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Right now, you may have 3-4-stage sales processes that work for SMB customers. Finally, compliance is going to be critical. Don’t let compliance stall deals. #4: The partner serving SMB customers differs from someone serving Mid-Market and Enterprise. You’ll also need to look at your sales process.
Unlike when selling into SMB businesses that kind of can go from a demo, to a conversion, to a close in a matter of days, enterprise sales is a lot more complicated and it’s hard to navigate through. So as Lauren sort of alluded to, we started by focusing on SMB’s. It’s not going to work.
For SaaS businesses that target smaller SMB customer segments, gross retention is typically in the mid to low 80’s with net expansion in the ~105% range. This is why the consumption players (Snowflake, Mongo, Confluent, Azure, AWS, etc) so more variability in the macro slowdown.
I saw we had the opportunity to do that in London and to do something that will be new for Facebook, in the same way that AWS was a new business model and product line for Amazon and a bet that paid off very well. We are going from having an enterprise business to having a mid-market business to investing in an SMB business.
The answer likely depends on your market segmentation, as freemium may ease adoption friction for SMB/mid-market companies. Are you targeting enterprise or mid-market/SMB? The cloud-managed services attract the lower end of the market and make it possible for these businesses to address the SMB/mid-market segments.
But if you target SMBs or consumers, PLG is a fantastic way, and you have a very large user base to reach out to as well. If you have a very complicated product–for example you sell AWS or you sell Snowflake–those are infrastructure products. Are you interested in learning how I can help you set a better compliance? ”
It took me a long time to admit to myself that I don’t enjoy transactional SMB sales. Today I help investment managers harness the power of community and technology to automate regulatory compliance. What is your best piece of career advice for women in sales? You deserve to be happy at work and there is no prize for suffering.
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