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S&M for SaaS
S&M for SaaS
S&M for SaaS
S&M for SaaS
S&M for SaaS
S&M for SaaS
S&M for SaaS
S&M for SaaS
S&M for SaaS
S&M for SaaS
S&M for SaaS
S&M for SaaS
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S&M for SaaS


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Some of the Sales and Marketing practices for SaaS and other digital solutions

Some of the Sales and Marketing practices for SaaS and other digital solutions

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  • 1. Sales & Marketing for Software as a Service Solutions Alok Verma [email_address]
  • 2. Agenda
    • Sales & Marketing Expenses of SaaS leaders
    • Sales Force Strategies
      • Stages of Sales Force Growth
      • Preferred Structure – Hunters and Farmers
      • SaaS Metrics to Track
    • Marketing Strategies
      • It’s Not JUST About Product Features
      • Marketing Methodologies for Building Relationship & Trust
      • Guerilla Marketing Tactics
    • References and Other SaaS Resources
  • 3. Sales & Marketing Expense of SaaS Companies
  • 4. Sales Force Strategies for SaaS Solutions
  • 5. Stages of Sales Force Growth Early Stage
    • Unstructured Sales model
    • Salesmen not limited to regions, products, or customer verticals
    • Focus on identifying top performing sales people
    • Mid-grade sales reps with little software experience  high-grade sales reps with more software experience
    • Enterprise grade sales approach
    Growth Stage
    • Established recurring revenue base
    • Add optimum sales structure
    • Segments: new product sales, renewal teams, geography-specific
  • 6. Preferred Structure – Hunters and Farmers
    • Generates Leads
    • Creates frameworks for initial
    • sales
    • Incentivized to create new
    • businesses
    • Gets higher commission on
    • the initial sale
    • Liaison to the customer
    • Builds relationship for future
    • up-sell or cross-sell
    • opportunities
    • Incentivized/Gets sales
    • commission on renewals
    • cross-sell, or up-sell
    Farmers – the Sales Cultivators
  • 7. SaaS Metrics to Track CMRR Committed monthly Recurring Revenue Churn Also Retention Rate Average Deal Size Average Revenue Per Client Time To Close Time from Prospect to Customter Close Rate %-age In Trial to Customers CAC Ratio (Magic Number) Time to payback acquisition cost CAC Ratio (Q409) = [GM(Q409)-GM(Q309)]*4 / Sales & Marketing Costs (Q309) Software to Services Ratio For low margin products Largest Customer % Measures risk of key account loss Customer Lifetime Value CtM Cost to Maintain customer instances
  • 8. Marketing Strategies for SaaS Solutions
  • 9. It’s not JUST about Product Features
    • Promote Entire customer experience:
        • Ease of use
        • Speed of deployment
        • Ease of purchase
        • Support
        • Stream of past and
        • future deliverables
        • Sell the Promise
          • SaaS is like a magazine subscription -- customer is paying based on the expectation of valuable content over the life of subscription
  • 10. Marketing for Building Relationship and Trust Create online communities where customers can share their experiences Show association with other customers; Referrals; Case Studies, etc. Show your track record of success; Share product roadmap Build an engaging brand focusing on values that people like to be associated with Keep existing customers informed; Treat them as new customers Keep customers invested in your success; Create customer advisory boards
  • 11. Guerilla Marketing Tactics Attend Conferences; Tell your company’s story; Explain how your product solves clients problems Newsletters/Email campaigns with industry news, new features in your product, new free offerings, etc. Use PR firms to write about the key pain points in your industry; and position your product as the best solutions for these issues Co-marketing/ commission-based programs with other solutions clients use Create resource center on your website with white papers, ROI tools, etc; Capture visitor data Produce Webinars to generate leads; Use timely topics; Delivered by industry leaders
  • 12. References and Other SaaS Resources