In the world of B2B sales, particularly within subscription and SaaS (Software as a Service) business models, the way we approach landing new customers and expanding accounts needs a fresh perspective. Traditional sales methods focus heavily on understanding customer needs and offering solutions to match. While this approach has its merits, subscription businesses thrive on a different kind of sales funnel – think of it not as a funnel, but as an hourglass. Here’s a breakdown of how this hourglass structure works.
The First Half: Landing New Logos
The journey begins with making potential customers aware of your product or service. It’s like letting them know there’s a solution to a problem they might not even realize they have.
Once they’re aware, education comes into play. This phase involves providing valuable information and showing how your offering can make their lives easier or their businesses more efficient. Both seller and buyer should focus on finding mutual fit.
The final step in this upper half is decision, where customers decide that your solution is the right fit for their needs.
The Second Half: Expanding Customer Accounts
After securing a new customer, the focus shifts to ensuring they see the value in their decision. Onboarding is critical here, as a smooth start can set the tone for the entire customer relationship.
Next, customers need to see verified benefits – tangible proof that they made the right choice.
Finally, expansion involves offering additional value, perhaps through upselling or cross-selling, to deepen the relationship and increase the customer’s investment in your services.
How Lean Sales Transforms the Sales Funnel
- Data-Driven Decisions: By leveraging data from every stage of the sales process, companies can make informed decisions about where to focus their efforts. This means not just chasing leads, but nurturing the right leads.
- Customer Feedback Loop: Continuous feedback from customers helps refine the sales process and product offerings. This loop ensures that the business evolves in line with customer needs and preferences.
- Efficient Resource Allocation: Lean Sales encourages a more strategic use of resources, ensuring that time and money are invested in channels and strategies that deliver the best results.
Final Thoughts
Adopting an hourglass-shaped sales funnel can lead to more effective customer acquisition and expansion. This strategy not only aligns with the subscription business model’s nuances but also sets the stage for sustainable growth and customer satisfaction.
Remember, the goal is not just to sell but to build lasting relationships that grow over time. By focusing on both attracting new customers and expanding existing accounts, your business can enjoy a steady stream of revenue and a loyal customer base that sees continuous value in your offerings.