How to Negotiate B2B SaaS Sales: A Guide

Negotiation is a fundamental aspect of B2B sales, and in the dynamic world of Software-as-a-Service (SaaS), it becomes even more critical.

Whether you are negotiating with enterprise-level clients, startups, or anywhere in between, this guide is for you.

Record success in your B2B SaaS sales efforts by:

• Engineering the right conditions
• Building rapport and establishing trust
• Uncovering and addressing customer objections
• Creating win-win scenarios
• Using the BATNA technique
• Creating a sense of urgency and scarcity
• Highlighting unique value propositions
• Focusing on ROI and long-term value

Engineer the Right Conditions

Good SaaS products don’t really sell themselves as we may think. We must make an effort to sell them.

Always choose the right time for sales discussions. According to data from PhoneBurner, the best times to cold call are 9 am – 4 pm for availability, with 10 am – 2 pm yielding the highest response rates. 

Also, ensure you are engaging the right stakeholders who have the authority to finalize the deal. Typically, these are the company’s directors or folks in the C-suite. 

According to Atrock, you need to understand your sales cycle as well as your target customers to create a SaaS sales strategy for your SaaS business.

Build Rapport and Establish Trust

B2B SaaS buyers buy from who they trust. To earn the highly-coveted trust of your best customer:

Understand their business. Tailor your negotiation strategy by going deep into your prospects’ pain points and the gaps that need to be covered in their existing software stack.

According to Hubspot’s Sales Trends Report, understanding key customer challenges and presenting solutions to them are the top most effective B2B sales strategies for selling to new and existing customers. 

Leverage social proof. B2B SaaS buyers often seek reassurance from their peers or industry experts before making decisions. In fact, Hubspot reports that 66% of B2B sales professionals have pointed to referrals from existing customers as the best lead generation source.

In 2023, referrals are not relegated to direct word-out-mouth alone. Testimonials, case studies, and real-world success stories from similar clients help the buyer build confidence in your solution. 

Ask questions. Sales reps ask an average of 11 questions during sales discovery. Use open-ended questions and active listening to extract the best information.

Uncover and Address Customer Objections

B2B SaaS buyers often have pre-conceived objections. These tend to come up during sales discussions. To snag the deal, make sure you’re fully aware of these objections before you write the website copy, get on the call or go to the sales meeting. 

B2B SaaS objections are often related to:

• Cost
• Data security 
• Compliance concerns
• Integration challenges

During the negotiation process, proactively address objections before they arise by providing data-powered solutions and ROI analysis.

You want your SaaS buyer to repeatedly think, “hey, I wanted to ask that question but they’ve already answered it.” This makes you come off as credible and as an expert, qualities that B2B buyers are always on the lookout for.

Create Win-Win Scenarios

To successfully close a deal in B2B sales, you must seek mutually beneficial solutions and compromises that address their specific requirements while aligning with your business goals. 

Position yourself as a trusted advisor, actively listening to the prospect’s concerns and needs. Do this by:

• Tailored support services
• Exploring flexible pricing models
• Offering custom implementation plans 

Imagine negotiating a business partnership as a dance. In this dance, you and your prospect are seeking harmony, synchronization, and mutual satisfaction. Just like in dance, the key is to find the right rhythm and moves that make both parties shine.

Use the BATNA Technique

One powerful strategy is BATNA (Best Alternative to a Negotiated Agreement). Determine your BATNA by identifying alternative options if the current negotiation doesn’t work out. This knowledge gives you leverage and helps you secure more favorable terms. It’s essential to understand your prospect’s BATNA as well to gauge their negotiation position accurately.

Create a Sense of Urgency and Scarcity

In B2B sales, creating a sense of urgency and scarcity can motivate prospects to take action. Highlight limited-time offers, exclusive discounts, or upcoming price increases to encourage them to make a decision promptly.

Highlight Unique Value Propositions

Differentiate your B2B SaaS offering by emphasizing its unique value propositions. Clearly articulate how your solution solves specific pain points or addresses critical business challenges. By focusing on what sets you apart, you can position your product as the ideal solution and negotiate from a position of strength.

Focus on ROI and Long Term Value

B2B buyers are typically interested in the return on investment (ROI) your solution can deliver. Articulate the financial and strategic benefits they can expect over the long term.  Present:

• Data-driven projections 
• Cost savings analysis 
• Performance metrics

Like this post from Younium suggests, opt for a subscription-based pricing model for a better return on your sales efforts. Also, consider adding bundles and upsells to boost sales ROI. Instead of selling a one-off service, you can sell several on the same call. 

Finally

Always be prepared to walk away from an unfavorable deal that does not align with your company’s values. Demonstrating your willingness to prioritize your company’s interests conveys confidence and can lead to more favorable outcomes in future negotiations.

Happy negotiating.