Balancing Sales, Product, and Long-Term Success as a revenue leader
Last week I had the opportunity to sit down with our product team and our developers to discuss how our sales team is selling. It was long overdue and it reminded me that the dynamic between the revenue and product teams is pivotal to long-term success. As companies evolve through different growth phases—from seeking product-market fit to scaling and achieving repeatable sales—as a revenue leader you play a crucial role in aligning these teams. However, a common pitfall many organizations face is the pressure on product teams to constantly develop new features driven by immediate sales opportunities especially since 86% of SaaS solutions require customisation. This reactive approach can lead to a product that is fragmented, lacks coherence, and ultimately fails to deliver long-term value and the company’s vision.
The Art of Disqualification - exiting the “Revenue at all costs”-phase
One of the most valuable skills you can bring to the table is the art and comfort of disqualification. In the early stages of a startup searching for product-market fit and repeatability, it’s tempting and to a certain degree even necessary to chase every sales lead and cater to every customer request, especially when revenue is critical. However, as the company matures, product-market fit solidifies, this approach becomes unsustainable. Not every customer is the right fit for your product, and not every feature request should be fulfilled.
There are 2 winners in every deal, the one who gets it, and the one who disqualified it first
Leadership must lead the revenue team in understanding that disqualification is not a loss; it’s a strategic decision. As one experienced sales engineer told me 10 years ago: “There are 2 winners in every deal, the one who gets it, and the one who disqualified it first”. By focusing on the right customers—those who align with the company’s long-term vision and product capabilities—revenue leadership can help avoid the trap of short-term gains at the expense of long-term product coherence. It’s also critical this necessity is understood amongst founders, the whole executive team and the board.
Disqualification also ensures that the sales team isn’t just closing deals but closing the right deals. This reduces churn, as customers who are a good fit are more likely to see value in the product and remain loyal over time. It also prevents the product team from being overwhelmed by requests for features that serve only a handful of customers and detract from the broader product roadmap.
The Role of Sales in Product Development
While disqualification is crucial, it doesn’t mean that sales should be isolated from the product development process. On the contrary, the sales team is often closest to the customer and has valuable insights into market needs and trends. The sales team plays a key role in ensuring that these insights are effectively communicated to the product team.
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Don’t aim to land a customer, aim to land a market.
However, this feedback should be structured and strategic. Instead of a laundry list of feature requests, the sales leadership should encourage the sales team to focus on broader patterns and trends that can inform the product roadmap. Don’t aim to land a customer, aim to land a market.
Moreover, the most senior revenue leader should facilitate regular cross-functional meetings between sales and product teams. These meetings should aim to discuss not just what customers are asking for, but why they are asking for it. Understanding the underlying problem helps the product team think creatively about solutions that could serve a broader audience, rather than just fulfilling a specific request.
Balancing Sales Pressure with Product Integrity
As a revenue leader you’re uniquely positioned to balance the natural tension between driving revenue and maintaining product integrity. While the sales team is incentivized to close deals, sales leaders must ensure that these deals align with the company’s long-term strategy.?
You need a sales strategy that leverages the existing strengths of the product. This involves training the sales team to sell the product’s current capabilities effectively and to focus on educating customers about the value of the existing features, rather than always chasing the next new thing. Solution or Sales Engineers play a crucial role in keeping your sales teams honest as they typically have a deep understanding of your product and they should be your first line of defense to maintain product integrity.
Conclusion
In a SaaS organization, the revenue leader’s role is not just about driving revenue but about driving sustainable growth. By mastering the art of disqualification, ensuring structured feedback from sales to product, and balancing the pressure for new features with long-term product strategy, you can help build a company that thrives not just today, but for years to come.
If you find yourself in a situation where the demand for specific features is completely outgrowing your ability to deliver you should suggest this article to your product team.
Grow with Intent Data & Social Proof | Sr. AE @ G2
7 个月Nice write up Davy!