A 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
During the Sales training session we reviewed their current sales funnel to learn what they were doing, how they were presenting their offering and identifying learning opportunities to increase sales numbers. We identified …
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 proposals to prospects too soon
- Not powerful in negotiating or closing deals.
In reviewing deal flow we identified a timely opportunity for two sales people to implement some of the new information and training they had received on a live sales call during the last hour of the training session as that meeting could not be postponed.
The sales people came back into the training session and said they finally got a verbal commitment from the customer for a $40,000 sale producing a 400% ROI on the cost of the half day onsite sales training.
- A structured approach to sales is imperative to close more deals. These steps include;
- Qualifying a client’s business need they are committed to addressing
- Understanding their timelines and budget
- Collaborating with them and creating a space for them to design the solution. This was the step that got the client in this case to commit to work my client as the sales people finally listened to the prospects concerns of the roll-out and user adoption of their SaaS application. Resulting in a bigger sale.
- 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.