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SALES GROWTHPROGRAM
B2B Salesin the US Market
An Overview of Size of the US Companies and Market with Sales Models, CAC and Sales Cycle.
Eduardo Mace – Head of Technology Business
SALES GROWTHPROGRAMSize of B2B Market in the US
Data sources: Department of Labor US, IRS, US Census 2016
29.5 million ACTIVE companies as of 2016
5.72 million companies with paid employees of which:
23.8 million companies have no employees and average revenue per year of USD 46,000
0 500,000 1,000,000 1,500,000 2,000,000 2,500,000 3,000,000 3,500,000 4,000,000 4,500,000 5,000,000
10001+
5001-10000
1001-5000
501-1000
101-500
51-100
26-50
10-25
<10
Nu
mb
er o
f em
plo
yees
10001+ 5001-10000 1001-5000 501-1000 101-500 51-100 26-50 10-25 <10
SUM(Number of businesses) 964 945 7,249 9,061 83,423 118,269 251,490 718,052 4,536,707
SALES GROWTHPROGRAMSize of Companies in the US
0 employees <50 employees50 to 100
employees100 to 1000 employees
>1000 employees
Micro SMB Small SMB Midsize SMB MSE Midsize Enterprise Enterprise
< USD 50 thousand
USD 100 thousand to USD
10 Million
USD 10 Million to USD 50 Million
USD 50 Million to USD 1 Billion
> 1 Billion
23.8 million businesses
5.5 million businesses
154 thousand businesses
41 thousand businesses
2.9 thousand businesses
Data sources: Department of Labor US, IRS, US Census 2016
SALES GROWTHPROGRAMCompany Decision Making in US
Owner Owner / ManagerCEO / Ops / Fin /
Procurement
C-level / VP / Director /
Procurement / Legal
C-level / VP / Director / Comites /
Regulatory / Procurement /
Legal
Micro SMB Small SMB Midsize SMB MSE Midsize Enterprise Enterprise
Referral / Online Review
Referral / Online Review
Referral / Trade / Management
Trade / Peer Review / Management /
Compliance
Trade / Expert / Peer Review /
Management / Compliance
Self-serveSelf-serve to transactional
TransactionalTransactional to
EnterpriseEnterprise
Data sources: Department of Labor US, IRS, US Census 2016
SALES GROWTHPROGRAMTotal B2B Purchases US
AutomotiveFinance/BankingConsumer GoodsEducationEngineeringEnergyOil and gasFood and beverageGovernment - federal, state, localHealthcareInsuranceLegalManufacturingMediaOnlineRaw materialsReal estateReligionRetailJewelrySoftware, TechnologyTelecommunicationsTransportation (Travel)ElectronicsNot-for-profit, + others
Estimated total procurement in all industries in US is
USD 12 Trillion/year
Distribution by total revenue in US by company revenue size per year
Data sources: Tableau, Department of Labor US, IRS, US Census 2016
SALES GROWTHPROGRAMVerticals Marketing in US
SALES GROWTHPROGRAMSaaS Sales Matrix
Transactional Enterprise
GraveyardSelf-Service
York, 2012: 3
Complexity
Pri
ce
low
low high
high
SALES GROWTHPROGRAMSales Models and CAC (US)
FreemiumNo touch self serve
Light touch inside sales
High touch inside sales
Field salesField sales w/ sales
engineers
Self-service model
Transactional model
Enterprise Sales
Saas sales models – Skok, D. 2010; York 2012
2 – 15 USD50 – 250
USD1,000 –
2,000 USD3,000 –
8,000 USD25,000 –
75,000 USD
75,000 –200,000
USD
Average cost of acquisition in US dollars to close a sale depending on sales model and company size
SALES GROWTHPROGRAMSales Models and Sales Cycle
Saas sales models – Skok, D. 2010; York 2012
0 – 3 M 2 – 6 M 4 – 8 M 6 – 12 M 12 – 18 M 18 – 24 M
Average time in months to close a sale depending on sales model and company size
FreemiumNo touch self serve
Light touch inside sales
High touch inside sales
Field salesField sales w/ sales
engineers
Self-service model
Transactional model
Enterprise Sales
SALES GROWTHPROGRAMSales Model and Price Point
Source: Latka
SALES GROWTHPROGRAM“Dead Zone” B2B SaaS Companies
No sales model in theUSD 500 to USD 5,000 ACV bracket.
Source: Latka
SALES GROWTHPROGRAM
Eduardo [email protected]
320 Nevada Street, Suite 301 – Newton - 02460 – MA - USA
SALES GROWTHPROGRAM