What Subscription Business Models Mean for Sales Teams

Across the technology industry, subscription sales models are growing in popularity. The trend is having a big impact on sales forces. For example, an enterprise software company recently transitioned from selling custom software as a one-time product to selling monthly SaaS  (software as a service) subscriptions. The company’s salespeople were used to seeking out new customers, closing big deals, and then moving on to the next prospect. Now, they also had to cultivate ongoing customer relationships to ensure contracts got renewed, in addition to seeking out opportunities to expand business. As ongoing account management activities consumed more and more sales time, new customer acquisition slowed down–and the company’s revenue growth began slowing, too.

The subscription sales trend in cloud computing (and many other industries) means more companies are facing a classic sales management dilemma: Should the same salesperson be responsible for both account acquisition and account management? Or is it better to have one “hunting” role for finding and closing deals with new accounts, and another “farming” role for retaining and growing business with current accounts?
— Leer en hbr.org/2018/06/what-subscription-business-models-mean-for-sales-teams

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