The thing about sales is that you need a potential customer.
But one of the most common problems in SaaS sales is that the sales team has no clue who to reach out to. Especially with add-ons.
So where does this come from? How does it affect your bottom line? And most importantly, how can this be reversed?
Why the SaaS Sales Team Doesn’t Know Who to Reach Out To
There are multiple reasons why this happens. Do any of these sound familiar to you?
The complexity of SaaS offerings: SaaS products and pricing are renowned for complexity. Not only does the brand bring in new features and add-ons all the time, but packages can vary depending on tiers and individual customer offering.
It can be virtually impossible for a sales team to figure out the right fit for each customer. And that’s not just because it’s hard to keep track of which offerings go with what; it’s also because salespeople don’t have the time to accurately keep track of everyone. The variety of options can overwhelm even the most experienced reps.
Lack of customer insights: When a team doesn’t have the nights that come from data and numbering-crunching, it’s a difficult game. They might struggle to both understand the fluctuating needs of each customer and which add-on would best add value to their lives.
When they are unclear about their customers wants and when they need them offered, the team has to guess.
Silos between teams: There are usually substantial silos between the finance, product, customer success, and sales teams can spell disaster for everyone involved as well as the company.
Sales need vital information including what types of products are available, which products complement each other (and don’t work together), how the company’s current relationship with the customer is going, information about the customer’s usage and what they might need, when is the best time to pitch an add-on, etc.
Competition: SaaS is arguably the most competitive industry there is. Everything is in constant flux. New products get released all the time. Companies work to price others out of the market.
This means that customer expectations are at their highest and retention rates are for many people at their lowest. This puts a lot of pressure on a sales team to not “mess things up” by making the retention problem worse than it is.
The Consequences of No Clues
When sales teams don’t have the tools they need to know which people to approach about add-ons, it can have a serious knock-on impact on everyone and everything.
Here’s where we see the impacts the most:
Declining revenue potential: Not knowing when to sell add-ons means missed opportunities which is less money for your bottom line. This hinders your growth and profitability.
Costly mistakes: Guesswork is expensive. Not only does your sales team have to spend time and resources guessing who will need what and when, but when they guess wrong, they spend more time and resources (as well as costly discounts) making things right.
Strained customer relationships: When add-on offerings aren’t tailored for customers, it’s a turnoff. When add-on offerings are unsuitable or wrong, it’s a disaster. It’s too easy for customers to pick up and leave for another company that will give them what they want. After all, what have they got to lose?
Deteriorating morale and motivation: When sales reps continually struggle without the tools they need to meet high-pressure targets with high stakes, their confidence and enthusiasm will wane. And it has a ripple effect, with other teams frustrated too.
Reduced cross-selling effectiveness: When the team doesn’t have the understanding of add-on potential, cross-selling initiatives become essentially useless. That’s more revenue down the pipes.
Individually, these impacts are destructive, but together, they can really set a company and its COO back.
The great news is that you can change everything.
Actions You Can Take as the COO
There are a few very effective strategies for equipping your sales team with the knowledge they need to sell add-ons and build your revenue.
- Foster collaboration and knowledge sharing
Break down those silos by encouraging regular communication and collaboration between sales, product management, and customer success teams. If they have knowledge-sharing sessions and cross-fertilise each other’s brainstorming meetings, they will be able to exchange information and insights, customer feedback, and strategies.
- Invest in excellent customer data analysis
It’s only by leveraging customer data analytics tools that you can gain deep insights into usage patterns, preferences, and pain points. The data’s already there, so why not turn it into more money? Equip sales teams with this valuable information to better understand customer needs and recommend relevant add-ons.
- Implement personalized training programs
If you train the sales team on products, features, benefits, and what works best with what, it will help them to effectively communicate the value proposition to customers.
- Develop an add-on recommendation framework
Creating a clear structured workflow for sales that all the reps can work with will help guide them through the process, and keep it uniform so that different customers aren’t getting an inconsistent quality experience.
- Use automation – it’s there ready and waiting to do everything
The beauty of automation is that not only does it save time, revenue, and other resources, but it actually generates revenue opportunities that can’t be realized with manual processes.
Here’s what the right end-to-end sales automation process will give you:
- Data analysis that gives insights on customer behavior, usage data, and triggers to identify optimal moments for add-on offers.
- Integrated product knowledge that tells sales what products and features work best (and worst!) with each customer’s needs
- Absolute visibility between financial and sales and customer service teams so that all people have access to the information they need at any given time
- Reliable numbers that you can feel confident in when you enter the Board Meeting
- Add-on offerings that are exactly what customers are looking for at the right time
- Happier sales teams that are motivated and have excellent leads they know are strong enough to get a sale
- More time to do all the value-building work that you and your teams want to do
And two bonuses for excellent SaaS sales automation platforms:
- Real-time insights that spot the best add-on opportunities and channel them to the right that salesperson
- Automatically sending add-on sales back into finance for invoicing, billing, and reconciliation too.
The easiest way to crack the add-on dilemma is letting automation do all these strategies for you.
It’s the combination of cutting-edge tech with human personality that will enable your sales team to succeed. And that’s what you need as a COO.
It Can All Be Yours
The point is this – SaaS companies can’t afford to not invest in the things that will make it easier for the sales teams to do their jobs.
And this is particularly important with add-ons because they help establish a better CLV, which is the jackpot!
As a COO, you can create an environment where sales reps have the knowledge, tools, and support they need to confidently offer add-ons to customers.
You can drive revenue growth, enhance customer relationships and boost your team morale and motivation all in one.
Curious to find out more?
Say goodbye to manual sales processes and boost your growth with Bluefort’s cutting-edge automation solutions. Learn how our end-to-end system streamlines the end-to-end process.
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