Why read this guide
This guide is a must-read for anyone looking to understand the critical role of procurement, adapt B2B sales strategies from founder-led to enterprise sales, and learn practical steps to target and engage effectively. We have developed this guide, based on conversations with Julian Johnson, our Operating Partner on GTM, who has over 25 years’ experience in enterprise sales, go-to-market, product and global sales force development. Read on to uncover how to navigate the complex procurement landscape and win valuable enterprise contracts.
Selling to enterprise is selling to procurement - they’re the gatekeepers to enterprise contracts and understanding what makes them tick is essential to getting the deal over the line.
In this guide, we’re going to break down what you need to know as you start to work with enterprise procurement. Be it targeting procurement personas or speeding up sales cycles, we’ll outline the key stages and strategies for becoming a preferred supplier.
Sales Model Evolution
From pre-sale negotiations to post-sale implementation, procurement covers the end-to-end enterprise purchase process and is responsible for driving the success of your product internally. How you engage with procurement will first depend on your current sales stage (Sales Model Evolution).
As a start-up, your sales model will change as your team and customer base grows - evolving from founder-led sales to consultative sales to enterprise sales.
The basics of enterprise procurement
After pinpointing your current stage(s) on the Sales Model Evolution, it’s important to know the basics of enterprise procurement before engaging.
When procurement gets involved
Before selling to enterprise, outline your key stakeholders across the business, including who will use the product (i.e. department heads), implement the product (i.e. IT department), hold the budget and manage the relationship (i.e.
procurement). This will vary depending on the price point of your contract*. As a general rule of thumb:
- <£25,000** - Business leaders typically make purchases up to £25,000 and will be your key point of contact.
- £25,000-100,000 - Procurement teams may be involved in purchases, but individual business leaders tend to make the purchase decision.
- >£100,000 - Procurement leads on contracts over £100,000, so understanding their metrics is essential.
*Be strategic with contract size. Your aim is to land and expand. For contracts under £100,000, you will receive either minimal procurement scrutiny or none at all. However, £100,000+ contracts will receive full procurement scrutiny, which makes £100,000 the worst entry point: it’s better to contract under £100,000 or up the contract value beyond £100,000 as you will have the same level of scrutiny.
Procurement Metrics
Depending on the contract size, how you engage with procurement will depend on their internal evaluation (Procurement Metrics). As the seller, you need to understand the pressures of the procurement team and help them ‘win’ at every stage.
Procurement will operate and make purchase decisions based on three core metrics.
4 steps for successfully engaging enterprise procurement
Targeting
Given it takes nine months on average to sell to enterprise procurement, it’s essential that you target viable opportunities that a) need your solution and b) you can service effectively. The type of clients you target will also determine how you sell to them. You should:
Selling
On average, there’s a nine month sales cycle selling to enterprise procurement depending on how your target client manages the procurement process. Here’s some strategies to speed up the sales cycle.
Closing
To close an enterprise contract, get in front of the key decision-maker and make sure you satisfy their criteria (i.e. show how you will support procurement’s three core metrics or the business leader’s targets). In particular:
Servicing
Signing on the dotted line is not the end of the sales process. As discussed, procurement needs to make your product a success internally. You therefore have a vested interest to help them after the sale so they a) renew and b) potentially use you for other services as a preferred supplier. You should:
What has your experience been?
We're keen to learn from your experiences. Have you encountered challenges or successes in navigating enterprise procurement? We'd value your insights. Please take a moment to share your story with us – it could help shape future resources and support for peers across the AlbionVC portfolio.
