Sales drive businesses forward, and when done well, it can be a driving force for success. The field of sales involves bringing potential customers to agree to buy your product or service. Salespeople are often known as the “key holders” of the kingdom because they have direct access and influence on finalizing deals with clients.
The purpose of sales is not just about making a sale but building long-lasting relationships that lead to continuous purchases and high customer loyalty. Different strategies in enterprise sales can help you boost your company’s revenue.
Such a sales strategy is a road map that outlines how you will approach selling your products or services in the future. We discuss all about enterprise SaaS Sales and how it can benefit your business.
What are Enterprise SaaS Sales?
SaaS stands for Software as a Service. It is a type of cloud-based software accessible from any web browser by anyone with a URL. The user doesn’t need to download and install a program; they can sign in and use the software.
Software as a Service allows you to focus on the benefits and value of the software, not on the underlying technology. The customer only needs to pay a subscription fee with SaaS sales software instead of purchasing software licenses like on-premise.
There are several different types of SaaS. If you’re selling SaaS, it’s important to understand the type of SaaS you’re selling and how it’s different from other SaaS models.
Why is Enterprise SaaS Important?
SaaS enterprise sales are crucial for many reasons. This type of sales is beneficial for businesses for a variety of reasons. Here are just a few:
Customers: When selling enterprise SaaS solutions, you’ll find that customers are extremely satisfied with the solution and the service. This is because you’re providing a software solution that is remotely accessible to customers. You’re not selling them a hard copy product that they won’t be able to use if they don’t have internet access.
Competition: SaaS sales also benefit the competition. Customers are more likely to choose your SaaS product over one sold as a hard copy. SaaS sales are much more intuitive, easier to scale, and cost-effective. When you’re selling SaaS solutions, you can sell them by focusing on the value and benefits rather than on the underlying technology.
Resources: SaaS sales solutions are much simpler to maintain than hard copy solutions. When you sell a hard copy solution, you’ll need to spend significantly more on maintenance, development, and customer support. SaaS solutions are much more cost-effective, which means you can spend less on resources and reinvest that money into the business.
How to Build a SaaS Enterprise Sales Strategy?
SaaS is a great model for selling enterprise software. But how do you build a SaaS enterprise sales strategy? Here are some tips:
Define your target customer: Make sure you clearly understand who your target customer is. This will help you create a SaaS sales strategy that is targeted toward them.
Know your product’s value proposition: Make sure you understand your product’s value proposition. A value proposition outlines the benefits and value of your product. When selling SaaS solutions, you should focus on the value and benefits of the product rather than on the underlying technology.
Identify prospects and leads: It’s important to identify prospects and leads. A prospect is someone who has expressed some level of interest in your product. A lead is someone who has expressed interest in your product but has not yet committed to purchasing it.
Create a sales process: Make sure you create a process. The sales process should include all the steps a lead must go through before signing a deal. Your sales team should also create a sales script that helps you to pitch your product. This script should be concise, clear, and easy to follow.
Find out what you’re selling: It’s important to find out what your client is buying. The SaaS sales process should focus on how your solution will solve your client’s needs. You should also discuss how these needs can be met.
Consider the costs of SaaS: Before your sales team sells any SaaS sales solution, it’s important to consider the costs of the service. These costs include installation, setup, licensing, hosting, and more.
Use a CRM: Using a CRM is one of the best ways to manage your sales pipeline. A CRM will allow your sales team to manage leads and prospects more efficiently. You can use this tool to track all leads and prospects that have expressed interest in your product.
SaaS Selling Tips for Enterprise Sellers
Know your customer: This can be done by performing customer research and creating a persona. A persona is a fictional customer acting as a stand-in for your real customers. By knowing your customer, you’ll be able to sell to them more effectively.
Know your product: It’s important to know your product inside and out. To do this, you’ll have to know the product’s features, benefits, and limitations. You’ll also need to know your product’s sales cycle — how long it takes to sell the product from the point of initial contact with a lead to closing the deal. You’ll also need to know the product’s price and how it fits into your customer’s buying process.
Know your competition: Knowing your competition is important. What are they selling? How are your competitors positioning their products against yours? How do you differentiate yourself from them?
Understand the sales cycle: Once you have a good idea of what your product does, what its benefits are, and who it might appeal to, you should start thinking about how that product is sold. You should understand your sales cycle — how long it takes to sell a product from initial contact to closing the deal. The sales cycle will vary depending on your industry, but one thing remains constant — there is always a sales cycle.
Understand the buying process: You should also understand your customer’s buying process. You can do this by performing customer research and creating buyer personas. By knowing how customers buy, you’ll be able to sell them more effectively.
Set pricing based on value: Most SaaS companies have a freemium model — offering their core product free, with premium upgrades available for purchase. The price of these premium upgrades should be set based on value. To determine this value, look at other products that offer similar features as yours. If your customers are willing to pay for another product that does the same thing as yours, you should be able to charge a similar price for your own.
Talk to your customers: If you’re unsure about how much to charge for your premium upgrades, talk with existing customers and ask them what they would be willing to pay.
Use value-based pricing: This is when you set the price based on your product’s value. For example, if a customer saves $5,000 per month by using your product, you could charge them $50 per month.
Consider freemium: If you have a free product trial, consider offering a freemium option. This is where the core features of your product are available for free, and premium upgrades are available for purchase.
Consider increasing prices over time: Once you have some paying customers and have collected payment from them on several occasions, consider raising prices. This will help offset inflation and increase profits.
SaaS Sales Model
The SaaS sales model is when you give away a free version of your product and then charge a subscription fee for an upgraded version of the same product. The free version is your attempt to get your product in front of as many users as possible.
This model is extremely common in the enterprise software space. You’ll find that many companies, like Adobe, Google, and Microsoft, have adopted this model.
The self-service model is when a product requires no sales intervention to use. The user is expected to be able to figure out how to use the product on their own. This model is often used in SaaS sales but is also common in software and hardware markets.
Users can find value quicker than in other models, which means they might be more likely to convert into paying customers.
A self-serve business is one where customers can purchase products directly from you without help from you or your company. This can be done through websites like Amazon, where customers don’t need any help from Amazon employees — they place an order online, and Amazon fulfills it for them without any human interaction.
Self-service marketing refers to the type of marketing that allows people to access information about your product or service without using an intermediary. This is often done through a company’s website, but it can also be done through social media, blogs, and other online marketing.
With the internet and social media, self-service marketing is much easier than it used to be because there are many tools available for businesses to use. In addition to being much easier, self-service marketing is also more inexpensive than traditional forms of marketing because it doesn’t require a lot of human labor.
Self-service marketing also allows people to find information about your product or service without being influenced by anyone else, making them more likely to convert into paying customers.
Transactional Sales Model
A transactional SaaS sales model is a form of direct marketing that allows a customer to purchase a product or service directly from the company.
This form of selling is becoming more popular because it allows companies to keep their overhead costs low, allowing customers to receive products or services very quickly.
Even though many companies have started using this model for some types of sales, there are still many industries where it isn’t as common —such as clothing and food service.
When this model is used, it can be a good idea to integrate email marketing into your sales process to help you your sales reps and you keep in touch with customers after they’ve made a purchase.
SaaS Sales Cycle
The SaaS sales cycle is the time it takes to sell to one customer one time. The sales cycle consists of three main phases: the discovery phase, the qualification phase, and the close phase.
The discovery phase in the SaaS sales cycle is when a lead first comes into contact with your company’s sales team. At this point, the lead is purely interested in learning more about your product.
The qualification phase is when the lead is ready to purchase your product but is looking for an incentive to buy from you, not a competitor.
In the close phase, the lead has signed a deal with you and is ready to buy your product.
Enterprise SaaS and Sales Reps
The difference between a SaaS and an Enterprise SaaS is that in the former, the product is sold to individuals, and in the latter, it is sold to companies. The enterprise model generally allows companies to have greater control over their purchases and a lower customer acquisition cost and cost of ownership.
Enterprise SaaS companies generally use sales reps as they have extensive knowledge of what their clients need and can provide better services than someone new to customer acquisition.
SaaS Sales Metrics
There are several SaaS sales metrics you’ll want to keep an eye on. Here are a few:
First-month retention rate: This is the percentage of leads who sign up for your product but decide to keep it after the first month. If your first-month retention rate isn’t high, it could mean that there’s something wrong with your product and that potential customers aren’t satisfied with it.
Gross profit per customer: This is the revenue from your customers’ monthly payments. This metric helps determine the profitability of your customers. A high gross profit per customer is a good indicator that your product is making a lot of money.
Churn rate: This is how many customers leave your product per month. It’s a good idea to keep an eye on your churn rate. The lower it is, the better.
SaaS Sales Tips
See below for some things you can do to make your sales process better.
Don’t rush the email follow-up. You don’t want to spam potential customers, so if they don’t respond to your first email, give them some time before sending another one.
Don’t be pushy. If a potential customer doesn’t want to buy your product, there are ways for you to persuade them beyond using sales reps. But if they still say no, it’s best to move on. Don’t try and convince someone that they need your product when they don’t.
SaaS is a popular way to sell enterprise software. SaaS sales companies sell a subscription to use their software, and customers pay a recurring fee for continued access.
They must earn customers’ trust and keep them happy to grow their business. To do this, they must have a great sales strategy in place. This includes a sales process, understanding the target customer, and a strong value proposition.