Outreach Opens EMEA Office

Sales Engagement vendor Outreach opened its London EMEA headquarters, intending to treble its London customer-facing headcount by the end of the year.  The firm already has over 20 local staff in support, sales, professional services, and customer success.  The firm has over 500 customers with local or global teams in Europe, including DocuSign, Deliveroo, and Protegrity.

“We see a very real opportunity to help evolve the sales industry and customer experience in Europe, and we see London as the best place to do so.  U.S. teams are engaging with customers in new and innovative ways.  Our customers in Europe have shared with us that they believe Outreach can provide European customer-facing teams with the tools they need to transform the sector and turn sales into a true engine for business growth.”

Outreach CEO Manny Medina

“I want to thank our customers here in the U.K. who have been on this journey with us since we launched, said Outreach CEO, Manny Medina.  “Thanks to their early and ongoing support, we knew we had market fit – we just needed the right person to grow and lead our team here.”

Tom Castley was named the head of EMEA sales, where he is “hard at work” assembling the London sales office.  Castley has over twenty years of experience building “high functioning” technology sales organizations.  He previously led Apptio’s pan-European account team and held several sales roles at Oracle.

“The sales industry needs to brush up on its image of an industry full of mavericks who magically secure their sales pipeline at the last minute.  We think it’s time we put this cliché to bed,” said Castley.  “This is why we’re swapping it for a data-driven approach that helps create a steady flow of prospects filling the pipeline and replaces the ‘peaks and troughs’ of the sales cycle with a predictable process.  Companies can then arm their team with relevant data to not only perfect the art of customer engagement but also increase the productivity of the sector and give the board a simple system to predict their revenue.”

Outreach has over 450 employees and 4000 global customers.  Last year, the firm nearly doubled its revenue to $70 million, according to Forbes.

Last week, Outreach canceled its annual 2020 Unleash Conference due to the Corona virus.

Outreach: Growth through Redefinition

Sales Engagement Platform Outreach, which is enjoying significant growth and good press, has twice had to redefine itself.  The first time was a pivot from supporting recruiters to sales reps.  The second redefinition was cultural – reshaping its male-centric, burn-the-midnight-oil culture into a more inclusive, hospitable environment.

Forbes estimated Outreach revenue at $70 million in its last fiscal year (January 2020) up from $38 million in fiscal year 2019.  The firm is considering a direct IPO, but views that event as several years out.  In the meantime, “Our goal is to take Outreach and become a large, independent company,” says DFJ Growth partner Sam Fort.

Outreach’s initial sales were mostly into tech firms such as DocuSign, where the software saves reps at least ten hours per month by streamlining and improving sales communications.  “You have to land tens of thousands of customers and you can’t do that with a team of 100 people cold calling,” says DocuSign CRO Loren Alhadeff.  “Your best bet is to find a way to make your touches more important and more pertinent.”

Medina sees the opportunity as much broader and believes only 1% of the market has been tapped.  Sales engagement may even expand beyond B2B sales functions and support higher-end consumer sales roles such as financial advisors and mortgage brokers.

The path to success has been rocky.  The firm began in the recruitment space and was nearly bankrupt when it began marketing some internal sales tools it developed.  Outreach has also had problems with employee churn due to rapid hiring, a difficult winner-take-all pace that burned-out staff, and a male culture that permitted “sexually charged jokes.”

But Medina, an Ecuadorian immigrant, realized that cultural change was necessary.  “I don’t come from central casting.  I’m not an old white guy from Silicon Valley,” he said.  “I know what it’s like to be marginalized, so I take this to heart.”

To address these problems, the firm released managers that promoted the negative culture, centralized sales teams so that reps could learn from each other, and hired Anna Baird as COO.  Baird has focused on hiring and building an inclusive culture where “everyone has a fair shot.”

The executive team is now 40% female with a goal of parity.  “This is not a checkbox for me,” said Medina.  “This is the life I want to live.  I want to be surrounded by people who want to feel included, who are doing their best work with peers that they love and respect.”

Cancels Unleash 2020 (Covid 19)

SalesLoft and Outreach both made difficult decisions this week, canceling planned user conferences. SalesLoft aborted its Rev2020 conference, which was to open today, and Outreach scrubbed its April Unleash show.  Adobe, Zendesk, and Shopify also canceled events, while Twitter and Facebook pulled out of SXSW.

We have been closely monitoring the rapidly evolving situation regarding COVID-19 (Coronavirus). Our first priority will always be the health and safety of our community, employees, customers, and partners. After careful consideration of the developing situation, we have come to the incredibly difficult decision to cancel Unleash 2020 scheduled for April 7-9. 

Unleash is my favorite event of the year. I love having the chance to meet with all of you and share in the excitement of what’s to come. It’s with a heavy heart that we made the decision, but we believe your health and safety should come first, no matter what. 

Outreach CEO Manny Medina (March 3, 2020)

SalesLoft will still be presenting its opening keynote, but as a virtual presentation on Tuesday.  Outreach is planning a virtual event and twelve-city Unleash Summit tour later this year.

Vendors invest millions in marketing dollars hosting their own events. It is an excellent opportunity for them to build their brand, promote ecosystem partners, roll out their roadmap, provide specialized training by job function and role, expand their organizational presence at current accounts, and convert prospects to customers.

Quora: Do salespeople keep track of their sales activity log?

Sales reps are expected to keep track of their activities (both previous activities and future tasks). Fortunately, Sales Engagement Platforms (SEPs) such as Outreach, SalesLoft, VanillaSoft, XANT, Yesware, and ConnectLeader do most of this automatically. As touches are completed, they are automatically logged to the SEP and synced with the CRM. The SEP also tracks outcomes (call answered, voicemail drop, email view, email click-through, etc.), records and analyzes calls, and offers recommendations (best practices, next best actions).

This is a fairly new category of software which is mostly used in technology sales but beginning to extend into other B2B categories. Initial functionality focused on Sales Development Reps (SDRs) but richer functionality is being added which assists all sales positions.

These platforms set up cadences / sequences of planned activities that include email, phone, social, text, inbound, etc. Throughout the day, the system recommends the next best action. Because much of the work is scheduled by cadences, reps do not need to record most follow up tasks. Cadences include A/B tested email templates, scripts, and schedules so reps can be confident that they are employing a tested strategy. Email personalization is encouraged to improve click through rates and convey authenticity.

Other features of these platforms include

  • Automated meeting setup
  • Inbound call and chat support
  • The insertion of short personal videos from vendors such as Vidyard, Drift, Hippo Video, Videolicious, etc.
  • Recording, Transcription, and Analysis of calls and video meetings. Key moments are indexed for review (e.g. Next Steps, Pricing, Competitors, Feature Analysis, Talk Length and Ratios, Junk Words, etc.) and coaching. Call snippets may be forward to managers for questions (How should I handle this situation next time? Can we support this request?). They can also be forwarded to customer support (what is the status on this problem? Could you open a ticket?) and customer success (Is this feature supported?). Some vendors even support video libraries for training and coaching purposes.
  • LinkedIn Sales Navigator (SNAP) integrations
  • Cadence Pause (e.g. out of office) and Stop (e.g. Meeting set)
  • A/B testing and analytics for Sales and Marketing Operations
  • Opt-out tracking in general (do not contact) and specific (do not contact via text or phone, but email is OK).

If you are interested in evaluating SEPs, I wrote an overview that discusses the value proposition, key features, and questions to ask vendors.

Administrative Control Screen for Email Synching.
SalesLoft Administrative Control Screen for Email Synching.

Evaluating Sales Engagement Platforms: A Guide for Purchasing SEPs

I am pleased to announce that my next enterprise software purchasing report is available through this website and my partners at Tenbound. “Evaluating Sales Engagement Platforms: A Guide for Purchasing SEPs” assists with the purchasing decision of this rapidly developing SalesTech category.

Evaluating Sales Engagement Platforms

Single User License (October Discounted Price)

$495.00

The report is available as both a single buyer license for smaller firms evaluating the sector and as a buyer-committee license for larger firms. The Buyer Committee license covers a team of seven and includes a Word document checklist to assist with the evaluation.

Evaluating Sales Engagement Platforms – Buying Commitee License

Seven-User License (October Discounted Price) + Word Document Checklist

$1,195.00

Report Coverage

The 13-page report covers the following topics:

  • Sales Engagement Platform
    • Definition
    • Value Proposition
    • Core Features
    • Other Features
    • Industry Pricing
  • Purchasing Questions

I also offer detailed overviews of several major vendors:

  • SalesLoft Product Overview
  • VanillaSoft Product Overview (coming October 18)

GZ Consulting / Tenbound reports are independently written and not sponsored by any of the profiled vendors. Michael R. Levy of GZ Consulting wrote this report.

Outreach Makes LinkedIn’s Hot Companies List

Seismic content can be included in Outreach email templates.

On Wednesday, I congratulated Drift and Cognism for making the LinkedIn Hot Companies list. Somehow I missed that Outreach also made the US list at #50. Perhaps I stopped looking at #49.

So congratulations to CEO Manny Medina and the team at Outreach. The Sales engagement firm has been going head-to-head with SalesLoft to become the leading vendor in its category.

Outreach is based in Seattle and reached unicorn status earlier this year, a rather impressive feat for a five-year old company that doesn’t rent scooters. It is on track to hit 450 employees by the end of the year and has doubled its revenue growth each year since 2016.

Outreach has 3,500 customers including Adobe, DocuSign and eBay.

One area of rapid growth is in its Galaxy partner ecosystem. New partners include Seismic, BombBomb, and Sendoso.  The Seismic integration allows reps to insert Seismic content into emails and multi-recipient sequences via a Seismic icon.  Reps are notified when prospects view content, allowing them to “transition the prospect into a high-priority, more personalized Sequence.”  Sales reps can also send follow-up content after a successful demo or meeting and modify messaging based upon which Seismic content is resonating.

BombBomb supports personalized videos which are inserted into sequences.  When a recipient watches the video, reps can trigger an urgent call task or place the viewer into a high-touch sequence.  Recorded videos and screen captures are also supported.  BombBomb is priced at $29.99 per seat per month with volume discounts.

Sendoso supports sequences which include e-gift or direct mail steps.  Reps can also setup triggers when e-gift links are activated or direct mail items received. For example, I recently attended a trade show and received a box of mini-cupcakes afterwards with an accompanying note from the Sendoso sales rep.

Other new partners include Aircall, BigPicture, Crystal, Dooly, LeanData, LiftIQ, Nova.ai Intelligent Customer Management, OBMetrix by Iceberg RevOps, Reachdesk, RingLead, SnapApp, Sona, and TopOPPS.

Clari Partners with SalesLoft

Clari is the latest vendor to join the SalesLoft app directory of over fifty partners.  Clari’s Connected Revenue Operations Platform “automatically tracks sales activity data and engagement for your entire revenue operations team so you can measure the health of your pipeline and forecast more accurately,” announced SalesLoft.  “Increased signal intelligence helps reps and managers understand which opportunities are trending in the right direction, and which can use more engagement to drive them forward.”

Clari’s AI engine analyzes SalesLoft engagement activity including email opens, calls made, and LinkedIn messaging to help “reps focus on the right deals and managers make more accurate forecasts.”

Clari's "single pane of glass" aggregates activity intelligence across teams and sales reps by Opportunity
Clari’s “single pane of glass” aggregates activity intelligence across teams and sales reps by Opportunity.

SalesLoft noted that the buyer’s journey is complex with enterprise deals touching eight buyers and influencers at enterprise prospects.  Thus, “it can be tough to know what activities have occurred with which personas and even tougher to know which activities to attempt next to move the needle.”

The joint solution provides a single pane of glass for assessing sales rep activities, determining which activities move deals forward, and planning for next steps.

“Too often, go-to-market teams operate in disconnected silos.  We’re fixing this by using AI and automation to connect real-time business activity with back-office systems and processes so teams spend less time entering data, and sales, marketing, and customer success are always on the same page.  Bridging these silos makes every campaign, QBR [Quarterly Business Review], and forecast call more data-driven and actionable.”

Clari CEO Andy Byrne

Besides SalesLoft, Clari application partners include Outreach, Yesware, LinkedIn Sales Navigator, DiscoverOrg, Salesforce, Marketo, Slack, Gmail, and Outlook.

Outreach Reaches Unicorn Status

Outreach Crunchbase Profile
Outreach Crunchbase Profile

Sales Engagement vendor Outreach achieved unicorn status following a $114 million round which valued the firm at $1.1 billion.  Total funding reached $239 million.  Round E was led by hedge fund manager Lone Pine Capital with Meritech Capital Partners and Lemonade Capital joining the round.  Also participating were previous investors DFJ Growth, Four Rivers Group, Mayfield, Microsoft Ventures, Sapphire Ventures, Spark Capital, and Trinity Ventures.

Outreach had a very strong 2018 and now has over 3,300 customers and 50,000 users.  The firm more than doubled its revenue last year and grew to 315 employees.  Outreach expects to close 2019 with 450 headcount and hit annualized recurring revenue of $100 million in the next year.

“This financing will enable us to infuse every aspect of the customer journey with the power of machine learning so organizations can identify the actions that move the needle in order to make better, faster decisions,” blogged CEO Manny Medina.  “We will also expand in the coming months by doubling our machine learning team, increasing our international footprint, and investing in our partner ecosystem, Galaxy, as well as our recently announced integration with Microsoft’s Dynamics 365 for Sales.”

Outreach offers Salesforce and MS Dynamics connectors and plans to release an SAP SE connector by year end.

It’s top competitor, SalesLoft, also received a large funding round. I will cover that tomorrow.

Vidyard GoVideo Expands SalesTech Partnerships

Vidyard GoVideo
Vidyard GoVideo supports on demand video creation, screen recording, and previously uploaded videos from within ConnectLeader templates.

Vidyard announced six additional sales platforms for its GoVideo platform: Outreach, EveryoneSocial, Reply.io, 366 Degrees, ConnectLeader, and FunnelAmplified.  Previously announced partners include SalesLoft, InsideSales, HubSpot, Marketo, Eloqua, Drift, and Salesforce.  Vidyard supports over 40 sales and marketing solutions.

Integrated video helps personalize a message and increases open and clickthrough rates.

Outreach and ConnectLeader offer Sales Engagement platforms with personalized videos being integrated into email steps.  Outreach sales reps can include personal video within their sequences and monitor video engagement.

Link Encoding provides website or content viewing intelligence related to Outreach sequences.  For example, the new plug-ins help Vidyard “record and send videos within your Outreach email.  And when your prospect views the video, that activity triggers your next task so you can immediately take action to convert at the highest level.”

“Sales is becoming more personal every day.  You must use the right channel for the right engagement for the right prospect and customer, and we’re finding video to be a key channel in engaging buyers,” said Outreach CEO Manny Medina.

“Vidyard has been tightly integrated with ConnectLeader, which transforms your videos into lead generation machines,” wrote ConnectLeader. Features include camera recording, screen recording, and video uploading of previously saved content in Vidyard.

Reply.io is an email-centric platform with contact management, drip campaigns, reply recommendations, email validation, and reply prioritization.  The joint solution “lets users personalize sales drip campaigns, create personal intro videos or product demos, add them to email sequences in Reply.io, and automate one-to-one email engagement at scale.”

EveryoneSocial provides social selling tools for sales, marketing, communications, and recruitment teams.  Users can select pre-recorded videos from a library or record custom videos and share with prospects and connections.

366 Degrees and Vidyard support SMB marketing with dynamic content, multi-channel marketing campaigns, and campaign metrics.  Video can be integrated into newsletters, promotions, social media, and landing pages.

“With the changing behaviours of today’s buyers and the availability of new technologies, sales development is becoming a sophisticated business function that takes a strategic approach to identifying and developing new sales opportunities based a wide range of buying signals and sales engagement techniques,” blogged Vidyard VP of Marketing Tyler Lessard.  “On average, SDRs use six different tools.  And the days of SDR teams inheriting tech from the broader sales and marketing teams—such as customer relationship management (CRM), email automation, and social listening—and adapting them to meet their unique requirements for scalable sales prospecting are quickly coming to an end.”

What is Sales Engagement?

Over the past year, Sales Engagement has become the third pillar of my coverage (alongside Sales Intelligence and B2B DaaS). So it is only fair that I write an overview of the space.

Sales Engagement began about four or five years ago as Account Based Sales Development (ABSD) with a focus on automating the SDR function. Its initial functionality consisted of a cadence tool which automated emails and outbound dialing for appointment setting. Cadences, also called sequences, are a set of scheduled steps that usually begin with an email but also include outbound calls, social steps (many vendors have integrated LinkedIn Sales Navigator via SNAP connectors), and direct mail.

Cadences can be paused if the prospect is out of office or halted if the prospect unsubscribes. Outreach just announced out of office functionality which pauses the call and checks whether an alternate contact is listed.
Functionality is similar to that of LeadGnome. Outreach noted that 18% of email responses are out of office emails. 25% of out of office emails include an alternate contact name with over half the names being manager titles or above.  The Out of Office reply detection extracts the return date and alternate names then pauses sequences until the prospect returns.  The sales rep is notified of automated actions.

Email is supported by targeted templates which can be personalized. Thus, reps can call cadences by function, level, industry, etc. and the associated templates are customized by target audience. Reps can view the emails prior to sending and personalize them. This helps bring authenticity to the email. SalesLoft estimates that the peak personalization level is 20%.

Most sales engagement solutions include a digital dialer for outbound calling. The system suggests the best time of day and adjusts for time zones. Other features include local dialing, call recording, and voice mail drops. Upon completion, the rep enters call disposition and sentiment information which is synched with the CRM.

Once calls are recorded, they are transcribed and indexed, allowing sales reps or managers to quickly review calls and quickly locate pain points, objections, pricing, and next steps. Vendors such as Outreach and SalesLoft are going a step further and analyzing the calls, providing a set of team reports. More broadly, machine learning tools are being applied against the calls to determine best sales practices.

Meeting Management is emerging as a key feature set. Some vendors offer simple Calendly-like scheduling while others provide full meeting transcription and analytics.

Video is becoming increasingly important. Vendors support both video meetings (e.g. Webex, Zoom, BlueJeans, JoinMe) and video attachments (e.g. Vidyard, Videolicious).

The Outreach Partner Directory offers ten categories of partners. Sales Intelligence and Data supports lead generation, intelligence, and management.

Other information and decisioning tools include leaderboards, dashboards, AI recommendations (e.g. who to call or email next), CRM synchronization, and A/B testing. Some of these tools are directly integrated into the service while others are available through app directories. Similar to the Salesforce AppExchange or Marketo LaunchPoint, functionality may be free, freemium, or premium. Likewise, you may need to separately license the partner solution prior to enabling the integration. Outreach and SalesLoft offer a broad set of app partners.

There are a broad set of Sales Intelligence partner services which feed leads or display lead intelligence within Sales Engagement platforms. Vendors include DiscoverOrg, Zoominfo, Datanyze, Owler, Crunchbase, and SalesIntel.io.

Sales Engagement platforms are evolving into a system of engagement that sits alongside CRMs (systems of record). There is already a shift taking place from CRMs to Sales Engagement platforms. While Sales Engagement platforms are not looking to displace CRMs, sales reps are increasingly shifting screen time from CRMs to Sales Engagement platforms with the Sales Engagement platforms syncing with the CRMs. This is one of the reasons that Salesforce.com recently launched its High Velocity Sales service which combines cadences, Salesforce Inbox, the Lightning Dialer, work queues, and Einstein. High Velocity Sales starts at $75 per user per month ($90 with outbound calling).

The Salesforce Lighting Dialer supports click-to-call, power dialing, inbound calling, voicemail drops, and call logging.

At the Salesforce World Tour in Boston this week, a sales rep told me that Salesforce is heavily investing in Sales Engagement and hopes to catch up to the market leaders in the next year (I think this is overly optimistic as the leaders are quickly building out functionality and partnerships). While Salesforce could catch up in a few years, I believe it is more likely that SFDC will acquire one of the leaders in the space followed quickly by Microsoft and Oracle acquisitions in the sector (of course, Microsoft or Oracle could be the first movers). Adobe, which recently acquired Marketo, may also be interested in expanding its presence in B2B sales and marketing applications.

The top vendors in the space are SalesLoft, Outreach, and InsideSales. Other vendors include ConnectLeader, Yesware, Toutapp (Marketo), Mixmax, and VanillaSoft.

Outreach Unleash

At its Unleash user conference, Outreach rolled out its expanded Galaxy partner ecosystem that “offers deeper partner integrations and enables sales teams to more effectively access multiple sales tools directly from the Outreach platform.”  Outreach also announced a set of new partners including Vidyard (1-to-1 video), Intercom, (chat) and Sendoso (direct mail) along with a set of new plugins for composing emails, event streams, and link encoding.

Outreach Galaxy provides:

  • “More visibility on information and actions performed by third-party applications like video views or website chats.  Outreach Galaxy puts actionable information at reps’ fingertips so they can have more contextual conversations.
  • ‘Next best actions’ enabled through integration partners.  Outreach automates customer touchpoints and can trigger or be triggered by external information fed into Outreach.
  • Greater ability to meet changing buyer preferences.  Outreach is the system of action for modern sales teams, and now enables reps to communicate with buyers through even more mediums.

“Sales is evolving to become more personal and accurate.  You must use the right channel for the right engagement for the right prospect and customer,” said Outreach CEO Manny Medina.  “A sales engagement platform must be multichannel and have the ability to optimize on each depending on the customer.  Now you can do that, with Galaxy.”

Tactile Marketing Automation vendor (Translation: Direct Mail Swag) PFL also announced an Outreach integration.  Sales reps include a direct mail or reward step within Outreach sequences.

“We’re all inundated with thousands of digital messages a day, but studies show that touching something physical stimulates our emotions and ultimately improves the perception of a brand,” said PFL CEO Andrew Field.  “We are joining the Outreach Galaxy partner program to put the power of direct mail and high impact packages directly into the hands of sales reps so they can engage prospects and customers.  Together with Outreach, we are pioneering a new approach to B2B marketing that empowers sales reps to do what they do best: stand out, get noticed and close more deals.”

Outreach listed a set of future partners including Alyce, BombBomb, Clari, LeanData, OneMob, and Tiled.

When composing emails, third-party content is immediately accessible.  Vendors leveraging the new plug-in capability include Vidyard and Sendoso.

The new events stream plugin feeds third-party events to the Outreach activity feed.  These events can then act as triggers for additional action.

An Enhanced Team Performance Dashboard is planned for 2019.
An Enhanced Team Performance Dashboard is planned for 2019.

Link Encoding provides website or content viewing intelligence related to Outreach sequences.  For example, the new plug-ins help Vidyard “record and send videos within your Outreach email.  And when your prospect views the video, that activity triggers your next task so you can immediately take action to convert at the highest level.”

In 2019, Outreach will roll out an enhanced Team Performance Dashboard and expanded Sequence Analytics to help sales managers and sales operations professionals better determine best practices.

Over 500 Outreach customers have has already built integrated solutions using the Outreach API.  The firm has over 40,000 weekly active users performing 47 million actions.

Outreach added Out of Office reply detection.  The firm noted that 18% of email responses are out of office emails.  Amongst out of office messages, 25% include an alternate contact name with over half the names being manager titles or above.  The Out of Office reply detection extracts the return date and alternate names then pauses cadences until the prospect returns.  The sales rep is notified of automated actions.

“Modern sales means using technology to interact with buyers in the ways they expect.  Outreach has the responsibility to enable this, but we can’t do it alone.  The solution is a variety of different technologies.  Unfortunately, these solutions aren’t well coordinated, if at all.  They’re used on multiple computer windows, by multiple departments, using different devices.  We owe it to our mutual customers to string everything together, for reps to do their jobs on one single pane of glass with each action informing the next.”


Outreach Strategic Programs Manager Stephen Farnsworth

Medina defined Outreach’s objectives as making “things simpler.  Making every rep successful.  Every manager amazing” and “elevate the profession.”  To help define and promote the category, Outreach published a book titled “Sales Engagement: How the World’s Fastest Growing Companies Are Modernizing Sales through Humanization at Scale.”

Outreach supports over 3,000 customers.