Enterprise Sales vs SMB Sales: A Side-by-Side Comparison in SaaS

I sat down to reflect on the state of the SMB / SaaS market and thought I shared some of my thoughts. I have been thinking about building businesses and trying to move my SaaS applications to markets outside the SMB market and the SMB market, and I think that selling to corporate customers is not just about using the best-selling strategy but also selling with the company's turnover in mind. Selling SaaS to a company is often a pain point for SaaS startups, so in this article, I explore why you should persist in selling companies and consider the pros and cons of selling to a company. [Sources: 1, 3, 7]

SaaS to a corporate customer without having to go through any level of account management and without needing a full-time account manager or even a team. [Sources: 15]

For the sale of SMB, you need to be able to control costs by understanding the entire CAC and sales renewal process through more digital interactions. When a company's turnover is high, and it's as cost-intensive - effectively - as possible, automate as much of the process as possible. [Sources: 13]

When selling companies, you can justify the size of a recurring contract and put more resources into it. If your competition sells to larger companies that use similar software that you want to sell to smaller companies, it is worth thinking about it carefully. You can not only improve your product but also customize sales and marketing. Some providers hire a "corporate sales" or "marketing" team to "sell" to corporate customers. Major customers are showing interest in you so that more of your resources can be used in the company and you can improve the product. [Sources: 2, 10, 13, 16]

If you have company perspectives that you also consider to be competitors and you are receiving young SaaS companies, a dedicated sales representative can give you an enormous competitive advantage and catch you up with your competitors. [Sources: 14]

David is responsible for leading the SMB sales process for the necessary post-sale optimization and expansion. Sales and service partners have a unique approach to managing the sale of SMBs compared to internal sales. David is responsible for leading from start to finish, optimization after-sale, expansion and sale after sale. [Sources: 0, 4, 13]

In the sales process, the sales process is sometimes linear and sometimes involves much more work than in the SMB sales process. This is done in the sales process of companies in a much more complex and complex way than in the sales processes of SMBs. [Sources: 4, 13]

In the case of B2B SaaS companies, the "go-to-market" model outlines the path to customer acquisition. A successful SMB sales strategy requires a sales approach that is commensurate with the size of the customer. To successfully sell an SMB, you need to increase the value of life (LTV) of your SMB customer to justify the cost of selling. [Sources: 13, 16]

If your ACV is larger than 1k, you need to decide whether to invest in building an internal sales team for businesses. Once you decide that building an external - or internal - sales team for businesses is the right approach to your SaaS business, your next step will be to determine how you handle it. [Sources: 11]

When your sales team is ready, your salesperson should expect your CEO or company sales manager to conduct future sales conversations. If your SaaS company wants to focus on selling businesses or SMBs (e.g. e-commerce, cloud services, etc.), it is essential that your company offers good business development in order to keep both the sale of businesses and SMBs open. You do what you need to do to grow your business, and you will build the best business by keeping it open for you. [Sources: 2, 4, 12]

When I started looking at larger companies, I realized that they had hundreds of salespeople using internal sales CRM. As mentioned above, this can be a very valuable model, but If you have a good sales team and a good business development team, you can start a company that sells primarily to the corporate market and sells primarily to SMB markets. [Sources: 6, 9]

The constant internal communication about the value of each customer ensures that all sales staff feel equally valued. Rewarding SMB employees in this way ensures that you get the best possible return on investment (ROI) for their time and effort. Without this solution, you would forget your SMB sales staff and concentrate on your sales team. [Sources: 5]

As an SMB or SaaS company, you need to be able to understand your stakeholders, set the priorities and simply consider them as a unit or entity. Business sales would probably be the most appropriate sales model for your business. Suppose you develop a solution that will save your manufacturing business hundreds of thousands of dollars. Selling companies makes sense when you develop solutions that can be considered critical to the success of a large business, or solutions where your solution directly affects business operations at a strategic level. [Sources: 8, 9]


[0]: https://www.meetup.com/IGTCloud/events/17973381/

[1]: https://www.chargify.com/blog/saas-leaders-advice-on-moving-upmarket/

[2]: https://productcoalition.com/saas-solutions-moving-upmarket-from-smb-to-enterprise-customers-9fea00d49f4b

[3]: https://www.leadfeeder.com/blog/sell-software-to-enterprise/

[4]: https://www.saleshacker.com/key-differences-enterprise-smb-sales-processes/

[5]: https://www.ampedpipeline.com/ideas/sales-commission-structure

[6]: https://www.opexengine.com/smb-sales-characteristics-versus-enterprise-sales-characteristics/

[7]: https://blog.olark.com/is-the-smb-saas-market-too-tough

[8]: https://www.lightercapital.com/blog/what-is-enterprise-sales/

[9]: https://blog.close.com/smb-saas-sales/

[10]: http://tapes.scalevp.com/enterprise-software-sales-guide/

[11]: https://www.startupdaily.net/2017/12/why-is-there-a-belief-in-australia-that-saas-model-startups-shouldnt-hire-sales-staff/

[12]: https://bluetree.ai/saas-statistics/

[13]: https://impact.marketstar.com/blog/the-difference-between-selling-to-smb-vs.-enterprise-markets

[14]: https://mattermark.com/the-biggest-decision-your-self-service-saas-needs-to-make/

[15]: https://saasx.com/2018/07/31/what-enterprise-saas-customers-want/

[16]: https://aaronbeashel.com/create-go-market-strategy-b2b-saas-company/

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