Many businesses are trying to unlock the door to achieving rapid growth backed by an exceptional customer satisfaction rate at a relatively low customer acquisition cost. Such inspiring product-led change is achievable through SaaS sales only!
The inventive SaaS sales model is revolutionary, making it easier for businesses to access in-demand software services, avoiding the hassle of purchasing them. Presently, the United States has more than 15,000 SaaS businesses. The number magnifies yearly, and Gartner predicts the SaaS market will grow, exceeding $171,915 million by the end of 2022.
What makes SaaS more interesting is its power to attract prospective customers daily. The software is usually offered free for the first time. Later, they can upgrade to a paid plan. And psychology confirms that when something is free, more people are inclined to try it. Hence, there is no way SaaS is ever going to stop!
Understanding the Concept of SaaS Sales
At a time, getting hands on a piece of software was difficult. Businesses had to purchase physical copies of software through CD, DVD, or floppy disks. However, the high-speed internet revolution made the dream of owning digital copies a reality. So, what role does SaaS plays?
SaaS has replaced the need to purchase a digital copy of the software. Now businesses can "rent" it through a subscription model. Software as a Service (SaaS) is making it possible!
Businesses no more need to install different applications on their computers. Instead, they can access the software from cloud services anywhere they desire. The concept of the same computer with the said application is also outdated. SaaS allows remote access with simple internet connectivity.
So, what's the impact of the SaaS model on sales? With such powerful changes, the sales model of SaaS gets unique. Instead of pitching the solution in the shape of software for the businesses and choosing another prospect, SaaS sales make it different. It allows the application owners to keep engaged enterprises to subscribe to their software with monthly or annual payouts.
The concept of a sales funnel doesn't apply to SaaS sales. The SaaS sales services are now more of a continuous purchase cycle with no designated end time.
The SaaS products cater to both B2B and B2C marketplace. For instance, the B2C SaaS sales platform is Canva. Whereas, for the B2B consumers, the products are Shopify, Adobe, Salesforce, etc.
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SaaS Sales Models
The Cloud Vision 2020 study by LogicMonitor claims that agility and scalability are the core motivators for SaaS application usage in modern times.
Even though SaaS sales revolve around subscription-style pricing, there are some SaaS sales models that businesses need to consider. Professionals looking for an active role in SaaS sales should know these three models to operate with significance.
- Customer Self-Service
The customer self-service model is an ideal solution with no obligation of having a sales team. However, for such a model, the customer should be willing to serve themselves without assistance. Netflix is the leading example of a customer self-service model.
- Transactional Model
Once the complexity of the product increases, the transactional SaaS sales model becomes active. A sales representative deals with the customers and assists them before purchasing. It allows the customer to clear their ambiguity.
In the enterprise SaaS sales model, the subscription solely depends on the conversation with a person. Pricing and packages get customized as per the requirements of the customer. For instance, businesses inquiring about a custom quote to accommodate many users and other features simultaneously.
Techniques to Boost the Sales
Did you know that 99% of the leading businesses are using at least one SaaS solution for their business?
Following are the ways to boost SaaS sales in 2022.
- Set Up Live Call
If your software has many nooks and difficulties, the best course of action is to set up a live call for support. It will help them understand the product and its features and educate them on the correct usage.
- Demo & Webinars
It’s a semi-personalized way where the sales representative can explain the features and benefits of the software to a live audience. It will cater to a larger audience with easier access.
Moreover, with webinars and demos, users can learn a lot, and with an in-depth knowledge of using your SaaS product, they can be tempted to make a purchase.
- Free Trials
Through a free trial, your prospect customer can check the features and functionality without interaction. It will increase curiosity and brand loyalty and builds trust. Many SaaS companies are using this technique to gauge users for their platform.
- Annual Discounts
Instead of asking to pay your customer the total price, the best tactic to skyrocket SaaS sales in 2022 is to cut a small discount on the yearly plan. Many businesses even provide deals on specific packages with a monthly subscription and engage users for a whole year.
These kinds of deals can make a huge difference in the overall sales of your SaaS company.
There is no rocket science in boosting SaaS sales. However, it's crucial to understand the difference, create awareness, and differentiate them based on sales models. Your SaaS sales will skyrocket in no time!
Moreover, if you are still not convinced, you can always consult a professional from Softception who can help you alleviate your sales model like nothing else.