Are you launching a SaaS company? If so, you’ll be happy to hear that the SaaS industry has grown by over 500% in the last seven years.
And SaaS industry growth doesn’t show any signs of slowing down. Businesses have a rising demand for singular, agile, integrated solutions. Thanks to this, the SaaS market is predicted to grow at a CAGR of 18.82%, increasing by roughly 600% by 2030.
But this doesn’t mean you can sit back on your laurels as a SaaS company. Whether you’re offering B2C or B2B SaaS, you need to make sure you’re employing the right sales strategies to drive revenue and get your offering into the hands of people and organizations who need it.
If you don’t, you’ll be leaving money on the table and giving your target market to the competition.
Avoid this and keep reading to find out 4 important sales strategies for SaaS.
1. Get Clear on Your Target Market and Value Proposition
If you want your SaaS sales to skyrocket, you have to get crystal clear on your target market and value proposition. The closer you can hone in on your target audience and market, the more effective your marketing and sales strategies will be.
This will also help you cut down on advertising costs. Once you know exactly who your target market is, you can create highly targeted ads and marketing campaigns that only focus on the people who need your offering.
You should also invest time and focus on creating a strong value proposition. Your value proposition needs to clearly convey to leads why your offering is the best solution to their needs.
2. Offer Free Trials and Demos
Because SaaS is an intangible product, free trials and demos can be an invaluable way to boost sales numbers. Offering a SaaS product without any type of demo or free trial is a bit like selling a car without allowing prospective drivers the option of a test drive.
Most leads don’t want to blindly go into a SaaS purchase, especially if it’s something pivotal to their operations, such as a police records management system (RMS). Instead, they want to be able to find out whether or not the law enforcement software will truly fit their needs, see its interface, and how it works live in action.
3. Offer Discounted Annual Plans
The SaaS sales cycle tends to be longer than for a lot of other products and services. Leads have to establish whether or not your offering is the right fit for their needs, and worthy of the onboarding process.
However, once they have, a certain number of buyers may be willing to take out an annual plan, especially if it’s at a discounted rate. Offering discounted annual plans can be very advantageous for a SaaS company, as it can boost cash flow and reduce churn rates.
4. Prioritize the Onboarding Process
It doesn’t matter how great your SaaS sales numbers are; if you don’t pay attention to the onboarding process, you’re likely to lose customers and drive up churn rates.
According to statistics, an acceptable churn rate on SaaS sales is 5-7% per annum.
If your churn rate is high, there’s a good chance that your onboarding process isn’t comprehensive enough. A bulletproof onboarding process that helps customers successfully migrate data and activate and configure their account is vital for customer retention.
Onboarding can be a big friction point in the SaaS sales cycle. If customers don’t have a seamless onboarding experience, there’s a big chance they’ll let their subscription lapse and look for an alternative solution.
Looking For More Sales Strategies and Tips?
Marketing is a vital ingredient for the success of any business, but it’s particularly critical for B2C and B2B SaaS. Because they’re intangible, SaaS tools and solutions require specific marketing and sales strategies.
If you’re looking to boost sales as a SaaS company, make sure you zero in on your target market, look into offering free trials and demos, offer annual discounts, and prioritize onboarding processes.
About the Author
Kevin Ruef co-founded 10-8 Systems, a company that focuses on Computer-Aided Dispatch (CAD) Software for public safety. Kevin has exceeded multiple companies’ sales records (both domestically and internationally). With more than a decade in sales, his experience ranges from B2B, B2G, and B2C. Since the company’s start in 2019, Kevin has been responsible for business development, strategic partnerships, and business operations.
