Selling software as a service (SaaS) to enterprises can be a highly lucrative career path. However, there are also many challenges that sellers face, especially when they rush into the process without a focused plan. Understanding how to sell software as a service successfully can draw in customers and take a business to the next level.
What Is Software As A Service?
Software as a service, otherwise known as cloud-based software, is a popular method of software delivery that enables data to be accessed from any device with an internet connection and web browser. SaaS differs from traditional on-premise software as it does not require extensive hardware and is generally paid via a subscription model.
Today, SaaS is flexible enough to allow for customization which enables users to alter the look and feel of the platform. Individual users can also modify their own personal workspace, such as dashboards and tasks lists, boosting productivity.
Tips For Selling SaaS
Selling SaaS requires a direct focus on the needs of customers, as well as choosing quality products that businesses actually want to use. Although sales processes can vary significantly among organizations, there are certain tips that can help a business sell more products and establish a list of satisfied customers. Some of the top tips for selling SaaS include the following:
Limit Trial Times
Offering trials is a common approach to selling SaaS. However, it is important to limit trial times to avoid the downfalls involved with lengthy trials. Although the average length of a “long” trial is about 30 days, businesses are often more successful when they limit the trial time to 14 days or less.
Many users will not use a trial period for the entire trial limit. In addition, a long trial time will likely cause some users to forget about the product entirely. Keeping the trial time short also helps keep the sale cycle short which in turn reduces customer acquisition costs.
Reach Out To Trial Users & Get Feedback
A mistake that many businesses selling SaaS make is neglecting to follow up with trial users. Some also choose to wait until the very end of a trial period to contact the user which can also be detrimental to the business’s sale potential. Ideally, a business should contact a trial user within minutes of a sign-up.
Immediately contacting trial users can significantly improve a business’s reach rate and make the brand more familiar among users. In addition, businesses that reach out to trial users can get to know their customer base better and collect valuable feedback.
Create Value Focused Demos
Demos should be kept short and sweet to avoid overselling the product. It is not necessary to show a lead every feature and functionality of a product. Instead, focus on explaining how the product will help the business become more successful. Before giving out demos, ensure that the lead qualifies based on research gathered about the business’s target audience.
Next, keep the demo short, about 15 minutes. Demos should be ultra-focused and should not be presented as an hour-long training session. During a demo, offer information about the benefits of the product rather than each feature.
Selling Prepaid Annual Plans
Software as a service is often favored by startups due to the consistent monthly revenue that it creates. However, only bringing in small amounts each month can make it difficult to grow a business. Consider offering clients a prepaid annual plan that can help larger amounts of revenue to accumulate early on in the business.
To encourage users to purchase a prepaid annual plan, consider offering a small discount. Although a discount will reduce the total amount earned in the long-run, it can provide businesses with immediate access to cash flow which can be used to improve and market the product more effectively.
Listen To Feedback & Make Improvements
Selling SaaS can be complex and involves a lot of preparation and knowledge about the product at hand. Every business makes a mistake at one time or another but learning from these mistakes can help a business grow stronger.
It is important to continually listen to feedback from users and to use this collected data to make improvements. By catering to their target audience, companies can improve their sales rate, increase brand loyalty and build an overall more successful business.
Reach Out To A Professional SaaS Development Company
Software as a service has been making waves since the late 1990s and continues to expand year after year. According to Gartner, Inc., SaaS companies generated more than $72.2 billion in 2018 alone. When done right, selling SaaS can provide startups with ample opportunity to generate income with the newest technologies.
For more tips on how to sell SaaS, SaaS applications or to speak with an experienced custom software developer, contact the custom software development experts at Orases by calling 301.756.5527 or by scheduling a consultation online today.