sometimes it makes sense to allow AEs to keep a handful of “holdout” accounts where the sales is more “land and expand”

                                              ii.     Once AE obtains a signed agreement, he/she will typically arrange an intro call with customer and CSM/Renewals for a smooth transition. It is critical that knowledge is passed on post-sale and the customer experience is smooth. This transition can be the largest cause for churn (customers cancelling) if not handled with care. Generally the AE will hold an internal transition meeting with CSM before scheduling transition call with customer.  

                                            iii.     The Renewals team is typically responsible for re-signing a customer once the 1^st agreement expires. They will operate similar to a sales rep but over a longer time frame. The earlier renewals rep gets involved the better.

                                            iv.     Often the same CSM who was involved pre-sale will stick around post sale, this generates a deep relationship and understanding of any customer and reduces churn significantly.

                                              v.     Sometimes it makes sense to sell Premium Services to a customer to ensure engagement and adoption. This can include a menu of different roll out, training, configuration, and certification packages.

1.     When a customer pays for services, they generally engage at a deeper level post-sale and this drives up their success and adoption. It also increases the probability they will assign an FTE to “own” your product’s success internally.

2.     Selling Premium Services will generally increase adoption and reduce churn.

3.     Larger customers will expect to pay for services anyway