Deal Type RISK
The Deal Type is one the most important parameters to watch
There are three types of deals and each have a different starting position with respect to its likelihood of being won. Selling more of the same to the existing customer (assuming they are happy) is usually the quickest way to secure a win; Selling new capabilities to an existing customer is usually more challenging but you start with a receptive customer and you both know each other, how the process works etc. The hardest of the three is to sell to a new logo – a greenfield site where you may be unknown nd you need to build the proposition, build trust etc from the ground up.
As a general rule you are likely to win 20-32% of new logos and 70-80% of upsells and cross sells.
Remember that this years new log sales are next year’s upsells and cross sells so its important to maintain a healthy balance of New Logo Acquisition or you may find your growth stalling in the future.
Amplifying Factors Company Size Geographical Distance
RED – New Logo deal A brand new customer that you haven’t done business with before. You may have tried but didn’t succeed in the past and winning the deal will being a new client (New Logo) onto the books. |
AMBER – Existing (Cross Sell) deal An existing customer considering adding new capabilities that you offer. “Would you like a Milkshake with your burger?”
|
GREEN – Existing (Up Sell) deal An existing customer adding more of the same such as new users etc or upgrading from one edition to another – from standard to pro for instance. “Would you like fries with your burger”? |
Mitigation – what to do ?
Always bring your “A game” to every selling situation. Even if a customer is just adding more licences (upsell) be alert – any change in the status quo is an opportunity to lose the account if they consider it a good point to consider other options
Don’t just order take ! Be curious why they are adding more of the same or want to upgrade. Ask when do they want to be live – this way you can manage expectations properly and get alerted to any reason the dal may not close in time
New Logo sales require the full breath of selling capabilities you can bring. Use DealCoach to manage the process from end to end to make sure you are prepared for the deal cycle.