As of 2023, the majority of business apps that today’s companies use are SaaS-based at 70%. And experts predict that number will grow to 85% by 2025. This means there’s abundant opportunity for SaaS companies. But to fully capitalize on it, you need to thoroughly understand which SaaS selling strategies are most effective.
That’s what I’ll be zeroing in on in this post. Without wasting any time, let’s dive into the best of the best SaaS selling strategies to close more deals.
Use Lead Scoring to Prequalify Prospects
A classic rookie mistake is approaching all prospects the same and assuming everyone is ready to buy right off the bat. This simply isn’t the case, and most experts say that only around 3% of prospects are ready to “buy now.” And with choosing the right SaaS product being such an integral part of running a business, seldom are prospects ready to instantly pull the trigger.
A critical precursor to closing more deals is first using lead scoring to separate prospects so you know who’s ready for a sales discussion and who still needs nurturing from your marketing team.
Here’s an example of how leads can be broken down based on quantifiable scores.
Those that receive a score of 10 or less are considered prospects. Those that receive a score of 50 are leads. Those that receive a score of 75 are marketing qualified leads (MQLs). And those that receive a score of 100 are sales qualified leads (SQLs).
Note that the scoring system can vary depending on the product, but using lead scoring where points are assigned based on behaviors like the ones below is one of the best ways to objectively assess where each person is at in the sales funnel and, in turn, who deserves immediate attention.
That alone can help your SaaS sales team dramatically optimize their time and put them on their way to closing more deals. As for specific lead scoring tools, you can find some of the top products on this list from G2.
Be Lightning Fast with Lead Outreach
Once you’ve developed a system for identifying SQLs, the next step is to accelerate your lead outreach so you can strike while the iron is hot. With the SaaS industry being so competitive, time is of the essence with lead outreach, and I can’t stress enough the importance of contacting SQLs before your competitors do.
For perspective, research has found that the first vendor to respond wins 35 – 50% of sales.
And to understand the correlation between outreach time and conversion rate, check out this graph.
On average, contacting a lead within 24 hours results in a 16% conversion rate improvement. However, that number increases to 36% when a lead is contacted within one hour and 62% if contacted within 30 minutes.
But hold the phone. If they’re contacted within just one minute, that number skyrockets all the way to 391%!
Admittedly, this fast of an outreach is often easier said than done, especially during non-business hours. While it’s not always feasible to have a salesperson communicate with a lead right away, you can always use an automated message on email, social media, or another platform to touch base and get your SaaS brand on their radar before competitors do.
This brings us to the next of our SaaS selling strategies.
Quickly Convey Value and Build Trust
Once a salesperson has made contact, their main objective is to show a lead why your SaaS product is valuable and that you’re a credible, trustworthy business. This could be an entire blog post itself, but some effective ways to accomplish this are to:
- Use social proof like user reviews and testimonials
- Offer case studies from companies in a relevant industry
- Highlight notable companies that have benefited from your product
- Provide customer success stories
Many leads may be skeptical of a SaaS brand initially, but this is one of the best ways to “disarm” them and lay the foundation for the essential rapport needed to ultimately convert.
Perfect the Demo
Let’s say that you’ve identified qualified leads, quickly initiated contact, demonstrated value, and built a baseline level of trust. This is the point in the SaaS sales funnel where many leads will want to check out a product demo. And it’s a point that can make or break your chances of converting.
If your salespeople consistently nail the demo, your conversion rates are nearly guaranteed to increase. That’s why it’s so important to perfect the SaaS sales demo — something that’s largely done by implementing the right formula and covering all the bases.
While the exact winning formula will vary, here’s a good basic structure to follow across the board:
- Make a formal introduction and provide some general context, such as your UVP and the pain points your product solves
- Explain core features and benefits
- Cover the product interface
- Mention software integrations
- Explain analytics and reporting
- Go over different plans and pricing
- Discuss the basics of onboarding and customer support
- Answer questions
I also suggest reading this guide from Gong.io, which is packed full of helpful information for mastering the art of the sales demo. It features concrete data on how long a demo should be, the ideal ratio of talking to listening, and much more.
Proven SaaS Selling Strategies for Increasing Conversions
There’s a lot that goes into effective SaaS selling and it requires a ton of experience and a natural aptitude to perfect. That said, when you break it all down, there are four main components — using lead scoring to efficiently qualify leads, accelerating your speed to lead outreach, conveying value and building trust, and perfecting the demo.
By deliberately working these into your SaaS sales strategies, you should be able to 1) know which leads to focus on and 2) how to best engage with those leads to scientifically increase your odds of converting.
And if you’re looking to assemble a winning sales team of elite talent, see how HireDNA can help you find the best of the best while eliminating 96% of hiring mistakes.