Ólafur Sölvi Pálsson, ex-Director of Commercial Operations, Falcon.io, and Toni Hohlbein, COO, Falcon.io
Ola and Toni from Falcon.io (which was recently acquired by Cision by an undisclosed but apparently huge amount) told us about how they made a turnaround in their sales process.
Situation: In 2016 sales at Falcon.io had slowed down to a disturbingly low level. The venture backed company was burning cash much faster than planned due to poor sales results.
The equation in question was the “CAC Payback” – basically the time it took to recoup the total costs to land a sale. Mid 2016 it was 20 months and ideally it should be maximum 12 months.
So Falcon.io – Ola & Toni – got the task to get things back on track.
They analyzed every channel and cohort – marketing, outbound, inbound, country, industries – to find out what worked and what didn’t.
Anything that didn’t contribute to a CAC Payback of 12 months or less was prone to termination.
They realized that the most effective channel they had was outbound sales calls. Though it can be tempting to automate marketing & sales and build a low-marginal-cost automated sales machine – it turned out that human interaction really cut through the noise more effectively than anything else.
Action & result?
Falcon.io cut marketing costs by 50 percent.
And in three months got down to a CAC Payback of 14 months. And has been improving even further since then.
As Toni and Ola puts it:
You never buy a B2B solution from an ad on Facebook. And you don’t receive that many sales calls during the day, so if you think about it, it makes sense that outbound sales calling is an effective measure.
The human touchpoint still works.