winning in new markets with sales as a service (saas)

1310-SaaS Primer © 2013 Preston Willis Group Partners 1

Winning in New Markets

SaaS* Primer *Sales as a Service


Preston Willis Group Partners


The Situation

If every business cruised along at a constant speed and

level altitude, planning and management would be

straightforward. But that is not the case.

Start-up companies find themselves in the position of

overcoming inertia, attempting to secure initial traction,

while typically working from a constrained budget.

Early Growth companies have likely garnered traction,

but struggle to scale and grow. The incremental cost of a

marketing or sales resource is often greater than the

incremental revenue it yields over several months.

Scale Up: SMB (Small and Medium Businesses)

companies often expand their offerings, establish new

vertical markets, or enter new geographic ones – all with

the view to grow available market size and capture share. Yet, as experienced managers know,

managing the ebb and flow of ever-increasing organization size can be daunting.

Late Stage companies – having achieved success and may focus on acquisitions, returning

dividends or, in the case of private owners, seek to exit on attractive terms. Their challenge:

maintaining run-rate performance while managing the bumps in the road the inevitably arise.

The Problem Though specific challenges tend to accompany each stage, three core problems persist:

1. Affordability – The marginal cost of adding marketing and sales

personnel – particularly for start-ups and early stage firms – can be

prohibitive. In the US & Europe, it is difficult to obtain good inside

sales personnel at a burdened cost of under $100K.

2. Resource elasticity – Often times, sales personnel and marketing

resources are needed for short periods of time (e.g. new product

introductions, or to tackle sticky demand creation hurdles) to help

with the peaks and valleys. E.g. new product introductions, quarter-

end efforts, initial period of market expansion. Contract personnel,

though available, may not have the expertise required to make the

needed difference cost effectively.


Solution: Sales as a Service (SaaS) SaaS is an outsourced Marketing and Sales solution – ideally suited to SMB organizations that develop market and sell enterprise solutions.

How it Works: A 3-Stage Process PWG Partners’ SaaS Program consists of 3 stages, tied to the familiar sales funnel.

Stage 1 – Demand / Lead Generation Prospect profiles are developed in conjunction with the

client. Through a combination of 3rd

party research, contact databases, digital marketing, content marketing and telemarketing, prospects are qualified and “scored” to identify high value leads (receive immediate action) and nurture-ready leads (likelihood of medium term action).

Stage 2 – Lead Development A high dialogue and “high touch” phase, dedicated and experienced personnel are assigned. Interactions include demos, provision of content (e.g. white papers), phone and Skype meetings and face-to-face meetings. Depending on the nature and price point of the offering, the typical sales cycle may run from 2 weeks to 90 days or longer. The goal: establish prospect readiness to buy.

Stage 3 – Sale The goal is straightforward: take qualified and prepared prospects to a point where a business case can be substantiated, a proposal made, and a closing presentation scheduled.

Additionally, the process is highly adaptable and customizable. It affords the option of choosing:

Length of term

Undertaking just the 1st or 2nd stages of the process, turning the balance over to the client’s staff

To have accounts managed “in-market” on the client’s behalf, in lieu of using channels

To “prime the pump” as a means of securing in-market channels

3. Expertise – On-the-ground, experienced sales and marketing

personnel and management are not easily found. As they are in

high demand, even those doing contract work are seldom available

at critical times. Others are but, as they are inexperienced or lack

the required market skill, learning curves can be high and long. And

results, very disappointing.


Why it Works 1. Incremental performance pricing

SaaS is comprised of both low fixed fees and variable skin-in-the-game performance fees that are tied to results. Predetermined performance outcomes are established at each stage to ensure that progression – and corresponding investment – to the next phase is only made when performance is satisfactory. The client may exit after each phase. There is no long term risk – or long term commitments – if market response is sub-optimal.

2. Program Development expertise PWG Partners have experience formulating and managing demand creation and sales programs for start-ups through to Fortune 1000 enterprises. Collectively, PWG’s partners have managed national and international teams that have generated more than $20 billion in sales pipeline.

3. Management experience PWG’s partners each have over 25 years of experience managing technology start-ups, SMB enterprises, and multi-$B Fortune 1000 firms:

Hardware, software (SaaS and on premise), networking, communications, energy

Start-up, early stage, Growth and Late stage

4. Extensive resource network PWG maintains a network of trusted suppliers and Specialty Partners who are available “on demand” and possess deep capabilities in:

Digital marketing, SEO, mobile marketing, email marketing and content marketing

Advertising – print, digital, display, event, point-of-sale, digital video

Content creation

Event marketing, trade shows,

Telemarketing and telesales

5. Dedicated Partner, team commitment

Each SaaS account is the responsibility of senior PWG partner who is accountable for oversight, day-to-day management, client briefings, and performance. Each assigned partner draws on the expertise of all PWG partners. The program performance for every SaaS client is reviewed weekly by all PWG partners.

6. 100% expertise, yet only as needed As any point in time PWG Partners manages a portfolio of SaaS clients, enabling the full partnership to distribute its expertise across all accounts, thereby keeping individual client cost low.

7. Superior value at a reasonable price

The benefit of professional tapped into an extensive network of specialists

Low fixed monthly fee, and performance fee tied to results

Opt out without obligation if market performance thresholds not achieved


Applications The SaaS program can be a performance-effective and cost-favorable way to:

1. Test market acceptance Particularly for start-ups and early stage companies, using experienced professionals on an ad hoc basis to test market conditions and new offering acceptance, before committing to hiring full time staff. Benefits:

Fast start: provides early and needed insight, shortening the discovery curve

Does not place all the bets on one marker

Limits downside cost exposure

2. Enter and develop new markets Knowledgeable in-market experts know how to gain traction quickly and pragmatically. Benefits:

Faster time-to-revenue

Pay for performance, not for headcount

Determine mix of direct and indirect channels

Ease in sales and management resources cost effectively

3. Augment demand creation and capture When short term demand creation opportunities exist, and yet there is not the justification for adding full-time staff or channels, supplementing may help. Benefits:

Predictable costs

Turn on and off when and as needed

4. Bridge a gap Bridge a resource gap for new product introductions, special sales or marketing programs, or compensating for unexpected sales resource or channel loss while backfilling. Benefits:

Short time-to-action, and time-to-results

Variable expense

Can recruit in parallel

For More Information Contact:

PWG Partners: Glenn Myers, Managing Partner [email protected]

mailto:[email protected]