SaaStr 787: 10 Ways Sales is Different in Vertical SaaS with Mangomint’s VP of Sales Marchelle Mooney
Jan 15, 2025
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Marchelle Mooney, VP of Sales at Mangomint, brings her unique perspective as a former salon owner to the podcast. She shares insights on why hiring for industry-specific expertise can outperform traditional SaaS backgrounds. Discover the evolution of sales strategies in vertical SaaS, from outbound to inbound, and how effective onboarding can foster customer loyalty. Marchelle also discusses the importance of tailored products and integrated support systems, ensuring customer success is a shared responsibility.
Hiring sales team members with vertical industry experience can significantly improve sales performance and customer engagement.
Implementing free onboarding for customers enhances user experience and fosters adoption of vertical SaaS solutions without initial financial barriers.
Deep dives
Importance of Vertical Experience in Hiring
Hiring for vertical experience rather than just SaaS experience can significantly enhance sales performance. A top-performing account executive in the discussed company had a background as a salon manager, outperforming seasoned sales representatives from high-volume SaaS firms. This individual's success is attributed to their ability to engage in authentic conversations regarding industry-specific challenges, fostering trust and alignment with clients. Companies should consider seeking team members who understand the intricacies of their specific industry, as such firsthand experience can lead to faster deal closures and better customer relationships.
Onboarding Strategies for Vertical SaaS
Making onboarding free for customers can eliminate friction and enhance user experience in vertical SaaS. The discussed company found that prospective clients were often deterred by fees associated with onboarding, despite being incentivized to use the service. By integrating seamless onboarding that requires no upfront payment, organizations encourage customers to adopt their software without the hesitance that comes from initial costs. Additionally, the focus on providing a smooth transition from previous software enhances retention and eases the onboarding process, reinforcing customer loyalty.
Emphasis on Product Understanding Across Teams
A thorough understanding of the product is essential for all team members, not just sales representatives. The podcast highlighted the alarming trend where new hires at other SaaS companies were expected to sell without comprehensive product education. Conversely, the discussed company prioritizes in-depth product training for everyone across different departments before engaging with clients. This approach ensures that all team members communicate uniformly about the product's benefits and functionalities, contributing to a cohesive customer experience and strengthening sales capability.
The Role of Customer Success in Vertical SaaS
In the context of vertical SaaS, customer success should not be relegated to a standalone department but rather integrated within various functional teams. The focus must be on creating a product that inherently meets customer needs so that success is built into the user experience. Sales teams must grasp how their products deliver value tailored to specific industries to adequately address customer needs during interactions. By aligning product quality with sales and support, organizations create a holistic approach to customer success that enhances retention and satisfaction without relying solely on a separate customer success team.
SaaStr 787: 10 Ways Sales is Different in Vertical SaaS with Mangomint’s VP of Sales Marchelle Mooney
While some might dismiss sector-specific vertical SaaS software as ‘too small’ or ‘too niche’, companies like Veeva ($40B), Clio ($3B), Toast ($1.3B), and Slice ($1B) have proven there’s massive value in going deep rather than broad. Mangomint has quietly built an impressive vertical SaaS business in the spa and salon space, growing 100% year-over-year to approach $20M ARR with 110% NRR.
So we asked Mangomint’s VP of Sales Marchelle Mooney to share 10 ways sales is different in vertical SaaS. Marchelle’s personal journey took her from early adopter of Mangomint, to 6 years later, VP of Sales over a 25+ person SMB sales team. Here’s some of what she’s learned along the way.
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