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The Difficulty Ratio
A fundamental principle in SaaS sales is that the size of a deal must be large enough to justify the effort required to close it. There are many ways to win in SaaS. Some software companies target enterprise customers, while others focus on SMBs. Some concentrate on industry verticals, whereas others focus on horizontal needs across industries. However, all successful SaaS companies share a trait in common: the size of their deals is commensurate with the time required to close them. We call this the Difficulty Ratio (deal size/cycle time). Larger deals can take longer to close; smaller...…A fundamental principle in SaaS sales is that the size of a deal must be large enough to justify the effort required to close it. There are many ways to win in SaaS. Some software companies target enterprise customers, while others focus on SMBs. Some concentrate on industry verticals, whereas others focus on horizontal needs across industries. However, all successful SaaS companies share a trait in common: the size of their deals is commensurate with the time required to close them. We call this the Difficulty Ratio (deal size/cycle time). Larger deals can take longer to close; smaller...WW…
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