On Sales Strategy and Execution

1. Become a Student of What You Sell.

In order to win, Chris encourages his sales rep to “become students of what they sell.” That means staying up-to-date with the product offerings and its use cases, but it also means staying curious in conversations with prospects—and always looking out for new pain points your technology can target. [1]

2. Focus on Customer Pain Points.

Know your customer's business and target specific pain points. [1]

3. Add Value in Every Interaction.

Treat a customer's time as precious and aim to add value in every interaction. [1]

4. The "Soft Sale" Approach for Early-Stage Companies.

When Snowflake was in its early stages with no customers, Degnan's approach was not to sell but to seek advice. He would email CTOs and CIOs saying, “Hey, I run sales at a cloud data warehousing company. I'd love 15 minutes of your time to just tell you what we're up to and see if you could give me any advice on how we could actually make the product better.” This "soft sale" approach led to an influx of opportunities. [2]

5. Don't Immediately Target the Biggest Companies.

Initially, I would go out and try to target the biggest companies on the planet. I realized that those companies are not early adopters, not even close to early adopters. [2] Instead, he focused on companies that were "cloud-friendly." [2]

6. The Importance of a Consumption-Based Model.

We're a usage-based revenue system so kind of unique in that world. [2] This model was a key part of Snowflake's go-to-market strategy.

7. Let the Product Do the Selling.

Chris never directly asked people to buy. Instead he said, “Try it out. If you like and use it, pay for it.” [3]

8. The Power of Self-Service.

Eventually, Chris partnered with Marketing to launch self-service, getting even more new customers to sign up. [3]

9. Wait to be Pulled Upstream into Enterprise.

“You're fooling yourself if you're going to build an Enterprise focus early on. That's a waste of time.” He advises focusing on high-velocity sales with a lower Average Selling Price (ASP) and building a base of referenceable customers first. [3]

10. All Reps Should Do 8 Customer Calls Per Week.

This is a principle mentioned in the summary of the "20VC" podcast, emphasizing the importance of high activity levels for sales reps. [4]

On Hiring and Team Building

11. Hire for Potential and Grind Over Experience.

My biggest thing is hiring potential over experience. I think potential and grind are probably the most important things. [2]

12. Hire People Better Than You.

"I convinced them to bet on the company, on me, on everything, and that's probably the most important thing that I've learned in this process, and what has enabled me to go from director of sales to chief revenue officer, is recruit people better than you. And if you're able to do that, you will be rewarded." [2]

13. Leaders Must Be Willing to Get Their Hands Dirty.

"I think the thing that you have to be willing to do at every level at this company or any company is you need to get your hands dirty. A lot of senior executives are unwilling to do that." [2]

14. Never Hire Blindly.

According to Chris, the first way to conserve resources—whether you're in Series A or you're a publicly traded company— is to never hire blindly. No number of sales reps could solve a problem that's ultimately due to a lack of product-market fit. [1]

15. The Two-Week Hiring Process.

At Snowflake, the sales team would limit hiring processes to two weeks. Both sides needed to commit to a decision by the end of that window. This kept the process efficient and ensured that candidates were serious. [5]

16. What to Look for in a First Sales Leader.

Chris suggests finding someone who is not far-removed from selling, but has had sales leadership experience. They need to know how to determine product-market fit, and ideally, have sold in your space and know how to bring in net-new logos. [3]

On Leadership and Management

17. Obsess Over Enablement.

Enablement isn't a nice-to-have—it should be a top priority. Pick a methodology (like MEDDIC) and hold a weekly enablement session with every rep. [5] Chris learned the MEDDIC sales methodology at EMC, and it was ingrained in him. [6]

18. Weekly Forecast Calls are Non-Negotiable.

Every single person in your sales org needs to have a forecast call every week. There should also be a direct team meeting. [5]

19. Plan a Quarter Ahead.

"Q4 is always magical, typically speaking, in a sales organization if you have a decent product. And the hardest part is getting people to focus on Q1 in Q4.” He would ask leaders for their Q1 forecast while in Q4. [1]

20. The Three Pillars of a Great Sales Leader.

Chris believes great sales leaders do three things: they hire great people, they train those people well, and they drive individual productivity. [5][6]

21. The Most Important Relationship is Between Sales and Product.

This is highlighted as a key belief of Chris's in the "20VC" podcast summary, emphasizing the need for strong communication and alignment between these two departments. [4]

22. The Fear of Failure as a Motivator.

A recurring theme in interviews is how the fear of failure can be an effective motivator for growth and success. [7][8] This was shaped by a traumatic experience in his youth where his father was imprisoned for fraud, leading to a loss of the family's wealth. [9]

23. Listen and Take Action.

When asked how he lasted through four CEOs, a former colleague mentioned, "you know Chris you you you listen and then you you you you you don't you you you don't come here with like this is how it has to be. you're very much humble you're you're listening. and then you'll take action." [6]

24. Customer Success is BS; Professional Services for the Win.

A provocative viewpoint from his "20VC" interview is his belief that the traditional "customer success" model is flawed and that a professional services structure is more effective. [4]

25. Constantly Measure Productivity.

Leaders need to constantly be measuring productivity, said Chris. It can be anything from how a specific territory is performing to how many reps are hitting quota. [1]

On Personal Growth and Mindset

26. The Importance of Grit.

Grit is mentioned as a key attribute for success in several interviews, reflecting his journey of building Snowflake's sales from the ground up. [7][8]

27. Overcoming a Fear of Failure.

He openly shares about his fear of failure and how realizing he didn't want his boss's job at a previous company prompted a significant career change. [7]

28. Character is Built Through Adversity.

Reflecting on his challenging upbringing, he says, “Those things have built character. I'm super proud of the person I am… That's what matters to me.” [9]

Sources:

Learn more:

  1. Chris Degnan (Snowflake): Leading Your Sales Team Through The Downturn
  2. PODCAST 28: How High Growth SaaS Companies Build and Lead Sales Teams w/ Chris Degnan - GTMnow
  3. Going from 0 to 100 with Snowflake's Founding CRO Chris Degnan - Stage2 Capital
  4. 20Sales: Five Lessons Scaling Snowflake to $1BN ARR, Why Customer Success is BS and Should Be Removed, Why All Sales Reps Should Do Eight Calls Per Week & Why You Should Hire a Head of Sales Sooner Than You Think with Chris Degnen, CRO @ Snowflake - 20VC
  5. How Chris Degnan Built Snowflake's Sales Org From Scratch - The Logan Bartlett Show
  6. How Chris Degnan Built Snowflake's Sales Org From Scratch - YouTube
  7. Operators Ep 18: Chris Degnan (Snowflake) - by Michelle
  8. CRO Snowflake, Chris Degnan: B… - Grit - Apple Podcasts
  9. #156 CRO Snowflake, Chris Degnan: Part 2 - Grit (podcast) | Listen Notes