Network Appliance, Inc.

Build a Cost-Effective Sales Cycle

Network Appliance, the pioneer of the “network appliance”—dedicated, specialized products that perform a single network function—transitioned from a reseller distribution model to a Direct Sales strategy in 1995. Two months into the new strategy, revenues were falling far short of goals. Network Appliance’s new sales reps had no pipeline and were losing ground on quota. Moreover, these relatively expensive field resources were spending time cold calling to generate leads, or following up on unqualified trade show and seminar leads. Tom Mendoza, then Vice President of Sales, asked Phone Works to help launch an Inside Sales organization that would reduce the cost of developing qualified sales opportunities, and improve the productivity of his Field Sales Reps.

A Strategic Foundation

As a first step, Phone Works met with the Network Appliance management team to develop an inside sales strategy. This resulted in a blueprint, or business plan, that clearly defined revenue goals, territory definition, Sales/Inside Sales Rep responsibilities, infrastructure requirements and processes. Phone Works then presented a budget outlining appropriate investments required to build the new operation, which management subsequently approved. At this point, Phone Works’ consultant became the acting Sales Development Manager, and with its proven professional experience built this critical inside sales organization from scratch.

300% growth in 3 years

At the end of the first six months, the new Sales Development department was responsible for producing 200 attended sales calls, and 25% of US revenues. Three years later, the group had grown by 300%, and was responsible for 67% of US revenues. “Phone Works helped us avoid costly mistakes and get up to speed very quickly,” said Tom Mendoza. “They worked with us every step of the way, developing the right strategy and providing on-site management and manpower to get us working more effectively.”