Tips to sell your SaaS product

7 Effective Ways To Sell Your SaaS Product [2 Bonuses]

Table of Contents

1. Keep your trials short

It looks like a long trial is a good way to hook your customer, but it’s not. In this way, you are really hurting your startup/organization. For most of the Startups/SaaS businesses, trials should not be more than 14 days. Here are the reasons:

Most people don’t use trials for the full duration.

If you have a look at your data, then you will see that the majority of the users duck out in about just 3 days. For tracking and analyzing this data, you can use mixpanel. For and help in setting up mixpanel, you can hire Rethink UX.

Users take short trials more seriously than long trails.

If you give your prospects long trials, they procrastinate and when they procrastinate, they forget. If you have a shorter trial period, your prospects will be more serious to use the product immediately and make a decision.

Reduced customer acquisition

If you shorten your long trials, you also shorten your sales cycle. And it’s obvious that if you shorten your sales cycle from 4 weeks to 2 weeks, it will significantly reduce your customer acquisition cost.

If you are still not convinced to shorten your trial, I would like to remind you that most of the successful SaaS companies. They don’t  have more than 14 days of a free trial like hubspot, zoho, gsuite.

Tip: You can always offer an extension of your free trial by sending an email to that user. You can contact trial users and ask “Do you want me to extend your free trial?” It’s a great way to initiate a conversation with your trial users. And this will also show them that you are more customer-centric.

2. Optimize your email campaigns

You should have a mind-blowing email campaign to convert your trial users into paid users because most of the prospects will forget you within some time of enrolling in your trial. Let me share some tips to get the most out of your drip email campaign which will help you convert trial users into paying customers.

Always use “human” email addresses.

Never ever send an email from a department. Instead of “[email protected]”, always use “[email protected]”.

Send a lot of emails. YES, SEND A LOT OF EMAILS

Christoph Janz’s, advice to SaaS founders is, “If no one is calling your emails ‘spam’, maybe you’re not sending enough emails.” By the way, he is one of the most successful SaaS investors of all time.

Prefer sending activity-based emails.

Your drip campaign should automatically email your leads for a number of events, including when they sign up, visit the account or cancellation page, and if their trial is about to end.

We at Rethink UX help SaaS businesses to automate their drip campaigns using various tools like activecampaign, getresponse, etc. so that they can get the most out of it.

3. Call your trial signups immediately


Most of the SaaS businesses don’t call their trial users immediately. If you are a B2B SaaS startup, then consider calling your trial users. You should call every single trial user within 5 minutes of the signup. If you do that, you will get a huge benefit out of it. It’ll:

Drastically improve your reach.

There’s a high chance that the prospect is still at their computer with your product opened or have your product in your mind. The longer you wait, the less likely your trial user is to answer.

Quickly able to qualify or disqualify prospects.

Always make sure that your solution is the right fit for your prospect’s needs before you go ahead to offer and close the deal.

The business that understands their customer, owns the customer. You need to own the customer and for that, you have to pick up your phone and know your trial users or they’ll never become your customers.

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7 Effective ways to Sell SaaS Product
[2 Bonuses Included]

4. Give short but value-focused demos

Don’t give demo sessions like a training session. Your customer doesn’t need to see every little thing that your SaaS product does. They just want to know how your product will help them to be more successful. So here are the things you need to take care of:

Qualify first.

Never use demos as a qualification tool. You should always qualify your leads before giving them a demo.

Keep your demo short.

Yes, 30–60 minutes is way too long. If you are not able to explain how your product helps your prospect in just 15 minutes, either you don’t know your product or your prospect.

Focus more on benefits, and not on features.

Your prospect doesn’t want to know about every little button on your interface. Just tell them how your product will help them.

Always remember a successful product demo is a demonstration of value, not a training session. You’ll be much more effective if you understand the difference between the two.

5. Follow up relentlessly

You can rarely close any deal on the first call and if the product’s cost is high, there is always very little chance to close the deal (you can even say no chance).

Startup sales success only depends upon how frequently you are following up with your prospect. Now the question is how often you should follow up?

And the answer is quite simple. i.e, Keep calling and emailing your prospect until you get a clear ‘Yes’ or ‘No’ from your prospect.

Try to follow this 14-day plan:

Day 1: Initial contact.

Day 3: First follow-up.
Try to reach out at a different time of the day with a condensed version of your initial message.

Day 7: Second follow-up.
Reach out at a different time of day and restate your call to action.

Day 14: Third follow-up.


If you haven’t received any response from your lead, send the break-up email. This is where response rates skyrocket many times.

Here are some examples of subject lines for “Breakup Emails”:
Goodbye from Gaurav
Thank You from Gaurav
Should I stay or should I go now?

Email body should be like:
We are in the process of closing the files for this month. Typically when I haven’t heard back from someone it means they are either really busy or aren’t interested. Do I have your permission to close your file?

If you are still interested, what do you recommend as a next step?
Thank you for your help.  

If you don’t receive a response to your break-up email, move on to more promising leads.

6. Set your product prices (really) high

SaaS companies who rely on their product pricing to be competitive aren’t confident enough in their products. They think the only way they can become viable is by devaluing their solution.

Always keep in mind that ‘Pricing shouldn’t make your product competitive—value should’.

Learn from Cloudsponge and experiment with pricing. You’ll know you’ve got it right when:

  • Out of all, 30% of your prospects say, “You’re crazy, I would never pay that!”
  • Another 30% of your prospects say, “Your product is really cheap.”
  • And 40% of your prospects say, “Your product is expensive but worth the price.”

So, the moral of the story is: It’s okay to be expensive for some prospects. In fact, you should keep in mind that if you never lose deals because of pricing then your SaaS product is too cheap.

7. Sell prepaid annual plans

Startups love SaaS products because of the flow of monthly revenue. I completely understand that these plans may give them a monthly flow of revenue but it’s a slow trickle. 

And when you are talking about growing your SaaS startup you need a waterfall of revenue, not just a trickle.

So always consider offering your prospects discounted rates if they buy a prepaid annual plan of your solution.

Although this may bring down your overall revenue, it gives you immediate access to a substantial cash flow. You can use this revenue to hire a sales team that will expand you in new markets or help you improve your product.

Download FREE ebook Now

7 Effective ways to Sell SaaS Product
[2 Bonuses Included]

BONUS TIPS

[Bonus 1] Don’t give discounts

Discounts might seem like a great way to onboard your prospects, but they will end up doing more harm than good for sure. You should not sell SaaS like this. Here are the reasons:

These discounts make salespeople lazy.

It’s hard to sell prospects on value and easy to lower the price if you start giving discounts.

Discounts will make predictable revenue impossible.

If every new customer pays a different price, there’s no way to know what your revenue will look like the next week, let alone the next year.

You need a strict discount policy, and you need to stick to it also. Outside of prepaid annual plans, we recommend not offering discounts at all to our clients.

[Bonus 2] You should never close a bad deal

Never ever sell to unqualified leads. When you sell to an unqualified prospect, they aren’t going to be successful.

They’ll have a lot of complaints and require a ton of support. These customers demoralize your team with negative feedback and start spreading bad reviews online.

And they’ll be right because It’s your responsibility to prevent bad customers from buying your product. Make sure to properly qualify every lead with these four steps before sales:

  1. Create an ideal customer profile
  2. Identify your prospect’s needs
  3. Figure out their decision-making process
  4. Determine your competition

Complete these 4 steps and you will get to know whether this prospect is the right fit for you or not. This is how you should sell SaaS the right way.

Conclusion

SaaS sales is hard, but it isn’t impossible.

So share this article with your team and make sure everyone on your team knows how to sell SaaS.

And If you need any help regarding anything related to SaaS, we are always there to help. You can hire us for SaaS design, SaaS development, and SaaS marketing.

Download FREE ebook Now

7 Effective ways to Sell SaaS Product
[2 Bonuses Included]

 

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