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Selling Your SaaS Business: 6 Tips for Startup Sales Success
The SaaS industry has thrived in the past few years, and will only continue to grow as the market value is predicted to reach USD 21.9 Billion by 2027.
The opportunities in this industry are massive and this is your chance to grow your SaaS startup business. However, since there are other businesses looking to seize the same opportunities, you might face fierce competition in the marketplace, with competitors who are after the same target users.
If you’re looking to grow your business even further and learn how to sell SaaS business assets and attract brokers, you’ll need to have a unique value proposition and implement the best strategies to increase the number of customers.
Keep Trials Short with SaaS
At first, a long trial might look like a good way to grab a hold of your customer but in reality, you’re just causing pain to your startup. However, a common recommendation is that 99 percent of startups should limit their trials to 14 days at the most. The main reason for this is that the vast majority of trial users don’t use free trials for the full duration. They take short trials more seriously and are more likely to try the product immediately after.
When the trial is shortened, you also shorten the sales cycles and with this, you can significantly reduce your customer acquisition costs.
Use Social Media
Everyone who actively uses social media knows how great these platforms can be to raise brand awareness and promote products and services. The basic rule of thumb is to conduct a marketing campaign to attract customers.
Social media also helps you boost your business’ credibility and it gives you space where you can post about the services you’re selling, present your team and explain what causes you care about. All of this will ultimately show that your business is credible.
The basic purpose of social media is to create social interactions and this is where engagement comes into play. By being present on social media, your customers will be able to comment and like your posts, send you messages, allowing you to create a loyal community.
To build something that customers need and are willing to pay for, you must never stop conducting extensive customer research. Whatever you plan to build, you must first make sure that your potential customers will be interested in the idea.
Never make wild guesses but be bold and talk directly to your ideal customers. If you’re uncomfortable or hesitant about holding in-person conversations, conducting surveys, or making video calls, then you might want to reconsider building a SaaS product.
Work on Your Product and Pricing for SaaS
If you want to succeed as a SaaS company, then you should always work on improving the product’s potential and growth. The value of your product will increase with every improvement, which will translate into an enhanced Average Revenue per User (ARPU) for your SaaS business.
As your prices increase, so will the ARPU. However, when you increase the rate, you must support this with an enhanced product and a clear strategy in place. You must be open and transparent with your clients and share the reasons behind the decision to the price increase.
Optimize Email Marketing
If you don’t remind your prospects to sign up for a trial via email, soon enough you’ll come to see that they’ve forgotten all about you. Email marketing is one of the bulletproof ways to convert prospects into customers but make sure to leave a personalized stamp on your email messages.
The emails should be authentic and convincing, so make sure to consult with your sales team, if you want to boost the response rate and chances of getting the sale.
Try to trigger your messages based on user actions and behavior and send them when the reader is ready for them. If, for instance, someone hasn’t engaged with you in a while, then it could be high time for a re-engagement email.
Although discounts may seem like a perfect way to attract reluctant prospects, when it comes to selling SaaS, they might do more harm than good.
Unfortunately, when discounts are an option, your salespeople might get a bit lazy and abuse this option. Also, discounts make it difficult to predict revenue because it’s impossible to calculate what your revenue might look like in the future if every new customer ends up paying a different price.
If you do decide to offer a discount, introduce a strict discount policy to avoid harming your brand.
Final Thoughts on SaaS
There’s no doubt that SaaS is here to stay. But to reach startup sales success and entice people, try applying these tips and increase your chances of excellent results.