Billion Dollar Tips
Imagine a world where Sales was also compensated on the success of the first 90 days of implementation?
Marketing comped on closed deals?
Before you think that I am crazy, this actually happens at Divvy (recently purchased for $2.5B) and their CRO Sterling Snow explained this in a recent Saastr podcast (link in comments).
I started thinking how far this could be applied into the post sales world.
Implementation and PS being comped on 1st year renewals is an easy concept to grasp. This can eliminate the “check the boxes” approach that some implementation teams can take
What is 1 step deeper for CS? Support tickets? Or is that back to implementation?
What if product and development were comped on support tickets? I have seen a tremendous retention improvement when product and development were comped on retention.
Where would Education and Customer Marketing fit in?
Anther other interesting concept from Divvy was No passengers.
In business, be a driver, not a passenger. Essentially, the message is to be proactive vs reactive. If everyone around you is a passenger, waiting for someone to tell them what to do, it’s easy to fall into that pattern with them.
According to their website, “companies filled with these engaged people deliver a lot more value, both to customers and shareholders. They are focused on what really matters: results.”
I LOVE this concept.
How are you making sure that you are not a passenger?
Transcript:
- (00:00) imagine a world where sales was compensated on the success of the first 90 days of implementation what if marketing was comped on the number of closed deals before you think I'm crazy this actually does happen I just listened to a saster podcast I'll put the link in the in the comments below and they had the cro of Divi who was recently purchased for about two billion dollars right must be doing something right and he explained all of these Concepts so essentially Divi believes in the process of having compensation bonus
- (00:32) happening One Step deeper in the funnel this means that their marketing team does get comped on closed deals and their sales team does get comped on the successive implementations in the first 90 days that shows if it was a good deal or not right because we all know what happens when you sell to the wrong people so I started thinking how further could this be taken into the post-sale world implementation seems in Professional Services seems to be an easy one right we can eliminate that with let's just check the box and get
- (01:03) them up and live and running without having any ramifications on their success What If instead product and development had their bonus comp based on support tickets I've seen a tremendous amount of retention increases when product and Dev had retention kpis so I think it would be pretty advantageous for teams to do this for the support tickets as well where does customer education and customer marketing fit I could not think of that here smarter people reading this or watching drop it in the comments below I'm curious on that when you
- (01:37) listen to the podcast and you definitely should there's another concept that I absolutely loved and that is the concept of no passengers Divi likes this concept so much that they have a whole page on their website essentially in business be a driver not a passenger and in our world this means be proactive and not reactive and I can tell you that's a huge problem we all deal with it and if the second you move from being proactive instead of being all reactive you can see your churn go down the big concept around this is that if everyone
- (02:11) around you is a passenger waiting for someone to tell you what to do not stepping forward not talking about new initiatives everybody kind of falls into that pattern and you just start waiting on one or two people to make all the decisions and everything just slows down after that how are you making sure that you're not a passenger I put some ideas out there I'd love to hear yours just drop them in the comments below