B2B SaaS sales are not like other sales. In a market size projected to reach $307.3 billion by 2026, you simply must stand out from the competition. That involves taking an active role in educating and nurturing customers, so that they truly understand how your product solves their pains. We’ve got you covered below, with some best practices and proven tips to effectively sell software to businesses.
What Does SaaS B2B Mean?
There is SaaS, there is B2B, and there is SaaS B2B. Let’s break that down.
SaaS, or software as a service, is any software that operates through a connection to the provider over the Internet. SaaS software is not standalone, where you buy the package once and that’s it. Such was the case, once upon a time, with many computer operating systems. It’s probably described somewhere in the Old Testament.
SaaS payment models are either subscription based (a regular monthly/yearly fee) or usage based (payment for X number of gigabytes, or number of rides in the case of something like Uber, etc.).
B2B, or business to business, is a product that is sold from one business to another. Think concrete mixers and semiconductors, unless you have bizarre hobbies. Some have confused this with other terms like B2B2C and B2G2C, just to make life hard. For now, let’s stick with B2B.
All this jargon comes together in our term du jour, B2B SaaS. These are software as a service packages sold only to businesses. Conjure up images of CRM systems, inventory tracking, engineering tools, and invoicing programs.
Is SaaS the Same as B2B?
There is a certain amount of overlap between B2C (yet another abbreviation, meaning “business to consumer”) and B2B software sales, so not all SaaS is strictly B2B. Take Google for instance – Gmail and Google Docs are free for consumers, while for business and enterprise SaaS sales, Google offers Workspace, which starts at $6.00 per user per month. Plus, there is SaaS that is only B2C, like Amazon and Netflix (unless your boss is really chill and makes it a B2B purchase for you).
Why Is B2B SaaS Important?
Working in the world of B2B SaaS sales has its own reality. Here are just a few of the reasons why:
The SaaS sales process comes with all kinds of choices. You might compare two SaaS companies and see no similarities at all when it comes to certain parts of their SaaS go-to-market strategy.
This is because SaaS providers make different decisions about inside vs. outside sales that are highly dependent on the type of product they are selling and who their market is. To illustrate, let’s compare B2B vs. B2C sales. When selling to consumers, you advertise and put a product in stores. But for many types of SaaS B2B sales, you call prospects, arrange meetings, and demonstrate products in person.
That leads us to another difference. Except for infomercials, when was the last time you saw somebody doing a consumer product demonstration? In contrast, a major point in how to sell SaaS B2B is through demos. People won’t commit to even a department-level tryout period until they know that your SaaS does what it promises to do, and is easy to use.
Finally, in many important ways, the SaaS sales funnel doesn’t end when the customer signs up for a trial period. Someone still needs to make sure that the customer continues using the software and renewing their subscription. Otherwise, your department might show great SaaS sales metrics, but churn will soon erase all your gains – and revenue.
How Do I Sell SaaS to B2B?
So we’ve looked at why SaaS sales have a few unique aspects. What does that mean for daily sales activities? Here are some useful tactics to get the most out of your SaaS sales efforts:
Adjust Trial Periods According to Product Complexity
Some apps address complicated business needs, while others tackle less-sophisticated issues. For example, basic scheduling software is often easy to figure out. But when it’s part of a package that includes payroll, workflows, and inventory, you can bet it will take longer for a customer to understand all of its functions. For simple products, the rule of thumb is a one week trial, while complex SaaS tryouts can last a month or more.
Provide Effective Demos and Onboarding
Sometimes, demonstrations are done in person, and in front of very busy people. Save their time and yours by understanding specific pain points and tailoring the demo accordingly.
But there also comes a time when even the most hardcore salesperson needs to head home, and then it’s often up to the customer to finish the test drive on their own. With lots of customers preferring self-service features, having practical demo and onboarding media can make a huge difference. Be sure to run them through focus groups and stay open to changing them in light of customer feedback.
Pursue Feedback
Speaking of which, it’s important to gather as much feedback as possible from customers. A lot of the time, particularly for simpler SaaS packages, customers don’t complain – they just stop using the thing.
Even if the customer starts talking about tech issues, pay attention and pass the message to the right people. Remember that customer experience is a holistic deal. You might be the most charming salesperson ever, but if your software has glitches, no amount of charisma will stem that churn.
And don’t be passive. But don’t be a nag either. It’s a true art to get customers to fill out questionnaires to their best ability without annoying them, and learning a few tricks of the trade can help.
Think Carefully About Renewal and Release Periods
Most of us are accustomed to monthly renewals. Indeed, new customers might not want to sign up for a whole year. But if your feedback shows general satisfaction and your go-to-market strategy targets larger customers with higher cash flows, then maybe go annual, and sweeten it with a discount. It gives you a better sense of your own cash flows and gives the client fewer reminders of yet one more expense that they have to bear.
You should also tie in renewals with releases. A major motivator for renewals and upgrades is additional features. By offering the latest thingy-things along with renewal notices, there is even a good chance of upsales and cross-sales.
Key Takeaways
- B2B SaaS is software that uses a subscription/usage-based payment plan for online access to business applications
- B2B SaaS is unique because it often relies on a combination of different sales strategies, intuitive demos and onboarding, and frequent efforts to encourage usage and subscription renewal
- To maximize sales, focus on trial periods, demos, feedback, and renewal/release schedules
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