B2B SaaS Go-to-Market
What is a proven B2B SaaS GTM strategy? What are the benefits of outcome-centric market development? How do you ensure customer success?
Business-to-Business Software-as-a-Service GTM Strategy
The growth of subscription-based Software-as-a-Service (SaaS) models has been fueled by the adoption of cloud computing services and customer demand for increased business agility. This transition will drive more IT vendor sales and marketing to evolve. They must build a new and lasting competitive advantage. They must embrace change management best practices.
The most urgent IT vendor Go-to-Market (GTM) challenges are acknowledging the role that Line of Business (LOB) leaders now have over B2B SaaS procurement, and accelerating the evolution of sales and marketing programs to focus more on customer business outcomes.
The Shift to Outcome-Centric Market Development
A software subscription or pay-as-you-go consumption model is very compelling for many customer leaders – including the CEO and CFO roles. The B2B SaaS model is an attractive alternative to a traditional IT capital investment in hardware or software infrastructure. That’s why more legacy IT vendors have made the transition to a recurring revenue model. In order to become B2B SaaS champions, subscription-based IT vendor sales and marketing must now focus on a perspective of the buyer’s journey which extends beyond the initial purchase.
B2B SaaS providers have adopted Annual Recurring Revenue (ARR) as the primary market development performance metric. ARR has three growth drivers: customer acquisition, retention of existing customers, and the expansion of customer use cases – via cross-selling or up-selling. In the past, legacy IT vendors prioritized annual software license deals as the key driver of new growth. Now many of those same vendors focus more on initial B2B SaaS solution retention, and additional use case expansion to sustain top-line growth and bottom-line profitability.
In addition, the IT vendor’s Customer Success (CS) team is an essential function within B2B SaaS organizations. Customer Success Managers (CSMs) are skilled at applying best practices to help create business value through user adoption and ongoing consumption of the apps.
The Role of B2B SaaS Value Realization Expertise
As organizations deploy more use cases, B2B SaaS providers must deliver compelling customer experiences that mitigate adoption complexity, drive value realization, and support Net Dollar Retention (NDR) growth. B2B market leaders offer comprehensive 360-degree Customer Success capabilities that span across business case advisory services, user onboarding, application implementation – plus, team training, certification, and support to drive desired business outcomes.
Building out a team of experienced B2B SaaS subject-matter experts – both internal sales and marketing champions, combined with external consultants that act as independent trusted advisers – will guide an IT vendor’s organization to think differently and take calculated risks. Reach out to learn more about how your organization and leadership team can drive forward-thinking B2B SaaS growth strategies, and proven global GTM execution plans.