One thing I hammer on in all my Traction Foundation and Traction momentum projects is to make the connection between how the domain-specific problems my customers solve relate to the metrics that keep the board up at night
Why? It’s the lever to potentially 10x the size of your SaaS deal and slice the time to close it.
Here’s the thing
Let me give an example from my career – we sold a solution to help service-intensive organizations keep track of projects. Typical problems: challenges with planning people, errors in time-sheet entry, inaccurate billing, etcetera
It’s tempting in the sales cycle to focus there with laser precision and showcase how we solved this.
The problem: the focus is on how you solve exactly those requirements, and the customer’s perception of your solution is that of a tool. The price they’re prepared to pay for a tool for their 250 consultants is possibly $10- per user per month – at max $15, so a 30-50K ARR deal. To them, it’s a cost.
Not bad, you’d say. That’s a good deal.
Wrong thinking. We’ve just missed what the actual value is about.
We have to think about what’s causing the company to come to market in the first place. Some said ‘enough is enough’ – and it’s likely not the Project Manager, but someone at the board level.
There’s often something more significant at stake:
- Competitiveness could be declining due to their inability to bring together the right people at the right time to do a project
- Cashflow could be under pressure due to sending out inaccurate invoices, which customers decline
- Utilization could be far under the market benchmark, resulting in profitability pressure
- This could result in challenging conversations with investors, followed by popular measures (layoffs, reorgs..)
Value for the company to solve this: Millions and millions
Key takeaway: Connect the dots to what’s really at stake. Often the project team you talk to won’t tell you (or even know). They just have an order.
Question for you to reflect upon:
How much value have you left on the table in the past quarter with your SaaS solution. How could this change how you monetize?
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