One of the fastest-growing industries worldwide, SaaS sales present a great opportunity in this increasingly digital era. Whether you are looking to start your own SaaS-based company or to join a SaaS sales team, it is important to have background knowledge of the field. Because this is a rapidly growing field with vast opportunities, there is also increasing competition. As such you should ensure you are as prepared as possible before embarking on your SaaS journey. Luckily, we have the tips to give you an edge in selling SaaS. This article will detail 5 crucial tips for SaaS sales.
SaaS, What Is It?
Before diving in further, it is important to first fully understand what SaaS is. SaaS sales, or software as a service, is the concept of selling web-based software as a product. Rather than installing hardware and software, SaaS products are entirely internet based. This makes maintenance and upkeep more convenient for both sellers and buyers alike. Some popular examples of SaaS products would be software programs like Microsoft Office or Google Drive. For consumers, the biggest benefit to using SaaS products is that all updates and maintenance are performed by the sellers. So SaaS sales are simply the process of selling these products to potential customers.
Here are 5 crucial tips for selling SaaS:
1. Be a Salesperson
It may seem redundant, but our first major tip for SaaS sales is to remember that you are a salesperson and SaaS is still a product. As a seller of SaaS, you aren’t just looking to bring in new clients, you are also looking to maintain and upsell your existing customers. Always be looking for an opportunity to better suit your client’s needs. And if better helping your customer also means selling a more expensive product then that is even better.
Along with upselling and pushing higher-quality products, you should also be looking to cross-sell. If you are working with a business or customer that purchases one SaaS-based product, then be sure to check what other products may benefit them. Even though SaaS is online software, it is still just a product, the same as anything else. And as with any product you are selling, you should always look for ways to make more sales.
2. Customer Feedback is Key
This goes hand in hand with the previous tip, but just like you need to remember you are a salesman, remember your customers are the ones who actually use your product. As such, they have valuable feedback to offer on your product from a different perspective. Top SaaS sales teams are always looking to improve their product and improve customer relations. Sending out surveys through email, or even just checking in routinely with customers are both great ways to get feedback on your product and continue to develop your relations with your client base.
3. Develop a Viable Free Trial Option
One of the best ways to demonstrate the value of your SaaS program is through a free trial. While product demos are great, the best way for customers to get a feel for your product is by testing it themselves. One important thing to remember though is that at the end of the day you need to convince customers to buy your SaaS.
Depending on the complexity of your software it is important to set a viable trial period. If your product is relatively simple then we would advise that your free trial program run between 7-14 days. This should allow customers to get a feel of the benefits and make a decision while keeping a shorter sales cycle. However, with more complex programs it can be valuable to provide a month-long trial program. You want to make sure customers have a complete grasp of how to use the software before you try to convince them to buy. A viable free trial program is a great tool for selling SaaS.
4. Monitor the Free Trial
While the free trial period is mainly for the customers to get a feel for the software, it can also present another opportunity. Staying in touch with the customer while they go through the free trial not only helps the customer but also provides a great way to build relations and gain valuable insight. Not only will the client likely have questions that arise, but it will also show them that you value them as a customer. Meanwhile, you will receive valuable feedback on the free trial program of your product. It doesn’t need to be constant communication, but just reaching out via email after a few days can be beneficial to both parties.
5. Offer Annual Options
Our final tip for maximizing SaaS sales is to offer an annual option for your software. Most SaaS products operate on a monthly subscription fee, which is great, but offering an annual option can be a great tool. By offering your product as an annual service you can offer customers a discount and provide your company with more upfront funds. Using an annual plan option also decreases the risk of customer cancellations during the sales cycle.