5 tips to increase your SaaS product sales
Now more than ever, we can assure that the world went cloud to never look back. And since SaaS-based systems are on the rise, helping the subscription economy grow, the competition is getting harder.
August 05, 2021
6 min read
So here are some tips that every SaaS business owner and Marketing Team must take into account to build their sales strategies. And remember, never fall for the idea that this type of products “sell themselves”, because even the marketing team of all the apps of Adobe Suite, who can actually affirm this, does all these things.
1.Upgrade your email marketing campaigns
If you want your SaaS products to be and stay top of mind, you should never email too little, because your customers will forget that you exist, and probably decide to cancel the service when you send that ghost email. That doesn’t mean that you should send an email everyday, and turn into the annoying company that makes them hit the “unsubscribe” button; BUT, sending 1 every week is ideal, and do some A/B testing to check what type of structure works better.
Also remember to always educate and share value every time you create an email. Don’t only send emails to get them to purchase your latest upgrade or feature; send emails with hacks and valuable advice on how they can increase their sales or reduce costs in some way.
2. Experiment with pricing
Whether you insist on setting low prices, or to set high prices in order to transmit a high value, the “right” price is actually subjective, since putting a price on the thousands of lines of code you’ve written is never easy. That’s why pricing experiments become necessary in order to understand the perceived value that your users attach to your product or service. Either way, you can start those experiments with two common pricing strategies which are: Pay for Usage Plans or Value Based Pricing.
Companies like Google Cloud Platform use the Pay for Usage Plan, where developers only pay for the amount of service they consume; same with AWS. This type of pricing is actually very beneficial for the company because if users consume more, they will always pay more, besides that this pricing it’s also fair with the user.
On the other hand, companies like Mailchimp, Spreaker (the podcast provider) or Subscriptions Cloud, use the Value Based Pricing, which is the typical subscription where you can offer a number of packages that have different prices depending on the value that the user can get in terms of features or benefits in general.
With this type of packages you can use words like “Standard” to sell the basic plan that is perfect for that type of customer who doesn’t have a lot of employees or doesn’t need all the features you offer. For example, Spreaker uses the name “On-Air Talent” to get podcast beginners to enroll on the platform, and that package comes with everything a new podcaster needs to get started with his or her first show.
Words like “Professional”, “Gold”, “Advanced”, or in the case of Spreaker “Broadcaster”, can fit perfectly with the package design for a size-medium business or an entrepreneur that needs to have access to more advanced features. And when you want to get to the most profitable customer who actually needs every single feature you offer, you can use words like “Enterprise”, “Platinum”, “Premium”, “Anchorman”, etc., in order to attract them more.
3. Set short trials
According to data from the startup “Close”, 99% of B2B SaaS products should limit their trials to a maximum of 14 days, and at Seeed we recommend setting these trials for a period of just 7 days. We know that this might seem rough, since there’s always the fear of not being able to convert after this short period, but if you set really long trials this might hurt your company in terms of your CAC. It’s better to spend your time and resources on a customer who really wants to get your service and can make that decision in just 3 days, than to invest it on a customer that after 30 days of you serving him or her, decides not to continue.
Besides, take into account that the majority of users don’t actively use the complete trial, so if you set a short trial your customers will take it more seriously, and they will be more motivated to take the most out of your product and make a faster decision, which will definitely help you reduce your CAC.
4. Don’t offer discounts
Or at least don’t do it at the beginning. Let’s go with the Adobe example. Adobe it’s already an established company, a very profitable company, so they can afford to give discounts and that would not hurt the company’s reputation nor affect their revenue. That discount actually benefits them, because they already have Product Market Fit, so there’s a lot of people who really need to use the products they offer, whether they own a big company or are just a freelancer.
Adobe users know that the most compelling reason to purchase one of Adobe apps it’s never the discount, that’s a plus for them, but that’s not the main reason they hit the purchase button. But you are not Adobe, so if you are just starting out, offering discounts could cheapen the value of your service by making it seem that it isn’t worth its price tag, and this is not good for branding. This also will make it harder for you to predict your revenue, since every customer is paying a different price.
5. Always follow up
It’s not common to close a deal after just one conversation, because in order to do that you have to be a well known company, or to be backed by a big accelerator like Y Combinator or by a recognized VC, which can make a customer trust your company blindly. But if this is not your case, you should always, always follow up, repeatedly, and never settle for silence or for a “maybe”, you need to keep reaching out until you get a “yes” or a “no”.
According to “Salesforce” it takes six to eight marketing touches in order to generate a sales lead, so the sooner your sales team follows up, the sooner you will know if you should keep spending money and energy to get that customer.
Do you want to set up your sales strategy right? Contact us and book your free consultation here! https://seeed.us/