So what’s about the SaaS sales that we should be paying attention to?
Let’s begin with a short explanation of what SaaS is first:
Software as a Service (SaaS) is a software licensing and delivery model in which software is licensed on a subscription basis and is centrally hosted.
End users access the software from a web browser while paying a monthly or yearly fee per user.
Now let’s get back to sales.
The term “SaaS sales” refers to the act of selling web-based applications to clients.
SaaS Salespeople focus on acquiring new clients and upselling or retaining existing ones to extend the LTV( Life Time Value) of the customer.
SaaS Salespeople are often required to go out and meet prospective clients in person or over a conference call.
SaaS Salespeople constantly analyze and monitor client purchasing patterns to identify areas of improvement and validate new opportunities as they present themselves.
How do SaaS Sales differ from traditional software sales?
In a traditional software sale, the users interact with the program by either installing it on their computer or accessing it across a network.
In the SaaS model instead, the user accesses software over the Internet without installing it on their computer.
That’s a huge difference that affects the sales procedure as well as the overall revenue model.
In a traditional software sale, the original license fee is accompanied by an annual maintenance fee which guarantees that new versions of the software will be released and that users will have access to technical support.
In a SaaS sale however, the license fee is simply a monthly or quarterly subscription fee which doesn’t include any other services.
The SaaS sales team often works closely with the marketing team to set up campaigns aimed at acquiring new users.
On the other hand, traditional software salespeople are typically focused on closing large deals with corporations and government agencies.
Two major differences right there.
Another difference is that SaaS sales people are more involved in the customer’s day to day operations while traditional software salespeople provide strategic consultancy and brand market positioning.
This means that SaaS salespeople are responsible for nurturing the relationship with their clients, but they also need to monitor the overall effectiveness of the software and provide customer service on a daily basis.
This is why SaaS Salespeople usually have a background in customer service, business development or even account management.
Why is it important for a company to have a SaaS sales team?
When it comes to the overall value of a business, Saas salespeople play a key role in the equation.
The initial license fee paid by SaaS users is relatively small compared to traditional software licenses, but these fees add up to a significant amount of money over time.
The client is also more likely to renew their subscription from month to month or year to year.
On average, SaaS businesses have LTVs that are 3 to 5 times higher than traditional software companies.
So it all comes down to the fact that SaaS salespeople create a recurring revenue model which simply can’t be ignored.
Conclusion:
SaaS sales are a unique process in which companies sell web-based applications to their clients.
The initial license fee is smaller than the traditional software license, but the subscription fees add up to much more money in the long run.
SaaS salespeople must have a background in customer service, business development or account management.
If you are interested in this industry, feel free to read more articles on our blog.
Hope you’ve enjoyed this article!