Find out how to successfully sell SaaS in just 15 minutes. It’s the best time to increase your revenue from SaaS sales for those new to the marketplace. It seems like many SaaS companies have killed them, destroyed them, and knocked them out of the park. Salesforce’s annual earnings exceed $20 billion. The SaaS ScaleUp at Supermetrics grew in revenue by over 100% over the past year. SaaS firms are perhaps best known for their funnel-driven sales processes. As the business grows, so does the competition.
What makes SaaS sales different from other verticals?
SaaS is not only intangible but can also be accessed and installed through the Internet. There are no applications to be installed on the users’ laptops. Product licensing for SaaS is on an annual subscription basis, so SaaS customers typically become repeat customers every month or every year based on their subscription periods. That’s why it’s so important to carefully manage subscriptions when you decide to sell saas online. For example, Supermetrics simply moves information from the marketing channel to the information tool users know. They do not need a new user interface. No customer information is stored in the system. Everything is moved.
SaaS sales cycle
The SaaS sales cycle varies based on prices, customer needs, and the complexity of the products. A $100 product can achieve a better selling cycle compared to an average of $50. The more complex your product is, the more stakeholders are involved and the longer your processes may take. How can SaaS companies avoid slowdowns? In general, sales representatives are likely to contact prospects for several weeks. When looking for a SaaS solution, you should expect your sales cycle to be very long and unpredictable.
In addition to the costs, the complexity of all SaaS products affects sales cycles. SaaS sales typically last approximately 84 months or more. These numbers will increase or decrease depending on customer value. In general, the price of higher goods means that the sales cycle is extended. Brand awareness is critical because introducing well-known products to customers with the goal of selling them is much simpler than trading a product no one knows and potential customers need to be educated in that regard. Free trials are a common practice among many SaaS providers.
How long does a SaaS sales cycle last?
The length of the SaaS sale cycle is usually the one mentioned in the contract. The average time in sales cycles is 86 days. For an ACV under $5K it can take 40 days. The cycle is 170 days with ACVs over $100K. Sales reps cannot control the sales cycle. But for SaaS business owners, there are ways to shorten them. Bring in the best writers and storytellers who can help you understand complex software products.
SaaS sales model
It explains how many salespeople you need and how you will interact with the salesperson. It is crucial in determining what is the right model for your organization. If you want to become a SaaS salesperson you should also understand the various sales channels. Learn more about the 3 main SaaS offering models.
Partnering programs come in a number of different forms, but most frequently they cover a partner sales model, i.e referrals or resellers. They work in the same manner as they do for companies with end-users as customers: they are compensated for the customers they bring to the table.
The more complex and expensive products are, the greater the participation of partners in the implementation and onboarding process and billing. Resellers typically have greater profits than affiliate partners. Some affiliates are unable to directly sell their referral customers with their products or services.
SaaS can be described in the sense of self-service and trial to attract clients. Self Service Selling is a product that requires marketing efforts aimed at creating awareness for new users. Automatic onboarding through support, information, newsletters, and promotions so that they stay on board and avoid churning. In crowded markets such as videoconferencing, companies such as Zoom even use the free model with full-feature basic plans available for free. For most SaaS companies it’d be difficult to offer free plans for their customers to afford them in the long term.
Sales assisted is a new approach to self-serve sales processes. In general, big customers or anyone wanting help in purchasing customized products should call a sales representative who can demo the product and ask any questions. Usually, when the implementation of complex software applications requires the participation of multiple stakeholders, sales-assisted models are necessary. Normally the top and medium-tier companies are reserved on sales supported models when they offer competitive pricing and the smaller customers can purchase directly through self-help channels.
SaaS is undoubtedly the type of industry that can bring home huge revenues. There is only one catch, how you sell it. SaaS products are products that can sell themselves or you have to do the legwork. Either way, you will need to decide what type of sales model works best for your product and move on to optimizing & improving the cycle itself. This way, you are making sure that your products are selling in record time.