The growth challenge of most SaaS vendors can be boiled down to the following simple formula:
revenue growth = price x volume = average MRR x new sales velocity
Delivering on the promise of low total cost of ownership, the price of SaaS is often an order of magnitude lower than the price of licensed enterprise software. This low price point creates enormous pressure on volume. Reaching profitability may require a new customer every week, every day or even every minute! Increasing sales velocity is the essence of the SaaS business challenge.
At each stage of the buying process, your SaaS prospect will encounter adoption costs and risks that reduce your sales velocity. I like to compare this to scaling a cliff where adoption costs are measured by the height of the cliff and adoption risks are measured by the difficulty of the climb.
How high are the adoption costs and risks that your SaaS prospects must surmount?
…Here are seven proven strategies for increasing SaaS sales velocity by reducing the adoption costs and risks more >>>
The preceding is an excerpt from a guest blog post by Chaotic Flow at Sandhill.com
Just click through for the complete post. Cheers! JY