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SaaStock 2019 - Moving Up Market Bootcamp - Enterprise Sales for SaaS companies

In order to engineer a move upmarket, SaaS companies need to tailor both their sales services and people to deploy a more comprehensive or expensive service offering.

Engineering this full-scale pivot includes tackling many challenges; from understanding different service requirements, tackling new processes in departmental selling vs large scale deals, to identifying the right people needed to close such multi-million dollar deals.

This interactive workshop discusses the key challenges involved in cultivating the people and processes needed to smoothen this transition from mid-market to enterprise. Lukas Hertig, SVP Bizdev at Plesk, Investor and Advisor to startups, shares his business development playbook from the last 15 years, including real-life business cases to ensure your sales teams are equipped with the practical strategies needed to sell and succeed.

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SaaStock 2019 - Moving Up Market Bootcamp - Enterprise Sales for SaaS companies

  1. 1. SVP BizDev@Plesk | Advisor to SaaS Startups such as Chainstack | Scaling Tech Businesses | Investor Lukas Hertig Moving Up Market Bootcamp Salespeople and Processes Needed to Close Multiyear Enterprise Deals in SaaS Note: some mentioned techniques are trademarks of their respective owners. Linkedin: linkedin.com/in/lukashertig eMail: lhertig@plesk.com
  2. 2. A Few Words About Me.. Working with a few startups to support them on their journey, mostly in the blockchain, Cloud/SaaS & eCommerce space. 16+ Years in int. Sales, Management, Digital Marketing & Business Development with 120M$+ ARR Subscriptions Based in Zurich and Barcelona Advisor, InvestorPlesk | cPanel | SolusVM Sold millions of $ subscription software and cloud platforms to global service providers Chainstack Cloud/Blockchain/eCommerce LinkedIn: https://www.linkedin.com/in/lukashertig/ Twitter: https://www.twitter.com/LukasHertig Facebook: https://www.facebook.com/lukas.hertig Built up a digital marketing growth team from scratch with 30+ people Built many global Partnerships with Amazon, Microsoft, Google, HP, IBM
  3. 3. Agenda • 30 mins – Moving from a transactional SaaS model for SMBs towards an Enterprise Sales Model • 30 mins - split into groups to brainstorm challenges and opportunities • 20 mins - each group presents back what they have discussed & Q&A • 10 mins - sum up with key takeaway points and learnings (free handout!)
  4. 4. 4 Bootcamp Focus: Elephant & Deer «hunting»
  5. 5. 5
  6. 6. 6 History of Selling to Enterprise.. 2010VALUE SELLING «TAS»
  7. 7. 7 Startegic Enterprise Sales for SaaS - Framework 1. RELATIONSHIPS a. Political Map b. Stakeholder Management c. Insight d. Integrity e. Influence 2. STRATEGY a. Early Engagement b. Selection Criteria c. Competitive Differentiation d. Politics 3. VALUE a. Strong Business Case b. Enable Revenues c. Save Costs d. Compelling technical solution 4. PROCESS a. Budget b. Procurement Process c. Compelling Events d. Capabilities to Implement
  8. 8. 8 The Framework is a Combination of Modern Enterprise Sales Techniques AND
  9. 9. 9 Solution selling is based on the premise that salespeople should lead with open-ended questions designed to surface recognized customer needs and respond to them with a solution… …in addition, Insight selling rests on the belief that salespeople must lead with disruptive ideas that will make customers aware of unknown needs. Plus - Most sales reps rely only on the customer to coach them through a sale & process; star reps also coach (not push!) the customer and are perceived as trusted advisor
  10. 10. 10 Non-traditional sales approaches dominate SaaS today – but some balance is required! ? Cloud/SaaS approach
  11. 11. 1. The Sales Team – People required to sell enterprise deals (or: requirements for a founder interested in selling to enterprise customers)
  12. 12. 12 Skills of a «dream sales rep» for value selling ☺
  13. 13. 13 Different Sales People for Different Sales Jobs.. New «Hunting»(Traditional «Hunting») New «Farming»Massmarket
  14. 14. 14 Sales Skills of a consultative/value vs transaction sales person
  15. 15. 2. Building Relationships with Enterprise Customers People
  16. 16. 16 Demand & Product UI/UX SALES, BRAND CONSOLIDATION INNOVATION Top Management COSTS REVENUES Product Managers VP/SVP Products Head of B2B SALES Head of Marketing System Administrators IT Director CIO Enterprise Architects CFO (partially) CSO CMO CEO Who We Sell to? Find the right personas to target for demand generation.. IT The above are just examples – it highly depends on the industry you are selling to! Note: there are tools to find them over linkedin etc. – but use your brain! No automated reach out!
  17. 17. 17 Be a Collaborator AND a Challenger
  18. 18. 18 Try to Engage on Senior Level from Day 1!
  19. 19. 19 Finding and working with the right stakeholders and their interests
  20. 20. 20 Have a business conversation about the customer’s business, NOT immediately about your product/solution
  21. 21. 21 Find the right allies & get support for your idea inside an organization and get social
  22. 22. 22 Be FAST – Speed matters! Follow-up after Meetings: Within 24 to max. 48 hours by email or phone If you cannot hold this, provide a deadline and reach it if you set it! Integrity matters!
  23. 23. 3. Sales Process & Building your pipeline
  24. 24. 24 Building the deal pipeline: • Long deal cycles 9-24 months • Focus on qualification mostly, not just lead generation – it will save you a lot of time. • CAC of about 10% of the deal value • Conversion rates of 5-10% only • Expect a lot of work – very hard work and a lot of rejection
  25. 25. 25 Providing Value with a solution that may touch many end-points or where a competitor is already there.. Depending on the «Cloud/SaaS maturity level» a customer has, you need to think about different startegies & values Decision Support tree for defining your strategy
  26. 26. 26 Be 100% aware of the Procurement/Acquisition Process Make sure, you find out about the official procurement process of a company EARLY. Talk to your business contacts about their process, ask about financial treshholds in terms on when an RFI/RFP process is required and when not.. Go to meet with procurement separately if required to find out. This will help you in forecasting properly and align the processes on both sides as well as find out or even create compelling events – such as deadlines from senior execs etc. – what happens if middle management will NOT reach the compelling event? Fired? If you have aligned with Exec level in advance, that will be your help!
  27. 27. 27 Be There Early Be There First Be Faster
  28. 28. 28 Influence RFI/RFP Requirements Early – Disqualify Competition through VALUE, not just Features
  29. 29. 29 • Assess their current organizational needs • Immediate requirements of high priority projects – specifically around cloud and general IT automation – whatever is end customer related • Are there any compelling events? F.e. replacement of an existing system etc.? • Service Portfolio definition & execution Roadmap – if existing? • Evaluate combined solution offering – Your Saas with their business • Functional product demonstration(s) • Jointly work on a draft business case that includes but not limited to o Analyze and define Potential of Churn reduction & ARPU increase o Analyze and Define Mid and long-term objectives and related KPI’s o Overall Cost benefit consideration o Analyze benefits (cost reduction) by increasing level of automation and IT consolidation, now and over time • Combination of new solution with existing infrastructure (complementary) or greenfield • Business Case (we can create one for them if we think it’s worth it) • Define Enabling of Marketing, Sales, Support and Operations Example Next Steps after the first meeting
  30. 30. 30 Note: do not offer customization pro-actively, even with big $$ offerings. Better plan for requirements upfront and think about integrations into enterprise systems upfront. .. And if you hear the same story from multiple customers what they may need as additional features, build them into your product – and ask 1 customer to pay for it ☺
  31. 31. 5. Proposals – anatomy of an enterprise deal
  32. 32. 32 Tools: Differentation of Sales Proposals in Value Sales
  33. 33. 33 Tools: Differentation of Sales Proposals in Value Sales • You may want to think about getting a proposal management software • Big $ (if 100k or even millions) – require «proper» proposals, not just a price list. • Besides the proposal you often also need things like: • Feature Lists • Master agreement for licensing • Master agreement for services (if applicable) • Compliance proof (GDPR, SOX, ISO and such) • Price list(s) • Custom license terms (if applicable)
  34. 34. 34 Tools: The Strategic Term License (STL) aka Enterprise Term License (ETL) – Think Big
  35. 35. 35 Group Breakout: brainstorming challenges & opportunities Awareness Consideration Intend Decision Prospects/Leads Qualification & Pitches Proposals, Negotiations Closing Techniques • Ask about budgets as early as possible and put a higher number rather and include a lot of buffer. • Charge like 5k «discovery fee» to get commitment early stage – can make a big difference in closing rates. • Have a strictly defined sales process in place • Bring in a solution architect as quickly as possible. • Try to parallelize workstreams across different departments • Create a sales funnel for enterprise that includes many more steps to have visiblity of where the deal is. • Create an initial successplan to be transparent with the customer about your «sales process». • Go for the yes or not initially and not too late in the process. • Don’t offer customzation at all. Call it feedback, not requests. • If being asked for enterprise references, try to sell to a department first and get your references. • Offer a super cheap price and in exchange they need to provide reference calls or case studies. • Give and take is super important. If I’m spending lots of time – you can provide me more things in exchange. • Bring in CS in an early stage before the deal is closed • Making decisions between upfront and annual fees must be done carefully. Depending on accounting rules, company size and so on. • Include a lot of buffer into the initial pricing and decide pricing last. • Define the timeline is helping to close. • 3 – 5 Points
  36. 36. 36 Group Break-out: handout & benefits • Goal is to create an updated framework for selling SaaS to Enterprise customers and share this across the industry. • Everyone who leaves a business card or contacts me on Linkedin at then end of the session, will get a free copy of the following: • Framework selling SaaS to Enterprise customers including the findings from this workshop • Qualification checklists • Proposal template(s)
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