OSS is a venture builder specialized in SaaS for operations. In the last 3.5 years, we co-created 15 companies live in 1080 factories throughout the world.
In the process, we learned a thing or two about entreprise sales for manufacturing companies.
You may find below interesting because :
- It is the collective knowledge of over 50 professionnals working every day on entreprise B2B sales ;
- It has a link to a pre-built spreadsheet to control expansion and sales and headcount ;
- It has pretty pictures and some jokes.
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Enterprise sales in the manufacturing sector present unique challenges and opportunities. While selling to manufacturing companies differs from other industries, understanding these differences and implementing the right strategies can lead to substantial growth. In this article, we will explore the nuances of enterprise sales for manufacturing companies, how to capitalize on expansion opportunities, and the best organizational structure for success.
Selling to manufacturing companies is distinctly different from other industries because these companies are typically multi-site organizations with loose headquarter control. This structure requires a more decentralized sales approach and necessitates a longer sales cycle. It is common for sales cycles to last between 6 to 9 months before a relationship can be established. The complex nature of manufacturing operations and the need for a customized sales strategy for each site make relationship-building a time-consuming process.
A typical manufacturing company operates between 3 and 20 industrial sites. To succeed in enterprise sales, it's crucial to monitor the number of potential sites per logo signed and strategize for expansion accordingly. The best benchmarks indicate that successful companies expand 60% of the time, with expansions reaching 60% of the total site potential. By focusing on expansion opportunities within existing clients, companies can maximize their growth potential and strengthen client relationships.
In order to succeed in enterprise sales for manufacturing companies, a well-structured sales organization is crucial. A typical winning organization consists of Sales Development Representatives (SDRs) responsible for opening accounts, Closers who finalize deals, Account Managers who ensure client satisfaction, and Expansion Managers who work to drive expansion within existing accounts. By establishing clear roles and responsibilities within the sales team, companies can streamline their sales processes, improve client relationships, and increase their chances of success.
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However, from our deal flow and anecdotal evidence, we see those three main mistakes being made over and over again :
- Uneven sales pipe : by focusing too little on new logos, slow growth is achieved only through expansion in existing logos. Typical of non-sales founder team. ;
- Not enough attention on expansion : by having subpar product and/or customer care teams and processes, expansion is not done properly, with “big logos, low revenue” type of situation.
With the right organizational structure, focus on expansion, and understanding of the unique challenges associated with selling to manufacturing companies, organizations can achieve best-in-class growth metrics. Aiming for 3x year-on-year growth is an ambitious yet attainable goal for companies that implement these strategies effectively. Importantly, this growth should be balanced between new logo acquisition and expansion within existing accounts, with each contributing roughly half of the overall growth. By focusing on both new business development and strategic expansion, SaaS companies can maximize their enterprise sales success and drive substantial growth.
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Succeeding in enterprise sales requires a deep understanding of the unique challenges of selling to multi-site organizations with loose headquarter control. By implementing a well-structured sales organization, focusing on expansion opportunities, and striving for best-in-class growth metrics, companies can unlock substantial growth potential in this dynamic sector. The key to success lies in balancing new logo acquisition with strategic expansion within existing accounts, ensuring a steady and sustainable growth trajectory. The prize is a rock-solid, defendable customer base with low churn and very high value over cost of acquisition.
Good luck !
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