How to Shorten the SaaS Sales Cycle: 5 Proven Tips for Faster Closures

Why are SaaS sales cycles getting longer?

The software buying process is intricate. It’s not just about picking a tool; it’s an investment in a system that must integrate seamlessly into existing workflows and deliver a clear ROI. This complexity often necessitates the involvement of cross-functional software buying committees, each with its own set of requirements and concerns.

Add to that, the B2B sales journey is rarely linear, primarily due to buyers’ evolving decision making. In fact, 80% to 90% of buyers often revisit their decisions with new information, initiating a loop of reassessment that extends the sales process. ^[3]

Long sales cycles carry consequences for both software providers and buyers. On the one hand, they drain sales resources, postpone revenue, and risk missing opportunities in a fast-moving market, eroding your competitive edge. On the other hand, the longer buyers spend evaluating a purchase, the more they tend to experience decision fatigue or purchase regret, resulting in further delays or churn. 

Recognizing these challenges is critical to developing effective strategies to shorten the sales cycle and streamline the buyer’s journey. Here are five practical tips for faster closures and enhanced revenue growth:

Tip No. 1: Increase visibility with customer reviews

Boosting visibility through customer reviews is a key strategy in the SaaS industry as they significantly influence purchasing behavior. In our 2023 SMB Software Buying Trends Survey, nearly all (98%) respondents say reading reviews before making a purchase decision is important.*

By establishing a strong presence on software reviews sites, such as Capterra, GetApp, and Software Advice, you can reach high-intent buyers. A well-crafted profile on these sites, complete with detailed information about your software’s pricing models and security features, can proactively address potential concerns by allowing prospects to assess the suitability of your product for their needs.

Tip No. 2: Zero in on the right prospects

Prioritizing the right prospects is key to an efficient sales cycle, which is where ideal customer profiles (ICPs) come into play. ICPs are detailed descriptions of a company’s perfect customer, used to focus sales efforts more effectively.

Defining the ICP allows you to target prospects most likely to buy. Focusing on these prospects means your sales team isn’t wasting time on leads with low purchase intent, optimizing your sales efforts and resources.

Tip No. 3: Streamline the lead qualification process

Effective lead qualification is essential for speeding up your B2B sales cycle. Transitioning marketing-qualified leads (MQLs) to sales-qualified leads (SQLs) is vital — 42% of business leaders in our survey note quicker connections to qualified leads when sales and marketing are aligned.** This highlights the need for a smooth lead qualification process.

The BANT qualification framework is crucial here. It ensures leads meet vital criteria, such as budget, decision-making authority, specific needs, and purchase timeline, facilitating their progression from MQLs to SQLs.

Pay-per-lead (PPL) programs free you from the burden of lead qualification by directly bringing BANT-qualified leads to your sales team, allowing your reps to focus on the most promising prospects actively seeking your software solution.

Tip No. 4: Master the art of nurturing and follow-up

The key to progressing potential customers through the sales funnel is offering valuable content and outstanding customer service. This involves understanding and meeting buyer’s needs at each stage, building trust, and showcasing your product’s value.

Automation strategies based on buyer intent play a vital role here. By tracking leads’ interactions, you can automate personalized responses or content that suits their buying journey stage. This ensures leads get relevant information at the right time, boosting conversion chances.

Free trials and demos are also pivotal in securing commitments. They offer prospects a firsthand experience of your product, which helps overcome doubts and reinforce their purchase decision.

Tip No. 5: Leverage B2B sales tools and intent data

In a competitive SaaS landscape, the strategic use of B2B sales tools and intent data is crucial for shortening your sales cycle. Customer relationship management (CRM) solutions and call recording solutions are two such tools that can streamline your sales processes by tracking and analyzing customer interactions efficiently. These tools save time and offer insights to refine your sales strategies.

Additionally, intent data can help your sales reps identify in-market buyers and provide insights into their search and buying behaviors. This data is key to tailoring your sales pitches and aligning your software benefits with buyers’ interests or needs, which can improve conversion likelihood.

The payoff of shorter sales cycles

In today’s increasingly competitive SaaS market, sales velocity is a strategic imperative. Reducing the sales cycle length improves efficiency, increases close rates, and accelerates revenue growth. Per-Per-Lead’s precise targeting capabilities are instrumental in this, offering a focused approach to lead generation with sales-qualified leads.

Gartner Digital Markets’ PPL program software advisors BANT-qualify buyers through phone or chat conversations, set meetings, and deliver leads to you. They ensure prospects match your ICP and provide detailed lead insights to your sales team, saving time, shortening the sales cycle length, and delivering tangible ROI.

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Methodology

*Gartner Digital Markets’ 2023 SMB Software Buying Trends Survey was conducted online from September 2022 to October 2022 among 1,513 respondents from the United States, the United Kingdom, Canada, Australia, and France and among organizations with revenue less than $1 billion and 2-999 employee size across the financial services, manufacturing, healthcare, IT, marketing, and retail industries.

Respondents were screened for their involvement in software purchasing decisions, and those who were a leader/member of the group or had significant influence qualified for the study. The survey was developed collaboratively by a team of Gartner analysts and was reviewed, tested, and administered by Gartner’s Research Data and Analytics (RDA) team.

**Gartner Digital Markets’ 2023 Marketing and Sales Alignment Survey was conducted in June 2023 among 175 U.S. respondents to learn more about the benefits and obstacles of integrating sales and marketing teams. Respondents were screened for roles in marketing or advertising at companies with 101-2,500 employees and more than one full-time sales employee and more than one full-time marketing employee.

Sources

1. State of B2B Buying eBook, Gartner
2. Tech CEOs Can Shorten Sales Cycles by Addressing the Top Delay-Causing Activities, Gartner
3. SaaS Sales: 7 Tips on Selling Software From a Top SaaS Company, HubSpot