Historically, growth of a sales team was based on the revenue starting at $0 million. The more money they made in one year would mean hiring two times as many people to make it happen. Let’s talk more about sales growth strategies.
In a SaaS model, I can grow revenue from $1M to $2M in year 2. The renewals will come in at 100% as well.
Without an understanding of sales, many people may misunderstand the growth potential in a company.
The growth rate slows down when the same revenue is being acquired over and over again. To keep growing at the same rate, you have to invest a lot of money in acquiring new clients.
Calculating The Growth Potential
B2B software that is sold as a service, or SaaS model experiences exponential growth due to various factors.
Customers are now spending more than $1,000 on average when buying software online. Previously they may have only spent that much if they met with the company in person.
The market has grown to be much larger, with more buyers and sellers operating in a global marketplace.
Today’s B2B customers buy much faster than ever before. They no longer are buying for a solution that will be useful in 12-18 months, but instead they need something to solve an immediate problem.
When to Accelerate Growth?
Growth hacking has become a popular way to hire salespeople. One of the shortcuts is using automated forms on email and social media sites, like LinkedIn for instance, in order to find potential clients.
Initially, this was a good idea because SaaS solutions with their OPEX approach were attractive in comparison to the CAPEX options.
In the past, hacking a system was enough to get by. But today companies know how to protect themselves from these types of attacks.
Randy had grown sales from $800k to 4 million in ARR. That’s a big accomplishment, and he was celebrated with new funding for the company.
Sales Growth Strategies STAGE 1. FIND PRODUCT-MARKET FIT
One of the most important things to do in today’s business model is to identify which GTM strategy will work best for your company, using a variety of marketing channels.
The problem with many organizations is that they don’t measure the effectiveness and efficiency of each GTM strategy. In order to scale, this needs to be done.
Focus on these three areas to achieve ProductMarket Fit: -Make sure you have a product that resonates with the market, and it is solving a problem. -Identify what channels are most effective for your company’s marketing strategy.
- The key to any company is the value proposition, which shows what it offers and how.
- The WHO is the audience that is ready to take action.
- How to be efficient and effective at reaching the audience with a solution for them.
Due to the lack of measuring effectiveness and efficiency, the failures are also amplified by 10x. This means there is no real growth which results in a lower valuation of the company and the firing of the sales leadership. The replacement sales leader lacks the context of the growth hacking results and blames this on poor sales execution of the salespeople. The sales leader starts hiring new people” and with that, the downward spiral continues.
This is a lot like fishing with a net that destroys the ecosystem to catch just one tuna.
Sales Growth Strategies STAGE 2. REACH THE LAUNCH WINDOW
Three clear signs that you are in a launch window:
- As your company grows, you can increase the price of your product. This is because it indicates that there are real benefits to what they’re purchasing and how it impacts their business.
- It’s easier to close deals now because you are in a weaker position.
- The average sales cycle has decreased from 84 days to 71 days. This means that your customers are prioritizing you more than before.
What do these telltale signs have in common? They are data-driven – factors you can measure and make a decision off of, if you enter them correctly into the system.
An example of the mistakes we find is when people think they are in a launch window but really aren’t.
There are some deals that will offset the rest of your other sales. For example, one company had a single deal worth $200,000 but it took 270 days to close while all their other deals were for much smaller amounts and they closed within 28 days.
When a salesperson does not enter data correctly, they have to go back and correct it. This can take time away from the other leads which are being worked on at that moment.
Both of these points show that you need to a) divide your data and b) be sure the information is entered correctly.
Sales Growth Strategies STAGE 3. FOLLOW THE GO TO MARKET PLAN
If you want to meet your potential, it’s important to have a GTM plan.
When we grow the sales team by 3x, it becomes more difficult to scale up.
Employers who rely on an outbound approach find that doubling the sales team and tripling their efforts doesn’t lead to a tripled result. What they need is a more modern GTM model with layers of revenue.
If you want to avoid a scaling problem, then think of your revenue in layers.
- In order to decrease dependence on a regional market, I added more teams that were focused in other areas. This helped us cover more ground and take care of the entire business.
- Add new products and services to give customers more opportunities to spend money, such as up-selling or cross-selling.
- I need to reach out and get new clients, whether they’re small businesses or enterprise companies.
- Create a strategic partnership that offers new opportunities, like healthcare or government.
Going after bigger deals doesn’t just mean taking your best salespeople and giving them a list of companies to call. You also need to segment the market, and figure out how you’re going to go about marketing for that new target audience. Make sure to apply these sales growth strategies to forecast and plan for sales.
Need Help Automating Your Sales Prospecting Process?
LeadFuze gives you all the data you need to find ideal leads, including full contact information.
Go through a variety of filters to zero in on the leads you want to reach. This is crazy specific, but you could find all the people that match the following:
- A company in the Financial Services or Banking industry
- Who have more than 10 employees
- That spend money on Adwords
- Who use Hubspot
- Who currently have job openings for marketing help
- With the role of HR Manager
- That has only been in this role for less than 1 year
Want to help contribute to future articles? Have data-backed and tactical advice to share? I’d love to hear from you!
We have over 60,000 monthly readers that would love to see it! Contact us and let's discuss your ideas!