Andy (03:30): That’s a great point. The background of a candidate doesn’t always translate directly to success in a different company with different resources.

Lucas Price (03:59): Exactly. I encourage hiring managers to be flexible about experience but strict about the traits needed for success. Traits like resourcefulness and adaptability are crucial. Many hiring managers focus on less important factors like a candidate’s background or connections, rather than their actual performance history and ability to adapt. It’s essential to focus on traits like a history of achievement and resourcefulness, which are often harder to assess but more critical to success in sales roles.

Andy (04:58): Your product seems to address these issues directly. Can you dive into how Yardstick works to onboard new salespeople and measure their performance?

Lucas Price (05:24): Certainly. When starting with Yardstick, you select a profile that matches the sales role you’re hiring for. This profile includes pre-built interview questions and guidance. An editor helps customize these to be specific to your company, making the interview process more effective. Our system improves the predictive value of interviews significantly, from about 20% better than flipping a coin to 85-90% better. This is achieved through structured steps, such as asking every candidate the same questions, using role plays as work samples, and employing behavioral-based interview questions. We also use scorecards to evaluate traits at the end of the process.

Lucas Price (06:26): After the hire, we send out short performance surveys to stakeholders who work closely with the new employee. These surveys assess the new hire on the same traits evaluated during the interview process, closing the loop and providing ongoing insights into their performance. Lucas Price (07:27): It gives you the information you need to intervene early. Whether it’s with a high performer, you can clear roadblocks for them to succeed, or if it's a good performer who isn’t quite great, you can address issues quickly to help them improve. Additionally, in cases where you might make a hiring mistake, the system alerts you faster, so you can take action promptly. This approach ensures that you become 90% better than a coin flip in your hiring decisions, rather than just 20%.

Andy (08:19): That’s a useful feature. Since you’re collecting a lot of data, it seems you might also be able to perform predictive analysis on future hires. By understanding which traits lead to success, can your system predict who will perform well in a role?

Lucas Price (08:44): Exactly. The advancements in AI and machine learning allow us to use models that apply across a broad range of sales roles. We can also quickly identify where your specific sales role might diverge from larger models. AI helps us provide more precise insights and predict who might be successful based on traits and patterns we observe.

Andy (09:17): That’s really interesting. What inspired you to focus on this area? Have you had previous experience in sales roles?

Lucas Price (09:43): Yes, my previous job was a major inspiration. I was the VP of Sales at Zip Whip for over five years, where I built the team that grew Zip Whip from less than $1 million to over $100 million in ARR. Zip Whip was sold to Twilio for $850 million. In that role, I realized that the hires I made had a significant impact on the success of the team. Effective sales hires lead to faster ramp-up times, quicker learning, and a positive feedback loop. The impact of hiring decisions is profound, not just for individual career trajectories but also for the entire sales organization.

Lucas Price (10:17): At the same time, I found that other tasks often took precedence over hiring. There were always urgent matters like end-of-quarter pressures, board meetings, and compensation plans. I wanted to create a product that handles 90% of the hiring process for sales leaders, allowing them to focus on executing the process rather than creating it. While some have suggested creating an assessment tool, I believe the interview process remains the most predictive part of hiring. That’s why we focus on refining and improving it.

Andy (12:16): It’s impressive how your personal experience led to the creation of Yardstick. It seems that many entrepreneurs find success by solving problems they’ve personally encountered.

Lucas Price (12:42): Absolutely. Understanding the problem firsthand positions you well to address it effectively. It’s been a rewarding experience working with sales leaders and helping them succeed, which in turn accelerates their career paths.

Andy (13:14): What sales tips would you offer to SMB owners or their sales teams for closing more deals in 2023?

Lucas Price (13:49): One key to succeeding in the current environment is mastering the discovery process. Understanding your Ideal Customer Profile (ICP) and identifying their top priorities is crucial. You need to grasp how your product fits into their priorities from the beginning of the sales process. While automation tools for sending pitches are useful, personalized and authentic communication is increasingly resonating with prospects. Tailoring your pitch to the specific needs of each potential customer makes a significant difference in closing rates. Andy (14:43): It's important to understand the problem your pitch addresses and how well it aligns with providing a solution. When people focus on this alignment, they tend to experience greater success. This approach requires a hyper-focus on understanding the Ideal Customer Profile (ICP) and identifying their core issues. By aligning your pitch with these problems from the start, you can avoid being ignored like everyone else.

Lucas Price (15:10): You can't overemphasize the importance of ICP. One of the most significant actions a sales leader or SMB owner can take is to narrow their focus to customers with the highest propensity to buy at the right price point. By getting specific about your ICP and targeting the right market, you can avoid spreading yourself too thin. Establishing a strong presence in your chosen market is crucial, and expanding to other markets should come only after you've saturated your best one.

Lucas Price (15:43): Many startups fail because they try to appeal to everyone, resulting in a broad pitch that doesn’t resonate with anyone. It's similar to the "Jack of all trades, master of none" scenario. To avoid this, focus on proven sales strategies.

Lucas Price (16:13): Hiring the right people is fundamental. The best sales leaders know that having top talent, even with a few product flaws, is more valuable than having a flawless product but poor salespeople. Great people make a substantial difference in sales outcomes. Additionally, effective discovery—understanding your target and their needs—is crucial. A mutual action plan, where you and your prospective customers outline the sales process and agree on the steps and timelines, helps ensure deals don’t stagnate.

Lucas Price (17:12): The right team and a structured approach to discovery and planning are pillars of a successful sales strategy. The quality of your team can make a significant difference, so investing in the right tools and resources is also important.

Lucas Price (18:09): There are many tools available today, which can be overwhelming. For sales engagement, I recommend Outreach. It integrates various functions, including live video tools that provide information about competitors and help sellers stay informed during calls. For contact data, Apollo is useful. There are many excellent tools out there, but these have worked well for me.

Lucas Price (19:43): The sales landscape is evolving, and technology is having a big impact. The marketplace is more crowded, and it’s only going to get more competitive. Sellers need to continually hone their skills and adapt to new challenges. While some marketing channels, like email and LinkedIn, are becoming oversaturated, finding new, effective channels is essential.

Lucas Price (20:19): The rise of technology means sellers need to stay ahead of the curve. With AI and other advancements, the competition will only intensify. Successful channels will eventually become crowded, so finding and leveraging new, effective channels is crucial.

Andy (21:23): I've noticed a resurgence of in-person events. For example, New York Tech Week was a great opportunity to connect with people face-to-face. This personal interaction can be more impactful than digital communication alone.

Lucas Price (22:18): I agree. Events provide a chance to break through the noise and build awareness. They allow you to connect with people who might not have engaged with you otherwise and strengthen relationships with those already in the sales process. Face-to-face interactions are a powerful way to enhance communication and advance sales discussions.

Andy (23:10): How about video tools? I've seen many companies use video to capture attention better than text in emails. Tools like Snippets or Dub, which allow you to record introductory videos, seem to be gaining popularity.

Lucas Price (23:44): Video tools are indeed effective. They can capture attention more effectively than text and provide a personal touch. Using video snippets or introductory videos can help engage prospects and convey your message more compellingly. Lucas Price (24:12): Regarding video tools, I think they're a good idea, though I'm not familiar with all of them. I know about Loom and have seen Zoom's integrated video features. Despite being in a crowded space like email or LinkedIn messaging, video can still stand out and cut through the noise. It's surprising more salespeople don’t use it, given its effectiveness. I’ve read about tools that use AI to customize videos with your name or voice, which is innovative. However, this could eventually lead to channel saturation. Personalization remains valuable, but the more personal and humanized your approach, especially in B2B, the better. That said, relevance might be even more critical than personalization.

Lucas Price (25:11): Relevance often trumps personalization. If your email highlights a problem the recipient doesn’t have, personalization won’t make a difference. On the other hand, if your message addresses a current issue they're facing, it’s more likely to receive a positive response, even if the email itself isn’t highly personalized. Understanding what’s happening within a company and identifying relevant triggers can be more impactful. There’s a product called Blueprint GTM by my friend Jordan Crawford that helps find these triggers, emphasizing the importance of relevance over personalization.

Lucas Price (26:07): At Yardstick, we focus on identifying relevant signals, such as companies promoting their AEs to managerial roles, which indicates growth and a need for effective hiring processes. These signals can be more compelling in cold outreach than generic personalization, as they demonstrate a timely solution to a real need.

Lucas Price (27:56): Looking ahead, Yardstick plans to leverage machine learning and AI to enhance our product. We aim to improve our ability to build accurate candidate profiles by incorporating company culture and values into our system. We also plan to use large language models to maintain high-quality interviews and provide a broad library of profiles. Our goal is to help sales leaders and managers make the best hiring decisions and accelerate their careers. We see a promising future with many opportunities for improvement.

Andy (30:34): It sounds like you have a well-defined focus and a clear understanding of your customers. Thanks again for joining us today, Lucas. For those interested in Yardstick, you can check it out on NachoNacho's B2B SaaS Marketplace or visit their website at yardstick.team. It’s always great to connect with fellow professionals. We look forward to growing together with your company.

Lucas Price (30:51): Thanks for having me, Andy. It was great talking with you.