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SaaS in the Enterprise and the need for a modern sales organization
Transcript of SaaS in the Enterprise and the need for a modern sales organization
Traditional SaaS Model
b) sustain losses for n-years
c) Recoup as you pivot business
a) Acquire clients @ high cost
Matrix Partners preso!
Harvard Business Review
How to lower the cost of enterprise sales?
_ _ _ _ _ _ _ _ _ _
For sales leaders who have to move from a SW license model to a SaaS model.
Traditional Funnel is build around outdated selling process based on activity
Understanding the Problem
Build Around the Buyers Journey?
Due to rev-rec policies only the Annual Contract Value (ACV) in the 1st year can be recognized. Most SaaS contracts have an exit clause after 12 months, rendering Total Contract Value (TCV) worthless.
At an OpEx M&S
New Deals ('11)
The bigger the losses
At a M&S OpEx
New Deals ('11)
B2B Sales has a very High CAC
How to manage B2B sales facing an exponential CAC.
JIVE, BCOV show challenges with this model in Enterprise sales
Understanding The Challenge
Traditionally we lower CAC using inside sales and/or channels
Profits on a 25,000 software license
to make every interaction with your client [+], such as bringing on success managers creating a significant increase in cost in Y2 and Y3.
Traditional sales approach results in Enterprise buyers requiring a
to earn a significant smaller
So SaaS says for you to build a business model based on future returns.
Revenue of a 25,000 SaaS license
Is this the only way?
LET"S GOOGLE IT!
PERPETUAL SW LICENSE MODEL
HOSTED (SAAS) SW LICENSE
... the more you spend on M&S
The more you sell..
Is this just a scaling problem? Does it become profitable when achieving a larger scale
Losses are sustained at bigger volume of clients
i) First year
as a result of an enterprise wide licenses commitment.
ii) Minus Marketing & Sales
that have a direct relationship to the revenue both in amount & time.
iii) Allowing sales to build a model that shows
s at the time the investments are made.
But future revenues are not guaranteed, you need to
What to do?
SaaS causes a drop in revenues
Selling SaaS in the Enterprise
And with success
Using Traditional Sales Methods
Field Sales Team
transposed on a traditional 'funnel' view
Traditional Enterprise Sales
Expanding with SaaS Model
Remove Sales Funnel
browsing the internet
passionate people (TED)
Hire, Train, Compensate and
organize in a flat Structure
Trust, Provoke & Consult
Leverage Social Media
Make it Engaging & Fresh
In the Enterprise
To the attention of David Skok
Thank You for the inspiration
baseball thinking is medieval ... we are asking all the wrong questions!
What I see ... is an imperfect understanding where runs come from...
There is an epidemic failure within the game to understand what is really happening...
...and this leads people who run teams to mis-manage their players.
Expert in Engaging, Story Telling & Online Selling
Perpetual SW License
Monthly SaaS Revenues
B2B Deals have a High Client Acquisition Cost
SW License +
1st year M&S
Don't forget to call your Mom!
Spend on M&S
Year 1 cost of sales!
Rewire your brain to not fight the cloud but to use it!
We focus traditional enterprise sales here
While success takes place here
Gap is too big to close with traditional SaaS sales.
Risk with SaaS is way higher
find out more on
Now Available on Amazon