What are we talking about in the School of Presales community? For example we explain sales models. A very popular one in the startup scene is „Land and Expand“ – that is one where you need a good sales engineer to make it work.
So what is it all about?
The „Land and Expand“ sales model is a strategy used by businesses, especially in the B2B sector, to acquire new customers and then gradually expand their presence within those customer accounts. The primary goal is to secure an initial „land“ deal, a few licenses or services quickly, and then „expand“ by upselling additional products, services, licenses or features to the same customer over time.
This model is effective for building long-term customer relationships and maximizing the lifetime value of a client. And it is extremely dependent on a good #Presales and Postsales work.
Here’s how the „Land and Expand“ model works:
In the initial „land“ phase, the focus is on acquiring a new customer. This usually involves selling a core product or service that addresses a specific problem or meets a particular need for the customer. A rigorous qualification is key – you want to work only with those opportunities that have a chance to close quick. Sales engineers play an important role to identify the opportunities which can close fast.
After closing the initial sale, the next step is to onboard the customer successfully. This involves ensuring they are set up and using the product or service effectively, so they experience the promised value. The lines between Pre- and Postsales are blurred here especially in startups where there may not be a postales organisation yet.
During the „land“ phase, it’s essential to build strong relationships with the customer. This includes providing exceptional customer support, demonstrating value, and maintaining open communication. This together with gathering insights is the sweetspot for sales engineers
While working with the customer, gather insights into their broader needs, challenges, and goals. Understand how your products or services fit within their overall strategy.
Once the customer is comfortable and satisfied with the initial offering, the „expand“ phase begins. This involves identifying opportunities for upselling, cross-selling, or offering complementary products or services that can further benefit the customer.
Also tailoring your offerings to the specific needs of the customer. This might involve custom features, additional modules, or services that align with their evolving requirements. Pre- and Postsales work hand in hand here to identify the needs and implement them either as part of the land deal or as foundation for the expansion.
Continually demonstrating the value of expanding is important. Show how these additional offerings solve more problems, improve efficiency, or drive better outcomes for the customer. This is where many organisations make the mistake to take an expansion for granted and are not investing enough in customer success – because the product is sooo good. But without that a long-term partnership is hard to achieve.
The „Land and Expand“ model is focused on building long-term partnerships. As the customer’s needs evolve, your goal is to be the trusted partner they turn to for solutions.
Music to the ears of the sales engineers because that is what we do best.
Benefits and challenges of this model
There are lots of benefits in this model for startups but also challenges. Join us in the community and check them out in this community article: Land and Expanded explained (subscription needed, 14 day free trial) As it is a community we can have a nice discussion about it and also get the opinions of others how this model worked for them in the past.
Overall, the „Land and Expand“ sales model is a customer-centric approach that focuses on long-term growth, customer success, and fostering deep relationships with clients. By following this model, startups can minimize risk and test the waters before committing to a full-scale expansion. This approach allows them to gather valuable insights, adapt their offerings based on market feedback, and build a solid customer base.
When implemented successfully, the Land and Expand model can lead to sustainable growth and long-term success. Startups that effectively utilize this strategy are able to establish themselves as industry leaders and capture a significant market share. By gradually expanding their offerings, they can meet the evolving needs of their customers and stay ahead of the competition.
Let’s talk in https://school-of-presales.mn.co about this and if that model works for your organisation. If you are already using Land And Expand we can check out what is the best strategy and the best tools for you to use as a sales engineer.