7 Best Strategies on How to Sell SaaS to SMB

How to Sell SaaS to SMB


If you’re selling a SaaS product, then you may want to tap into the small and medium businesses (SMB) market. According to BMC Blogs, nearly 80% of small businesses in 2022 have invested in a SaaS solution. 

This is because smaller companies find better benefits than large corporations. And why would it not be the case? After all, the subscription-based pricing model of SaaS allows for a low entry barrier and flexible agreements. Also, it comes with a lower need for in-house IT expertise as well as resources.

Now, the challenge for you is convincing them to buy your SaaS product specifically. With so many SaaS companies vying for the attention of SMBs, it’s truly become a competitive space. 

Aside from convincing SMB owners to subscribe to your SaaS product, you also have the challenge of keeping a low churn rate. According to another report by Tomasz Tunguz, SMBs switch products more often because of the low cost of switching. As a result, the annual churn rate for SaaS companies targeting the SMB market is quite high at 58%. Quite intimidating.

With such intimidating challenges, how could you close the deal and retain SMB owners on your side?

Well, with these seven strategies we’ll share, in mind-both online and offline-you’ll be on your way to close more deals with SMB owners and keep them happy with your SaaS product. Let’s begin.


Approach SMB owners in person as much as possible


When you meet with SMB owners in person, you may not have enough time to go through a long enterprise sales pitch. But that’s okay. You can still get a lot done just by talking about them –  what they need and what their business is all about. This will give you a lot of insight into how your SaaS can help them, and what kind of approach will be most effective even if you only have a few minutes to talk. And once you do get that opportunity, chances are that they’ll see how your SaaS can benefit them, even if they don’t buy or subscribe to it right away.

Don’t forget that even if you’re not selling to them directly, building relationships with SMB owners can be beneficial in the long run. They may eventually become customers or partners, or they may be able to refer you to other potential customers.

Also, take these opportunities to get a better idea of what your target customers need and how they run their business. This way, you can keep your finger on the pulse of the SMB market, and tailor your SaaS product and marketing even more effectively towards your target customers.


Sell Results, Not Features


“This is my product, this is what it does and this is how you can use it in your business”.

This pitch doesn’t work for anyone because an SMB buyer is not going to be interested in all of the feature list and jargon that you have created in your SaaS product. What they want to know is how your SaaS will solve their problem! They care less about how many fancy features are built in your application.

When you’re selling to SMBs, you have to focus on the results that they will get from using your software. This means that you need to do your research and know what their specific needs and wants are. This includes understanding their BIGGEST pain points. Only then can you properly position your product as a solution to their problem.

Here are some tips on how you can do this:


1. Use case studies and testimonials


One of the best ways to sell your SaaS to SMBs is by using case studies and testimonials. This is because it allows them to see how your software has helped other businesses in a similar situation. It’s also a great way to build trust and credibility with your potential customers.

When creating case studies, make sure to focus on the results that the customer achieved. For example, if your software helped them increase sales by 20%, be sure to mention that in the case study.


2. Focus on the benefits, not the features


As we mentioned earlier, SMB buyers don’t care about all the features of your software. What they want to know is how your software is going to benefit their business.

So, when you’re selling to SMBs, make sure to focus on the benefits that they will get from using your software. For example, if your software helps them save time, be sure to mention that in your pitch.


3. Keep it simple


When selling to SMBs, you need to remember that they don’t have a lot of time on their hands. This means that you need to make your pitch as concise and straightforward as possible.

Don’t try to overwhelm them with too much information. Just give them the basics and let them know how your software can help their business.


4. Offer a free trial


One of the best ways to sell your SaaS to SMBs is by offering a free trial. This allows them to try out your software and see if it’s a good fit for their business.

Just make sure that you set a time limit on the free trial so that they don’t forget about it. And be sure to follow up with them after the trial is over to see if they’re interested in purchasing your software.


5. Offer discounts


SMB buyers are always looking for a good deal. So, if you want to selling your SaaS to SMBs, be sure to offer them discounts.

For example, you can offer them a discount if they purchase your software within a certain timeframe. Or you can offer them a bulk discount if they purchase multiple licenses.


6. Make it easy to buy


When selling to SMBs, you need to make it easy for them to buy your software. This means that you need to have a simple and straightforward purchase process.

Don’t try to upsell them or add on too many extras. Just let them purchase your software and be done with it.


7. Provide excellent customer support


SMB buyers expect excellent customer support. After all, they’re entrusting their business to you. So, you need to make sure that you provide them with the best customer support possible.

This includes having a knowledgeable and friendly customer support team that is always available to help them. It also means providing them with detailed documentation and training materials.


Let them know that you can save them time and money


SMB owners are known to find a better and cheaper solution for their problems. This includes adopting SaaS solutions to make their work more efficient, provide better customer service, and scale their businesses. As a SaaS founder, you’re in a good position to solve these problems. And what’s a better way to convince them than to let them know that you can save them time and money.

If you’re selling a productivity app for SMB’s, tell them how many hours per day their sales people are wasting on looking up contact information and manually updating the CRM system. Then show them what their ROI would be once they switch to your SaaS and get all those hours back.

Here are more examples of how you can show prospects that they can save money using your SaaS: 

  • Provide a free trial or demonstrate of your product or service
  • Make it easy for them to switch from an old system to yours by providing training, support, integration services and other value-added extras.
  • Offer them a money back guarantee
  • Give them access to customer testimonials, case studies or other proof that your product works
  • Offer a free consultation to discuss their needs and determine if there’s a fit between what they have now and what you provide
  • Offer discunts on a monthly or quarterly basis


Be Prepared to Negotiate a Discount


You may have already noticed that the customer is interested in negotiating a discount over the phone or in person. If you see them nod, ask them if they would like to negotiate a discount. They will probably say yes. Once they agree, ask them what kind of discounts they would prefer: percentage or dollar value? For example, before negotiating with a potential customer who wants to buy your services but doesn’t have enough budget for it now and needs some time for payment options – ask them what kind of discounts/payment terms will make them feel more comfortable about buying from you today.

On the other hand, if a customer contacts a SaaS founder to negotiate a discount, the best course of action is to respond promptly and politely. However, if the customer’s demands are unreasonable or if they refuse to cooperate with the company’s terms and conditions, it may be necessary to terminate the relationship.

The key is to know your value proposition and what the other party is willing to pay for it. It also helps to have pricing data ready so that you can come with a proposal that is reflective of your business and what buyers are typically willing to pay. A good rule of thumb is to start low and ask for more if the buyer feels that you are worth it. Finally, be persistent – don’t let the opportunity slip away!


Follow Up After an Initial Meeting


The best salespeople always follow up after an initial meeting, and we can learn to do so as well if we hope to close more deals with SMB owners. So make sure you reach out and connect with them again after your first meeting. A simple phone call or email can go a long way in maintaining the relationship and keeping the sale alive. 

But remember that it’s important not to come on too strong or pushy at this stage of the sales process. Asking for or forcing a commitment too soon can make it seem like you’re trying to pressure your prospect into buying something he doesn’t need or want. This gives you a bad impression from their POV.

On the other hand, when you’re successful at selling to an SMB owner, don’t be afraid to ask for referrals. There’s a good chance they’ll be happy to refer you to other potential customers. So always ask for referrals and follow up with those leads as well.

Asking for a commitment too soon can make it seem like you’re trying to pressure your prospect into buying something he doesn’t need or want. 


Use social media to get leads, but only if it’s a good fit


Social media is a great way to get leads. If you’re targeting mid-size businesses, chances are, they’re on social media. However, the bottomline is that it’s important to know where your target customers hang out so you can use that knowledge in your marketing strategy.

Twitter seems to be an underutilized tool for many SaaS companies. It’s a great platform for connecting with prospects and getting them interested in what you have to offer or build rapport with potential customers who already love your product. Don’t be afraid of using social media as part of your overall lead generation strategy. Just don’t spam people with content that doesn’t provide value!

As a SaaS company, you need to focus on building a solid social media marketing strategy that will attract and bring in qualified leads. But if you don’t have time to manage all the different platforms or just don’t feel like it’s worth it, consider hiring a social media manager instead.


Take advantage of networking events whenever possible


Sometimes, it’s easy to forget how many networking events are available all around you. You may be especially tempted to skip them because they’re more time-consuming than emailing a potential customer or sending cold calls on the phone. But there’s a lot of value in making connections with people who can help you get new customers.

If you’re not familiar with the concept of “networking,” it simply means meeting and talking with other colleagues about your industry and career path-or in this case, about SaaS products that might be useful for their business needs. Networking events can be great opportunities for getting in front of potential customers because those attendees have already expressed interest in what you do!

If nothing else comes out of your networking efforts at these events, at least let them give you valuable insight into whether or not your product is addressing problems they want solved-and what they like or dislike about how other SaaS companies solve those problems (or don’t).


Make your message count


As a SaaS entrepreneur, you have to make a good first impression. This may seem obvious, but we often forget to consider how our prospects are spending their time and energy.

SMB owners are busy and usually have little time to talk. That means that you might have less than 5 minutes to grab their attention and pitch your offer. So what can you do?

First off: be prepared! Before starting any conversation with an SMB owner or decision maker (DM), it’s always best to know as much about them as possible so that when it comes down to making your pitch, there won’t be any surprises along the way.

Second, it’s important to speak clearly and confidently. Don’t try to be overly formal or use industry jargon unless you know that they’ll understand it. Instead, speak in plain language with your prospect so they can easily follow along with what you’re saying. And don’t forget to smile. Smiling makes it easier for people to trust what you’re saying!

The key to success when given these little windows of opportunity is building rapport with your prospect. It’s important to remember that you’re not only pitching an offer. You’re also trying to make them like you so that they’ll want more information from you later on.


Final Thoughts


If you’ve read this far, it means that you are interested in learning more about how to sell SaaS for small businesses. As we’ve discussed, there are a lot of different strategies and tactics that can help your SaaS sales team find success with SMBs. In the end, though, it all comes down to how well you can understand their needs and provide solutions that solve those problems.

If you need more help in growing your SaaS business, don’t forget to check out our blog


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Ken Moo