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How To Create A Unique SaaS Sales Strategy That Actually Works

Sales SaaS Strategy

As a startup founder, you know that in order to be successful, you need to have a sales strategy that works.

But what if you’re not sure what constitutes a “working” sales strategy? And even more importantly, how can you create a unique selling proposition (USP) for your SaaS company when so many others seem to be doing the same thing?

This blog post is intended to help guide you through the process of creating and implementing an effective sales strategy for your SaaS business.

We’ll start by discussing some key factors to keep in mind when devising your plan such as the most common SaaS sales model, challenges in SaaS sales, and the key metrics for tracking your efforts, then we’ll move on to outlining a few specific strategies that have proven successful for other SaaS startups. So read on – your success depends on it!

 

3 Common SaaS Sales Models to Consider

 

Here’s a look at the different types of sales for SaaS companies, along with the pros and cons of each:

 

Traditional Sales

 

Traditional sales involve a salesperson working with a customer to close a deal. This can be done in person, over the phone, or even via email.

Traditional sales are important because they allow you to build relationships with customers and understand their needs.

However, traditional sales can be time-consuming, and it can be difficult to scale if you’re relying on a limited number of salespeople.

 

Enterprise Sales

 

Enterprise sales involve selling to large organizations with complex needs. Enterprise deals are usually much larger than traditional deals, and they often involve multiple decision-makers.

As a result, enterprise sales can be very time-consuming and complex. But if you’re successful, enterprise deals can be extremely lucrative and help you grow your business quickly.

 

Customer Self-Service

 

With customer self-service, customers can sign up for and use your product without ever speaking to a salesperson.

This is appealing to many customers because it’s fast and convenient. However, it can be difficult to upsell customers who sign up for self-service, and you may miss out on important feedback if you’re not talking to your customers directly.

There are pros and cons to each type of sale, but ultimately it’s up to you to decide which type of sale is best for your SaaS company. If you’re looking for quick growth, enterprise sales may be the way to go.

If you’re focused on building long-term relationships with customers, traditional sales may be the better option. And if you’re looking for a convenient way for customers to sign up and use your product, customer self-service could be the answer.

No matter which type of sale you choose, focus on delivering value and creating a seamless experience for your customers.

 

The SaaS Sales Strategies

 

The following are the different types of SaaS sales strategies:

 

#1 Get your pricing right

 

It’s essential to have a pricing strategy that takes into account the perceived value of the product, the competition, and the company’s costs.

For example, if the product is seen as being highly valuable by the target market, it can be priced accordingly. However, if there is a lot of competition in the market, it may be necessary to lower the price in order to attract customers.

It’s also important to make sure that the price covers the company’s costs, such as development and marketing, so that the business can be sustainable in the long term.

 

The Veblen Demand Paradox

 

SaaS sales are often driven by what is known as the Veblen Demand Paradox. This paradox occurs when customers are willing to pay more for a product that is seen as luxurious or elite. In other words, SaaS products that are seen as being desirable can command a higher price point.

This effect is often used by SaaS companies to drive up sales and revenues. By creating an aura of luxury around their products, SaaS companies can encourage customers to see their products as being worth the higher price.

 

SaaS Pricing Models and Strategies

 

SaaS companies typically use one of three pricing models:

  • Subscription: It typically involves a monthly or annual fee.
  • Usage: Customers are charged based on how much they use the software.
  • Feature-based: It charges customers based on the features they use.

SaaS companies generally use a combination of these pricing models to maximize revenue.

Check out Your Complete Guide To SaaS Pricing for more information.

 

#2 Focus on selling a methodology, not a product

 

SaaS companies need to shift their sales strategies and focus on educating their prospects about the benefits of their methodology.

By doing this, SaaS companies can establish themselves as thought leaders in their industry and build trust with their prospects. Once a prospect trusts a SaaS company, they are more likely to do business with them.

 

#3 Offer a free trial

 

By offering potential customers a chance to use your product for free, you can quickly generate interest and build trust. Furthermore, a free trial can help you to identify potential customers and assess their needs.

However, it is important to design your free trial carefully in order to maximize its effectiveness.

 

Freemium vs free trial

 

The difference between a freemium product and a free trial is that a free trial allows you to use the product for a limited time before you have to pay for it. A freemium product is free to use forever, but there may be limited features or functionality.

For example, a free trial of a software program might give you access to all the features for 30 days, after which you would need to purchase a subscription. In contrast, a freemium program might offer a basic version that is always free, but you would need to pay to access premium features.

When deciding whether to use a Freemium or free trial version of a product, it is important to consider what you need from the product and how long you need it for. If you only need temporary access to a product, then a free trial might be the best option. However, if you plan on using the product long-term, then Freemium might be the better choice.

 

How to make good freemium and a good free trial

 

The key to building a good freemium or free trial lies in understanding your SaaS product and your buyer. What are the core features of your product that your target buyer would find valuable? Once you have identified these features, you need to determine how to make them available in a way that doesn’t give away the entire farm for free. The goal is to provide just enough value to hook the customer, without devaluing your product

A good SaaS free trial should be long enough for the buyer to get a sense of the value of your product, but not so long that they see no need to purchase a subscription. Two weeks is a good length of time for most SaaS products.

In terms of pricing, it’s important to strike a balance between offering too much and too little value. If you offer too much value in your freemium or free trial, you risk devaluing your product in the eyes of potential customers. On the other hand, if you offer too little value, buyers won’t see the point in signing up.

A good rule of thumb is to offer a 20% discount on monthly subscription prices for buyers who sign up for a yearly subscription during their free trial.

You should also consider offering support during the trial period so that users can get help if they run into any issues.

Finally, make sure to follow up with users after the trial period so that you can convert them into paying customers.

 

#4 Focus on upselling

 

Upselling is a common sales technique where you attempt to convince the customer to buy a more expensive version of the product they were originally interested in. When done right, it can be an effective way to boost your sales and revenues. However, upselling can also backfire if it’s done too aggressively or without considering the customer’s needs.

When upselling SaaS products, it’s important to strike the right balance. On the one hand, you want to be pushy enough to close the sale, but on the other hand, you don’t want to push so hard that the customer feels uncomfortable or pressured.

The best way to find this balance is to focus on the value of the product and how it can benefit the customer. For example, if you’re selling a SaaS product that has a free trial period, you might want to highlight this feature when upselling to potential customers. By stressing the value of the product and how it can help them achieve their goals, you’ll be more likely to close the sale without putting them off.

In general, it’s important to remember that not all customers will be interested in upgrading to a more expensive version of your product. When upselling, always give the customer the option to say “NO” so that they don’t feel pressured into making a purchase they’re not comfortable with.

 

Importance of keeping churn low

 

SaaS companies live and die by their churn rate. In order to keep growing, SaaS companies need to continuously bring in new customers while also retaining the ones they have. A high churn rate indicates that a SaaS company is losing more customers than it is gaining, which is not a sustainable business model.

There are a number of sales strategies that SaaS companies can use to reduce churn, such as offering discounts for long-term contracts, providing concierge onboarding services, and proactively managing customer health.

 

#5 Align your sales and marketing teams

 

This means that both teams need to have a shared understanding of the company’s goals, target market, and messaging. For SaaS companies, this is especially important because the sales cycle is often much longer than it is for other types of businesses.

 

Ensure you constantly meet your customers’ needs

 

Some common strategies to do this include:

  • Stay up-to-date with customer feedback as it allows you to quickly address any issues that may arise.
  • Offer personalized support to show that you care about your customers and are willing to go the extra mile to help them.

 

7 Key SaaS Sales Metrics

 

Here are seven key metrics that every SaaS company should track:

 

Churn

 

Churn represents the number of customers who cancel their subscriptions or fail to renew their contracts. High churn rates can be a sign that a company is having difficulty retaining customers, which can impact sales and growth.

 

Monthly Recurring Revenue (MRR)

 

MRR measures and predicts SaaS growth. The goal is to grow the MRR at a faster rate than the customer churn rate. By doing so, the company can expand its customer base and eventually achieve profitability.

 

Net Promoter Score (NPS)

 

NPS measures customer satisfaction by asking customers how likely they are to recommend a company’s product or service to a friend or colleague. SaaS companies use NPS to track customer satisfaction over time and identify areas where they need to improve.

 

Customer Acquisition Cost (CAC)

 

CAC is a measure of how much it costs your company to acquire a new customer.

 

Close-ratios

 

The close ratio measures the number of sales opportunities that are successfully converted into actual sales. In other words, it tells you what percentage of your sales leads end up becoming paying customers.

 

Revenues per lead

 

This metric measures the average amount of revenue generated by each new customer.

 

Demo-to-trial ratio

 

This measures the number of free trials that are started divided by the number of product demonstrations that are conducted. It indicates whether or not potential customers are converted into actual paying users.

A high ratio indicates that customers are interested in using the product and are willing to start a free trial. A low ratio may indicate that potential customers are not finding enough value in the product to justify starting a trial.

Read What Are SaaS Sales Metrics? (And How to Use Them to Grow Your Business) for more tips.

 

4 Common SaaS Sales Challenges to Overcome

 

Below are seven common sales challenges faced by SaaS companies, along with some tips on how to overcome them.

 

Product issues

 

One main issue for new SaaS tools is that potential customers are often reluctant to invest in a new or unknown product, especially if it requires a monthly subscription.

To overcome this hurdle, SaaS companies need to create a LTV-positive sales funnel that demonstrates the value of their product.

This can be done through free trials, money-back guarantees, and other methods that give potential customers a low-risk way to try out the product.

Once customers see the value for themselves, they will be more likely to make a long-term investment.

 

Customer fit

 

This term refers to how well a SaaS company’s product meets the needs of its target customer base.

SaaS products are typically sold on a subscription basis, so customers need to be able to see the value in using the product long-term.

If a SaaS product doesn’t fit well with a customer’s needs, then it’s likely that the customer will cancel their subscription.

 

Lead quality

 

Because SaaS products are delivered through the internet, they can be used by anyone in the world.

This means that SaaS companies need to generate leads from a wide range of sources, including online and offline channels.

However, SaaS products are also typically sold on a subscription basis, which can make it difficult to close deals with potential customers.

In fact, data from Hubspot show that at least half of your prospects may not be a right fit for your product. As a result, SaaS companies need to focus on generating high-quality leads that are likely to convert into paying customers.

One way to overcome this challenge is to work with a lead generation agency that specializes in SaaS sales.

By working with an agency that understands the SaaS sales process, you can ensure that your leads are of the highest quality and are more likely to close.

Another way is to invest in lead management software that can help them automate the process of lead generation and qualification.

 

Objections

 

For SaaS businesses, common objections include concerns about price, security, and the learning curve.

While it can be tempting to simply brush these objections aside, it’s important to take the time to address them head-on. Some of the things you can do to overcome objections include:

  • Educate your sales team on the most common objections and how to address them
  • Build objection handling into your sales script
  • Offer free trials or money-back guarantees to give potential customers a low-risk way to try out your product

 

Final Thoughts

 

If you want to create a unique SaaS sales strategy that actually works, then you need to put in the time and effort. There is no one-size-fits-all solution, so it’s important to tailor your approach to fit your product and target market.

Remember to focus on delivering value, building relationships, and creating a great user experience. And don’t forget to track your progress so you can continue to optimize your strategy over time.

For more tips and resources on growing your SaaS business, be sure to visit our blog.

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Ken Moo
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