{"id":59096,"date":"2021-01-27T09:00:59","date_gmt":"2021-01-27T14:00:59","guid":{"rendered":"https:\/\/avenuetalentpartners.com\/?p=59096"},"modified":"2024-04-09T17:54:02","modified_gmt":"2024-04-09T21:54:02","slug":"what-is-enterprise-sales-complex-sales","status":"publish","type":"post","link":"https:\/\/avenuetalentpartners.com\/2021\/01\/27\/what-is-enterprise-sales-complex-sales\/","title":{"rendered":"What is enterprise sales? Your definition could make or break your success."},"content":{"rendered":"


\nMost definitions of enterprise sales sound something like this:<\/span><\/p>\n

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\u201cA long sales process involving multiple stakeholders, large deal sizes, and a high perceived risk by the buyer.\u201d<\/span><\/i><\/h2>\n<\/blockquote>\n

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But let\u2019s be honest\u2026 as true as that definition actually is, it doesn\u2019t really tell you much does it?<\/span><\/p>\n

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I mean, how long is a \u201clong sales process?\u201d How big of a deal is \u201centerprise big?\u201d<\/span><\/p>\n

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There is a lot of confusion out there as to exactly what to expect with each of these things. And unfortunately, getting something as (seemingly) simple as this wrong can have drastic, negative effects on your business.\u00a0\u00a0<\/span><\/p>\n

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I\u2019ve seen (and experienced) many businesses with huge potential in the enterprise market tank their efforts because of this.\u00a0 Let alone racking up a slew of 7-figure<\/a> mishiring mistakes.\u00a0 \u00a0<\/span><\/p>\n

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Here\u2019s everything you need to know to set yourself up for success in enterprise sales from my 20+ enterprise sales career.<\/span><\/p>\n

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The true definition of enterprise (or complex) sales.<\/b><\/h2>\n

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A big part of the reason most enterprise sales definitions end up being so vague is that it\u2019s really tricky to nail down concretely.<\/span><\/p>\n

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For example \u2013 I\u2019ve done <\/span>8-figure mega enterprise deals<\/span><\/a> with companies of 50 that took 2 years to implement. <\/span><\/p>\n

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But I also work with clients who do true enterprise sales with F500 brands and whose deal sizes are $60,000 with sales cycles around 6 months.<\/span><\/p>\n

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That\u2019s why I think the best way to define an enterprise deal is actually not by any particular \u201cbenchmark\u201d but<\/span> by<\/span> its level of complexity<\/span><\/i> and <\/span>the mindset required to execute it. <\/span><\/i><\/p>\n

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“The best way to define enterprise sales is by its level of complexity and by the mindset required to execute a deal.”<\/span><\/i><\/h2>\n<\/blockquote>\n

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To illustrate how complex is \u201centerprise complex,\u201d and what the mindset of a real enterprise deal is, we need to look at the differences between SMB, Mid-Market, and Enterprise deals.<\/span><\/p>\n

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Because the things that differentiate them are critical to your success in this market.<\/span><\/p>\n

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SMB vs. Enterprise vs. Mid-Market <\/b><\/h2>\n

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Each of these deal types has a varying level of complexity and a different mindset associated with executing it. <\/span><\/p>\n

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The SMB Deal. <\/b><\/h3>\n

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The SMB deal boils down to \u201cyou build it, they buy it.\u201d<\/span><\/p>\n

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Or in other words, you develop a product that solves a problem for the greater market and then work to get it into the hands of everyone who is best suited to use it.<\/span><\/p>\n

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The risk isn’t significant, the product or service isn’t sophisticated, and it doesn’t take an act of congress to get the deal done.<\/p>\n

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This deal structure is very transactional with short sales cycles (think 1-3 call close ratios). It\u2019s typically very cut and dry and the sales process for these deals is usually all about volume and optimization.<\/span><\/p>\n

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Usually, you\u2019re working with a single decision maker or small “buying committee” who either see the value in the product or doesn\u2019t.\u00a0<\/span>While relationships always matter, they don’t materialize the same way in a “high velocity,” transactional sales motion.<\/p>\n

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The businesses you\u2019re working with are small (or medium \u2013 hence \u201cSMB\u201d).<\/span><\/p>\n

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The Enterprise Deal.<\/b><\/h3>\n

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Where SMB deals are small, transactional, and quick, enterprise deals are the complete opposite. <\/span><\/p>\n

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More money = greater risk = a much more sophisticated buyer journey that takes a completely different approach to getting the deal across the finish line.<\/span><\/p>\n

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It’s all about building a custom solution for individual customers, not fitting an existing product to as many buyers as possible.<\/span><\/p>\n

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This added level of complexity impacts every part of the deal:<\/strong><\/h3>\n

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  1. \n

    The level of discovery required goes way up \u2013 since the true solution has yet to be determined.<\/span><\/p><\/blockquote>\n<\/li>\n

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    Social proof – enterprise sales is a big, small world and you have one shot at that table. If your reputation is horrible, that will absolutely catch up like a painful boomerang.<\/p><\/blockquote>\n<\/li>\n

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    The amount of sign-off by your buyer at each step of the process increases \u2013 as do the number of people signing off typically.<\/span><\/p><\/blockquote>\n<\/li>\n

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    Your Product Team has to be ready to support the build of this new custom solution \u2013 and often more than one at a time.<\/span><\/p><\/blockquote>\n<\/li>\n

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    The deal size can be huge \u2013 big implementations for the biggest buyers can be in the 8-figure range.<\/span><\/p><\/blockquote>\n<\/li>\n

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    It’s all about security – is your buyer protected? How is the data protected and restricted between teams across the organization?<\/p><\/blockquote>\n<\/li>\n

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    The party is just getting started when the deal closes and the opportunities post-sale continue (land and expand).<\/p><\/blockquote>\n<\/li>\n<\/ol>\n

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    And as you can imagine, the time required to close a deal like this is lengthy.<\/span><\/p>\n

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    This is usually where things go awry for most startups who are just getting into the enterprise market.<\/span><\/p>\n

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    They often jump in too quickly without adopting the \u201cone-size-does-NOT-fit-all\u201d mindset. And as a result, they don\u2019t do the work required (or put in the time) to be successful.<\/span><\/p>\n

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    Ultimately, you must seek to understand first. Discovery and re-discovery is your best friend in enterprise sales.\u00a0 It’s about working with a variety of people every step of the way (multi-threading) to architect a solution that helps the buyer:<\/p>\n

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