Software-as-a-Service (SaaS) companies are losing about US$41 billion of potential revenues every year, according to an estimate by Ziligence, an AI-driven B2B sales prospecting platform. This lost opportunity is roughly 55 percent of the industry’s total revenues generated annually, based on an analysis of sales statistics and empirical evidence. The primary reason for the loss is that SaaS sales teams are not giving adequate attention to accounts that really matter and are spreading their efforts thin.
In the B2B sales world, often there is a tendency to either just focus too much on a few very large enterprise accounts or to diffuse energy on too many smaller prospects. One of the key industry verticals where this is pronounced is SaaS. SaaS companies have a significant focus on selling to small and mid-sized firms. Since these customer segments are vast and fragmented, it is easy to get lost in chasing irrelevant accounts that hold little potential.
Also, the buying decisions for SaaS products are typically made by the end users rather than corporate procurement teams. This ‘consumer-like’ behaviour of B2B customers is also because of the relatively small ticket size for subscribing to SaaS products. Therefore, SaaS sales most often goes beyond signing large enterprise deals. “This could mean that pretty much any company can buy your SaaS product subscription. This could also mean that the sales reps will end up pitching to any company that comes their way”, says Manoj Madhusudanan, co-founder and CEO of Ziligence.
Sales teams in SaaS companies often resort to tools and databases that give them long lists of companies and contacts, but no starting point. After doing some level of filtering on their target geographies, they often start their massive outreach without any further due diligence. “A key reason for this is that there haven’t been many tools in the market that help simplify prioritization of accounts. This is changing now. For example, at Ziligence, we use a dual scoring mechanism to show companies that are relevant and have the highest propensity to buy,” adds Manoj.
If the available time and energy are channelized selectively, this could lead to significant improvement in sales win rate. Most SaaS companies operate in areas where new solutions come up all the time, making it harder for firms to survive unless they have their ducks in a row. Going after prioritized accounts effectively could define the difference between success and failure for SaaS firms trying to establish their presence in areas of highly competitive activity.
Ziligence is an AI-driven B2B platform that helps optimize sales prospecting. Ziligence analyzes over half a million global companies to find the best fit accounts to do business with. The platform also helps a business user connect with prospects directly with a few clicks.