SaaS companies are selling less software, which means RevOps teams are buying less software. CFOs are reassessing their main priorities and top concerns for 2023. According to DealHub’s CFO survey, pricing strategy is one of the top 5 SaaS industry priorities for H1 2023. If you need to buy software, you need to understand and prioritize your CFOs immediate economic concerns while still aligning with long term strategy.
Pricing strategy applies to both sides of revenue operations: the sales reps selling your product and RevOps purchasing new software. Buying tools that result in more revenue is more challenging than ever, but you can still make a purchasing business case, even in an economic recession.
“Companies are really starting to sharpen their pencils–not just to cut spending but to spend wisely. You need a strong business case when selling internally in order to determine if something is really worth the investment, or not.” - Michelle Cavallo
Fortunately, the tools you need are already in-house. Take a page from your sales team’s playbook and use your sales methodology–in reverse–to make software purchases. Fortify your business case by outlining your current challenges and presenting an ideal future state.
In the past, RevOps teams could throw down a credit card whenever they needed. But security around purchasing is much more intense today and your finance office will be more involved in the decision-making process.
To overcome their concerns, build your purchasing case using your sales methodology process. Michelle Cavallo shares her template for building a business case to tackle purchasing decisions for her RevOps:
When answering these 7 questions, you’ll need to juggle short term value with long term strategic growth. Your business case should highlight and answer finance questions like, “where can we put budget that’s going to give us something back, and how fast can we get that return on value?” Keep in mind, short term results may get your purchase across the line, but you also need solutions for long term growth.
“CFOs are looking at which tools will deliver value the soonest, but your long term problems aren’t going to go away either. You’ll have a lot more to lose over time if you don’t deal with them now.” - Eyal Orgil
Focus on finding vendors that are the right culture fit for your company. Your relationship should be a partnership where you view them as an extension of your own team. Be diligent in determining whether a vendor really gets your business and is invested in your long term growth plan–or if they’re just trying to sell you some software and leave.
Budgets may be tight, but right now is a great time to build operational efficiency and operational excellence into your business case. Your ideal future state should deliver immediate value and provide a foundation that’s ready to scale when the time comes.
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