Founded in 2004, Kareo offers the only cloud-based and complete medical technology platform built for independent practices. They’ve raised over $100 million in financing from top-tier venture capitalists and have offices around the country. Drew Hamilton currently serves as Kareo’s Chief Sales Officer. This is the story of how Drew, his three sales managers, and the 40 account executives that make up the Kareo sales team increased close rates by 30%, accelerated onboarding ramp time by 20%, and cut the sales cycle in half using Gong’s conversation intelligence platform.
Challenge 1: Close Rates and Demos
Drew and the sales team have grown Kareo 368% in the last three years. However, as they’ve continued to expand the sales organization, they ran into a “demo problem.” Among the team of 40 account executives, they had three sales engineers between them who were conducting almost all of the product demos. This created a backlog of available time slots for the sales engineers to do the demos, which was drawing out their sales cycle. However, if they eliminated the sales engineer from doing demos entirely, the AE’s close rates dropped since they weren’t used to doing demos themselves.
Drew wanted to collapse the sales cycle by removing the sales engineer from the demo process while still increasing his AE’s close rates and their ability to demo effectively. Demos are critical to Kareo’s sales success – customers won’t buy unless they see a well-crafted, personalized demo. Drew and the team of sales directors needed to get visibility into what was happening during demos so they could make sure these calls were going according to plan once the sales engineers were no longer part of the equation. They needed to ensure their reps were hitting the key messaging points and were tying core features back to the prospect’s business issues.
Challenge 2: Onboarding
In parallel with this close rate problem, Drew was having trouble accelerating the onboarding ramp time of new sales hires. He had just gone through several phases of growth from a headcount perspective and was planning to go into several more. Getting new sales hires up to speed on executing their demo playbook was slow. New hires would have to wait to get scheduled to shadow their more experienced peers’ sales calls or demos. It took months to get enough shadowed demos under their belt to get through the learning curve and off on their own.
Drew heard about Gong’s conversation intelligence platform by receiving an SDR’s email at the same time he was struggling with these issues. Gong’s promise was to help Drew increase close rates across the 40 person team and accelerate onboarding by recording, transcribing, and analyzing his sales team’s demos. On the close rate side, this would give Drew insight into how demos were going so they could be coached to and course corrected at scale. On the onboarding side, the recorded demos his team was collecting could be used to accelerate onboarding for new hires. New salespeople would have a “highlight reel” of good calls at each stage of the sales cycle to review as soon as they start, putting them through the paces quickly. This would enable them to start nailing their own calls and demos in just a week or two rather than several months.
Drew and his team checked out the value by running a trial first. One of the things Drew mentioned was that his reps and managers were able to adopt it without any product training or implementation, which was extremely helpful given how busy they were. The trial proved itself and Drew embedded Gong into the rest of the sales organization.
After just 90 days from introducing Gong, here’s what the Kareo sales organization achieved:
- 30% Increase in Close Rates – The ability to coach and ensure reps were executing their demo playbook at scale increased the entire team’s close rates by 30% from Q4 to Q1.
- 20% Faster Onboarding – Drew and his managers are able to give new hires access to a library of good sales call recordings at each stage of their sales cycle. It used to take several months for a new rep to shadow 40 sales calls. With Gong, they can buzz through that in a matter of days.
- 50% Shorter Sales Cycle – The ability to remove the sales engineer from the demo process while still maintaining demo effectiveness has collapsed their sales cycle. They can now easily
get by with just one sales engineer, where before, they were struggling to get by with three.
Initially, Drew and the team introduced Gong as a way to get their close rates up and make sure more opportunities make their way through the sales cycle and into closed business. They’ve used Gong to do that very successfully. But it’s gone beyond that into reducing their onboarding ramp time and accelerating the knowledge contained within sales calls across the entire organization.
- 30% increase in close rates
- 20% decrease in on boarding ramp time
- 50% decrease in sales cycle length
Gong is the #1 conversation intelligence platform for B2B sales teams. It helps you convert more of your pipeline into closed revenue by shining the light on your sales conversations. Gong automatically records, transcribes, and analyzes every sales call so you can drive sales effectiveness across your team, understand what’s working and what’s not, and ramp new hires faster by helping them replicate top performers.