What is Enterprise Sales & How is it different from Mid-Market sales?
So, you’ve heard about enterprise sales, but what’s the deal with it, right? Well, enterprise sales is all about sealing the big, heavyweight contracts. We’re talking about deals with loads of decision-makers, heaps of risk, and a sales cycle that feels like it goes on forever.
Out of all the sales gigs out there, enterprise sales is the big kahuna. It’s like the marathon of sales — you need more touchpoints, a rock-solid strategy, and a game plan that stretches out for the long haul. In fact, it’s not something you’d want to dive into unless you’ve got a mature product to sell or some experienced companies in your sights.
Now, let’s talk about how enterprise sales is different from the mid-market sales scene. As per Gartner, “mid-market,” are companies with fewer than 1000 employees or less than $1 billion in revenue. On the flip side, “enterprise” are companies boasting 1000+ employees and revenue ranging from a whopping $1 billion and above.
Here’s where the rubber meets the road in terms of differences:
1. Length of Time: With enterprise sales, patience is a virtue. The sales process is a real marathon, lasting months to a year. Mid-market sales are a bit of a sprint in comparison.
2. Number of Decision Makers: As the deal size grows, so does the cast of decision-makers. Enterprise deals are like an ensemble cast, while mid-market deals might have a smaller cast of characters.
3. Pain Points: Mid-market businesses focus on immediate needs, while enterprise-level pain points look way down the road, considering what the company might need in the years ahead.
4. Finding Leads: In the enterprise world, finding leads is like tending a garden. Sales reps nurture ideal accounts for the long game. In the mid-market, it’s more like hunting down prospects.
5. Buyer Type: Enterprise salespeople are the experts in their market. They need to know everything about the competition, the account’s needs, and how they stack up. Mid-market sales reps have a bit less pressure, focusing on their prospects’ current stage.
6. CAC to LTV Ratio: Enterprise sales can justify a more resource-intensive process, given the higher customer lifetime value. Mid-market sales often require a more automated, cost-effective approach.
Let’s also break down the sales strategies for each:
Mid-Market Sales: Think of it as a flexible, adaptable game. You’ve got to tailor your approach to meet the buyers where they are. Mid-sized businesses have a slightly faster sales cycle and higher conversion rates, so the name of the game is sales velocity. Buyers here often start with free trials and do their research, so automation and qualification are key. Plus, post-purchase service is a must for retaining customers.
Enterprise Sales: When you’re courting the big players, you’ve got to remember you’re dealing with people at the end of the day. Account mapping helps you figure out who’s who in the decision-making process. An ideal customer profile narrows down your targets, and a structured process ensures you’re covering all your bases.
Now, let’s look at the pros and cons:
Selling to Mid-Market:
Pros:
- More revenue potential since mid-market buyers are willing to invest for greater value.
- Plenty of mid-sized businesses to target, making lead generation easier.
- Buyers often have experience and clear expectations.
Cons:
- Lots of competition in this space.
Selling to Enterprises:
Pros:
- Potential for substantial revenue due to their hefty budgets.
- It adds prestige and credibility, having big-name clients on your roster.
- Enterprises are ready to pay for top-notch support and service.
Cons:
- Closing a deal can be a long and challenging journey, sometimes taking up to 18 months.
- Deals are complex, involving many stakeholders.
- Limited pool of potential customers.
So, that’s the lowdown on enterprise sales versus mid-market sales. It’s all about understanding your audience, the size of the deal, and your game plan. Choose your battlefield wisely!
