GROWING ENTERPRISE SOLUTION REVENUE WITH SUBSCRIPTION MODEL BEST PRACTICES

SUBSCRIPTION ECONOMY ISSUES

Market Entry Strategy for the Subscription Economy

As noted in Subscribed by Tien Tzuo, CEO of Zuora, the economy is moving to a subscription model. Legacy B2B software solution providers are faced with significant challenges as they attempt to navigate from a Perpetual Sales & Delivery Model to a Subscription Sales & Delivery Model.

Coaching Enterprise Start- Finding Best Fit Prospects

I ask Enterprise Solution start-up founders: “If you had 1000 contracts tomorrow, how many could you on-board in the next 3 to 6 months”?

They often respon with large nymbers On-boarding is not just that you supplied the product to them. A comprehensive definition of on-boarding customers includes that they have learned to use your solution to solve their business problems. It is typically a small number of Enterprise customers that can be on- boarded because the startup has limited support and customer success resources and has not standardized the on-boarding process.

Providing both On-Prem and SaaS Solutions Does Not Work

For those that think they must offer both a perpetual/on premise solution plus a subscription/cloud solution from the same business unit, here are some issues:

Can Your Reps Speak Value to Executives?

The #1 reason deals don’t close is your sales rep’s inability to
present value effectively.

Implement Sales Process to Improve Productivity

We are often asked: “What is the best methodology for our company?” This is the wrong question. Any methodology, when consistently applied, can yield significant Sales Productivity benefits. The better question is:”How do we make our Sales Process useful to the reps and used uniformlyacross the team?” The challenge is the consistent application in a fashion in which the reps buy in.

Sales Compensation

It is important to recognize that Sales Compensation is one element of Sales Motivation.

For Sales Compensation, the most important element is the alignment of the plan with Corporate Goals. When the Sales Compensation Plan is not aligned with Corporate Goals, the results are high cost of seling.