The 5 SaaS differences

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Selling anything is not easy. Anything you try to sell has similar selling methods and different selling methods. The SaaS differences are,  however, a little more significant than the other differences.

SaaS is not a product

Try to explain SaaS to your grandmother, or to your no-tech-savvy husband or wife.

Probably you can make them understand the concept, but selling them your SaaS company services is not going to happen. You can’t touch SaaS, you can’t show a SaaS and every SaaS is different.

Even though probably everyone can benefit from technology, there is a lot of people who are terrified only by thinking about working with computers.

You have to make them know that you’re selling something useful even if they haven’t thought about whether they need it or not

Selling SaaS you are in control

When you are selling SaaS you have the total control about what you are selling, so giving away your product is good: as soon as you want, you can take it away, so don’t be afraid of giving away demos, trials, etc. Every single SaaS company offers free trials and it is for a reason.

You must keep your clients happy

According to Gartner, customers in SaaS are long term clients. 80% of your earnings will be provided from 20% of your current clients. So a little increase in retention will give you big profitability. Keeping your clients is more important than getting new ones. It is like that in every company, but in SaaS is even more important than in any others.

You are selling a service

You are not giving products, you are not running out of inventory. You don’t have problems with too small warehouses. You are giving a service. Giving a Software as a Service. So you have to focus on what makes a service great: after-sales service, customer care and, of course, a great service, that means, in this particular circumstance, a software that works, that is reliable and that is useful for your clients.

Selling SaaS is (usually) a fast process

Because of two reasons:

The first one: Selling SaaS is done automatically. If you have a pub or a bread shop you can’t attend more than a client for each worker. If you are selling a car or real state you need to stay weeks with your clients until you see the money. In SaaS, however, you can sell to a lot of persons at the same time.

SaaS is instantaneous. Also, is not a common B2B. I mean: is not slow, you don’t need to use your time having lunch with department directors, you don’t need to invite them to things or to negotiate. SaaS is cheaper than other products and is used by small teams of persons in the companies. Also, if your service doesn’t work, is easy to move from a service to another.

Yes, of course, there are some services that are used by the whole company. Ok, in these cases, probably, is not so fast to deploy. But usually, the first sales are made in a fast and standardized way.

So the SaaS differences are not exactly advantages, not exactly disadvantages, but you must know them if you want to start a SaaS business and consider them if you already have one.

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