The Software as a Service (SaaS) industry has gone through continuous growth over the past few years and is only going to grow bigger.
According to Statista, the global public SaaS market is expected to reach $157 billion in 2020.
However, growth in industry or market doesn’t necessarily translate to the success of all businesses in the industry.
SaaS is a challenging industry where you need to consider a lot of things if you want to succeed. You’ll need to perform a proper SaaS industry analysis and exceed your product sales goals accordingly to become a part of the more established and successful SaaS companies.
Remember, customer loyalty and retention are crucial when it comes to the health of your SaaS business. To run any successful business, you need to think with regard to customer growth and expansion.
Also, if you have a product business, push notifications can help you keep your customer-base engaged. Not only are they an effective way to reach your target audience in real time, but they’re also a great way to retain your customers over more extended periods.
With all that said, here are six best strategies you can implement to increase your SaaS product sales.
#1: Keep Short Trials
While a long trial may seem like a great way to engage your customer, you’re really just hurting your startup.
Trials should NOT be longer than 14 days for 99% of startup.
- The majority of the people don’t use free trials for the full duration. When you take a look at your data, you’ll see that most of your trial users duck out after 3/4 days.
- Customers take a short trial more seriously. They’ll procrastinate, and while doing so, they forget. With a shorter trial period, however, your prospects are more likely to try out your product immediately.
- When you shorten your trial, it also shortens your sales cycle. If you can shorten your sales cycle from 6-3 weeks or so, you’ll dramatically reduce your customer acquisition costs.
#2: Call Your Trial Sign-Ups Immediately
Most fledging SaaS business owners don’t call their trial users; those who do often wait until the last day. They have no expertise regarding how to sell SaaS products.
You need to call each and every trial user within 5 minutes of signup in your startup’s early stages—this will help:
- Improve your reach rate: There’s a good chance the user is still at their computer with your SaaS product fresh on their mind. The longer you wait, the less likely they are to answer.
- Qualify or disqualify users fast: You need to ensure that your solution is the best fit for your customer’s needs before you offer to close the deal. If it’s not, you can use the call in order to help them explore other alternatives.
- Handle objections effectively: The best environment to manage objections successfully would be a controlled phone call. If they don’t have any, you can use that time to resolve common objections preemptively.
Remember, businesses that understand their customers, own the customers.
Pick up your phone and get to know your trial users better. Otherwise, they will never become your customers.
#3: Optimize Your Email Campaign
If you don’t have a killer email campaign, users will most likely forget about your existence within hours of enrolling in your trial. Below are three strategies that will help you get the most out of your email campaign.
- Use “human” email addresses: Never send an email from a department. Instead of using an email like “Sales@YourCompany.com,” use “YourName@YourCompny.com.”
- Send a lot of emails: According to Christoph Janz, one of the most successful SaaS investors of all time, “If your emails haven’t been labeled as ‘spam’ by a user yet, chances are you’re not sending enough emails.”
- Send activity-based emails: Your campaign should automatically email your prospects for a number of situations, including when they signup, if they go to the account or cancellation page, and whether their trial is about to end.
#4: Optimize Your Lead Generation Strategy
You will never make any sales without generating some leads first. You must improve your lead generation strategy to increase conversions.
You can invest in Facebook or LinkedIn PPC campaigns if your business is still at an early stage, and you haven’t built an audience yet. You can create targeted ads for certain organizations in various sectors.
Furthermore, you’ll need to optimize your content strategy. Consider creating engaging, relevant content for your blog. You can then promote your content on social media and attract more people to your website.
Moreover, you can create blog posts and infographics and distribute them through high-authority sites to attract a new audience.
In addition, you can carry out some website optimization tactics. Consider optimizing your site for search engines to make sure your audience can find you while conducting relevant search keywords/phrases. Also, optimize your site for conversions to get the visitors to subscribe to your newsletter or sign up for your free trial. For this, you can try performing A/B testing on several design elements of your website and your site copy to determine which one converts best.
#5: Give Short, Value-Focused Demos
One of the most common mistakes startups make when giving demos is treating it as a training session. Your leads don’t need to see every little detail your product does. What they need to know is how your product can help them be more successful.
Here are a few strategies to give SaaS product demos that sell.
- Quality first: Never use demos as a qualification tool; remember to always qualify your leads before giving them a demo.
- Keep it short: 30-40 minutes is way too long. If you aren’t able to explain how your product will help your client within 15 minutes, you don’t know your product or client very well.
- Focus on, not features, but benefits: Your customers don’t care about all the details; tell them what your product does for them, not just what it is.
Remember, a successful SaaS product demo is a demonstration of value, not a training seminar; thus, you need to treat it that way, and you will be much more effective.
#6: Never Close a Bad Deal
Never, ever, EVER sell to an unqualified customer!
This can mean saying “no” to even those who are ready to give you money. While closing an easy deal may seem tempting, the cost of churn will likely outweigh short-term revenue.
Here’s why selling to the wrong prospects will hurt your SaaS startup.
When you sell your product to an unqualified client, chances are they won’t be successful. They will have tons of complaints and require a lot of support. These clients demoralize you and your team with negative feedback, as well as start spreading bad reviews on the internet. And eventually, they’ll churn and blame your SaaS product for their failure.
Yes. That does not sound very good. But, if you think about it, they’ll be right.
Well, it is your responsibility to prevent bad prospects from buying your product.
You need to make sure that you qualify each and every lead accurately with the following steps:
- Create an ideal customer profile
- Define your customer’s needs
- Determine their decision-making process
- Identify your competition
Once you complete these four steps, you’ll know whether or not the customer is a good fit for your SaaS product. If they aren’t, that’s totally fine. You can help them find a solution that is, then move on to other leads.
This is the ultimate secret to sell SaaS the right way.
SaaS sales are harder to achieve, but it’s not impossible.
If you incorporate the above strategies into your sales cycle, you’ll increase your odds of success drastically.
Share this article with your network, ensure that everyone on your team knows how to sell SaaS products, then pick up your phone and start selling.