SMB Sales, Segmentation & Customer Acquisition Costs: A Better Way

One of the key KPIs in the SMB-SaaS world is customer acquisition costs (CAC). Companies and investors are obsessed with this metric as well as others: churn, ARR and LTV. Behind CAC are questions about sales and marketing efficiency — and SMB segmentation in turn.

At Localogy: Engage there will be a number of sessions that discuss CAC, sales and SMB segmentation. “Getting CACky: Who has Mastered the Art of Efficient Selling?” features Paychex, Verizon, Updopt and Vendasta. This group represents the full range of tactics and opinions on SMB sales: freemium/PQL, inside sales, in-bound/self-service and field sales.

There’s an emerging view that inside and outside sales don’t work anymore and so freemium is the only way to go now. However, at the other extreme, one of the panelists on the prep call made the point that “In competitive industries, push techniques are needed because of noise.” This includes outside sales. These opposing views reflect the split of opinions and experiences in the market today.

Brand strength is also a key variable in the go-to-market approach. But perhaps more important to success are pre-qualification and segmentation. Different segments may require different products, marketing and sales tactics. That may sound self-evident but it’s apparently not. And how do you as a provider or vendor decide what to emphasize? You can’t afford to do everything? That’s why segmentation is critical.

Enterprises typically segment the SMB market in one or more ways: industry, age of business, revenues, as well as adoption of certain products or services. These approaches are often ineffective, Steve Waters of SMB Intelligence will argue in the session, “Selling to SMBs: A Better Way.” He believes that companies have high CACs in part because they don’t understand which prospects are likely to buy — and then companies often blow the messaging.

Waters will talk about sales and marketing messaging during his session. So will Syndi Craig-Hart of SSM, who will also explain “What Enterprises Don’t Get about SMBs.” She’ll identify key mistakes SaaS companies are making in their outreach to SMBs and how to fix those mistakes.

These are BS-free(TM) discussions you won’t want to miss. They directly take up key issues and questions every SMB-facing enterprise is grappling with. Localogy: Engage is just three weeks away in Washington DC.

One Response to “SMB Sales, Segmentation & Customer Acquisition Costs: A Better Way”

  1. Mac McWeeney says:

    Thanks for the inside confirmation.

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