5 Must-Know SaaS Sales Roles and Definitions

The SaaS industry is huge and still growing. As of mid-2023, there were 17,000 SaaS companies in the US alone and over 30,000 worldwide.

And by 2024, some experts predict this number could more than double to as many as 72,000 SaaS companies. As the industry has evolved, so have the positions, and there are a variety of SaaS sales roles, ranging from basic entry-level jobs to high-ranking executive positions.

In this post, I’ll provide an overview of five essential SaaS sales roles so you can better understand the underlying structure and how the various positions come together to create a cohesive sales team.

1. Sales Development Representative

The main purpose of this role is to bridge the gap between marketing and sales. A sales development rep’s responsibility is to continually communicate with the marketing team to identify sales qualified leads (SQLs) that have a strong likelihood of buying.

Once SQLs have been identified, a sales development rep will then pass them on to a SaaS sales representative who will attempt to make a conversion (more on this in a moment). B2B sales consulting and training services company Winning By Design elaborates saying, “They have to start a conversation and provoke a decision maker into action, handle objections, and close on a call-to-action such as meeting with an account executive (AE) or attending an event.”

One of the most important traits to thrive in this position is strong communication.

2. SaaS Sales Representative

One of the most fundamental yet integral roles at any company is a SaaS sales representative. At its core, a person in this position is responsible for selling products to customers, which can include a wide variety of activities, including:

  • Reaching out to and following up with leads through email, social media, over the phone, video calls, and other mediums
  • Creating and performing sales presentations
  • Identifying the specific needs and pain points of leads
  • Providing relevant product recommendations
  • Answering lead questions
  • Negotiating product pricing
  • Acquiring new customers
  • Communicating with the software development team to relay customer feedback

SaaS sales reps are typically the ones “in the trenches” and play a vital role in getting conversions and setting the stage for a positive customer experience, which is important for increasing retention and lowering churn.

3. SaaS Account Manager

After a lead has purchased a SaaS product and a sale has officially been made, the customer falls into the hands of an account manager who’s involved with ensuring customer satisfaction and building a long-term relationship.

A SaaS account manager performs several tasks but has two primary goals.

  • Cater to each customer’s needs to sustain positive momentum, increase loyalty, and boost retention
  • Seek out new sales opportunities with existing customers

As for specific day-to-day activities, these can include:

  • Managing the account portfolio, while giving each customer personalized attention
  • Building and maintaining customer relationships
  • Serving as a dedicated point of contact for customer inquiries and questions
  • Resolving any issues that arise
  • Checking in with customers to ensure their key objectives are met
  • Identifying potential add-ons or upgrades that could provide additional customer value
  • Offering suggestions on how to improve product performance

This graphic illustrates nicely how a SaaS account manager fits into an organization.

4. SaaS Sales Engineer

First, note that this isn’t a role that’s required by all SaaS companies. It’s typically reserved for those that sell a complex, advanced product that your average customer won’t fully understand.

A SaaS sales engineer serves two main functions.

First, as HubSpot puts it, “They must be able to use their applied technical knowledge to help sales reps persuade prospects to choose their products.” That’s their job on the pre-sale side of things.

And for post-sale, a SaaS sales engineer assists with the integration of the product into a customer’s existing tech stack. This is important given the average company used 80 different SaaS apps in 2022.

To ensure the process goes smoothly, a SaaS sales engineer will oversee the integration and resolve any issues that may arise. In turn, they play a big role in ensuring customer satisfaction and maximizing retention.

5. Sales Manager

You can think of the previous SaaS sales roles as relay racers passing a baton.

The sales development rep identifies SQLs and passes them on to a SaaS sales representative. A SaaS sales representative then engages with a lead and seeks to convert them. Once converted, they then hand the customer off to a SaaS account manager who looks to further build the relationship and make additional sales to existing customers to maximize value. And throughout this process, a sales engineer is there to ensure that the technical side of things goes as smoothly as possible.

Overseeing everything is a SaaS sales manager who ties it all together. This role wears a lot of hats, but their core mission is to build the best sales team possible, establish goals and KPIs, provide motivation, continually monitor team member performance, and ultimately ensure that customers are happy.

Because of the hands-on nature of this role, a sales manager will need to possess excellent communication and leadership skills. They also need to be a bit of a psychologist where they manage different personalities to get everyone to operate at their best.

SaaS Sales Roles Coming Together to Create a Cohesive Team

Having a tight underlying structure is essential to the success of a SaaS company. Teams need to have clearly defined roles and understand how everyone works individually as well as a unified whole.

While the specific SaaS sales roles of an organization can vary slightly, the five mentioned here are the fundamentals that you’ll want to know about if you’re assembling a team.

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9 SaaS Sales Terms You Need to Know

The global SaaS market went from being worth just under $50 billion in 2016 to over $145 billion in 2022. With this growth comes a huge opportunity for hungry tech entrepreneurs and sales professionals. If you’re new to the industry, there are several SaaS sales terms you’ll need to know to get started on the right foot.

Here are nine to add to your vocabulary.

1. Customer Journey

Seldom do leads land on your website and whip out their payment card and buy right away. Usually, there are several touchpoints along the way where a prospect first learns about your product, interacts with content and sales materials, reviews the pros and cons, speaks with a SaaS sales rep, and so on before finally making the decision to buy.

And it doesn’t end there. Even after buying, there’s the post-purchase stage where a customer decides if they want to continue using your product and recommend it to others.

This is collectively known as the customer journey, which breaks down like this.

Having a clear idea of how the customer journey unfolds is a necessary precursor to equipping your sales team for success.

2. Freemium

An increasingly popular way to get your foot in the door with leads and motivate them to use your product is by offering a “freemium” version, which includes “basic or limited features to users at no cost and then charges a premium for supplemental or advanced features.”

While it’s not the right business model for everyone, it can be a smart move for many businesses. And training SaaS sales reps to push it can be instrumental in fueling growth.

3. Marketing Qualified Lead (MQL)

An MQL is a lead toward the top of the sales funnel who has expressed some level of interest in your product but not enough to be passed off to your sales team.

This type of lead may show promise but doesn’t have the same amount of intent as an SQL, which I’ll discuss next. Therefore, an MQL is a lead that still requires nurturing from your marketing team and isn’t one your sales team should focus on yet.

4. Sales Qualified Lead (SQL)

An SQL is someone who has moved down the sales funnel to either the decision or action stage.

They have expressed a strong intent to buy and have a high lead score. Therefore, an SQL is a high-priority lead that your sales team would want to swiftly reach out to over an MQL.

5. Product Qualified Lead (PQL)

A PQL is a lead that has used your product, typically via a free trial or freemium version. They have experienced it in action firsthand and understand the value it offers.

Because of this level of engagement, PQLs have a much higher chance of converting than a lead higher in the sales funnel like an MQL. As a result, you’ll want your SaaS sales team to place a high priority on PQLs and perform systematic outreach to increase the odds of converting.

6. Lead Velocity Rate (LVR)

LVR is the growth percentage of qualified leads you generate month-to-month. While it doesn’t necessarily tell the whole story and can be a “vanity metric” if misused, I believe LVR is definitely something you want to be aware of, as it gives you a baseline reading of the trajectory your sales team is on.

For example, a steady increase in the number of qualified leads month-to-month usually indicates you’re on the right track and positioned for growth. Of course, it doesn’t mean much if your sales team isn’t converting leads, but more often than not, a positive LVR shows you’re in a good place.

As for the formula for calculating LVR, it is as follows.

7. Customer Lifecycle

This overlaps somewhat with the customer journey but focuses more on the post-conversion part of the process. Simply put, it’s the series of steps involved in a lead’s decision-making and extends beyond the purchase to product activation, renewal, and referral.

HubSpot illustrates the SaaS customer lifecycle perfectly with this graphic.

A big part of creating a successful SaaS company is fine-tuning your customer lifecycle so you’re able to fluidly move customers through the process while minimizing friction. To learn the fundamentals of the customer journey, I suggest reading this post from HubSpot.

8. Cohorts

Cohorts are a group of customers that share something in common, such as specific traits or behavior. A simple example would be a group of customers that purchase your product at the same time and go through the same onboarding process.

Performing cohorts analysis is important because it helps you understand what contributes to success so you can replicate it while also eliminating inefficiencies. If, for example, after experimenting with a new sales technique there was a surge in the number of customers signing up, this is likely a strategy you would want to repeat.

9. Value Gap

This is the difference between what a customer expects and what they actually get. A large value gap is problematic because it usually leads to customer dissatisfaction, which can reduce loyalty and increase churn.

Lowering the value gap requires a two-pronged approach, involving sales and the post-sale process of onboarding and customer service. The latter I won’t get into, but from the sales side of things, this means setting the right expectations from the start and ensuring your sales team provides customers with a realistic overview of product features and capabilities, as well as limitations.

Adding Key SaaS Sales Terms to Your Vocabulary

There’s been an explosion in the SaaS industry as of late. With market growth and revenue continuing to increase, there’s plenty of opportunity.

A critical starting point for breaking into the SaaS industry is having a command of essential SaaS sales terms. While the full “dictionary” is an extensive one, the terms listed above should help you get a basic grasp and ensure you focus on the right areas.

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The Surefire Way to Create an Elite SaaS Sales Culture

Let’s be honest. The word “culture” has basically become a buzzword and, in many ways, is now diluted. But despite its slightly annoying ubiquity, having a strong SaaS sales culture is nevertheless highly important.

Why? Because it helps attract better reps, reduces turnover, increases synergy, and generally makes your company a better place to work. In turn, this makes your business more competitive, more profitable, and sets the stage for long-term growth.

While numerous factors contribute to an elite SaaS sales culture, here’s what you should focus on above all else.

Use a SaaS Sales Recruiting Platform to Find Top Talent

In my opinion, the first step of building a great culture starts from the top by not just finding next-level talent but finding next-level talent that’s compatible with your company. These days, a one-size-fits-all approach simply won’t cut it, and you only want to recruit candidates that check all the right boxes. This means choosing candidates based on obvious factors like knowledge, experience, and selling abilities, as well as more subtle factors like thriving in your unique selling environment and being a great cultural fit.

If you can do this effectively, you should make significantly fewer bad hires and lower turnover, which will naturally strengthen your culture.

A proven way to find top talent is by using a SaaS sales recruiting platform like HireDNA. It takes a scientific, data-driven approach where you first create an ideal candidate profile.

Based on this information, HireDNA sources top talent via a national network of active and passive candidates.

From there, candidates are screened…

…and the best ones are then given a sales skills assessment.

Then it’s just a matter of making your choice while having quantifiable data at your fingertips.

SaaS companies that use HireDNA are able to eliminate 96% of wrong hires and lower turnover by a staggering 50%. You can learn more about HireDNA’s recruiting process here.

Build a Framework That Promotes Collaboration and Communication

One of the quickest ways for a culture to turn toxic is to have reps silo information and “go rogue” where each person works individually instead of as a team. While independence is fine and should be encouraged to some extent, it’s important to create an environment where there’s strong collaboration and communication. And this won’t necessarily happen on its own.

As a leader, you’ll want to intentionally build a framework that facilitates this type of teamwork. A good example would be using Slack to create a centralized digital space where your reps can interact, share information, offer tips, and so on.

Besides that, it eliminates much of the back-and-forthing that comes from using email and is perfect for building rapport.

Encourage Friendly Competition

Another critical component of establishing a winning SaaS sales culture is creating an environment that’s conducive to friendly competition. Notice the key word here is “friendly” — not cutthroat where reps try to steal each other’s leads and outdo each other to the point that it becomes toxic.

Ideally, there will be an atmosphere where your sales team gets along and “has each other’s backs” but also has a healthy competitive spirit where everyone consistently does their best. But how do you achieve that?

Here are some ideas:

  • Offer incentives for top performers
  • Hold contests
  • Encourage reps to keep reaching new personal bests and beat their old records
  • Give kudos for achievements

Let Reps Be Themselves

Each salesperson has their own unique strengths and brings something of distinct value to the table. The last thing you want to do as a leader is to suppress that and try to put them into a box. Rather, you want to let each rep tap into their specific skillset and personality so they can fully leverage it and extract their full potential.

This, admittedly, is often easier said than done, and you want to obviously have some type of structure in place rather than letting reps “run wild.” But there are two specific things you can do that will help reps be themselves.

One is to avoid micromanaging and take a step back if you find yourself “hovering.” I think this quote from The Harvard Business Review sums it up perfectly. “Recognize that your way is not the only way, or even necessarily, the best way.” Adopting this mindset should help you avoid this common issue among many leaders.

The other strategy is to give your salespeople more freedom, which can include:

  • Letting them work from where they’re the most productive (e.g. home vs. in the office)
  • Giving them some wiggle room during sales presentations rather than following a detailed script
  • Offer support without telling them what to do

Promote Ongoing Learning

The final piece of the puzzle of building an amazing culture is making learning a habit. Here’s what Forbes has to say about it.

“One characteristic that routinely sets top-performing reps apart is their habit of always staying open to ongoing training, coaching, and development. When we surveyed more than 150 senior sales leaders, top performers earned an average score of 7.5 in this category versus 5.9 for the rest of the reps.”

Whether it’s giving them free access to innovative sales courses and lectures, having them participate in sales programs, or simply sending a team-wide email featuring an interesting YouTube video to help hone their craft, creating this type of atmosphere can do wonders for your culture.

Setting Your Team Up for Success

Given that SaaS sales culture trickles down into virtually every other area of your business, it’s something that demands top priority. While finding success will look a little different for each company, the strategies listed here address the key areas you’ll need to create the perfect environment.

And if you’d like to learn more about HireDNA and see it in action, be sure to schedule your free demo today.