Key Insights on Subscription Sales – Featuring: Martin Dove, TSIA
Chad Quinn, President & CEO of Ecosystems, recently sat down with Martin Dove, Vice President of Subscription Sales Research of Technology Industry Services Association (TSIA), who shared some key insights on subscription sales.
When TSIA launched its subscription sales practice for the first time about a year ago, they spoke with about 30-35 senior sales executives across the industry in software, hardware, and software-as-a-service companies. They distilled the insights into three major themes:
1. Revenue Growth
Revenue is not growing at the rate that they would like it to grow. It is not meeting shareholder expectations, either in terms of net new growth or growth in existing accounts.
2. Transition to XaaS Economy
The whole transition to the as-a-service economy is changing everything. It’s changing the way in which they’re:
- Reporting revenue
- Hiring salespeople
- Compensating salespeople
- Structuring their sales teams
- Introducing customer success roles
- Identifying roles and responsibilities
3. Shift to Outcome-based Selling
The shift to outcome-based selling and the recognition that most of their sales organizations aren’t equipped to deal with that transition. Moving away from the traditional, feature, function-based sales approach, where they’re responding to an RFP and having to compete on features, functions, and pricing, and instead, moving towards outcome-based conversations with their customers.
These are the three key themes that consistently appeared in conversations with sales leaders today. Check out Chad and Martin’s full conversation in the video below.