A Salesforce Enterprise SaaS app was selling a new category solution to marketing teams to help their sales execs close more deals. This new offering was impressive and they had some amazing logos working with them. But they had a few problems.
- Their CAC (Customer Acquisition Cost) was way too high $16,000
- Their average Transaction Value (ATV) was $42,000.
- They were taking 6 – 9 months to close most deals
- They were closing less than 20% of their deals in the pipeline
After I completed the Sales training and reviewing their sales process as well as reviewing their success stories and the use cases with the customers they had already started working with, it became clear that they were …
Opportunities for growth:
- Not pitching their offer in a powerful way
- Not qualifying opportunities well from a needs perspective
- Not qualifying budget effectively
- Presenting the offer and sending over proposals too soon
- Not powerful in negotiating or closing deals.
The solution and change process that I then implemented to increase the ATV, reduce the CAC as well as shorten the sales cycle were the following over a 6 month period.
- Improved the narrative of the offer and made it more seductive and value based, as opposed to just being feature rich and talking about the technology.
- Increase the skill training of the entire sales team – both inside sales and the sales execs to focus on qualifying opportunities as they spoke about the value of the software.
- Used the “Take-away Close” technique to create urgency and value during the entire sales cycle.
- Delayed sending any proposals until the client asked for paperwork and proved they had the budget for the project. We waited till the customer verbally agreed to deal and confirmed they had the budget to spend. This last piece was critically important.
- The ATV went from $42,000 to $76,000 an 80% increase
- The sales cycle dropped to 60 Days to 120 Days
- They were closing over 35% of deals that were qualified
- Their CAC dropped to $12,000 simply because deals closed faster. I did not get a chance to impact their marketing strategy as I was working with the sales team only.