How To Navigate the B2B SaaS Sales Cycle | Proposify

The different models of B2B SaaS sales

Traditionally, sales follows the AIDA model: Awareness, Interest, Desire and Action. The AIDA system is one of the most basic sales principles, and the core of many other sales and/or marketing models.

It states that before making a sale you need to:

  1. Get attention: Capture your audience’s attention with an ad or post that stands out from the crowd.
  2. Generate interest: Once you have their attention, give them more information about your product or service so they can begin to understand how it might help them solve their problem or fulfill their desire for something new.
  3. Create desire: Tell your audience what makes your product or service better than others and why they should buy from you rather than a competitor.
  4. Generate action: Give your audience an easy way to buy from you — a link to your shopping cart, an order form, etc.

While B2B SaaS sales follows the standards of the AIDA model, there are a few sales models that are distinct for the SaaS industry. Choosing the right sales model for your B2B SaaS is critical. It helps determine how many salespeople you need and who they should be targeting. Depending on the nature of your product, you may need one model or many models for your sales teams.

1. Customer self-service model

A customer self-service model is when you have a website where customers sign up without talking to salespeople. They pay you with a credit card (or some other form of payment). It’s very common for early stage companies. If you offer a free version of your product with an additional charge for premium features, this is also called a “freemium.”

2. Transactional sales model

Transactional sales models are based on lead generation, closing the sale and providing support as needed. This model requires your sales team to be responsible for bringing new customers onboard and supporting them throughout their lifecycle.

3. Enterprise sales model

The enterprise sales model is the most traditional model of B2B SaaS sales. It’s based on appointment setting and high-touch customer interactions and is intended for high-margin, large-scale deals. This model is designed to target big markets with huge potential for ROI.

4. Trials and demos

Trials and demos are the most common model for B2B SaaS companies. This is because the SaaS product is usually complex and requires more than a simple sales page to understand the value. To qualify your leads, the predominant qualification criterion is their behavior.

5. Monthly vs annual contracts

The question of whether to charge your customers monthly or annually is one that B2B SaaS founders face quite early on in the journey. For many reasons, annual billing has been the default choice for many SaaS businesses.

The different stages of B2B SaaS sales cycles

Many B2B SaaS companies will follow some version of a sales cycle:

  1. Prospecting: In the beginning, focus on content marketing, social media, and online ads likely to attract your ideal client.
  2. Qualifying: Identify the most promising leads from your website visitors and trial subscribers.
  3. Presenting: Get prospects on the phone with a sales rep.
  4. Objection Handling: Address any concerns prospects may have.
  5. Closing: The most important stage when a prospect becomes a paying customer.
  6. Post-sale Activity: Use customer support and training to engage customers post-sale.

Put it into action: build a scalable B2B SaaS sales process

This primer has given you a better understanding of the different sales stages and how they relate to one another. By having a solid understanding of SaaS sales stages, as well as the important components that occur during each, you'll be better equipped to find the right fit for your business.