Did you know that SaaS is growing three times faster than software? That’s according to Bjoern Lasse Herrmann from Compass. Although promising for future growth, the momentum being seen by the SaaS market comes with its fair share of challenges.
Here are some of the biggest sales challenges for SaaS businesses and how your company can overcome them.
Challenge #1: Knowing How to Sell on Features and Benefits
The SaaS market is crowded. For sales teams, that usually means pulling out unique features and using those as the value proposition for new clients. The problem is, although clients want to know about features, they don’t help sell the product.
Basing your sales pitches and copywriting on features over benefits puts you in a long row of potential products. Soon, your customers are treating your SaaS solution as a commodity and only deciding to work with you based on your price, rather than the benefits you bring to your customers.
To change that, dig in deep to why each feature matters to your target market. Does it help your customer sleep better at night knowing that your app is constantly running in the background? Do you make it easier for her to focus on something more core to her business because she no longer has to take care of a tedious task?
Put the benefits before the features. Start differentiating yourself based on the experience your customer has with your SaaS product and you’ll start standing out in the market.
Challenge #2: Balancing Your Marketing to Existing Customers and Prospects
When you pitch an investor, one of the first things he will ask is, “What are your customer acquisition costs?”
It’s expensive to get new customers on board with your product. It’s cheaper to retain your current customers. The challenge is that you need a healthy balance of selling to current customers and new prospects to keep your business powering forward in the market.
To overcome this challenge, create a strategy for before and after each sale. Once a new customer opens her wallet and buys from your business, don’t ignore her. Keep nurturing that sale so that you build a base of loyal customers.
Challenge #3: Understanding the Buying Process
SaaS products are rarely purchased on a whim. There is a process that each customer goes through when deciding whether a SaaS product is right for him. Sometimes the decision process happens during the free trial phase. Other times, customers opt for a free version of the product to take it for a test drive. In more complex cycles, a CIO or a team of people may need to get involved to give the final approval on the product.
Knowing the process your customers go through when deciding to buy your SaaS product will help you reach out at critical sales points. It’ll help you answer the question of whether you should offer a free trial vs. a freemium model. It’ll enable you to create the perfect content and sales materials for the right touch points of the buying process.
Overcoming these obstacles isn’t impossible but it does require thought and smart strategy. By finessing your message, marketing, and content, your sales team is better equipped to thrive as they find new customers for your SaaS product.
Want to learn more about how to improve your lead generation and increase sales and loyalty? Drop me an email and let’s chat.