A new way of Enterprise SaaS Selling. seamlessly incorporate some “old school” enterprise skills in order to maintain growth and sell larger ACVs to elaborate, most rapidly growing SaaS businesses.
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Selling SaaS in the Enterprise
1. Selling SaaS In The Enterprise
& the transformation of sales organization
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2. Agenda
• SaaS causes a drop in revenues
• Key Challenges & Issues
• Case Study (salesforce.com)
• What to do?
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3. SaaS causes a drop in revenues
Perpetual SW license Monthly SaaS Revenue
Traditional Sales Methods
Success = More deals
HELP?
Modern Sales Guess What? Selling SaaS in the Enterprise. B2B sales has a very
high CAC
Cost to Acquire Customer (CAC)
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4. • Company A, which is spending $6,000 to acquire the customer and billing them at a rate of $500 per month, doesn’t break even on the
customer until month 13.
• Incurred almost all its costs to be able to acquire that customer in the first place — sales and marketing, developing and maintaining the
software, hosting infrastructure — up front. The timing of revenue and expenses are misaligned.
• Income statement alone therefore can no longer tell us everything we need to know about valuing a SaaS business.
• The customer often only pays for the service one month or year at a time — but the software business has to pay its full expenses immediately.
• The key takeaway here is that in a young SaaS business, growth exacerbates cash flow — the faster it grows, the more up-front sales
expense it incurs without the corresponding incoming cash from customer subscriptions fees.
Growth hurts (but only at first)
Source: http://www.forentrepreneurs.com/saas-metrics-2/
P&L/cash flow trough gets deeper if we
increase the growth rate for the
bookings.
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5. Case Study
Salesforce.com 2015
Revenue $5.37 B
At an Opex M&S $2.75 B
Overall Results ($213) M
The More you spend on M&S
The More you Sell…
Bigger the losses
Source: http://investor.salesforce.com/files/doc_financials/2015/Annual%20Report/Updated/Salesforce-FY-2015-Annual-Report-
forweb_v001_n0jhq9.pdf
Data used here is for presentation purpose only and referred from saleforce.com financials/2015/Annual%20Report
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6. What to Do?
Source: http://futureofsalesisnow.com/
HOW?
1
2 3
4
Expanding with SaaS Model
• Focus on Traditional sales
Funnel
• Success take place in later
stage
Build Around Buyer’s Journey
• Recognize Need
• Evaluate options
• Buys it
• Deploy
• IS Successful
• SEO
• Peer reference
• Social Media
• Sales superstar
Redefine sales funnel
Use Cloud
• Content
• Organization
• (Hire, Train, compensate and organize)
in flat structure
• Methodology
• (Trust, Provoke, & Consult)
• Leverage Social Media
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7. Expanding with SaaS Model
Leads
Leads
Leads
Leads
Insidesales
Opportunities
Field Sales TeamMarketing
Contract
Revenue
Sales Ops Customer Success Customer Success Customer Success
Year
one Year
Two
Year
Three
Year
Four
SaaS Model. Success take place hereEnterprise Sales
Recognize Need
Evaluate Option Buys it Deploys
IS Successful
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8. Successful SaaS Sales Strategies
• Keep Trial short (Longer trial = Longer deal cycle)
• Target Marketing
• Semi-personal: Automated emails
• Events Driven: Signup, Trial end,
• Call to Action oriented: Schedule a call etc….
• Call quickly- call as soon as somebody signup
• Demo benefits vs features: Focus on what’s relevant
• Ask Open question and how enterprise can solve real business problem
• E.g. Here how soft dial works, CPQ
• Demo values vs teaching functionality
• Set your price ( $nK+ CLTV)
• Discount lightly ( only for annual pre-paid customers)
• Never close bad deal ( train sales folks to identify quality of leads)
• Customer-centric selling- This helps in age of social media (Building trust
over time by working together leads to solving more complex problems.)
• Sell Solutions, Not Products
• Manage Ongoing Relationships- Customer success team
• Map the Customer Journey (KPI that are important to your customers, measuring success against
these metrics.) Be their partner along the journey, guiding them from the basics to more advanced capabilities
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9. Addressing big Customer
Objective: getting companies to sign off on large deals.
• Have dedicated sales team
• Generate qualify leads - Fields sales + Inside sales
• The Average closing time is 6-9 months
• # of potential customer is much lower
• Land and Expand is far from the truth for enterprise. Strong enterprise sales
is critical to capturing market share.
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10. Naman Raval
Management Consultant- Fortune 500 Business consulting company
Over 9 years of experience in Product development, Product Marketing,
pre sales and post sales, CRM, Channel strategy, Digital, IoT, Payment
industry
11. Confidential - Do not duplicate or distribute without written permission from Author