What is Enterprise Sales?
This guide will give you a comprehensive understanding of enterprise sales, which is a complex process of selling products or services to large businesses.
To understand enterprise sales, we first need to cover the concept of “account sizes.”
In B2B sales, accounts are categorized by size (either in terms of number of employees or annual revenue).
The most common account sizes are SMB (Small and Midsize Businesses), Mid-Market, and Enterprise (the largest accounts).
If you’ve ever heard a salesperson talk about fishing for whales or hunting elephants, they’re talking about selling to these large enterprise accounts.
And because the accounts are so large, that also makes the sales process much more complex, e.g., long sales cycles, multiple decision-makers, high-stakes negotiations, and of course, big dollar amounts (which also means big commission checks for the salesperson who closes the deal).
In this blog post, we’ll start by defining enterprise sales, then we’ll walk through examples, introduce you to the enterprise sales team, and explain the enterprise sales model.
Enterprise Sales Definition
This is the simplest definition of enterprise sales: selling to enterprise accounts.
That’s it. ✅
It starts to get more complex as we get into the details of the enterprise sales process.
Given the high stakes (and big price tags), enterprise customers don’t usually rush into decisions. They often invite several vendors to present their solutions and submit bids for the contract.
Furthermore, these decisions are not made by a single individual. Instead, they involve a team of decision-makers from various departments in the organization who carefully weigh each proposal’s pros and cons.
Now, compare this to SMB sales …
A small business might only have one owner and a handful of employees. The owner doesn’t have time to do an extensive review of multiple vendors. Therefore, the SMB sales cycle is short and transactional.
To get a better idea of enterprise sales in the real world, let’s consider a few examples …
Examples of Enterprise Sales
First, what types of products and services are sold to enterprises?
- Software
- Equipment
- Wholesale
- Professional services
Now, what are some specific products/services that fall into those categories, and which companies sell them?
Examples of enterprise software sales:
- Customer Relationship Management (CRM) software, like Salesforce
- Human Resources (HR) software, like Workday
- Enterprise Resource Planning (ERP) software, like SAP
- Data Analytics software, like Tableau
Examples of enterprise equipment sales:
- Heavy machinery manufacturers, like Caterpillar
- Aerospace manufacturers, like Boeing
- Transportation manufacturers, like Ford
- Medical device manufacturers, like Stryker
- Information technology (IT) manufacturers, like Cisco
Examples of enterprise wholesale sales:
- Food distributors, like Sysco
- Pharmaceutical distributors, like McKesson
- Office supplies distributors, like Office Depot
- Automotive parts distributors, like AutoZone
Examples of enterprise professional services sales:
- Management consulting firms, like McKinsey
- IT consulting firms, like Accenture
- Investment banking firms, like Goldman Sachs
- Legal services firms, like Latham & Watkins
- Accounting and audit firms, like Ernst & Young
Anytime a large company (with more than 1,000 employees or more than $1 billion in annual revenue) purchases something, the company that sells the thing is doing enterprise sales.
Enterprise deals often involve lengthy negotiations and multiple product demonstrations before a deal is finalized due to the complexity of the solutions offered, the long-term business relationship being established, and the substantial financial impact on both organizations (the seller and the buyer).
Importance of Enterprise Sales
Enterprise sales is a big deal.
Think of all the products and services that you interact with on a daily basis …
The clothes you put on in the morning, the car you drive to work, the food you buy from the grocery store.
The operations of large companies are what make modern life possible. Without enterprise sales, large companies wouldn’t be able to operate.
For both parties involved in an enterprise sale (the buyer and the seller), the transaction is very important.
For the selling organization, these large-scale sales often form the backbone of their revenue stream.
As these deals usually involve large sums, they can significantly contribute to the company’s bottom line, driving growth and allowing for further investment in innovation and expansion.
The purchasing entity on the other hand gets access to comprehensive solutions tailored to their specific needs.
Unlike off-the-shelf products, enterprise solutions are often customizable, allowing organizations to optimize their workflow, increase productivity, and ultimately, maximize their return on investment (ROI).
Moreover, enterprise deals foster lasting business relationships.
The extensive negotiations and interactions lead to a deep understanding of the client’s needs, leading to customized support and services.
This level of personalized attention can enhance customer loyalty and satisfaction, leading to repeat business and long-term partnerships.
Overall, enterprise sales is about solving complex problems for organizations and forming business relationships that last.
Challenges Faced in Enterprise Selling
It’s not easy to close an enterprise deal.
One of the main challenges is the lengthy sales cycle.
Given the complexity and high stakes of these deals, the decision-making process can often be drawn out over many months, even years.
It’s a step-by-step journey that involves navigating through multiple decision-makers, each with their own unique concerns and priorities.
Another challenge is the highly competitive nature of the enterprise market. With many businesses vying for the same large accounts, it’s vital for sales teams to clearly articulate their unique value proposition and differentiate their offering from competitors.
Also, due to the scale and importance of these deals, risk aversion is common among prospective clients.
They need to be assured that the investment will yield the promised return. This calls for a solid reputation and demonstrable track record from the selling organization.
Lastly, given the custom nature of enterprise sales, developing a solution that precisely meets the client’s needs can be a complex task.
It requires a deep understanding of the industry, the client’s business, and their specific pain points.
Despite these challenges, with a skilled team and a well-structured sales process, businesses can successfully navigate the enterprise sales landscape and secure lucrative deals.
The Enterprise Sales Team
To close an enterprise deal, you need a talented sales team comprised of various roles, each with unique responsibilities.
Here are the most common members of an enterprise sales team:
Roles in an Enterprise Sales Team
Sales Development Representative (SDR) – An SDR is usually the first point of contact with potential customers. They are responsible for qualifying leads and setting up meetings for senior sales team members.
*Similar to SDR: Business Development Representative (BDR) and Account Development Representative.
Account Executive (AE) – AEs take those qualified leads and attempt to convert them into closed deals. They present the company’s solutions, negotiate terms, and ultimately close the deals.
*Similar to AE: Sales Representative.
Sales Engineer (SE) – SEs provide technical expertise, helping to answer technical questions and demonstrate how the product or service can solve the client’s specific problem.
*Similar to SE: Solutions Engineer (also abbreviated SE).
Customer Success Manager (CSM) – CSMs ensure that the clients are satisfied post-sale and foster long-term relationships, including renewals and upsells.
*Similar to CSM: Account Manager (AM).
Skills required for an Enterprise Sales Force
The enterprise sales process is very complex and requires a diverse set of specific skills.
Relationship building is at the heart of enterprise sales, so excellent communication and empathy are crucial.
Negotiation skills are also important, as enterprise deals often involve intricate terms and conditions.
Given the long sales cycles, patience and perseverance are must-haves.
In addition, the team must have a deep understanding of the client’s industry, their specific business needs, and the solutions their own company can offer.
Understanding the Enterprise Sales Model
An enterprise sales model can be defined as a strategic plan that a company’s sales force uses to sell its products or services to enterprise-level customers or businesses.
This model is typically multi-faceted, involving detailed research, long sales cycles, multiple decision-makers, and often, large deal sizes.
To create an effective model, follow these steps:
1. Identify Your Target Market: Understand who your ideal enterprise-level customer is. Conduct market research to identify their requirements, challenges, and the solutions they are likely to need.
2. Build a Sales Team: Form a strong and diversified sales team with various roles, each possessing the required skills. This team should be capable of, not just closing deals, but also building long-term relationships with your enterprise customers.
3. Define Your Sales Process: This involves mapping out each step that your sales team takes from initial contact to deal closure. The process should be clearly defined, with a focus on the customer’s journey.
4. Implement a CRM System: Use a Customer Relationship Management (CRM) system to manage your sales process. This system should enable your team to track leads, manage client relationships, and analyze sales data efficiently.
5. Provide Ongoing Training: Regularly train your sales team on your products, solutions, and sales techniques. This ensures that they are always prepared to engage in effective sales conversations.
6. Measure and Refine: Lastly, continually measure your sales performance and refine your strategy accordingly. Look at metrics such as lead conversion rate, deal size, and sales cycle length to identify areas for improvement.
Of course, developing a fully functional sales model will require more research than just those six steps, but hey, it’s a start!
How can I succeed in Enterprise Sales?
Succeeding in enterprise sales requires a strategic mindset, a deep understanding of your customer’s needs, and the ability to build strong relationships.
Here are some key strategies for how to sell enterprise deals:
- Understand Your Customer’s Business: You need to deeply understand your customer’s industry, business model, and challenges. This requires active listening and thoughtful questioning to uncover their needs and offer solutions that provide real value.
- Build Strong Relationships: The sales cycle is long and complex, often involving multiple stakeholders. Building strong relationships with all key decision-makers is crucial to navigating this complexity.
- Position Your Solution Effectively: It’s not enough to have a great product; you need to be able to show your customers how your product can solve their specific problems. This involves crafting a value proposition that is tailored to each customer’s unique situation.
- Negotiate Skillfully: Negotiating large deals can be tricky. You need to be able to balance your organization’s goals with the customer’s needs while ensuring that both parties feel that they are getting a good deal.
- Leverage Technology: Using technology, like a CRM system, can significantly enhance the effectiveness of your sales efforts. It can help you manage customer information, track sales activities, and analyze sales data to make informed decisions.
If you’re interested in a career in enterprise sales, you might be interested in these tech sales jobs.
FAQs
What is Enterprise & B2B Sales?
Business-to-business (B2B) sales is when one business sells a product or service to another business.
Enterprise sales is a more specific sub-categorization under B2B sales.
Here’s a pop quiz to test your understanding:
Are all B2B sales necessarily enterprise sales?
No.
You can have SMB sales and Mid-Market sales, for example.
Next question:
Are all enterprise sales necessarily B2B sales?
Yes.
Because if a business is selling to an enterprise, that’s a business-to-business sale.
What is the difference between Enterprise Sales and Sales?
Enterprise sales and regular sales differ significantly in scale, deal size, sales cycle, and sales process complexity.
Regular sales involve selling lower-priced products or services to small or medium-sized businesses or individual consumers.
The sales cycle is shorter, and the decision-making process is usually straightforward.
In contrast, enterprise salespeople target large corporations with high-priced deals.
This entails a longer sales cycle due to product or service complexity and the need for buy-in from multiple stakeholders. The sales process is relationship-driven and requires a deep understanding of the client’s business needs and goals.
Both aim to close deals, but the approaches and processes vary greatly.
What are the characteristics of enterprise sales?
Here are some defining characteristics of enterprise sales:
- Complexity: The enterprise sales process typically involves complex, high-value products or services that require a deep understanding of the client’s business to effectively sell. These products or services often need to be customized to meet the unique needs of the client.
- Long Sales Cycle: Due to the high stakes and complexity of the products or services involved, enterprise sales usually involve a long sales cycle. This can range from a few months to over a year.
- Multiple Decision Makers: Enterprise sales often involve multiple stakeholders within the buyer’s organization. These might include key executives, IT professionals, and sometimes even board members.
- High Value: Enterprise deals are high value, often running into millions of dollars. This reflects the significant investment the client is making, and hence, the high level of risk involved.
- Relationship-Driven: The salesperson must establish trust with the client to successfully close the deal. They must demonstrate not only knowledge of their own product or service, but also a deep understanding of the client’s industry, business challenges, and goals.
What is an example of the Enterprise Sales process?
Let’s use an example from the software industry: selling an enterprise resource planning (ERP) system to a manufacturing company.
The sales process would involve understanding the company’s specific production and supply chain needs, as well as their financial and inventory management requirements.
There would be discussions with stakeholders from various departments, including operations, finance, and procurement.
The complexity and high stakes in this type of sale arise from the extensive customization and integration needed to meet the company’s unique business processes.
Why do I need Enterprise Sales Software?
In the modern tech-enabled world, you need to be using software to stay competitive.
Here are some different options to consider for sales software:
- Customer relationship management (CRM) – a centralized system for managing customer data and interactions, providing insights, and automating sales processes to drive better performance and outcomes.
- Sales engagement software – focuses on improving communication with prospects and customers by providing tools for email, phone, and social media outreach.
- Sales enablement software – helps sales teams improve their performance by providing training, coaching, and collaboration tools.
- Sales automation software – automates repetitive tasks like data entry, lead management, and email outreach.
Out of that list, CRM is the most important. The first software you buy for your enterprise sales team should be a CRM.
It offers a centralized platform for managing all your sales activities, helping your team track leads, managing customer interactions, forecasting sales, and even automating certain tasks.
Your CRM will also aid in coordination and prevent any miscommunication or misunderstanding by maintaining a unified customer view, ensuring everyone on your team has access to the same information.
The two most popular CRM softwares are Salesforce and HubSpot.
Overall, adopting sales software can significantly streamline your enterprise sales operations, making them more efficient and effective.
Conclusion
Quick review: enterprise sales is selling to enterprise accounts.
It’s that simple, at least in terms of understanding the general idea.
When you’re actually the salesperson responsible for closing an enterprise deal, it gets a lot more complicated.
If you’re interested in a career in enterprise sales, read more here about the role and responsibilities of an Enterprise AE.
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