Things you should know about SaaS sales

As the SaaS industry tends to grow fast year after year, it is a perfect moment to start building a software services business. However, the more opportunities the industry offers, the greater its competition. The information gathered in this article will help you to choose the most effective SaaS strategy and adopt a sales model that best fits your business.

Saas sales principle

A consumer receives an essential benefit from using a SaaS model — no need to install, update, and support software. The software-as-a-service sales process looks like this: a vendor develops and manages an app and provides a service to its customers over the Internet. Customers work with a finished product without downloading anything to their computers. Instead of buying the software, users rent it on a subscription basis.

Metrics of software services

A crucial step is to understand SaaS’s core principles. Some metrics are essential, and it is very recommended to track them if you want to increase your business growth. The following SaaS metrics have always been among the most important:

• Churn —  deal with the churn issues promptly and satisfy your customers.
• Sales Funnel — increase the number of leads that enter the top of the funnel.
• Product — keep the product in the spotlight.
• Pricing — adopt a pricing system that suits your market segment.
• Segmentation — increase your investment rates into the most profitable segments.

SaaS sales model that worth to try

Choosing the right SaaS distribution model depends a lot on what stage of SaaS implementation your company is currently at. What you also need is a good marketing strategy to help you decide how many employees to hire, what method of customer engagement to use, and who your target customers are.

Client self-service

The ideal SaaS distribution model is complete customer self-service. However, this requires that your customers are willing and able to serve themselves. Smart customers understand the value of your product, but also how to buy it and how to use it. Willing customers see little risk and frustrated effort in a purchase.

Transactional sales

When the price grows, customers desire to know if there are actual human beings behind your website. The risk-driven need for a more interpersonal relationship drives the SaaS business model away from customer self-service into a transactional sales model, including efficient sales and maintenance support. 

Enterprise sales

Some SaaS startups have products that offer so much value per customer and are so complex to buy that their natural starting point is traditional enterprise sales. In this model, sales representatives cooperate with enterprises, and they usually try to negotiate high-value contracts without interacting with individual customers. 

What sale SaaS strategy is better to adopt

Referral programs and partnership

There are two ways the strategy can work. The first one includes customers that recommend your product to others for a reward when the second supposes sellers to build formal relationships with affiliates who direct potential clients to the seller websites or products for some compensation. 

Reseller programs

This program generates extremely low-income margins however it is considered one of the most attractive sales channels for SaaS vendors. The strategy allows companies and enterprises to concentrate on innovation and new software building while their partners deal with sales.

Applications markets presence

App stores such as Play Market and App Store are the best ways for SaaS product distribution. But there are many other store types with their characteristics: some use a store-like interface to generate traffic to vendor sites, others are add-on stores with API-based services that developers use to develop SaaS-platform-based apps. Stores like this offer SaaS products with no need to apply to third-party sources. It means that clients can make their purchases directly from the store. 

Self-service

It is one of the strategies we have already talked about above. The truth is that direct selling is the model that has always worked perfectly. Once you have your product, it is evident that selling it yourself is highly efficient.

Conclusion

Every SaaS company needs to meet its perfect sales model that perfectly fits all the enterprise requirements. With relevant strategy and useful tools adoption, you will be able to provide your SaaS business with constant growth and a high income.