e know why you’re here. You’re a CEO and founder of a startup and probably struggling with sales. According to Cognism, SaaS sales is the process of selling web-based software that customers access through an online portal. SaaS is used by businesses to solve their pain points or problems. All the tools and smartphones you’re using just don’t magically find its way to your customer but we need to make use of it evidently for it to reach out to them. The other founders had to sell hard for them to win among a multitude of other solutions. We understand that you want to work on your solution development, make it as good and useful as possible. Let’s face the truth, lacking sales effort and clear sales process is one of the main reasons why startups fail. Achieving success in this area can be difficult, but there are ways to overcome any struggles you may encounter.
We explored some of the most common problems of startups when it comes to sales and provided a solution to overcome them.
Problem #1: A product is new and customers don’t understand why they should buy it.
This is a common problem that almost every startup faces. Ask these questions to yourself: “How do you explain to your future customers why they should buy your product?”, “Is your product right for them?”. Most of your customers don't have the answer to their solution and haven't discovered your product or service.
Solution: People buy the benefit, NOT THE PRODUCT.
When it comes to making a purchase, people buy the benefit, not the product. For example, when someone buys a new car, they are not buying a four-wheeled piece of metal; they are buying the convenience, freedom, and status that comes with owning a car. In the same way, when someone buys a new phone, they are not buying a communication device; they are buying the ability to stay connected and in control.
This is why marketing campaigns that focus on benefits rather than features are more successful. When people understand what they will gain from using a product or service, they are more likely to buy it. So if you're looking to sell something, make sure you focus on the benefits that your product or service provides rather than its features.
Problem #2: Do you have recurring customers and word of mouth about your product?
Customer retention strategies are the processes and initiatives businesses put in place to build customer loyalty and improve customer lifetime value. In other words, keeping your customers coming back for more is essential for a thriving company. Create and share your business success story. To attract customers through a mix of marketing, social media, and brand strategies. The one of the most effective is through positive word-of-mouth marketing.
According to a study by Nielsen, Consumer Trust in Online, Social and Mobile Advertising Grows, 92% of consumers trust recommendations from friends and family over all other forms of advertising. So if you can get your customers singing your praises, you’re likely to see them sticking around for the long haul. One way to encourage this kind of behavior is through loyalty programs.
Solution: Focus on the single industry or market and find your niche.
The best way to be successful in business is to focus on a single industry or market and finding your niche. When you specialize in a specific area, you can become an expert in that field and provide valuable insights to your customers. You'll also be able to develop strong relationships with key players in that industry, which can help you grow your business.
Problem #3: Constant change in your service or product.
In business, it's often said that, "the product is still changing." But even if you've been in business for a while, chances are there's something new happening with your product—or your competitors' products—that you haven't accounted for.
The global product landscape is constantly evolving, with new technologies and business models coming to market at an unprecedented pace. As a result, your product may still be changing even as you sit here reading this.
To stay ahead of the curve, it's important to constantly review and update your product. This means revisiting the features that make your product unique, reviewing customer feedbacks to see what needs improvement, and updating your marketing strategy to reflect the latest trends.
Solution: Stay updated with all the changes and difficulties that may arise.
Are you tired of finding salespeople who are stuck in the old ways? Want someone who understands your industry and is up to date with all the changes and difficulties that may arise? Look no further than forward-thinking sales professionals who are embracing new technologies. Salesforce, for example, has a customer base that spans several industries, making it a great resource for any company looking to stay ahead of the curve.
Problem #4: No lead generation and no alignment between the marketing and sales.
A recent study by Forbes found that the average company loses $5 million in revenue each year because of a lack of lead generation and poor alignment between marketing and sales. Worse, 84% of companies report that they have not improved their sales process since last year. Without effective lead generation, sales reps are unable to connect with qualified prospects and close deals.
Solutions: Establish a specific customer profile and blur the lines between marketing and sales.
There is no one-size-fits-all when it comes to targeting your customers, which is why you should create an ideal customer profile for each of your businesses. By knowing your target market and their needs, you can more efficiently and effectively reach them with the right marketing campaigns. For example, if you sell eyeglasses, you should create an ideal customer profile that includes factors like age, gender, income level, and lifestyle.
In today's world, it is more important than ever to blur the lines between marketing and sales. With so many channels available to reach consumers, it is essential for businesses to identify which approach works best for them. Marketing may include creating a strongbrand image, developing targeted advertising, and crafting a message that resonates with customers. Sales efforts may involve creating a sales pitch, following up with potential customers, and providing support after a sale has been made.
Problem #5: Your company has no repeatable and effective sales processes and tools
There are no repeatable and effective sales processes and tools, according to The Ultimate Guide to Creating a Sales Process by HubSpot. The reason is that each company has its own unique selling processes and tools that work best for it. Salespeople need to tailor their approach to the customer and the product in order to achieve results. Sales teams should also consider how they can measure progress and improve their skills.
Sales processes and tools can vary greatly from company to company, and even within a company, depending on the product or service being sold. This makes it difficult for sales professionals to create repeatable and effective processes. Additionally, many companies use outdated or ineffective methods that are not aligned with today’s selling environment.
Solution: Establish tools that must be used in the process (simple CRM or ABS tools) in order to always track and tweak your campaigns.
When it comes to managing your marketing campaigns, there are a few key tools that you need to have in place. Whether you're using a simple CRM tool or an automated campaign tracking system (ABS), these tools should be essential in helping you track your progress, make changes as needed, and optimize your efforts.
Without proper tools in place, it can be difficult to keep track of your progress and optimize your campaigns.
Before you start any sales effort, answer this question first: “What’s in it for them?“. This is the basis of any sales effort for any product in the world.
Sales is often one of the most challenging aspects of running a startup. It can be difficult to find and close deals with potential customers, and even more difficult to keep those customers happy and coming back for more.
There are a few common struggles that startups often face when it comes to sales, including difficulty building a pipeline, targeting the wrong customers, and not having enough resources.
However, there are ways to overcome these struggles and improve your sales process. Focus on building a strong pipeline by targeting the right prospects and using effective lead generation techniques. Lastly, make sure you have a good understanding with your target market and what they want or need.
Is your problem solved? We hope that this article helped you solve at least one of your sales problems. If you have more sales questions that we haven’t written about, tweet us at @saasjournal.