How Optimizing Presales Productivity can Help Startups Multiply Revenue Growth

How Optimizing Presales Productivity can Help Startups Multiply Revenue Growth

To demonstrate the value of technologies to buyers and consumers, today’s high-growth technology businesses rely on millions of presales specialists, also known as sales engineers and solution consultants. Finally, the efforts of these dependable technical advisors aid in the closing of deals. While the C-suite recognizes presales as a critical support function for sales, executives do not turn to presales for further growth. As the ratio of presales specialists to sales personnel rises in each scenario, the incremental revenue effect might be exponential.

Instead, the chief revenue officer (CRO), who usually handles presales, would frequently try to push growth by hiring additional salespeople. That is one strategy, but there are others, especially in a market where obtaining talent is difficult. Presales might be a viable alternative. According to a McKinsey & Company report, investing in presales may increase conversion rates by five points, income by six to thirteen percent, and sales by ten to twenty percent.

Rather of hiring additional people, the CRO might use a different strategy to increase revenue: the presales force multiplier effect. Let us look at three scenarios to assess the impact of presales on growth to demonstrate this notion.

Presales-to-sales ratios of 10:1 are prevalent in revenue models with a large frequency of transactions but modest annual contract values (ACVs), such as $10,000 to $50,000. If each salesperson has a $750,000 yearly quota, one presales professional have a $7.5 million annual quota effect across all 10 sales reps.

If a presales professional’s productivity increased by 5% throughout the $7.5 million top-line effect, $375,000 ($7.5 million * 5%) in more revenue might be generated without the need for additional staff. Consider a scenario in which ACVs vary from $51,000 to $100,000, with a presales-to-sales ratio of 5:1. If each salesperson has a $900,000 yearly quota, one presales expert can have a $4.5 million annual quota effect across all five sales reps. 

Without adding to the personnel, increasing one presales professional’s productivity by 10% across the $4.5 million top-line effect might result in $450,000 ($4.5 million * 10%) additional revenue.

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