Creating a SaaS is a great idea in the current times, but also, when talking about a novel business model, there are many mistakes routinely seen in most companies.
Not having long-standing know-how for digital business makes the transition difficult. Many entrepreneurs have been forced to move from their traditional businesses where there are defined characteristics, to a cloud model where the rules of play change completely.
Frequent SaaS Mistakes
As mentioned earlier, most companies that work with SaaS models often make some of the following mistakes during their product journey. Here are some of the ones that we consider most frequent and that most negatively influence the future of the company:
1. Unworked or low-trust website
When you decide to enter the digital business, you should be minded that your cover letter is your website. By this, we do not mean that it is the most important part for your company, but it is very influential.
Compared to a traditional business, the website could be the storefront of the business, where you can observe with the care, they treat the product, see what they do and observe its characteristics.
In a market where there is so much competition first impressions are key to at least have the opportunity to be seen. If a potential customer enters your website and sees it neglected, with a bad image, feature failures… you won’t hesitate to look for another alternative.
2. Hard-to-find prices
Following the same path as the previous mistakes, the price and its strategy when attracting the customer are very important. Having a defined model and following a pricing strategy will make it easier for you to turn your leads into a customer.
It is a very common mistake to observe how many companies make it difficult to find what their final prices are. This makes the customer get the impression that it will be a negative price for their restrictions or because it will be very high.
Put the price that is easy to find, that is in sight and that does not impede the customer.
3. Focus on selling rather than maintaining
Many of the entrepreneurs who have made this transition to the SaaS business do not understand that changing businesses also change priorities. In this case, in a SaaS business, we’re talking about a model that focuses on recurring revenue and not on secluded sales revenue.
With this, we mean that you must focus much of the effort on keeping happy customers who have already decided to be with you, attend to their problems and keep them.
4. Poor customer service
Complementing the point before, a good SaaS company is based on great customer service. That’s why many companies have a very large dropout rate, and their businesses survive, but they don’t make enough profit.
Re-setting an example, imagine in a physical store that independent is unpleasant, fails to solve doubts, gives you mistaken attention… Etc. With that attention, you will get no more products bought from you or simply that they do not make the first purchase.
Apart from this, the customer will leave unhappy and will not recommend to any acquaintance the visit to your site. Make sure that even if they don’t buy, customers recommend, they see you as a great company and good customer care.
5. Non-competitive prices
When you don’t have enough knowledge about how to set the prices of your product, what you usually do is research your competition and set prices like yours. Serious mistake.
It is a good method to observe the prices of the competition to know how the market is but copying its prices will be a mistake since your company will not be the same, your product will not be the same and your accounts will not be the same.
You can always look at the prices of the competition and add certain nuances, such as psychological ones to give it your differential point of the rest.
6. Not being integrated with other apps
Many of today’s customers will not only use your SaaS but will be complementary to other tools they have.
Worry that your SaaS isn’t a nuisance when it comes to integrating with other tools. Get the more integrations, the better.
7. Making it difficult to change plans
Continuing with the prices that the company must adopt. There is a multitude of pricing models that can fit your SaaS, but you need to be sure that these pricing models are flexible for customers.
The SaaS model seeks freedom of movement between the different plans, being able to add or remove people, features… Etc. Therefore, try to make it easy to move to higher or lower levels of pricing plans to achieve customer comfort.
8. Lack of communication
Communication with the customer has already commented that it is a vital aspect, but many times it is not that the communication is bad, but that it is non-existent or outdated.
Currently, it takes the use of chatbots, personalized attention, various ways of communicating, immediate communication… that is, customers want attention “at the moment”. This means that you must optimize those channels of attention, filtering messages efficiently and managing to solve easy problems in an agile way to focus customer service efforts on personalized attention.
9. Unpenetrated automation with customization
Linked to the concept of customer service and in the management of their development by our company, many SaaS choose to automate their emails to track the buyer. This automatically allows e-mails to be sent, offering different impacts for making purchases.
This action is fine, but you must try to spin very fine so as not to give a bad image to that client. You have to have a great scheme of when to do those automatic actions, but know when to happen to do something personalized, closer and human that gives the customer that image that you are aware of it. Not simply that a “robot” follows in his footsteps.
10. Be more reactive than proactive
We have commented that in a SaaS business we have to pay close attention to what customers tell us and act accordingly on them. We agree with that action, but before that, there is the saying of “better prevention than cure”.
By this, we mean that it is very good to know how to react to problems once they exist, and it is normal for this to happen. But we must have a forecast of future problems and try to act before they happen. This will make us generate fewer frictions with customers and be more efficient in other fields. If you need more help with your SaaS, do not