Why the B2B SaaS Sales Process is Broken [Here's What Will Repair It]
The method by which B2B SaaS is sold today is broken.
In this blog article We look at how it is that the B2B SaaS sales process is broken and why giving your prospects more choice will actually lead to faster sales with better visibility, and more deals that are closed.
Nearly every B2B SaaS firm includes a number of self-service tiers on their website which is where potential customers will be able to do some study, choose the service that's right for them and then pay with their credit card, and then be on their way to race.
On the other hand, on many B2B SaaS websites, you'll often see an enterprise or "Contact Us" level if a prospect is of the opinion that self-service solutions just don't cut it for their company.
Similar to this:
Here's the typical scenario that is typical of B2B SaaS selling processes:
A prospective client is placed in touch with the help of a Sales Development Rep (SDR) who's primary objective is to "qualify" the prospective customer and enable them to participate in a demonstration with the Account Executive (AE). Once they get through the demonstration, and after the AE further qualifies them and they are able to discuss price and package. At this point, the deal is all about the AE sending over an offer, pricing or any other documents to the potential buyer, and wishing they can close.
The Challenge
Once a prospect has become an Sales Qualified Opportunity, meaning that they have the budget as well as the authority to make a decision, and also have a date (or pick your favorite qualifying terms) there are few tools that the AE is able to use at this point, and the AE is left with no choice but to follow the same prospect over and over.
We've all read the emails:
Hey Bill I'm just following the proposal as well as pricing I sent over.. Tell me what you think.
The type of follow-up you send is little more than a shot in the dark, and the AE has no data about what the prospects' reaction was to the proposal. They cling to the "email received" message in their CRM as the lifeline they have, because this may be the only sign that the prospect remains curious.
It's true that we all need to follow up with those we deal with, it's the way of life However, we should not do it in a blind manner. Furthermore, the customer shouldn't think that they have only the option of one.
The importance of visibility within the B2B SaaS Sales Process
Not having any visibility into this critical element of the sales process is just one reason we think the B2B SaaS sales process is broken.
Having been the prospect many times, I find it annoying that when I wish to do a little "what-if" analysis with the alternatives, I need to go back to the AE, and ask permission to get different pricing or worse get told that the options I've got are all they have to offer. This takes effort, time, and makes for lengthy and painful the sales process.
For the business, looking at a deal in the current situation can be as looking into the depths of hell. The VPs of Sales only see a tiny amount to begin with, and AEs basically guessing and relying on their hard-earned sales expertise to bring closing the deal. In the ideal world, this is likely adequate However, in an environment that is requiring us to grow and move faster and faster each day, there must be a method to assist the AE as well as their VPs in this procedure.
I am convinced that we can enhance the experience for everyone involved, and curiously, we as B2B SaaS companies have already had a go for many years.
The Psychology of Choice
Giving prospects choice is what the majority of B2B SaaS businesses are already doing with their self-serve options. Similar experiences should be true in the corporate deal. Typically we do this by making our offers in a way that relies on two psychological concepts regardless of whether you don't know that we're doing it. We can use this same method of presenting our deals to customers in the enterprise including two of the following psychological concepts:
The principle that is the first to be considered is single option aversion meaning that if given the prospect with only one choice is more likely not to make a purchase because they are hesitant to buy with no comparable alternatives. Therefore, B2B SaaS companies present a variety of choices on their self-service levels since they realize that there is no one-size-fits-all solution.
Another principle is extremeness avoidance which means that, given a variety of choices extremes outliers are not considered, so prospects are most likely select the one that is middle. This is why several B2B SaaS companies employ 3-5 tiers for self serve options, knowing full well that the higher and lower end tiers serve as guideposts for prospects to steer them toward the middle.
In the end, through these strategies, we aim to alter the thought process in the buyer's head from "Am I going to buy from you?" to "What am I planning to purchase with you?" and at a deeper level they are guided to the package that is right for them, and the business.
We know these tactics have worked, so why shouldn't implement them in our enterprise strategy? Why do we revert to black boxes when selling custom packages?
Closing Up: Resolving the B2B SaaS sales process
Our customers need to know their options and feel like they have some control. How would we accomplish this while gaining useful insights into how clients view our services, increase our chances of closing deals, and accelerate the entire pipeline?
That's how we can correct this problem. The B2B SaaS sales process is damaged. It's also why we built Interactive Quotes as we wish to transform the B2B SaaS sales process to reflect how consumers want buy and sell custom B2B SaaS.
Interactive Quotes is a pricing tool for proposals that can streamline the B2B custom SaaS sales process. Interactive and smart pricing propositions provide buyers with an amazing experience when buying, and sellers the power to win more business. With the help of Interactive Quotes, AE's have increased their conversion rate by a third and have saved up to 10 hours a month on pre-planning time.
