Enterprise Sales Process and Cycles: Selling to Large Companies
Master enterprise sales. Build process, extend cycles, close large deals.
Key Takeaways
- Enterprise vs SMB: Enterprise (larger deal £50K-500K+, longer cycle 6-18 months, multiple buyers/stakeholders, RFP process, higher CAC), SMB (smaller deal £1-10K, shorter cycle 2-8 weeks, single buyer, easier close, lower CAC). Strategy: Different sales motion per segment (SMB = inside sales, enterprise = field sales). Cost: Enterprise AE £150-200K salary, 1-2 deals/quarter expected. Benefit: Higher ACV (£100K+ vs £5K), longer LTV (enterprise > 5 years). ROI: Enterprise deal (£100K ACV, 18-month cycle) costs £30K CAC = 3x payback, but high variance (can take 24 months).
- Enterprise sales cycle stages: Prospecting (identify targets, outreach). Qualification (understand needs, budget). Discovery (deep dive, pain points). Proposal (RFP response, pricing). Negotiation (terms, legal, procurement). Close (signature, setup). Timeline: 2-3 months prospecting + qualification, 2-3 months discovery + proposal, 2-6 months negotiation + close = 6-18 months total. Multiple stakeholders: Technical (CTO, can veto), business (CFO/CEO, budget), operational (end user, adoption). Selling: Tailor messaging per stakeholder (technical features for CTO, ROI for CFO, ease-of-use for end user).
- Deal management: Weighted pipeline (assume x% close rate per stage). RFP process: Build, track, respond (3-4 weeks to respond well). Relationship building: C-suite dinner, exec sponsorship, reference calls. Legal: Negotiate contract terms (data processing, SLA, termination). Procurement: Navigate approval process (can take months). Playbook: Standard positioning, pricing by tier, objection handling. ROI: Enterprise sales expensive (time, travel, legal) but higher margin (higher price, longer LTV = profitable).
Enterprise Sales Strategy and Execution
Selling to large organizations. **Enterprise vs SMB sales** | Dimension | Enterprise | SMB | |---|---|---| | Deal size | £50K-500K+ | £1-10K | | Sales cycle | 6-18 months | 2-8 weeks | | Buyers | Multiple (3-5) | Single (1-2) | | Process | RFP, legal, procurement | Demo, trial, agree | | CAC | £20-50K | £500-2K | | LTV | £300K-2M+ | £10-20K | | Sales motion | Field sales | Inside sales | | AE productivity | 1-2 deals/quarter | 10-20 deals/quarter | Enterprise deal example: - Deal: £200K annual (5-year = £1M lifetime) - CAC: £40K (extended sales cycle, legal, multiple stakeholders) - Payback: 2.4 months (£200K / 12 = £16.7K/month, £40K / £16.7K) - LTV/CAC: 25x (excellent, typical enterprise is 10-30x) **Enterprise sales cycle** Stages: | Stage | Activities | Timeline | Owner | Outcome | |---|---|---|---|---| | Prospecting | Research, cold outreach, inbound | 1-2 months | AE/SDR | Initial interest | | Qualification | Call, understand business, budget | 1-2 months | AE | Budget confirmed | | Discovery | Deep dive, pain points, requirements | 2-3 months | AE + technical | Understand needs | | Proposal | RFP response, pricing, positioning | 2-4 weeks | AE + sales eng | Formal bid | | Negotiation | Contract terms, legal, procurement | 1-6 months | AE + legal | Approved deal | | Close | Signature, setup, kickoff | 1-2 weeks | AE + CS | Revenue recognition | Total timeline: 6-18 months (can stretch to 24+) Stakeholder mapping: | Stakeholder | Motivation | Concerns | Messaging | |---|---|---|---| | CTO/VP Eng | Technical fit, scalability | Integration effort, performance | Architecture, roadmap, support | | CFO/VP Finance | ROI, cost control | Price, budget impact | Cost savings, ROI, payback | | CEO/President | Strategic alignment, growth | Market fit, risk, timing | Competitive advantage, growth | | End user | Ease of use, adoption | Training, change management | Usability, training, support | Selling approach: - Tailor: Different messaging per stakeholder (not one pitch) - CTO: Technical depth (integrations, scalability, security) - CFO: Business metrics (ROI, payback, savings) - CEO: Strategic (competitive advantage, market position) - End user: Practical (training, support, ease) **RFP management** RFP process: 1. Request: Customer issues RFP (questions, requirements) 2. Preparation: Internal team reviews RFP (2-3 days) 3. Response: Build answer document (2-3 weeks typical) 4. Review: Customer evaluates responses (1-2 weeks) 5. Selection: Customer chooses finalists (typically 2-3) 6. Final round: Presentation, reference calls, negotiation (1-2 weeks) Response strategy: - Cover every question (be comprehensive) - Position strengths (where unique/superior) - Handle gaps (where you don't match, position value elsewhere) - ROI focus (not just features, show impact) - Executive summary (CFO-focused, business case) Cost to respond: - Internal time (AE, sales eng, product, legal): 40-60 hours - External costs (if using consultant): £2-5K - Total: Typically £10-20K in time cost Timeline: - RFP issued: Start day 1 - Response due: 3-4 weeks typical (rush if shorter deadline) - Evaluation: 2-4 weeks - Decision: 1 week - Total: 6-8 weeks (after RFP issued) **Contract negotiation** Standard terms: - Contract value: Negotiated upfront - Payment: Annual upfront vs quarterly (customer prefers quarterly, you prefer annual) - Term: 1-3 year (longer = better pricing discount) - Price locks: Lock price X years (no increase) - Termination: For convenience (customer can exit), for cause (breach) - SLA: 99.5-99.9% uptime, response times - Support: Dedicated CSM (often included for enterprise) Negotiation strategy: - Start high (pricing, terms favorable to you) - Concede on price (not value), not structure - Lock long-term (1-3 years, benefits you) - Get escalation (C-suite approval required for large deals) Typical negotiation: - Your offer: £200K/year, 3-year deal, 99.9% SLA, no price increase - Customer counter: £150K/year, 1-year deal, 99.5% SLA, 5% annual increase - Final: £180K/year, 2-year deal, 99.7% SLA, no increase (compromise) Legal complexity: - Data processing agreement (GDPR compliance) - Security terms (ISO, SOC 2, audit rights) - Indemnification (protection if sued) - Liability caps (limit your exposure) Time to negotiate: 4-12 weeks typical (depends on customer legal team)