CIENCE is a comprehensive B2B lead generation solution. Historically, they operated strictly as a professional services organization, providing companies with target account lists and the ability to hire outsourced SDRs.
But over the years, they leveraged their deep knowledge of demand generation to create a holistic platform for companies to source and engage prospects. “Now we offer our customers the people, playbooks, and platform to build and sustain pipeline,” said Michael Gear, CEO at CIENCE.
Armed with his 20 years of experience leading early-stage startups, Gear was brought on to transition CIENCE from selling short-term, one-off deals to a subscription-based SaaS model. “As a company, it was crucial that we pivot from 90-day, lower value sales to year-long contracts,” said Gear.
This desire to sell through a repeatable subscription model and to expand the value and volume of their deals is why they turned to Capchase Pay.
Proving out the value of a SaaS model
CIENCE uses Capchase Pay to give their customers payment flexibility while still collecting the full subscription amount upfront. When a deal is closed, Capchase provides CIENCE with the entire yearly amount, and CIENCE’s customers pay back Capchase in comfortable installments.
This model is ideal when the prospect that CIENCE is targeting is in the SMBs market segment. The SMB market of companies are typically working with tight budgets that don’t leave room for large tech purchases.
“It’s easy for our customers to justify a $30,000 deal, but a $170,000 deal isn’t as easy,” said Gear. “Capchase Pay gives our customers—who don’t have the means to switch to higher-value contracts—the bridge to do so.”
With Capchase Pay, CIENCE has removed the barrier to entry for their product, meaning more customers are able to access their platform and see the value in it. “They see that it’s more beneficial and cost-effective to stick with us than to buy individual point solutions,” said Gear.
As a result, CIENCE has been able to halve their time to deal closed from four weeks to just two. And customers are now more open to adopting long-term, recurring contracts—Gear is hopeful that moving forward they’ll be able to further increase the terms of their contracts beyond just a year.
Building more predictable pipeline
In transitioning CIENCE to a new SaaS revenue model, it was crucial to Gear that he had visibility into their pipeline to ensure traction with their target customer markets and greater revenue predictability.
With the help of Capchase Pay, CIENCE is able to eliminate any friction related to customers being able to afford upfront payments, since flexibility is always an option. “When smaller companies come to us, we immediately begin talking about paying through Capchase,” said Gear.
Qualifying prospects and forecasting deals, therefore, is a much faster process, and CIENCE can make more accurate predictions about their pipeline. “Now I can look out four to six weeks and can calculate how many more deals we need to close in order to hit our numbers,” said Gear.
Within one month of implementing Capchase Pay, CIENCE grew their pipeline from low, single-digit prospects for their 12-month SaaS contracts to 50 with an average deal size of $100,000. Of those 50 prospects, 63% would finance through Capchase Pay, meaning $3.7 million of CIENCE’s current pipe can be attributed to their partnership with Capchase.
Reducing time to revenue
While deal volume and value has increased for CIENCE, they’ve also seen a marked improvement in their cash flow. When a customer pays for their subscription with Capchase, CIENCE immediately receives the full yearly amount.
This has significantly decreased the average time it takes from closed deal to cash received. “Where it used to take an average of 15 days to see a payout from a deal, now I can receive that cash immediately as soon as a deal closes,” said Gear.
“With Capchase, I now have control over my revenue and my cash flow,” said Gear. “I can make more informed decisions about my business—that’s invaluable.”
To see how Capchase Pay can benefit your business, join our beta or get in touch with our team.