Many people think enterprise software sales is all about the big sale. While it's true that some of the most successful enterprises out there started with one big sale, this isn't always the case. It's just as important to build relationships over time as it is to sell those first few deals- so what are you waiting for?
Achieving enterprise sales success requires a deep understanding of enterprise organizations and how they operate.
Enterprise customers are not like any other customers you'll ever work with, and sales is not the same as traditional software sales.
This blog post will provide you with an overview of enterprise go-to market models, including their benefits and disadvantages for your SaaS startup. We also include some practical pointers on how to succeed in enterprise sales no matter which model you choose!
What is enterprise sales?
This article reviews the different go-to-market sales models and discusses the importance of enterprise for sales SaaS startups. We will discuss how to choose the right go-to market sales model for your SaaS startup. This blog is a guide to enterprise sales
An enterprise sale differs from other types of software sales in many ways, including the following:
An enterprise sale requires more lead time with early discussions about potential opportunities and technical requirements involving multiple stakeholders across departments within large organizations
A enterprise sale often involves a complex buying process. In fact, enterprise buyers typically have to obtain approval from multiple decision makers within their organization!
The most common types of enterprise software go-to market sales models are as follows:
Inside Sales (also known as field sales) - This model is ideally suited for BDR companies. In an enterprise sale, inside sales is organized around a customer team that will engage with the most valuable enterprise accounts.
The enterprise account executive's job revolves around building relationships and ensuring that clients are successful in their use of your solution
Outside Sales - This model works well for SaaS companies selling to large organizations through resellers or distributors who already have enterprise relationships and contacts. This model can also work well for BDR companies looking to sell through enterprise resellers
Managed Sales - In this go-to market sales model, an SaaS company partners with a value added reseller (VAR) or systems integrator (SI) who assumes responsibility of the relationship from initial sale to enterprise level support and account management
In enterprise sales, an enterprise sale is a direct sale from the SaaS company itself. This model will work best for companies selling either entirely new or significantly enhanced solutions as compared with other models which often involve resellers of some sort
Enterprise go-to market sales can be highly complex. There are six key sales challenges that SaaS companies face when selling directly to enterprise customers:
The BANT framework is not an effective model for software sales because enterprise buyers have much less overall buying power than smaller organizations and therefore tend to be more knowledgeable about the products being purchased, so traditional qualification criteria may not be very relevant
Enterprise buyers are more likely to look for enterprise people who have strong relationships with key decision makers, which is challenging because enterprise customers may only work directly with an enterprise account executive once or twice during the entire process.
This makes it even harder for early stage SaaS companies that cannot afford hiring dedicated sales reps.
Sales is often associated with high levels of stress and long hours, which can be a turn off for some enterprise account executives.
High performing enterprise account executives are motivated by the opportunity to build strong relationships while also achieving competitive compensation
At enterprise companies, it's not enough to simply get in front of an enterprise buyer. You need to get in front of the right enterprise buyer who has authority and influence over the purchase.
This can be extremely challenging because enterprise companies tend to have a large number of decision makers, and enterprise account executives often have a small number of enterprise contacts
Enterprise sales is not for everyone. It involves building strong relationships, working with decision makers throughout the company, and overcoming resistance from an organization's status quo mindset.
If you are looking to build your sales team or thinking about transitioning into software sales yourself - be sure that it is the right choice.
It can be a very rewarding and lucrative career, but it requires perseverance and tenacity to achieve success in enterprise sales. If you're ready for this challenge, we've got your back with our enterprise SaaS training program .
Enter your email above to receive more information on how you too can become an enterprise account executive.
- We've also got a lot of free content on our blog about it such as the top enterprise SaaS companies , how to overcome enterprise objections, and what is enterprise software?
What is an enterprise sales model?
There are three main types of sales models in the SaaS industry:
Self-service sales- In a self-service sales model, the enterprise customer goes through a SaaS company's website to access and purchase its products or services. An enterprise sale can also take place if an enterprise buyer contacts a SaaS company directly to inquire about purchasing any of its products or services
Partner sales - In partner sales, there are two main types of sales relationships:
- Reseller - in which a SaaS company has an agreement with another enterprise firm to resell its product or service. A third party could be the reseller, but it is more common for one enterprise software company to have an exclusive arrangement with another enterprise software company where both are tasked with selling each others products and services to enterprise customers.
- Managed service provider - in which a company agrees to maintain or host another enterprise software company's product or service on their own servers, for a fee
Enterprise sales – In the enterprise sales model , an enterprise customer works with its SaaS reseller to purchase one of its products directly from the enterprise reseller. The enterprise customer does not contact the SaaS company directly to purchase its product or service, but rather orders it through their enterprise reseller
Enterprise account executive - An enterprise account executive is responsible for managing one enterprise sale at a time and has no authority over other sales reps in an organization. At some companies, there is no enterprise account executive. Instead, all sales reps are tasked with managing one enterprise sale at a time
Transactional sales- In transactional sales, an enterprise customer has a direct relationship with the SaaS company where the sale is transacted directly between them. This does not mean that there isn't an enterprise reseller involved in this type of enterprise sale -- it just means that the transaction occurs without any involvement from another enterprise software firm or their account executive
Why is the enterprise sales model important for your business?
They are where the “real money” lies for your SaaS business.
Contracts with enterprise customers can be huge, and although the customer acquisition cost is exponentially higher, the payoff in terms of your revenue and company valuation is too good to be ignored.
It can improve enterprise customer satisfaction. By working directly with enterprise software customers, enterprise account executives are more likely to understand their company's needs and work closely with them to ensure that they are receiving all of the benefits from your product or service
Enterprise Software Sales Professionals meet with businesses and determine their needs for software, from office management and word processing software to complicated data storage and information security systems.
It usually involves complex, long-term sales contracts for large-scale corporate software solutions. An Enterprise Software Professional must be able to communicate the technical details and capabilities of products to clients and demonstrate how they will meet the clients’ needs.
Assess client needs and promote suitable products- this may involve attending demonstrations and product presentations, gathering information on client requirements and evaluating products against these.
Generate enterprise sales- the enterprise software sales professional must be able to identify potential clients and generate sales opportunities either by contacting new prospects or following up leads from marketing campaigns
Negotiate contracts with enterprise customers - including dealing with price negotiations and enterprise sales contracts, ensuring that all terms and conditions are met
Maintain enterprise software customer relationships - this may include creating training manuals or documentation for product use. Where appropriate, provide on-site support to ensure the smooth running of sales contracts
Provide after-sales service – including following up orders with delivery details and providing technical support
Enterprise Software Sales Professional Skills and Qualities
Good software sales professionals are persuasive, articulate and confident. They must be able to work well on their own initiative as well as part of a team.
The software sales professional should also have excellent communication skills - both verbal and written – for communicating with clients about technical issues in order to understand enterprise customer requirements.
Good software sales professionals are also good problem solvers, able to use initiative and think laterally when faced with challenges
Enterprise Software Sales Professional Education
Entry is usually by previous experience in another profession or as a graduate. The training period varies between employers but may last up to two years before the enterprise software sales professional is considered fully qualified.
In the first six months professionals may be expected to shadow experienced enterprise account executives as well as attend training courses.
Enterprise Software Sales Professional Salary
In 2016, enterprise sales representatives earned an average annual salary of $128,000 in the United States and £50,000 in Great Britain (source: PayScale and Glassdoor, respectively)
