Recently I observed a SaaS company develop a new strategy for growing its sales. The company's sales force and executive team pooled and shared customer comments to determine what was working with the product and what was not working. Their assumption was that improving their would increase sales. If they built it, customers would come. But, was this assumption true?
Consider that even if the software was the best software ever built, they'd still have to find a way to get the software to the customer.
Just as many successful professionals have mentors, successful companies should have mentor companies.
The company would be wise to consider Salesforce.com's strategy for growth.
At the recent OpSource Conference in Monterey,CA, I heard that nearly every sale at SF.com originated on the web. I know what you’re thinking, I couldn't believe it either. But, one only needs to look at Google’s 2007 Q1 results: Google topped analysts' expectations…first-quarter profit rose 69 percent! The truth is that investing in a web presence is critical to reaching sales growth goals.
Consider the case for making a web investment:
The company would have a higher probability of reaching its goals by understanding how SF.com is succeeding and executing a similar strategy.
There are three strategies the company should immediately consider implementing:
1. Create PR buzz, involving targeting technology reporters and blogs
2. Invest in a better web site (if your site hasn't brought you any customers this year, it won't next year either)
3. Offer a free trial…not a demo (allow prospects to use the software with actual data)
I’m not suggesting a move to a Google Adwords campaign, but this strategy should also be considered depending on the product or service.
Sales people (whether inside or outside) will still be needed to develop a trusting relationship, uncover prospects' needs, and differentiate the experience from other solutions. The key is to understand that sales start with a prospect. Developing a web presence is a great way to reach serious prospects.
Other areas where SF.com could serve as a model for SaaS companies:
• SF.com became the expert in one core area: CRM. SF.com has technology partners on the APEX who are experts in areas outside SF.com’s core.
• SF.com has a very simple pricing model and sign-up process
• SF.com leverages OpSource to manage its back-end processes...SF.com focuses on its core
Strategy proposed by the company without mentor:
“Increased activity” i.e. cold-calling was the only strategy I heard. Having heard this "strategy" a time or two in my past, I couldn't help feel this act of deportation was going to be the company's kiss of death. SaaS solutions generally are not commodities. Mining for opportunities at random or from lists, in all likelihood, will not create enough opportunities to reach sales goals. The company need only look at its historical acquisition rate of acquiring new customers based on cold-calls made. A product that prospects are not already familiar with or immediately understand are very different from commodity products.
Like SF.com., SaaS companies need to get serious about opening a dialogue with prospects and turning their prospects into qualified, serious prospects.
Salesforce.com has used leveraged the Internet to grow over eight years to 560,000 subscribers serving 26,000 companies, and with 1,800 employees.
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