Questions

I have a B2B enterprise SAAS solution for the Salesforce.com ecosystem. The software is targeted at large companies. Last year (from feb to Dec), I built more features in the software and sold the software single-handedly for $350K. This year, I want to grow the revenue to $4M. Our deal size varies from $20K - $80K. It takes 3months to 6 months to close a deal. What steps do I need to take to grow to that amount?

First, it helps to understand what I call the profit formula:

Leads * conversion rate = customers * average $ sale * # of transactions = revenue

In other words you've got 4 levers you can apply to increase your revenue:

- Leads - someone already mentioned prospecting (more on this shortly)

- Conversion rates - what are your closing ratios? How can you tighten up your process to increase your closing rate?

- Average $ sale - could you make a bigger sale to them?

- Average # of transactions - could you get customers buying from you more often

What I see very often is an over focus on putting new leads into the front end and not enough on optimizing each lead to maximize them.

In terms of actually planning a campaign you need to focus heavily on identifying your target market, understanding how to communicate an irresistible offer to them, and matching their buying process.

It sounds like you might be somewhat resource constrained in terms of your time and might need to expand your sales team or add distribution in the form of additional sales people, or strategic partners (maybe someone is willing to bundle your product with theirs, etc.)

This is all high level of course the specifics require detailed knowledge of your business.

One book I'd recommend on improving the sales process is SPIN Selling.

Hope that helps contact me if you'd like further assistance.


Answered 8 years ago

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