Why has the average deal size for Showpad's sales enablement platform decreased by 20% among mid-market clients in the past 6 months?

Introduction

The recent 20% decrease in average deal size for Showpad's sales enablement platform among mid-market clients is a concerning trend that requires thorough investigation. To address this issue, I'll employ a systematic approach to identify, validate, and resolve the root cause while considering both immediate and long-term implications for our product and business.

Step 1

Clarifying Questions (3 minutes)

• Looking at the timing, I'm thinking there might be seasonal factors at play. Have we seen similar patterns in previous years during this 6-month period?

Why it matters: Seasonal trends could explain the decrease and inform our solution approach. Expected answer: No significant seasonal patterns observed in previous years. Impact on approach: If seasonal, we'd focus on adapting our strategy for this period; if not, we'd investigate other factors.

• Considering our product offerings, I'm curious about any recent changes. Have we introduced any new features or pricing tiers in the past 6-9 months?

Why it matters: Product changes could directly impact deal sizes and user behavior. Expected answer: A new "lite" version was introduced 8 months ago. Impact on approach: If confirmed, we'd analyze the impact of this new offering on overall deal sizes.

• Thinking about our target market, has there been any shift in the types of mid-market clients we're attracting or closing deals with?

Why it matters: Changes in client demographics could explain the decrease in average deal size. Expected answer: No significant changes in target market or client profiles. Impact on approach: If unchanged, we'd focus more on internal factors or market conditions.

• Considering our sales process, have there been any changes in our sales team structure or compensation model recently?

Why it matters: Sales team changes could affect deal sizes and negotiation strategies. Expected answer: No major changes in sales team structure or compensation. Impact on approach: If confirmed, we'd look more closely at product, market, or competitive factors.

• Reflecting on our data collection, I'm wondering if there have been any changes in how we define or measure "average deal size" in the past year?

Why it matters: Ensures we're comparing apples to apples in our analysis. Expected answer: No changes in metric definition or measurement. Impact on approach: If changed, we'd need to recalibrate our analysis based on the new definition.