B2B sales is hard and in a recession it gets harder. Over 70% of buyers think that sales people bring zero value to their buying process. In this session, Mark will explain why sales can be such a challenge for software companies, why a recession can make it even harder and what you can do to change the narrative. He will share tried and trusted steps to help you, your product and your sales team stand out from the crowd so your buyers value your product and the help you can give them. https://businessofsoftware.org/talks/better-b2b-sales/

1. January 2023
Better B2B Sales
Mark Gibson
+44-7312-984-542
mark@whychangeselling.com

2. B2B SaaS Sales - Hard & getting harder
NORMAL TIMES
Scalable Growth – Velocity
(Cost not a factor)
RECESSION
Sustainable Growth –
Velocity + Cost
WHAT CAN YOU DO?
– Get Started Now!

3. Has SaaS bubble burst?
COVID Pure B2B SaaS
ARR Current Year
Chart SaaS Capital
COVID
Bubble

4. Agenda
What’s Going on?
1
2
3
What to do
How to Change - Resources

5. Agenda
What’s Going on?
1
2
3
What to do
How to Change - Resources

6. What’s going on?
SaaS overbought, renewals, upsell at risk
1
2
3
4
Buying behavior changing faster than SaaS companies
>50% of forecast deals end in no-decision
Majority of salespeople will struggle to hit quota in 2023

7. What’s going on?
Source Data:
2015 CSO Insights 1200 companies responded
2022 DCMi 2.5 Million sales calls analyzed
Win Rate
2015
2022
Deals Won
46%
26% 2022
2015
24%
50%
No Decisions
Deals Lost

8. SaaS Overbought
SaaS Fundamentals Sound
Winners and Losers
Adapters will emerge Stronger
SaaS Growth Loop

9. Changing buyer behaviour
Only 29% of buyers
want to speak with
salespeople (HubSpot 2020)
Buyers’ rate 9/10 initial sales calls
a waste of time (Forrester 2011)
Cycle times on >50% of
deals 7 months and
increasing (HubSpot 2020)
Average touches to close
deal increased from 17 – 27
(Forrester 2020)
People involved in buying
process increased from 7 – 11
(Gartner 2020)

10. B2B Buying process - Impact
Vendor A
Vendor B
Vendor C
Vendor D
Buyers Spend a total of 17% of their buying cycle time with all vendors combined
28% online research, 22% meeting buying group, 18% offline research, 16% other
(CEB Gartner 2017)
IMPACT – Why Killer Products Don’t Sell: Ian Gotts, Dominic Rowsell
Idea Mentor Position Assessment Case Transaction

11. Where deals die
Buyer Questions
Why change?
Why now?
Why can’t we use existing?
What $$$ evidence?
Initiative A
Opportunity B
Development Project C
System Upgrade D
New Office E
Idea Mentor Position
• SaaS Spending Prioritized
• Need Exec Sponsorship
• Exec discussion: resources, $$ made available
• POLITICAL: Change = emotions
• Many leads die here
Position

12. Illustrative buying process

13. Deals ending in no decision
Between 40-60% of deals end in no-decision – WHY?
Moderate to high Indecision on 87% of deals
Reasons for no decision - FOMU
Too many options/too much information
Unclear of value payoff
Too much risk
Source: DCMi AI analysis of 2.5M recorded calls using Thethr

14. Deals ending in no decision
Overcome Indecision
Overcome the Status Quo
Status Quo Agreement on Vision Purchase Decision
TWO PLAYBOOKS FOR SALES EFFECTIVENESS
Illustration from The Jolt Effect, Matt Dixon, Ted McKenna

15. Salespeople not making quota
Buyers want insight, not a
“product pitch”
“Product” and “Solution
Selling” approaches obsolete
Not enough
good leads
Weak conversion from 1st
– 2nd meetings
Weak qualification, wasting
time on deals that won’t close
Most salespeople are under-
skilled and un-coached

16. Agenda
What’s Going on?
1
2
3
What to do
How to Change - Resources

17. What to do?
SAAS FUNDAMENTALS
Strategy alignment across business
Build a revenue model *
Track, measure performance, LTV to CAC Ratio, Rule of 40, Magic #
Monitor leading performance indicators
Opportunity creation/ Pipeline build/ Conversion ratios
Churn risk/ Product utilization/ Value delivered
Stop discounting, start small
* Download Open Source Revenue models at www.thescienceofrevenue.com
* Winning by Design

18. What to do?
BUYING BEHAVIOUR
Sales and Marketing Alignment – ramp marketing engagement
Simplify, align, auditable sales process with buying process
Develop cause-level value messaging (Commercial Insight)
Certify everyone in the new value message
Problem
(cost of current
situation)
Causes
Impact
Capabilities
Required
Your Capabilities
• Table Stakes
• Better – Unique
• Best Combinations
Cause-level Value Model
Commercial
Insight
Solution
Approach

19. What to do?
DEALS ENDING IN NO DECISION
Recognize it’s happening to you!
Record and analyze sales calls – listen for indecision
Help buyers to makes sense of information
Make recommendations based on experience
Spell out ROI, set outcome expectations
Reduce risk, start small, offer guarantees

20. What to do?
SALESPEOPLE MISSING QUOTA
Focus on the bottom
of the funnel
Everyone responsible
for lead generation
Record all calls
Build a learning organization – top-
down commitment, skills devt.
Upgrade sales organization, recruit
using science, ramp in 90-days
Managers go first, responsible for
regular weekly coaching
Certify salespeople in
consultative selling skills
Pick one skill a month to work on
and measure improvement

21. Agenda
What’s Going on?
1
2
3
What to do
How to Change - Resources

22. Why change now?
Normal Times > Growth
Year 1 Year 2 Year 3 Year 5
Year 4 Year 7
Year 6 Year 1 Year 2 Year 3 Year 5
Year 4 Year 7
Year 6
Downturn -ve Growth
• Incremental improvement across system
• Drive utilization
• Report value impact monthly
• Reduced lead-flow
• Declining conversions, lower win rate
• Increased discounting
• Increased churn, reduced seats, slower growth

23. How to change
GET HELP
RECOMMENDED ELITE FIRMS
Winning by Design
Challenger
Corporate Visions
RECOMMENDED VALUE SELLING CONSULTANTS
Inflexion Point
CPV Consulting
Why Change Selling

24. Resources and references
BOOKS & WHITEPAPERS
1. Anthony Iannarino
2. Josh Braun
3. Dave Kurlan
4. David Brock
5. Mark Cox
6. Steve Richard
7. Jason Lemkin
8. Victor Antonio
9. George Bronten
10. Mark Kosoglow
11. Kevin Dorsey
12. Tim Riesterer
13. Jacco van der Kooij
14. Richard Smith
15. Chris Voss
16. Kyle Coleman
17. John Barrows
18. Elay Cohen
19. Andy Raskin
20. Alex Hobbs
• The Jolt Effect Matt Dixon, Ted McKenna
• Elite Sales Strategies Anthony Iannarino
• The Expansion Sales eBook Tim Riesterer
• The Sweet Spot in the Eye of the Storm Winning
by Design eBook
• Never Split the Difference Chris Voss
• The Challenger Customer Matt Dixon, Brent
Adamson
• The Sales Manager Survival Guide Dave Brock
• Gap Selling Keenan
WHO TO FOLLOW ON LINKEDIN

25. January 2023
Better B2B Sales
Mark Gibson
+44-7312-984-542
mark@whychangeselling.com