From Lead Generation to Negotiation: A SaaS Sales Guide (2023)

Selling SaaS products is no different than selling any other product.

The sales industry is the same everywhere, right?

Not quite.

Dosucceed in selling SaaS, you need a dedicated and competent team that understands the SaaS sales cycle and can create value around your brand. But it is much easier said than done. In the SaaS landscape, you must not only encourage your team to succeed, but also create a winning sales strategy to anticipate success or failure.

If you're trying to assemble the best SaaS team possible and don't know where to start, you're in the right place. This article explains how selling SaaS differs from other sales verticals, the SaaS cycle, and how to plan and sell SaaS effectively.

The SaaS sales process is heavily focused on acquiring new customers. With proactive customer acquisition and advertising, you're constantly adding new users to your pipeline. But SaaS is not a service that customers buy just once.

industry works onsubscription pricing modelmaking retention and additional sales critical to continued success. You want to sell annual plans whenever possible and make sure your customers sign up again at the end of the commitment period.

Unlike traditional software, SaaS solutions are often expensive. Price isn't your advantage with SaaS, but the value of your product is. The better the offer, the better the chances of attracting and retaining SaaS customers.

Fuente:Imagination

How is SaaS selling different from traditional selling?

Customers use SaaS solutions on the agreed terms. Because these products are developed by third-party companies, customer support is often available and proactive.

If you buy a traditional product and something goes wrong, you will have to fix it yourself. But since SaaS products are available online, skilled technicians keep the service running smoothly and stay up to date with the latest technology and security. This eliminates the need for late technical maintenance.

Another important difference between SaaS and traditional sales is the price. Purchasing a SaaS requires time and careful consideration, resulting in a longer than average sales cycle and high acquisition costs.

In SaaS sales, sales qualified leads (SQL) are not necessarily ready to convert or even demo. these clientsrequire more carethan other industries, adding additional touch points to the sales cycle.

The SaaS sales process is based on the capabilities of a particular software and how well you present it. Selling SaaS requires greater alignment and coordination between sales, marketing, and engineering, taking into account the technical details involved.

Only engineers and other experts can answer key technical questions about the software. Working closely with engineering, sales, and marketing helps keep customers informed. When customers get the right support, they stay with you. This increases customer loyalty and promotes long-term business success.

What is the SaaS sales cycle like?

The SaaS sales cycle varies depending on the complexity of the SaaS product, the target audience, and pricing.

Fuente:Zendesk

SaaS sales cycles can vary depending on the type of product, the target audience, and the complexity of the sales process. The more expensive the product, the longer it lasts.sales cycle. Let's take an example.

With task management software prices starting at $5 per user per month, many freelancers and small businesses can use this tool to keep track of their daily to-do lists. Your prices and type of customer base accelerate the sales cycle.

Now compare it to a more expensive product. If an SEO content optimization tool costs up to $12,000 a year, it attracts a corporate audience that takes multiple steps to add tools to their tech stack. Such a product inevitably has a longer sales cycle.

• Leading generation:Search for potential customers throughpredictive lead scoring, marketing campaigns, advertisements and other information strategies.
• Lead Qualification:Evaluate whether a potential customer is a good fit for the product based on budget, business needs, and decision-making powers.
• rehearsal:Show qualified prospects features and benefits to help them get an idea of ​​how the product works and if it fits their business needs.
• Negotiation:Develop sales details, including discussions of pricing, contract terms, and other key factors.

• Fence:Lead the customer to sign a contract for the use of the product.
• Nursing:Provide post-sales support and nurture relationships to ensure long-term success.

Typically, SaaS companies withAnnual Contract Value (ACV) under $5,000They have an average sales cycle of 40 days. All one-year contracts over $100,000 typically last up to 170 days. However, the average SaaS sales cycle length is almost 84 days.

How to sell SaaS effectively

Selling SaaS can be lucrative, but it requires a unique approach compared to traditional software sales: a deep understanding of the product, the target market, and sales techniques.

To successfully sell SaaS, consider these key strategies and best practices.

run presentations

A demo is a small sample of your product that demonstrates its value. This is a unique experience, often done under supervision.

Demos help customers better understand what they are paying for. The best practice when making a presentation is not to overwhelm prospects with too much information.

If you rush to implement all features at once, customers may get confused and pass on the product. Instead, use your time wisely and show them the specific qualities that will alleviate their biggest problems.

Offer a trial period

Advice:A long trial period extends the sales cycle and takes sales forecasts into account. Before offering a trial period, consider your sales cycle.

Look for upsell and cross-sell opportunities

Find offers foradditional sales or cross salesto current customers. At lower subscription levels, see if customers can take advantage of more features and accessibility. This is the perfect time to propose an update.

How to create a SaaS sales strategy

Developing the right sales strategy is the key to selling SaaS. So how to start?

• Start with demographic research.Find out about your customers, where they come from, what their problems are, what their position in the company is, etc. and create a buyer persona with the key characteristics of your ideal customers. You can then tailor your message to your target audience. A company can have many buyers. So be sure to segment each audience and personalize your sales pitch.
• Set realistic and achievable goals.Define your end result and minimum goals. Give them out to the rest of the team so everyone is on the same page.
• Develop templates and sales scripts.Give your sales reps a consistent voice and optimal support from sales managers, engineers, technicians, and other experts so they can sell from where they know while maintaining your brand tone and message.
• Track your progress and adjust tactics as needed.Identify when something doesn't resonate with your audience and be flexible enough to change your plans.

Determining SaaS Sales Success

Customer success is no easy task. you need a lawmetricFollow the results and optimize your sales strategy.

Let's take a look at some of these key metrics.

• Customer output:Churn refers to the number of customers you lose over a certain period of time. If youdropout rateis too high, it may not meet expectations. Notice what turns customers away. Then you can improve and reduce your abandon rate.
• Net Promoter Score (NPS):NPS is a survey that asks customers to rate their experience on a scale of 1-10. Low NPS scores indicate an underlying problem.
• Qualified Leads:Low-quality leads indicate misdirected marketing efforts. Re-familiarize yourself with shopper personalities, segment your audience, and personalize themSaaS content marketingthey are the key to generating high-quality leads.
• Acquisition cost:If you get more customers but lose money, you are paying too many marketing costs to get them. Optimize your marketing efforts and pricing strategy to correct undersourcing.
• Closing Price:Of all the sales deals you make, how many do you actually close? If this number is low, find the most commonobjections to the saleand beat them to improve your close rate.

What salary can someone earn in SaaS sales?

We talk about the SaaS sales cycle, strategy, and metrics, but what about the people who actually work in the industry?

SaaS is a lucrative field for the right person. Base salary and commission rates are typically higher than the national average. As a SaaS sales representative, you need to understand the intricacies of selling software, which requires extensive specialized training. The length of the sales cycle also determines how much a sales rep will earn.

According to Glassdoor, the median base salary for a SaaS provider is $70,456 per year. Also, they typically see commissions of around $37,876 per year. This brings the average total gross salary for a SaaS marketer to $108,332 per year.

Fuente:Glass door

Other sales industries offer an average base salary of57 975 $with commissions of approximately $30,421 for a total salary of $88,396. Compensation is an important factor for SaaS providers. With almost40% of employeesthe main problem is keeping salaries below inflation, a competitive and fair salary is a key factor.

You'll want to offer competitive salaries that meet industry standards to attract top talent. Some companies try to usedoorsencourage higher commissions. Gates says there are no incentives to exceed sales targets unless key metrics such as first call resolution, support andCustomer Satisfaction Index (CSAT).

What experience does a SaaS sales representative need?

In a specialized field like SaaS, reps may or may not need prior specialized experience or high-level training. The average SaaS provider starts with no experience at all. On-the-job training teaches them about different products and services and the SaaS sales cycle.

This is completely different from many other industries. For example, a life insurance company often hires salespeople with prior experience selling insurance. Similarly, in medical technology, you may need someone with experience in the medical field, either from a sales perspective, or someone who has worked in the industry and is looking for a career change.

This is not the case for basic SaaS sales positions. Most SaaS companies prefer to train their sales team from scratch, and many don't require any sales experience at all. Teaching someone a preferred method is much easier than unlearning it.

However, that doesn't mean SaaS sales teams don't need training. In fact, they undergo rigorous sales training that introduces them to the SaaS sales cycle and software training to answer customer-specific and technical questions.

• Beginning SaaS Providertypically has zero to two years of experience. Most employers prefer representatives to have a bachelor's degree. Once they get past the entry level, experience comes into play.
• Mid-level reps require up to five years of experience.These skilled professionals work as sales leaders, coaching and coaching other SaaS sales professionals.
• Senior Sales Specialiststhey usually have five to seven years of experience. Since these are high-level positions, most employers want to see a highly successful sales record for large clients.

Selling SaaS is tempting but challenging

Selling SaaS is complex but potentially lucrative. Sales reps live a comfortable life, learn on the job, and make a profit for their company.

All it takes is the right gear to stay resilient and take your business to the next level.

Stay up to date and get the latest informationSaaS is fashionableto help you get an edge in the competitive world of SaaS.