Selling to the Enterprise
I have worked with extreme sales achievers as colleagues, partners and competitors. This note is a glimpse of what works well for cracking medium and large enterprise accounts.
Previous Notes:
Building a Target Account List
Before writing down the first account, it helps to understand the following:
These parameters become the foundational criteria for the target account list.
Communicate these criteria to everyone in the startup. It aligns all team members to a common platform for future support on these accounts. Repeat this process as the startup adds more team members.
Next, start populating the target account list with the dream accounts. These are the must-have accounts. Then add all other accounts. Some companies introduce further classification in the target account list. Best to follow the KISS principle since salespeople like simplicity.
Fixing Gaps in the Target Account List
Field experience provides the true pulse of customers and market conditions. Besides salespeople, various team members spend time on the field. Target account lists should incorporate continuous field inputs to avoid the gaps:
Understanding the Target User
Products from most startups target one functional user. It helps to understand their job profile, career growth, and power dynamics. This clarity can avoid frustration and unpleasant surprises in the sales process. Here is a rough snapshot of observations for some functions that are typical targets:
Getting Foot in the Door
Selling to the large enterprise accounts is a process. Three hacks work well to get your foot in the door:
Typical enterprise sales closing process follows these steps:
Cracking the Big Deals
Many strategies have worked:
Enterprise sales is not rocket science. It is a structured process with personalization and creativity. Sales is about listening, perseverance, focus and energy.
Next Note: Growing the Enterprise Accounts
Previous Notes:
Building a Target Account List
Before writing down the first account, it helps to understand the following:
- Product
- Users
- Current startup stage
- Desired future direction of the startup
These parameters become the foundational criteria for the target account list.
Communicate these criteria to everyone in the startup. It aligns all team members to a common platform for future support on these accounts. Repeat this process as the startup adds more team members.
Next, start populating the target account list with the dream accounts. These are the must-have accounts. Then add all other accounts. Some companies introduce further classification in the target account list. Best to follow the KISS principle since salespeople like simplicity.
Fixing Gaps in the Target Account List
Field experience provides the true pulse of customers and market conditions. Besides salespeople, various team members spend time on the field. Target account lists should incorporate continuous field inputs to avoid the gaps:
- Fast-Growth Companies:
- The revenue and employee base of these companies is smaller. But their growth attracts the attention of larger accounts and they get acquired. Salespeople should go after these under-the-radar fast-growth accounts. And leverage the acquisition to expand into the larger acquiring enterprise account.
- Region-Focus versus Industry-Focus:
- Comfort, logistics and cost is why most companies have a region-focus for sales. Potential customers place less emphasis on the region. They derive comfort from a customer base in the same industry. Switching to industry-focus for sales can shorten new account opening in different regions.
- Tracking People Movement:
- A good chunk of CRM contacts changes employers every couple of years. Tracking people and cultivating better relationships early-on can be a great door opener.
- Connecting Unrelated Variables:
- Finding underlying strength in unrelated variables seems offbeat, but has worked out well. For instance, let us take a U.S.-based enterprise software startup in the CRM space. Assume they have a small set of customers in the travel & transportation industry. And strong connections in Germany. They could start with a combination of industry and region focus. Over time their customer base will grow and look like established enterprise companies.
Understanding the Target User
Products from most startups target one functional user. It helps to understand their job profile, career growth, and power dynamics. This clarity can avoid frustration and unpleasant surprises in the sales process. Here is a rough snapshot of observations for some functions that are typical targets:
- IT:
- Most targeted functional user set. PowerPoint presentations will bring a yawn. Differentiation over current deployment and competitors will make for a better sales process.
- Engineering:
- The focus is on shipping the upcoming release on time. Focus the sales message on reducing time to release. CEO and top executives recognize engineering as a core function necessary for growth. Hence, budgets can have a discretionary allocation.
- Sales:
- Ease of use is key. Salespeople focus their time sourcing and closing deals. Sales heads have strong leverage and visibility at the executive level.
- Finance:
- Not targeted as much, hence they are easier to reach. Avoid stories and keep the message crisp.
- Marketing:
- Marketing is crucial in creating an environment in which sales get done. Understand and leverage their linkage with sales teams.
- Customer Support:
- More operational focus than other teams. Measured on well-defined metrics. Cost is a driver.
Getting Foot in the Door
Selling to the large enterprise accounts is a process. Three hacks work well to get your foot in the door:
- Before selling into a new functional user set, do a simple identification exercise. List similar users within your network. Leverage them for knowledge and introductions. Next, identify small teams within your target accounts that have similar functional responsibilities.
- For the initial sale, contain the deployment within one function. Use high-touch to build a strong relationship within this function. This will smooth out the future sale in other functions.
- Seek introductions to other functional teams. It doesn't matter even if they aren't the first target set of functional users.
Typical enterprise sales closing process follows these steps:
- The initial start will most likely be with a Proof-of-Concept (POC). Don't ever give anything free. It will hurt a lot in the future. Remember that people move between enterprise accounts. And prospects will reach out to their industry peers even without a connection.
- Do a shorter and simpler version of the Statement of Work (SOW) for this POC.
- Get a Purchase Order (PO) with all relevant details filled in. One key item on the PO is getting a vendor number assigned. This gets you in the enterprise account's purchasing system.
- You'll most likely face strong resistance to get a Master Services Agreement (MSA). Don't let this stand in the way of getting the SOW signed and obtaining the PO.
Cracking the Big Deals
Many strategies have worked:
- Find the Anchor Client:
- This is a client who agrees to be the reference for the next few deals. It is like a salesperson but not on payroll. Treat this person well. Involve this person deeper with the product. And expose them to the leadership team of the startup as you scale. Help your anchor client with their career aspirations. You will get valued loyalty in return.
- Leverage Small for Large:
- Develop a smaller account with high-touch. Leverage it to get into a large account in the same industry. People like familiarity.
- Walk the Corridors:
- Create opportunities to walk the corridors of the enterprise accounts you are targeting. Figure out a way to camp there. Conduct some short training and overview sessions. Use the time to make friends across functions. Think of this as building a village to support you. This may seem like work, but it is the difference between a medium-sized deal and a super-large deal.
- Target the Point of Pressure:
- This is an executive whose pain resonates best with your product offering. To get buy-in, you may need to canvass everyone around this person.
- Go Top-Down:
- Most extreme sales performers put this as their best strategy. Start with the chairperson. If not, then someone on board of directors. Then move your way down. This strategy is best executed in parallel with land and expand strategy.
- Finding Common Denominators:
- Find one or more common denominators for your target enterprise accounts. Are most of them on a well-known enterprise platform? It could be software or hardware. See if you can partner with them and build an integration story.
Enterprise sales is not rocket science. It is a structured process with personalization and creativity. Sales is about listening, perseverance, focus and energy.
Next Note: Growing the Enterprise Accounts
Let's Talk: If you have a true experience that resonates, please send me an email.
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