Sep 8, 2023, 10:04 AM ETInterview

Doug Adamic: Why Discounting is BS; How to Reduce Sales Cycles and Create Urgency | E1058

Doug spent 16 years at SAP, spanning two distinct chapters:
- Joined Concur at 500 employees with $50–60M in annual sales, growing it to nearly $1B before acquisition.
- Transitioned to SAP to learn global scaling, eventually integrating Concur as a subsidiary.
- At Brex, he built eight new business departments that did not previously exist to support a new business motion.
His sales philosophy evolved from finance/accounting to recognizing the entrepreneurial spirit required to solve complex customer problems.
He emphasizes that sales is a learned discipline focused on improving a customer's business by driving specific, measurable outcomes.

Definition: "Pipeline is air; without it we die." This mandates that demand creation is the responsibility of every department, not just marketing.
Three Major Objectives for GTM Teams:
- Advanced demand creation.
- Profitable conversion of pipeline.
- Protection and growth of the customer base.
Goal Setting Strategy:
- Shift focus from raw pipeline volume (e.g., 5x–7x coverage) to pipeline quality.
- Goals should be derived from source, attributes, and conversion rates at each stage.
- Brex's strategy relies on high-quality conversion rather than abundance, having operated successfully with less than 1x pipeline coverage at times due to high conversion efficiency.

Listening as a Skill:
- Effective listening involves removing preconceived notions to identify how to improve the customer's job or business.
- Doug averages 50 words in an hour-long call, prioritizing discovery questions.
- Coaching involves breaking sales calls into bite-sized steps to critique listening levels and the ability to gain unique, non-obvious information.
"Threading Multiple Needles":
- A sales campaign requires precision in convincing 5–7 stakeholders with only one "toss" (opportunity); there is no room for error or second chances.
- Every action must be calculated to hook multiple personas simultaneously without being transactional.
Creating Urgency:
- Urgency is driven by a value proposition that demonstrates financial impact (saving/making money) or time savings.
- The three triggers for purchase are: current trouble, anticipated trouble, or the desire for an individual/group to be a "hero."
- Waiting to implement a solution results in the customer "hemorrhaging cash."
Discounting Strategy:
- Discounting is discouraged as it sets a bad precedent and diminishes the perceived value of the solution.
- Revenue growth is better achieved by increasing average deal size, shrinking cycle time, and improving conversion rates through a strong value proposition.

Motivation ("Take More Trips to the Bank"):
- The concept encourages reps to follow the playbook precisely, which increases their capacity to sell more frequently and with larger deal sizes.
- Reps must evaluate if their daily activities lead to "larger deposits" or create drag/friction.
Playbook Management:
- Playbooks are defined as a sequence of steps with specific criteria that must be met before proceeding to the next.
- Changes are introduced only at the start of a quarter to maintain business continuity; disruptive changes may be scheduled for half-year or annual reviews.
- Data on "residue" (unresolved issues) drives decisions to tweak or augment playbooks.
Team Composition:
- Optimal hiring balances industry/segment experience with "clean slate" candidates who lack baggage and preconceptions.
- Founders often underestimate the need for a supporting cast (enablement, tooling, data hygiene) rather than relying solely on individual rep talent.
Executive Involvement:
- Executives should sponsor marquee accounts but not necessarily handle every interaction; load balancing is key.
- The sales-to-Customer Success (CS) handoff must be seamless, transferring the specific promise/outcome made during the sales cycle to the CS team for execution.

Demand Creation in 2023:
- Contrary to the belief that spend management is optional in downturns, Doug argues it is most critical when times are tight to drive investment value.
- The average number of touchpoints required to convert a lead has increased from 4–5 to 16–20.
Deal Hygiene:
- Losing a deal is acceptable if the decision is data-driven and not surprising; being "surprised" by a loss is inexcusable.
- "Time kills all deals"; rapid cycle times and the ability to deliver a "no" early are as valuable as a "yes."
AI & Technology:
- AI is already transforming sales through call analysis, speech recognition, pattern identification, and outreach optimization.
- AI's primary benefit is reducing drag and friction, allowing salespeople to be more effective.

Unchanged Tactic: Selling value remains the core constant.
Changed Tactic: Leading with features and functionality is less effective; buyers are smarter and demand insights.
Old School Networking: Traditional relationship-building tactics like sending expensive gifts or inviting buyers to concerts have lost efficacy due to corporate compliance policies.
Advice for New Leaders: The most critical step is understanding how to change the buying criteria of prospects to align uniquely with the product.
Top Impression: Doug cites Salesforce as the gold standard for sales strategy, value creation, and customer success motion.

Future of Sales: The industry will shift further away from "smarmy" sales personas toward high-level consultants who challenge the status quo and provide constructive tension.
Morale Management: In missed quarters, leaders must focus on positive leading indicators going "up and to the right" and reinforce adherence to the system rather than reacting to the bad news.
Predictability: Better predictability in quarterly closes comes from setting expectations and holding both sales and customers accountable for timelines early in the campaign.
Human Element: Despite AI integration, the human aspect of building trust and delivering on promises remains the ultimate differentiator in complex sales.