The global Software-as-a-Service market is thriving, with businesses of all sizes using SaaS applications for different purposes. According to Statista, the market size of the industry is estimated to reach $247 billion in 2024.
Zippia notes that the US is home to 56.67% of all SaaS enterprises in the world, and these serve 14 billion customers across the globe. Despite the impressive numbers, SaaS companies can expect immense competition.
Clearly, as a business owner, you must have a game plan to achieve your sales targets right from the outset. Without an effective and well-planned sales strategy, you may struggle to acquire customers and retain them for the long haul.
In this post, we will share a few actionable tips to craft a result-oriented sales plan to keep your business thriving.
Define Your Sales Model
According to HireDNA, 90% of enterprises with a guided sales process end up being top performers. This applies across industries, and SaaS is no exception. Defining your sales model from the beginning sets you up for success.
Essentially, a SaaS sales model determines your offering and target buyers. In this industry, sales models may be classified as:
- Customer Self-Service Model: This model is ideal for businesses offering low-cost products and seeking high sales volumes. Your customers follow an onboarding process, mostly relying on automation, to sign up. In most cases, sales reps have little direct involvement until customers need support or want to upgrade.
- Transactional Sales Model: This model is preferred by sellers offering more expensive software products to small to medium-sized businesses. The model often includes personalized service based on the unique needs of the customers. Sales representatives have a proactive role in establishing strong customer relationships.
- Enterprise Sales Model: Big players selling high-ticket software products to large enterprises opt for this sales model. Extensive relationship building is a key element of this model. Additionally, sales cycles are longer, usually extending up to several months or even a year.
Once you determine the best sales model, you are ready to move to the next stage of developing an effective sales plan.
Find Your USP
SaaS Academy states that there are nearly 17,000 SaaS companies in the US. No matter how great your offering is, you will probably have to beat thousands of competitors to gain a significant market share. For this reason, you should find something that sets your offering apart.
A good unique selling proposition (USP) gives you something to convince your customers to choose your business over the competitors. Ideally, you should focus on the following questions to identify a USP that sells:
- How does your product emerge as the best solution for your target buyers?
- What genuine pain point does your offering address?
- How can you best communicate the benefits of your offering to your buyers?
A USP aligning with the expectations of your target audience can be the core of a successful SaaS sales strategy.
Create a Viable Pricing Model
A viable pricing model is as significant as the quality and usefulness of your SaaS offering. PayPro Global notes that SaaS pricing is among the key drivers of business growth in this vertical.
The best way to choose a pricing model is by understanding your target audience, digging deep into competitor strategies, and keeping your financial goals in perspective.
For example, a freemium model is ideal for companies looking to acquire new customers and build a base. You can opt for subscription pricing to ensure recurring revenues over a period of time.
Alternatively, SaaS companies with popular and established products may seek long-term commitment with annual pricing.
Build a Winning Sales Team
According to a recent Salesforce survey, 72% of sales professionals believe that they will miss out on their annual quota. You cannot expect to have a successful sales plan if your team members are not confident enough, right?
Therefore, building a winning sales team is an essential aspect of creating a SaaS sales strategy that works. Start by hiring the right people with qualities such as patience, persistence, and excellent communication skills. Ensure they understand your product and target audience inside out with rigorous training and continuous development.
Empowering your sales team with a detailed software sales playbook can be a game-changer. Think of it as a repository of sales content that enables your team to deliver compelling and consistent customer experiences. The essentials of a sales playbook are:
- Call scripts
- Email templates
- Product cheat sheet
- Relevant content marketing assets
- Industry and competitor information
- Discretionary pricing guidelines
With these elements at hand, your sales team will be in a better place to convert leads and build customer relationships.
Final Words
While these SaaS sales strategies can give you a head start, they do not necessarily guarantee long-term results. You can win the selling game by understanding the needs of your customers, providing value, and offering an excellent buying experience at all stages. Also, be adaptable and ready to change your plan when the market, competitors, and customer expectations evolve.