I'm going to share some of the things I learned from this interesting article called "The Science of Enterprise Software Sales" by the founder of AppDynamics.

One of our business alumni recommended it to me, and it really addresses the key points I've been focusing on lately regarding sales generation and setting goals for my own company.

The article takes a very process-driven approach to sales and emphasizes the importance of goal-setting.

First, it talks about how you can reach your revenue target, whether it's 10 million, 100 million, or even a billion. You need to have a well-defined idea of who your target customers are, how much they're willing to pay, which industries they're in, and how many customers you aim to have once you reach your target. Everything you do should be aligned with this goal, from your go-to-market strategy to your customer success strategy and even your fundraising approach.

Next, the article explains that sales is essentially a science. It introduces something called the sales capacity model, which is a mathematical way to determine how you can reach your target. The model looks at four variables: the number of fully trained sales reps you have, the productivity of each rep, the churn rate of reps, and the time it takes to train a new rep. By considering these factors, you can predict sales based on your operational bandwidth rather than just the deals and pipeline in your books. This is especially crucial for enterprise sales, which relies heavily on human interaction and strong selling skills.

The article also touches on the demand generation model. It highlights three key variables: the average deal size, the deal close rate, and the time it takes to close a deal. Knowing these numbers allows you to work backwards and determine how many opportunities you need to reach your target. These opportunities can come from various sources like outbound calls, online advertising, trade shows, and more.

Then, the article talks about the sales process itself. It emphasizes the importance of following a strict process, including eliminating unqualified opportunities, showcasing the value of your solution to the customer, and understanding your stakeholders and competitors. The process is broken down into two phases: understanding key individuals through meetings and conducting a business value assessment to explain how your solution addresses pain points and delivers value. By making the customer's job easier, you increase your chances of closing the sale.

Lastly, the article emphasizes the importance of having the right resources in place to overcome growth constraints. If you're not meeting your sales goals, it's usually due to a lack of demand, ineffective product and pricing strategies, insufficient funds for investment, or challenges in recruiting the right people. It's important to objectively analyze these factors and develop a scientific approach to sales, rather than relying solely on artistic flair.

I found this article to be quite insightful as I build the sales process for my own product. It's a good reminder to approach sales with a scientific mindset. Hope you found this summary helpful too!

[https://s3.amazonaws.com/my_pad/blog/drops/santoshsrinivas.com/audio/The Science of Enterprise Software Sales — My Lessons from AppDynamics.m4a](https://s3.amazonaws.com/my_pad/blog/drops/santoshsrinivas.com/audio/The Science of Enterprise Software Sales — My Lessons from AppDynamics.m4a)