Sales velocity measures how quickly your business makes money, how quickly leads move through your pipeline, and how quickly you close deals. Naturally, a higher sales velocity means your business is making money more quickly. In this post, we'll tell you where your sales team should focus their energies in order to boost sales and shorten your overall sales cycle.
SaaS sales cycles can be lengthened for any number of reasons, including buying a higher priced product, https://blog.hubspot.com/sales/saas-sales-ultimate-guide#5demoing more complex software, or doing business with enterprise companies. Still, for many SaaS companies, contracts create a bottleneck at various stages of the cycle, especially towards the end.
If your business is dedicated to boosting its sales velocity – which it should be – you need to think carefully. Not just about the opportunities, average deal size, or win rate, but also about the contracts that will cement the agreements between your business and your customers.
How to Boost Your Sales Velocity
At PactSafe, we have seen customers boost their sales velocity by optimizing these 3 key variables:
1. Streamline Legal Agreements/Contracts
Save time by streamlining your agreements, including both standardized and personalized contracts. Take your sales order form, for example. Rather than relay a 15-page contract back and forth between parties, host the legalese of your Terms of Service online, and point to those terms on your sales order form. This means all your customers have access to your terms, but you don’t present them with an overwhelming contract that might take weeks to return instead of days.
2. Optimize Contract Lifecycle Process
Your contract lifecycle process is an important variable to your sales velocity. Poor contracting can waste hours of time and cost businesses up to 9% of annual revenue, and are often still unenforceable. But here are three tips to optimize your contract lifecycle process:
- Don’t rely on a shared drive to create contracts; doing so make it harder to track versions and know who signed which terms when.
- Adopt clickthrough technology to send standardized agreements for acceptance.
- Centralize revisions as part of your contract lifecycle.
3. Offer Customers Modern Signing Methods
If you want customers to sign more quickly, meet them where they are. Salesforce says that 74% of customers will switch brands if the purchasing process takes too long. And with 3.7 billion unique mobile users (Statista), there is no excuse not to deliver legal agreements to a customer’s phone. Even better if you can send it via chat or if you utilize a CRM, like Salesforce, send an agreement within that environment. (Tip: Don’t send a PDF.)
Optimizing these three variables can help your customers move smoothly through to the end of your pipeline. Take CampMinder, for example, a SaaS startup that caters to summer camp administrators (a group of customers that are rarely inside or by a desktop or laptop). By cutting their 18-page MLA down to 2 pages by hosting their terms online, optimizing their contracting lifecycle process, and utilizing modern signing methods, CampMinder has closed 22% more deals than before.
Want more detail about how to close more deals faster? Download our eBook guide to boosting SaaS sales and closing more deals in less time.