You’ve weighed the options for the ideal target market carefully, and decided you want to increase your Average Sales Price and go after larger deals.
However, wanting something to happen and actually achieving it are very different things. How exactly do you push your sales team to close larger deals? It’s not as simple as snapping your fingers, or everyone would do it.
You have to make a number of changes to your sales and marketing efforts in order to chase larger leads, engage higher value opportunities, and close big deals. Here’s how to strategically shift your sales efforts to achieve the higher Average Sales Price you’re dreaming of.
1. Collect the Data
It’s impossible to move up market without first knowing which opportunities in your sales pipeline are large, and which are small. A lot of companies wait until the final proposal goes out to learn the true size of the deal — which you can’t afford to do. If you truly want to increase your ASP, you need to collect demographic information early on in order to start targeting larger deals. For a Software-as-a-Service company, for example, you want to know total employee count and multiply by the price per seat to learn how much money the deal will bring in.
Whatever the measurement your business requires, you need to know the size of the deal in advance. To gain this knowledge, you have to strongly enforce data entry into the CRM from the beginning of the sales process. Tell every Business Development Rep that they can’t book a meeting without first finding out the size of the company and entering it into the CRM. With that data in hand, you will be better informed about the size of the opportunities within your sales pipeline.
2. Analyze Marketing Campaigns
Now that you know the approximate value of the opportunities in your pipeline, look back at all the marketing campaigns that first captured those Marketing Qualified Leads (MQLs). Which campaigns pulled in the largest deals, and which attracted lower-value opportunities?
This report shows you the marketing campaigns that influenced the biggest deals overall. By understanding this data, you can invest more money and time into those campaigns going forward. As you focus on those campaigns, you should increase the number of high-value leads you have in the sales pipeline. Hopefully, with a higher percentage of larger value MQLs, you’ll be able to push up the Average Sales Price.
3. Update Your Product
Before you completely change the way you sell your product, you may have to make some tweaks to the product itself. If some of the features of your product were built for SMBs, you may not be able to sell that feature specifically to mid-market companies. There may also be technical challenges in onboarding and serving much larger customers that you need to understand before you really shift your sales strategy.
You may also have to change your pricing tiers, customer onboarding process, and customer support all in order to handle the size and demands of larger customers. Larger deals often become customers that need more configuration, more custom technical work, and more customer support than the smaller customers you’re used to. Make sure your entire organization is prepared and up for the challenge.
4. Change Sales Tactics
Now that you’re ready to handle bigger deals, it’s time to start selling. You already know that bigger deals have very different buying patterns than smaller deals, so you can’t expect to work larger opportunities in the same way. For one thing, larger deals often require more engagement within the account with buy-in from more stakeholders within the company. Larger deals also need more time, more technical demos, more case studies, and more resources in order to close.
These are realities that you need to communicate to your entire sales team. You need to invest in your team and offer sales coaching that will help them effectively target and close these larger, more difficult deals. You should also expect to see a dip in your overall win rate, but your revenue should also begin to increase. If you measure the win rate for just the mid-market deals, you should actually see the win rate increase. However, you should also keep a close eye on the loss reason for every deal your reps can’t close. Make sure you keep coaching your reps to overcome these obstacles, and push up the ASP as much as possible.
5. Minimize Discounts
As part of the sales training you’re doing on larger deals, you also have to work with your reps to improve their negotiation skills. Every discount reps hand out is cutting into your Average Sales Price, so you have to strongly discourage discounting at every stage of the buying process. Offer incentives for reps that sell at full price, and make sure their quotas are set high so they need to close bigger deals. However, you can’t just enforce the rules without offering any aid. Give your team the tools they need to avoid discounts. Train them to use strategies like offering non-monetary value and setting boundaries for the deal in order to avoid discounting.
Increasing your Average Sales Price is not something that can happen overnight, but it can be accomplished with the right effort in the right places. Start by gathering data, tweak your marketing efforts, prepare your team, and then start chasing those big deals. Even if it seems difficult, you can increase your ASP and drive up revenue.