I just got a new sales position but for a SaaS company. Is the SaaS sales cycle different than others? If so, what is different?
From what I understand SaaS is a subscription service software. You should have a quicker sales cycle because of its lower cost to get started. Many CRM software services like salesforce costs thousands of dollars and requires investment and extensive training. Thus it should take longer to close a sale.
I’d say it’s pretty similar. However, you’re selling a service, so a lot also comes with the assistance you can provide at showing how your SaaS product, along with your help, can make them or their company succeed and see results. Keeping in mind that you’re selling more than just a tangible thing is very important when selling a service or SaaS.
Because of the “intangible” nature of software, many people typically have a bit more trouble in seeing ROI compared to actual objects. The selling points for software are often represented in numbers, whereas with a tangible product, you can point and touch and feel the features that give you the ROI. Additionally, usually more people are involved in SaaS purchase decisions, so it may take longer to convince all of them. The higher the price of your software, the longer the sales cycle. This is also true for products that aren’t software.
I agree with Elizabeth that the intangibility nature of a software product is what makes it harder to sell. But a strong point of the SaaS industry is the possibility of offering free demos for a limited time to reduce the risk. Additionally, you can offer guided demos where you show the software’s features in real time to your prospects. A key element in SaaS sales is the follow-up after the trial expires. This will allow you to make sure that your prospect understands how the software works. The UX is crucial for the sales team of a SaaS company, so in your follow-up strategy, you’ll need to make sure to gather feedback about it. The easiness of sales in this industry depends a lot on the UX. So my advice would be to work closely with the developers to deliver an easy user-friendly software. By doing that, you’ll avoid having to give long explanations to your prospects to convince them to buy your product, and you’ll also have less objections!