SaaStr Outlines Process for Closing More Enterprise Deals
SaaStr details steps B2B SaaS teams can take to close more larger deals after securing initial enterprise wins.
SaaStr published guidance for B2B SaaS companies that have closed a few larger deals but still close mostly smaller ones and want to increase the share of enterprise contracts.
The article states that going upmarket requires specific hires, process changes, and infrastructure investments, according to SaaStr.
Leadership and Hiring
SaaStr recommends hiring a CRO or VP of Sales who has previously sold at the company's target high-end price point. This hire is positioned as better equipped to reach the high end of normal pricing without causing customer pushback.
The guidance notes that companies should bring in at least one or two veterans who have already executed an upmarket move at the aspirational price point.
Customer Success and Sales Cycles
SaaStr advises leaning heavily on customer success with a target of one CSM per $500k in ARR when affordable. The piece states that engaged, happy customers drive organic land-and-expand after the initial sale.
The article also states that larger deals take longer to close and recommends getting zen about extended sales cycles while still working to shorten them where possible. It notes that a strong VP of Sales can reduce cycle length but that a $1m deal cannot be closed in 30 days for a newer startup.
In-Person and Virtual Engagement
SaaStr suggests increasing flights to visit larger customers and increasing Zoom meetings. It states that the CEO should join more prospect and customer calls because customers respond positively to direct CEO involvement.
The piece indicates that deals closed without sufficient human connection tend to be smaller, take longer, and carry higher risk.
Sales Team Structure and Enterprise Readiness
SaaStr recommends building a dedicated enterprise-only sales team, even if it starts with one or two reps, so that leads suited for larger deals reach the reps capable of closing them. Once a company secures one top logo in a segment, it should assign an outbound team to pursue every similar account in that space.
The article further states that companies should continually raise prices at the high end and complete all enterprise requirements including SOC-2, HIPAA, DR policies, and 100% uptime commitments. It references Todd McKinnon of Okta stopping feature development for nearly a year to deliver a service that would not go down.
According to SaaStr, these steps together form a recognized process for moving upmarket.
