Learn From The Experts with Matt Wolach
Kicking off the first ever mentorship session by SaaS Insider on 25 June 2020, Matt mentored a bunch of Sales Managers and upcoming founders on the importance of KPI Tracking and which metrics are going to help you scale the most. Before we dive into the details, here’s a bit about Matt and Xsellus:
Matt Wolach knows the SaaS world from the inside out through nearly two decades of startup experience. His expertise lies in sales and in particular, implementing a sales process in order to maximize conversions at every stage from lead to close.
Matt is the creator of The Perfect D.E.A.L. Process which has created growth patterns that led to multiple 8 and 9 figure exits. He now uses his experience and this process to guide founders and leaders of B2B SaaS companies from around the world on how to effectively turn their demo process into a conversion machine.
The session kicked off with an introduction to the SaaS Sales Scorecard and a basic introduction of how it works. While the scorecard clearly lists out every metric that has to be tracked for a successful sales process, a few of them were different from the traditional ones that isn’t normally tracked but plays a significant role in contributing to the deal’s success.
Separating first time demos and re-demos:
While it Is important to calculate the conversions on number of prospects that have been demonstrated the product, it is also equally important to keep a track of number of demos done for every prospect for two reasons: the higher the number of demos, the harder your product seems to be and the higher the cost of acquisition.
Free trial to demo conversions:
Get to know what percent of website traffic is getting converted to free trial or signups for your product. If you are doing well, great! You have a validation for the content put up on the site. On the other hand, if it is low, maybe it is time to rethink website content or marketing and sales strategy.
Lead to demo and demo to close ratio:
Translate every step a prospect crosses into numbers so that you have a clear understanding of where you might be going wrong and make improvements.
Some of the questions that were addressed during the session:
Do you have an action plan that should be followed while ending a demonstration with a prospect apart from stating the ToS?
Usually, the sales person rushes into finishing the sale because hey, they’ve got a target hanging at the end of every month but when you look at it from the prospect’s point of view, it’s all about solving the problem they have on hand. Instead of simply stating what needs to be done, guiding them into how the salesperson and onboarding team will be helping them set up the product while solving the problem would be the ideal way for ending any conversation.
How do you study the win rate of the sales process? What are the factors and parameters needed to be taken into consideration for this?
This can be approached right from where you are sourcing the leads. For example, the outbound leads might not be as good as the ones coming through webinar. The next one is to look at the Ideal Customer Profile, or ICP. Compare the levels of conversion you get while dealing with decision makers at a manager level and C level. Similarly, analyze all the checkpoints in the sales process to come up with a combination of parameters that has the maximum success rate.
While most businesses have set subscription amount that can be tracked with fixed KPIs, how do you so the same for a product that charges based on transactions? For example, it could either be the number of rows processed or number of API calls which cannot be estimated beforehand.
A method suggested by one of the attendees, that surprisingly has an accuracy of 8-12%, is to have two sets of tracking. The first is to track based in the minimum sale that could happen and the second is to get a median value of all the tracking metrics based on historical data. For example, if you see that every month you have the capacity of doing $100,000 - $200,000, your guaranteed sale or minimum value will be $100,000. For the second set of tracking, it is up to the company’s sales process and market situation to come up with a pattern based on the fluctuations in historical data.
Since the whole world is undergoing a pandemic and almost everyone is affected, has this affected the way you ask your discovery questions? If there is a skeleton set of discovery questions, how would you structure it?
Other than financially, there isn’t much of a change in the way customers can be approached. Although, getting to the point where how the salesperson can be of help in solving the problem faster could help in saving time and money. As to the skeleton set of questions, on a high level, here’s how they can be structured:
- Building rapport
- Learn about current situation
- Where do they want to be and what their goals are
- What is preventing you now from reaching your goal in future
Question to Matt – You were a founder during the last recession, and we are facing a similar situation today. What advice do you have for us when it comes to restructuring the team and tracking KPIs?
It is more about taking care of the customers than the team or KPIs. If you make sure the customers are treated the right way, it is the best thing you can do that will help in rapid expansion once the recession comes to an end.
How do you address the lag in CAC? As customers face financial issues, not all prospects close in the same month. Some might even take a quarter to transition into a customer.
While this is true due to the COVID situation in most cases, one way to solve it is by identifying patterns on how the sales cycle journey is.
How do the metrics vary for enterprise customers?
Despite the fact that the sales cycle is longer in case of enterprise customers, the metrics that need to be tracked are pretty much the same.
Matt’s mentorship session was one of many upcoming sessions on different topics. Keep following SaaS Insider for more such updates!