The Saas Market Will Grow At A Rate Of 20 %

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Gartner predicts that the SaaS market will grow at a rate of 20% through 2020. Moreover, a Compass study reports that “72% of all SaaS startups are at least partially funded.” Opportunity exists for SaaS companies to gain their market share. However, the issue lies in how businesses will compete with one another, persuade prospects, and motivate their sales teams. To overcome these challenges, companies must expand their customer reach and be an ongoing solution for their customers. Challenges Facing SaaS Sales Distribution is the major challenge for SaaS companies. While most revenue is generated from direct sales, several sales teams consist of only 1 or 2 people. That’s a heavy burden on sales reps who earn new clients one by one in a crowded SMB marketplace. To gain more revenue, these small SaaS businesses will need to penetrate the enterprise market with heavy hitters, like Microsoft, Adobe, and Google. Success will depend on how efficiently these startups can satisfy the needs of enterprises. From security to application training, a long-term strategy must exist to cater to this customer base. Offering recurring value is how SaaS companies can tackle the concerns of enterprises. It’s about anticipating the customer’s next benefit, not reacting to mistakes. “This is beyond fighting churn. It’s beyond calling you and saying, ‘Hey, we noticed that something bad is going on. How can I help?’ Instead it’s saying, ‘We’ve noticed that good things are happening. Maybe
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