topic Re: POC deals in Tips, Tricks & Best Practices

POC deals

CDetlefsen — Wed, 14 Aug 2024 10:33:55 GMT

We have a new sales pipeline and a CS pipeline. The CS pipeline is set up so when the renewal date is within 120 days of today, a renewal deal is created.

This works for standard contract types but the process for POC deals (typically 6 months) may look different. It would be great to hear how people have used hubspot to manage POC deals and whether the conversion deal should sit in the new sales or CS pipeline!

Re: POC deals

Josh — Wed, 14 Aug 2024 12:02:47 GMT

Hi @CDetlefsen,

While I think this largely depends on your business processes, I think there can be an argument for either. I would make the decision based on the team/individual that is accountable for converting the POC into a normal contract client. If that sits with your sales team and they primarily work in the new sales pipeline, I would track the conversion deal there. If your CS team is responsible/accountable for converting that POC deal, I would track it in the CS pipeline.

If both sales and CS (or it's the same person) is responsible for the conversion, I don't necessarily think there's a right or wrong way to do this. As long as it's labeled in some manner as a POC conversion deal, you can account for that for reporting purposes either way.

I hope this helps! ...even though I answered with both options. 😉

Josh

Re: POC deals

CDetlefsen — Wed, 14 Aug 2024 12:22:52 GMT

This is amazing, and very helpful. How would you suggest structuring this if we want to keep it in the Sales Pipeline? Thanks!

Re: POC deals

Josh — Wed, 14 Aug 2024 12:46:50 GMT

Hi @CDetlefsen,

My suggestion would be to keep the original POC deal as closed won and the conversion deal as a new deal in the pipeline. I would also make sure to have a property to label these conversion deals, something like -- Deal Type: Conversion.

I've seen people use one deal and separate pipeline stages for this as well, but unless every deal goes through POC before they become a client, I wouldn't typically suggest this.

Josh

Re: POC deals

Adriane — Mon, 19 Aug 2024 10:19:53 GMT

Hi @CDetlefsen,

interesting question, thanks for bringing it up! In my opinion, the decision to place the conversion deal in the Sales or CS pipeline depends on a few factors:

Client Relationship:
- If the POC is with an entirely new client or involves a significant upsell, it should likely sit in the Sales pipeline.
- If the POC is with an existing client and aligns closely with renewal or retention efforts, the CS pipeline might be more appropriate.

Deal Complexity:
- Complex deals that require significant negotiation or customization may be better managed in the Sales pipeline.
- Simpler deals, particularly those that are straightforward renewals or expansions, might be better suited for the CS pipeline.

Team Structure:
- If your Sales team handles new contracts and expansions, they should manage the conversion deal.
- If your Customer Success team manages client relationships and renewals, they should handle it.

To move deals automatically based on certain criteria, you might want to test the following automation rules:

When a POC deal is marked as closed, trigger a review process where the appropriate team (Sales or CS) decides the next steps.
Automatically create tasks or follow-ups depending on where the deal is moved, ensuring nothing falls through the cracks.

Let me know if you have any questions.

Best regards

Adriane

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Re: POC deals

MGrant6 — Wed, 21 Aug 2024 15:21:27 GMT

For managing POC deals in HubSpot, a common approach is to have the POC conversion deal sit in the sales pipeline initially. Once the POC is successful and ready for renewal, you can then move it to the CS pipeline. This allows you to keep track of POC progress separately while ensuring that successful conversions transition smoothly into your CS pipeline for ongoing management. You might also consider creating a custom property to flag POC deals, so you can easily track and report on them throughout both pipelines