We are now entering a new B2B software economy beyond the seat license with ever-increasingly complex value-based economics. Tomasz Tunguz, a managing director at Redpoint Ventures, recently wrote an article about the behavioral economics behind the three-part tariff pricing model and why it increases usage and the likelihood of renewals.
As software companies move toward creating complex deals circling the three-part tariff pricing model, Deal Desk will play an increasingly important part in enabling Sales, Finance, and Legal to function efficiently at scale.
According to statistics from PwC, deal desks can reduce sales cycle times by up to 25-40% and enhance sales productivity by up to 15-20% by eliminating unnecessary overhead activities and creating a source of truth for contracts, resulting in more accurate forecasts. However, the inverse can be true: an overstretched or underprepared deal desk can easily become a scapegoat for sluggish deal velocity, a time blocker for multiple departments, an overall reduction of the customer’s buying experience.
This role may seem daunting, but put in the work, and you’ll see yourself become the MVP of your organization- slinging deals and providing prophet-like forecasts to Finance and Sales. Ultimately, this position will set you up to become the Head of Deal Desk or a Head of Revenue Operations in your next role if you are successful.
How to Succeed With Deal Desk
- Understand Your Tech Stack
- Focus on Organization
- Keep Meticulous Documentation
- Focus on Quote-to-Cash Optimization
Here are four tips on getting started:
Become an Expert in Your Tools
As you progress from Deal Desk onto your next role, your knowledge of operations on the myriad of tools available will help accelerate your ramp and allow you to spend your time in a more impactful way. This includes operating ABM tools, sales engagement, CRM, CPQ, ERP, and other complex tools.
Heads of Revenue Operations and Deal Desk generally are the chief operators in an organization and, therefore, time is their most valuable resource. Having more time available will generate more revenue for the organization because operators can reinvest that time in training staff, addressing more complex issues, and spending more time planning for the future.
Not only does this increase your operational efficiency, but it also helps other departments make more accurate decisions through precise forecasting. In other words, an organized deal desk now will increase revenues for multiple quarters.
Sales, Finance, and Legal will refer to Deal Desk as the source of truth on contracts, which means Deal Desk is a keystone for driving future success in multiple departments.
Deal Desk and Sales Ops are closely tied in that they are responsible for creating your organization’s sales SOP. With a previously-established SOP, reps can waste less time waiting for procedural questions to be answered and spend more time selling.
Moreover, having a cleanly documented approval process means the entire team is aligned with the status of its opportunities. This means that sales leaders can make better snap judgments as quarter deadlines approach.
Close the Loop in Quote-to-Cash
Introducing automation to a tedious, detail-focused process like quote-to-cash saves Deal Desk operators substantial amounts of time, which can be reinvested in more impactful ways than automatable tasks. Additionally, this reduces the number of systems you need to know to succeed. This means that you can ramp quicker, learn more about your organization, and start 2020 making the big impact you wanted to make!