As we continue into this year and beyond, the SaaS sales landscape continues to transform at a rapid pace. Field salespeople and their managers are at the forefront of this evolution, tasked with navigating an increasingly competitive environment. According to recent industry reports, the global SaaS market is projected to grow from $317.55 billion to $1,228.87 billion by the end of 2032, growing at a compound annual growth rate (CAGR) of 18.4%. 

With numbers like that, it is easy to see why it is crucial for any sales rep working in SaaS sales to align their sales approach with leading practices to stay ahead of the curve. 

Being on top of several new SaaS trends and best practices that are already emerging will give you a strong foundation to capitalize on.

The SaaS sector is a competitive and dynamic environment that presents not only traditional business challenges but some that are unique to the industry.

Saas sales reps face hungry competitors, technological advancements, and a comples SaaS sales cycle. Let’s take a look at them in a bit more detail. 

SaaS sales have a long cycle and a high cost for customer acquisition. Even with new subscriptions, it takes time for revenue to grow and for the company to see a return on that initial investment.

For example, reports have shown that the average customer acquisition cost for a SMB SaaS company working in the medtech industry is $921. It can be costly to acquire new customers. 

The SaaS market sees over 10,000 new entrants each year, each trying to get a piece of the pie. 

This influx means the SaaS industry is saturated with both established companies and newcomers offering similar products and services, whether that’s security compliance, process automation, or CAD integration. It becomes more difficult for companies to set themselves apart and drive home their unique selling proposition – especially at a premium price.

Few industries evolve at the speed of the technology industry. SaaS companies must not only adapt their products and services to stay relevant but continue to monitor the market to understand the product and how it serves current customer needs. OPEX reports that 75 of the top SaaS companies spend roughly 23% of their revenue on research and development, highlighting the relentless pace of innovation that is required to compete. 

Marketing a SaaS product can be challenging because of its complexity. The sales process often includes multiple stakeholders with multiple pain points - it would not be unusual to have to tailor a sales pitch to the needs of a CFO, an IT manager, and an end-user group, all within the same organization. The technical nature of most SaaS products means that the sales pitches must be both detailed and digestible, a balance that requires planning and precision. 

How about what not to do in a sales pitch? Listen as sales trainer and consultant Tim Wackel explains avoiding presentation pitfalls in this Outside Sales Talk podcast episode.

Customer retention is an ongoing challenge for SaaS companies and a single major client’s departure can drastically affect the bottom line. Tech customers often churn and abandon their subscriptions at a higher rate than other industries, which can undermine revenue, inhibit company growth, and hamper continuous development.

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As we venture deeper into the year, several key trends are emerging and transforming the future of SaaS. From the increased adoption of AI technologies to the strategic pricing model shifts and the heightened focus on security and compliance, the future of SaaS should be exciting for those who are ahead of the curve. 

No list would be complete without mentioning breakthrough AI technology. AI in sales has been a major disruptor in multiple industries, and SaaS is no exception. It’s now a key component of the SaaS environment, enhancing everything from field sales navigation to facilitating endless product innovation. 

According to a report by McKinsey, AI will potentially deliver $2.6 - 4.4 trillion in business value across marketing and sales functions annually.

Generative AI, which creates human-like content, is finding a place in SaaS development. Businesses can leverage generative AI for content ideation and creation, design, and other creative endeavors to streamline workflows and free teams to focus on tasks that only humans can perform.

Machine learning (ML), a branch of AI, is also being used in SaaS. ML allows SaaS companies to analyze high volumes of data and glean valuable insights to adapt to market changes much faster. With real-time information and insights, businesses can make rapid adjustments to capitalize on changing market trends with customer sentiment, purchasing behavior, and more. 

In fact, a recent survey from PwC found that over 1,000 businesses across nine sectors, such as banking, sales, and insurance, planned to implement AI as a mainstream technology. 

Be wary, however, of thinking AI will solve all of your problems. Tyler Carlson, Co-Founder of ReSquared, had this to say about AI - 

"I've always heard if it works for everybody, it works for nobody. If you're trying to get AI to work for every possible use case you have, you're fooling yourself."

Listen to Tyler Carlson's Outside Sales Talk podcast episode here where he shows you how to generate more leads with AI powered email camplaigns!

Integration has always been important, but the demand for highly integrated platforms has ramped up in recent years due to the need for seamless connectivity between business software solutions.

Having high levels of integration between your sales tools and platforms provides seamless interoperability to allow different software components to communicate and collaborate efficiently. Integration also facilitates better data consolidation, giving businesses a comprehensive view of their data from any platform. 

Companies like Hubspot and Badger Maps are at the forefront of offering integrated solutions. Hubspot provides a powerful CRM platform that combines various aspects of marketing, sales, and customer service. Badger Maps complements this by specializing in optimizing sales routes and customer management, which can be integrated directly into Hubspot. Syncing activities and data seamlessly, this integration helps decision-making and keeps team members on the same page, boosting overall effectiveness. 

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SaaS pricing is shifting toward usage-based costs, which require customers to pay fees depending on the features and volume they actually use instead of a flat fee on a monthly or annual basis.

Usage-based pricing presents challenges for businesses in showcasing how their product or service offers direct value. With that, there’s a new focus on efficiency and return on investment to compel customers.

Along with usage-based pricing, sales are shifting to value-based sales that emphasize the actual value or return on investment that a customer can gain from using the product or service, rather than intangible benefits. This shift is highlighted by ReasonWhy’s extensive findings that 70% of subscription businesses experienced growth by adopting usage-based pricing models.

SaaS sales reps gather and process high volumes of sensitive data. With high-profile data breaches making the news all the time, security and compliance have become relevant and pressing issues.

Service providers are increasingly devoting resources to advanced security systems that do more to help protect users’ data – and the business by extension – from cyber threats and breaches. Security measures like encryption and multi-factor authentication (MFA) have become selling points for third-party SaaS vendors.

In addition, SaaS companies have additional compliance requirements to meet for cybersecurity and data privacy laws, leading to greater investments for their own interests, not just the customers they serve.

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With the fierce competition from SaaS companies and new trends driving the sector, it’s crucial for SaaS sales teams to optimize their sales strategy and align with best practices to close deals successfully.

Regardless of technology trends or industry, one of the cardinal rules of sales doesn’t change – know the audience.

SaaS companies must understand what departments and reps stand to gain the most from a software solution and how to put the product or service benefits in context. Determinant factors like organization size, industry, and pain points are important for developing a sales strategy that communicates directly to that audience.

Sales may rely on intuition in part, but your sales process should be defined, streamlined, and standardized. It should focus on the entire buyer’s journey from initial touchpoints to product demos and information to closing with a repeatable, scalable, and adaptable. Companies with a defined sales process see more revenue growth than those without one.

Want to crush every stage of your sales process? Listen as sales trainer and consultant John Barrows discusses techniques to smoothly ease customers along your sales funnel.

The sales funnel is the process that potential customers go through from prospecting to purchase. Your sales funnel may vary according to your company’s specific needs, but they generally include:

• Awareness: Prospects first become aware of the company and its offerings. Interactions are limited.
• Interest: Prospects gain interest in the company and may browse a website or read a blog.
• Evaluation: Prospects gain greater interest in the company and its offerings and may seek out more information by subscribing to an email list or reaching out to a sales representative.
• Negotiation: Prospects are close to making a purchase. They may negotiate the price or other terms to make that final decision.
• Closing: Prospects have negotiated the sale and completed the purchase, becoming a customer.
• Renewal: Customers have the company’s offerings and the sales contract is coming up for renewal, leaving them to decide if they want to renew or seek out other options. This may include previous steps in the funnel, such as re-negotiations.

It’s crucial for sales teams to analyze the funnel, noting total prospects, any barriers or stages where the prospects drop off, and overall conversions. With a full view of the process, bottlenecks or points of friction can be identified and solved to increase the conversion rate.

Sales enablement provides the tools the sales team needs to sell effectively, including knowledge and information. Sales representatives can’t sell the product in real-world scenarios if they don’t have an in-depth understanding themselves.

Ideally, you should have a team or leader responsible for sales enablement. They will provide training for sales representatives, develop sales collateral, and gather customer intelligence.

Technology serves as a useful tool for sales enablement. Software and tools that can automate repetitive tasks, generate comprehensive or targeted reports, and streamline communications can dramatically impact your sales team’s ability to do their job effectively.

For a SaaS company with a field sales team, for example, one such tool is Badger Maps.

Known for its route planning capabilities, Badger Maps offers a suite of additional features that can significantly enhance SaaS field sales teams’ productivity. With Badger Maps, you can automatically plan, route, and maximize your time in the field, cutting down driving time by 20%. 

You can keep track of activity in the field by creating customized check-ins of every interaction with your prospects and clients. Shared team accounts allow easy territory and route management, the adding of new team members, and even provide comprehensive reports of team activity which keeps everyone on the same page.  

Sales teams have reported that they sell 22% more and drive 20% less when using Badger Maps, in fact, the average team of 10 reps sells $936k more the year they start using the app.

SaaS sales teams who use Badger Maps can boost their team’s efficiency and sales performance, reducing sales reps’ average drive time by 20% and freeing up an average of 8 hours a week.  

Sign up for a free trial or schedule a demo to see how you can improve your SaaS sales processes with this route-planning app!

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The CRM system is an important foundation for your sales strategy and tracks all customer information and interactions. When you combine your CRM with other tools and technologies in your tech stack, you can unlock its true potential.

For example, Danaher connected their CRM to Badger Maps and saw measurable improvements in sales efficiency. CRM usage increased by 50%, prospect meetings increased by 57%, and targeted meeting close rate increased by 90%. 

Integrating tools like social media management systems, email marketing platforms, and sales automation software with your CRM keeps all customer data information in a centralized dashboard for a comprehensive view.

Data is an indispensable resource for businesses, particularly with sales, but many companies aren’t leveraging it fully. Data and analytics can provide key information about sales prospects and customers to better understand their needs and tailor the sales approach to close.

Consider key metrics and performance indicators, such as customer acquisition costs, conversion rates, and customer lifetime value.

Like the market itself, sales strategies and techniques evolve. What works today may not work tomorrow, so the sales process should never be “set it and forget it.” Every aspect of the strategy must be continually tested and evaluated, including sales pitches, outreach, pricing models, and lead generation.

Risks and experimentation are necessary to the process. You can’t be afraid to fail and learn from it. Even if the experiment doesn’t yield positive results, it’s a valuable learning experience to shape your future strategies.

SaaS is a rapidly evolving and competitive market. Staying ahead of the curve and capitalizing on technology trends can help your sales team demonstrate your product’s value more effectively to close deals and increase revenue. 

By understanding the unique challenges of SaaS sales, leveraging data and analytics, integrating cutting-edge tools, and continuously optimizing your strategies, you can position your company as a leader in the SaaS industry. 

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Author Bio: Kevin Ruef co-founded 10-8 Systems after exceeding multiple companies’ sales records (both domestically and internationally). With more than a decade in sales, his experience ranges from B2B, B2G, and B2C.