๐Ÿ”† Land & Expand vs. Large SaaS deals

I came from the ERP world, which typically covers multiple processes within a company. And hence there’s much more at stake for a customer – meaning long sales cycles.

So what fascinates me always is: How can you go around that?ย 

One tactic to accelerate enterprise SaaS sales that is seriously underrated is Land & Expand.ย 

From the sales execution perspective, we’re often ignoring it for a range of reasons;

  1. With this tactic, you need many more deals to make your target.
  2. The typical hunters and farmers structure in enterprise SaaS Sales means deals are handed over from one team to the other when the 1st contract is signed.

Pretty selfish arguments, right?ย 

Would you agree they work counterproductive to the growth of a SaaS business?ย 

What if we’d approach this from the perspective of company value creation instead of sales-rep value creation?

Why even care? Just read this quote from of the members of my CEO Mastermind:ย 

We’ve designed our sales process around three months period where you negotiate for a month, drive proof of value for a month, and then sign the contract in the third month.

We did that because we know, with a good level of confidence, that 90% of customers that have started with the product have moved from the initial starting point and have grown 4-6x within the 1st year. So they’ve added more users, they’ve added more capability, etcetera.ย 

When we started running it in a cycle, the sales process suddenly went from eight months to three months.

Key takeaway: find your way in by zooming in on small but high-value (w)edges. Deliver value fast, repeat. Everyone wins.

Besides that

  • It mitigates risk for the customer
  • They’re much more motivated to help get the 1st deal in
  • Value creation happens much faster and more predictably
  • This turns more customers into fans – driving word of mouth
  • You’ll often stay under the radar of the purchasing department

 

Question for you to reflect upon

How much money have you left on the table the past 12 months by ignoring the potential of Land & Expand for your SaaS business?

 

Be Remarkable

 

Like this message?

Every day I send out a short 2 min to help B2B SaaS CEOs discover the hidden gems towards Predictable Traction . Join the 1,000+ subscribers that have become fans.ย 

Not sure? Browse the archive

About the author

Sales Pitch

Ton Dobbe is a former B2B software product marketer who's on a mission to save mission-driven SaaS CEOs from the stress of 'not enough' traction. He's the author of The Remarkable Effect, the host of the Tech-Entrepreneur on a Mission podcast, and writes a daily newsletter on the secrets to mastering predictable traction.