If you want to generate more SaaS sales, there’s one thing you need to know:
Finding a handful of prospects through a clever hack and doing cold outreach doesn’t have nearly the same impact as it would have had two or three years ago.
So…
What exactly can you do to make more sales?
Start by understanding the myths that too many SaaS sales pros believe.
This ignorance stops many of us from achieving our quotas and driving consistent and sustainable results. But for you, that ignorance will fade today as I debunk five of those myths and arm you with insights that you can put into action right now.
1. Data Doesn’t Matter Until You Have a Big Sample Size
One of the things I hear from far too many SaaS startups is that they’re too small to worry about their metrics. I ask them about churn, and they don’t have an answer, or I ask them about LTV or CACR, and their eyes glaze over (LTV = Lifetime value, CACR = Customer Acquisition Cost Ratio).
Unfortunately, many people working with sales in the world of SaaS throw acronyms around without actually understanding them. You need to understand what these acronyms mean and your company metrics to optimize your chances of making an impact.
Even at a small scale, understanding your company metrics can help you identify which decisions are costing the company too much money and which decisions are working very well.
Metrics can differ between a surprise spike in churn and a manageable one. They can also help recognize what outreach approach is working and what is not.
If you’re not familiar with SaaS sales metrics, here are a few great resources to check out:
- SaaS Metrics – A Guide to Measuring and Improving What Matters
- SaaS Metrics 2.0 – A Guide to Measuring and Improving what Matters
- SaaS Metrics 2.0 – Detailed Definitions
2. Data is King
Now, data is great, so don’t get me wrong.
But insight is king.
Understanding how to use your metrics effectively is the key to being an effective sales leader. Whether we’re talking about understanding which outbound emails are being opened when you send them or what landing pages are driving the most relevant leads, the insights we gather from data are key.
In the Close dashboard above, you can see that two different follow-up emails are being used, and the open rates for each are different. Option A has a higher open rate than Option B, which could be due to a more compelling subject line in that email. Using this information, a sales professional can be more strategic in crafting their subjects and more effective in driving sales.
We should also point out that data isn’t only about the number you see when you access your dashboard. You should also gather qualitative data by surveying and talking to your customers. These insights will help you inform the other team members about customer pain points, funnel opportunities, and much more.
3. When You Send a Proposal, Be Patient
NO!
Don’t be patient.
Reach out and ask the decision maker (not just your internal champion) what the process will be between receiving the proposal and closing the deal. Spend more time understanding their needs and offering value wherever possible to increase the likelihood that they will fight for you and your product internally. Refuse to sit on the sideline in limbo. Refuse to play the guessing game.
Help your prospect, help you.
Of course, I don’t recommend you take the “Just Checking In” approach as that’s very self-serving. Instead, you should follow up with your prospect and deliver additional value:
4. If We Create Content, the Customers Will Come
Content can play a big role in SaaS sales, but it’s only one piece of the puzzle.
As you can see in the visual above, the amount of content being created is at an all-time high. Because of this, it’s more challenging than ever to create content that stands out.
It’s not enough to write a blog post, create an ebook, or publish a white paper and expect the world to take notice. Content creation is just one part of the content marketing puzzle. Once the content is created, it’s time to distribute it effectively.
"People visit your blog but don’t convert (How dare they!). Don’t fret – all is not lost. Let’s put aside the fact that they may very well return and convert another time, even if you don’t do anything else. Instead, you can take control and increase the chance of that happening by targeting visitors that have come and gone with remarketing." — Sujan Patel.
Then, ensure that the content you’re creating is aligned with both marketing and sales goals.
Sales need to offer marketing the insights they’ve gathered while talking with prospects to help them create content that will help them convert. Whether it’s information they gather during cold calls or insights they gather after identifying the key selling points for their product, the channel for communication between sales and marketing is key to a successful content effort.
5. You Can't Sell Until Your Product is Perfect
Jonathan Brill once said, about startup sales, "A finished product is a nice to have."
And I agree.
You should begin selling your SaaS when you sign up for the job.
As soon as you’re brought on for sales or if you’re the founder, it’s time to sell.
It’s time to start selling the vision, the solution, and the team.
It’s time to sell to potential customers, the media, hires, partners, and buyers.
It’s easy to spend a lot of time testing the market and asking people what they think of your idea. However, it’s more challenging yet also more rewarding to find someone who believes in what you’re doing and is willing to give you a cheque to fill a need 3, 6, or 12 months in advance. Find these people, establish a relationship with them, and make them your champion.
I’ve had many conversations with sales reps who have been tasked with selling half-baked products. Sometimes, the apps worked from a technical perspective but were completely unusable for a non-technical person. However, by sharing the product's vision and focusing on the value, they could lock in contracts that would fund the completion of the product.
Debunk the Myths, Drive the Sales
Now that you’ve uncovered the myths of SaaS sales, it’s time to get back to work.
Use these insights to guide your strategy and share it with your team so they can work optimally.
If you work in SaaS sales and have identified other myths that are driving you insane, please let me know in the comments.
