Glossary:

Sales Methodology & Process

Master the essential revenue and financial metrics that drive B2B SaaS success. From ARR and MRR to retention metrics and customer economics, these terms are critical for understanding pipeline health, forecasting growth, and making data-driven decisions.

Proof of Concept (POC)

Short Definition

A limited, time-bound test of your product in a prospect’s environment designed to prove technical fit, usability, and value before full rollout.

Definition

In a POC, the prospect uses your product with real or representative data, often for a subset of users or a specific use case. The goal is to reduce risk for both buyer and seller by proving technical fit, usability, and impact.

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POCs should have clear success criteria, timelines, and responsibilities; otherwise, they can drag on and stall deals.

Why POCs Matter

  • De-risk technical and integration concerns.
  • Build confidence among users and decision-makers.
  • Provide real-world data for business cases and ROI models.
  • Help refine implementation plans and adoption strategies.
  • Differentiate your product with hands-on proof of value.

How to Run a POC

Treat the POC like a mini-project:

1. Define Scope and Goals

Agree on the use case, users, and systems included and document success criteria (e.g., time saved, accuracy).

2. Plan Timeline and Responsibilities

Set start/end dates, milestones, and owner roles on both sides.

3. Set Up and Onboard

Configure the environment, integrations, and initial training.

4. Execute and Monitor

Support users, track usage, and collect feedback.

5. Review Results and Decide

Compare outcomes to success criteria and decide on next steps.

POC Components

Component Description
Scope Use case, users, data, and systems
Success Criteria Quantitative and qualitative goals
Timeline Start, end, and checkpoints
Ownership Responsibilities on both sides
Evaluation How results will be assessed

POC Success Criteria Examples

Area Example Metric
Adoption 80% of target users log in weekly
Efficiency 25% reduction in manual steps for workflow
Accuracy 15% fewer errors in process
Value Estimated savings of $X over Y months

Key Metrics

  • POC-to-close rate.
  • Average POC duration versus plan.
  • Percentage of POCs with defined success criteria.
  • Win rate with POC vs. no-POC deals (controlling for size).
  • Time from POC completion to contract signature.

Common Mistakes

Mistake Fix
Reps launch POCs without clear success criteria, so both sides struggle to decide if it “worked.” Define specific, measurable criteria before starting, and document them in a shared POC plan.
Reps make scope too large or complex, causing long POCs that drain resources and stall momentum. Narrow the POC to a focused use case and user group that can demonstrate value quickly.
Reps fail to establish clear ownership, so tasks slip and adoption is low. Assign named owners on both sides, with clear responsibilities and check-in cadences.
Reps don’t capture or analyze results, leading to vague outcomes and weaker business cases. Track usage and performance data during the POC and review it formally at the end.
Reps offer POCs too freely, overloading the team and slowing the pipeline. Reserve POCs for high-value or high-risk deals where proof is truly needed, and use strong demos otherwise.

Frequently Asked Questions

When should you propose a POC?

Don’t propose a POC until you’ve had a strong discovery call and a tailored demo. Only propose a POC when technical or adoption risks remain, and the deal value justifies the effort.

Should POCs be paid?

It often makes sense for larger, complex deals. A paid POC signals commitment and helps fund the effort.

How long should a POC last?

It can take 2–8 weeks to show results, depending on complexity. Make sure any longer POCs are justified.

Who participates in a POC?

A mix of end-users, admins, and technical stakeholders, plus a champion and sponsor.

What if the POC doesn’t meet all of the criteria?

Review why, decide if adjustments can fix the gaps, or agree to disqualify and move on.

Related Terms

Demo
MEDDIC
MEDDPICC
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