Fonn
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Case Study Highlights
At Sales for Startups, we tackled Fonn’s challenges head-on, addressing a sharp decline in sales and high churn rates. By closely analysing data, reassessing the sales team’s approach, and refining sales strategies, we successfully steered Fonn back to growth. Our efforts focused on key markets, enhancing sales efficiency, and dramatically lowering churn, which collectively drove a significant uplift in annual recurring revenue.
140%
Increase in average deal value
75%
Increase in Annual Recurring Revenue
400%
Growth in productivity
Fonn
Challenge
At the time of beginning work with Sales for Startups, they had successfully received a few rounds of Seed funding, were operating in Norway, the UK, and had branched out into the US.
The issues they faced included a reduction in sales across the organisation, with overall sales down by 53%, coupled with difficulty finding traction and successfully onboarding new clients; with churn being worryingly high, despite a very strong product.
They requested a “sales playbook which would help their team to sell more successfully.” During our initial assessment phase of engagement, it became clear, however, that this would be of limited value if we did not also address core elements of the proposition, personnel issues and reporting. Ultimately having the right team for the journey is one of the keys to continued success.
Fonn
Solution
We focused on the following areas:
- In-depth data analysis of total contract value, including churn data, by sales representative, region and customer type
- Assessment of the existing sales teams through observation, interview, performance data, and Thrive psychometric and aptitude testing
- Implementing ‘tried and tested’ sales essentials such as the ICP and buyer personas, clear sales process and qualification criteria, a competitor FAB analysis and the value proposition, all of which would contribute to a sales playbook later
- Ongoing and active weekly sales leadership and mentorship of the sales team
- Developing clear roles and responsibilities across the commercial teams, including tools to hold individuals accountable for underperformance and high churn
- Restructuring the sales and marketing team, including exiting underperforming hires and those that did not match the cultural values and standards at Fonn
Fonn
Results
- Fonn doubled down on the Norwegian and UK markets and left the US market
- Sales representatives doubled their individual revenue contributions in the second quarter and are now operating at 4-5 times their initial productivity
- Average deal values have increased by 140%, with a shift from monthly rolling contracts to 18-month minimum with frequent two and three-year deals
- Sales cycles have reduced by 81% (due to better sales processes and ICP definition)
- Customer churn is now at an all-time low
- Only 2 out of the 9 original sales team are still in post; we hired an additional 5 new hires within the first year of our engagement
- Fonn has seen an increase in ARR by 75% in less than 12 months since the implementation phase
“To understand alone is not enough, implementation is so important and ongoing support with this phase was essential to our transformational success. We would not be in the strong position we are in today at the end of 12 months if it weren’t for Sales for Startups. I would tell any Tech CEO who asked me, ‘can you afford not to do it?’”
JAN TORE GRINDHEIM, CEO, FONN
