Increasing Average Deal Size is crucial for GTM teams to drive growth and helps sales achieve quota faster with fewer deals. Here are some practical approaches to boost deal size at both the individual deal level and the company level:
**Individual Deal Level**
– Bundle Complementary Products and Services: Customers receive more value, making the deal more attractive and increasing the overall size. Service add-ons are often the “low-hanging fruits” that increase the deal size without much additional effort.
– Pitch mid-tier pricing first instead of starting from the lowest price point and going up. Leverage the Goldilocks effect, where most customers prefer the middle option (not all the bells and whistles, but more than the basics), leading to a larger deal value acceptance.
– Propose Multi-Year Contracts. Even with some discounts, these increase the upfront deal size and secure longer-term revenue and customer retention.
– Instead of offering more discounts, offer non-pricing incentives such as extended payment terms (working with Finance) or extra training to their users to adopt the product, keeping the deal price higher.
**Company Level**
– Target Larger Customers by refining ICP as they have bigger budgets and less price sensitivity.
– Offer Solution Selling and custom pricing for tailored solutions to justify higher pricing for delivering higher value.
– Train the sales team so they can confidently overcome customer hesitations on pricing, communicate value, and build trust to close larger deals.
Implement these strategies to boost individual deal size, which will, in turn, boost the company’s average deal size and drive overall revenue growth.
