80% Growth in Average Selling Price

A Salesforce Enterprise SaaS app company was selling a “tactile marketing” app to marketing teams in the enterprise marketplace. This app helped enterprise sales execs close more deals. Their offering was impressive and they had engaged some amazing logos. Despite their successes, they had a few significant problem with their growth, including the growth of their average selling price.


  • Their Customer Acquisition Cost (CAC) was way too high at $16,000
  • Their Average Selling Price (ASP) was $42,000
  • They were taking 6 – 9 months to close most deals
  • They were closing less than 20% of the deals in their pipeline

After we completed the needs assessment phase of our engagement and an audit of their sales process as well as their success stories and the use cases with the customers they had already started working with, it became clear that they were …

  • Not pitching their offer in a powerful way
  • Not qualifying opportunities well
  • Presenting the offer and sending over proposals too soon
  • Not qualifying the availability of a budget effectively
  • Not powerful enough in negotiating or closing deals

Process Improvement

The solution and change process that we implemented to address 3 core problems of a. Increasing the ASP b. Reducing the CAC as well as c. Shorten the sales cycle and d. Increasing the velocity by closing more deals faster; were the following over a 6-month period:

  1. Improved the narrative of the offer and made it more value-based, as opposed to just being feature rich and talking about the technology in their new app.
  2. Increase sales skills (with customized training) of the entire sales team – both inside sales and the outside sales execs.
  3. Used the “Take-away Close” technique to create urgency and value during the entire sales cycle.
  4. Changed the team’s mindset and taught them to hold off sending any proposals until the client asked for paperwork and proved they had the budget for the project.
  5. Focused all negotiation on the client’s stated objectives and demonstrated our ability to walk away from a bad deal that did not create value for the customer. This was a subtle but significant change in the sales process.

In Conclusion

  • The ATV went from $42,000 to $76,000 an 80% increase.
  • The sales cycle dropped to 60 Days from 120 Days.
  • They started closing over 35% of deals that were qualified.
  • Their CAC dropped to $12,000 simply because deals closed faster.

We did not get a chance to impact their marketing strategy as we were working with the sales team only. Ideally, we would have loved to redesigned their marketing narratives and prospect engagement strategy to sell the value of the offer and drive growth in the Average Selling Price (ASP) and the Customer Life-Time Value (CLV) even higher.

About the Author: Paul D’Souza helps companies increase revenue. His approach is strategic and mapped to the business goals of the leadership team because he believes that all business is personal and all business transactions are anchored in trust. https://www.advantary.co/team/paul-d-souza/


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