Saturday, January 6, 2018

Demo? Not so fast

For lots of us software-as-a-service (SaaS) marketers, the first thing we want to do with a new prospect is show them a demo.


They visit our website: invite them to a demo

They walk into our trade show booth:  show them a demo

They download a white paper, open an email, attend a webinar, whatever:  schedule a demo.

My advice:  Stop doing that.

If we rush into a demo before the prospective customer is ready for one, a few bad things may happen:

  • We miss an opportunity to learn more about the prospect
  • We spend time preparing and delivering a demo that doesn’t fit what the prospect is looking for
  • We don’t move the prospect any closer to a purchase.


First listen

If the very first time we have to talk with a prospective customer we push them to sit through a demo, we often don’t give them a chance to talk.  It’s too much “show & tell” and not enough “ask & listen.”

We don’t have a chance to find out who they are, what problem they’re looking to fix, and why they got in touch with us.   

In fact, we sometimes skip right over the “Sales 101” questions and don’t find out about their budget, time-frame, and the people making the decision.  We may not know if this prospect is even worth spending time with.

Stop spraying & praying

Without knowing much about the prospect and the problem they’re trying to solve, it’s tough to do an effective demo.  (See "Most demos are useless.")

Instead of focusing on how our solution addresses the particular challenge they’re struggling with,  we’re just marching them features, features, and more features.

Eventually we might hit on the issue that they really care about, but maybe not.  And the prospect might be so “demo-dizzy” by the time we get there, they miss it.

Leave time to build trust

Launching right into a demo often short-circuits any chance to build credibility and trust.  The meeting is all about the product… not about our company, our expertise, or our understanding of the prospect’s industry and their challenges. 

We’re asking the prospect (and maybe a few of their colleagues) to give up a chunk of their time, and they hardly know us.

There’s not much opportunity to establish a relationship, something that’s essential to selling SaaS solutions.  The customer isn’t buying a box of software; they’re buying into a long-term relationship.  (See "SaaS Marketing is about Promises, Not Products.")



Don’t get me wrong: demos are usually an important part of marketing and selling the solution.  At some point, the prospective customer wants to see it in action. 

But don’t rush into the demo until both you and the customer are ready. 










Saturday, December 2, 2017

​​​​​​​Beware: Too many leads!

I know this may be heresy to almost every marketer and sales person on the planet, but I’ll just say
it:  it’s possible to have too many leads.

Lots of the effort to generate new leads – those programs, events, campaigns and incentives we’ve
got in place to build more visibility, drive more traffic, and gather more names - might just be a waste of time and money.

How can that be?


Suspects, not prospects


One explanation: some of our lead generation efforts are attracting suspects, not prospects.  The people who find their way to our website, visit our booth, or open our emails aren’t the people our solution is built for.  They mistakenly think we can help them… but we can’t.

So, we spend more time and money following up with these folks – even having a sales rep call them - only to find out they’re a bad fit.  Chasing these bad leads doesn’t make us money; it costs us money. (See “Bad leads cost you money”)

The wrong kind of follow up


Another source of waste:  the leads get squandered.

A prospective customer finds out about our solution, and they raise their hand to indicate they’re interested.  But we respond in all the wrong ways.

Sometimes, the prospect never hears from us.  We’re so swamped with inbound inquiries, we can’t get back to them. 

Or we get back to them six weeks later, by which time they’ve forgotten why they ever contacted us.

Almost as bad, the prospect hears back from us, but we say the wrong thing at the wrong time. Often, they’re just beginning their evaluation, gathering basic information, and looking to educate themselves, but we’re chasing them to do a demo and close a deal. 

In either case – whether we ignore them or say the wrong thing - the prospect goes away.

Clarify the messages


When the wrong people find us - leads that will never turn into customers - often it’s because the prospect doesn’t understand our solution.  They can’t decipher our basic value proposition, and they’re confused about what we sell, who should buy it, and what problems we solve.  (See “Do your customers know what you sell?”)

If we describe our solution in techno-speak and blather on about “our unique, robust, industry-leading, real-time, AI-enabled, something, something platform,” it’s no wonder that the wrong people find us. 

Even worse, if our message is unclear, not only do the wrong people find us, but the right people don’t. Those who really could use our solution won’t figure that out.

It’s a double whammy:  Bad leads find us, and good leads don’t.

Look at the entire journey


By fixating on collecting leads, leads, and more leads, we might overlook what happens next in the process.  Once we’ve captured a lead, then what? 

When prospects evaluate most enterprise solutions, they move through several steps from lead to qualified prospect to paying customer.  And for software-as-a-service (SaaS) solutions, there are renewal and retention steps too.

Our customer acquisition process needs to follow along with each step.  If not, leads get stuck: 

  • We drive traffic to the website with SEO and PPC campaigns, but we don’t collect contact information, or,
  •  We collect contact information, but have no mechanism to follow up, or,
  •  We do follow up, but not with the kind of material the person is looking for, or,
  •  We sign up a customer, but we don’t market to them to ensure they renew or buy more.

We need to build a customer acquisition process that spans the entire journey.  Generating leads is only the first step. 
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Saturday, November 4, 2017

Don't undersell your SaaS solution

No matter how long the list of amazing features you offer, if you’re marketing a software-as-a-service (SaaS) solution, that’s not all you’ve got to sell.  You should be talking about the “non-feature” pieces as well.  If not, you’re underselling your solution.

That’s because prospects are usually thinking about more than just features when they’re evaluating a solution.  They’ve got other questions that you need to address:
  • Will the implementation disrupt our business?
  • Will employees use it?
  • Will sensitive data be protected?
  • Will competent support be available to help us out when we get stuck? 


Of course, prospects need to see a certain level of functionality.  You need to show that your solution has the features they need to handle the problem they’re trying to solve.  But once you’ve cleared that bar, prospects tend to focus on other issues. 

Fear of implementation failure

Why do those other issues matter?  Because prospects know there’s a difference between the demo and real life.

In the demo, prospects will usually recognize that your solution is far better than the one they’re living with now.  Once deployed, their lives will be easier. 

But they also know that getting from where they are now to what you’ve shown in the demo isn’t easy.  Navigating that transition can be risky.    

The last thing the prospect – perhaps an HR manager, sales executive, or finance person - wants is to gobble up lots of hours importing data, training users, setting up a new system, and disrupting the normal course of business… especially if it really isn’t worth the hassle.  That’s not a risk they’re willing to take.

It’s not all about the features

If your marketing efforts are only about touting features, features, and more features, you’re not addressing these other critical concerns.

Talking incessantly about “our solution does this, and our solution does that” or begging a prospect to sit through yet another demo probably won’t help push them toward a purchase.

Before they buy, prospects need to be satisfied that you can manage the “non-feature” issues.  That means you need to discuss implementation, training, and support in your marketing material.  You need to address their concerns about security, performance, and reliability.  And you need to give prospects lots of opportunity to see that the solution is easy to use. 

You can show prospects the proven, well-structured process you follow in importing existing data.  You can introduce them to the experts responsible for training and support.  You can present them with the security protocols you follow.  You can let them see proof of success through customer testimonials. 

All of this is required to address their “non-feature” concerns and reduce their risk of failure.  The lower the risk, the more likely they are to buy.

Saturday, October 7, 2017

Customers need to trust you

If you think your customers subscribe to your software-as-a-service (SaaS) solution only because
they love the features or the price, think again.

Of course, customers look at the solution’s features, the fact that it’s easy to use, or the attractive price… but that’s not all they look at.

They’re also figuring out if they can trust you.

The fact is that if they don’t trust you and they don’t believe they can rely on you to deliver your service as promised, none of that other stuff really matters.

SaaS is a promise, not a product

After all, with SaaS you’re not really marketing a product.  You’re marketing a promise. (See "SaaS Marketing is About Promises, Not Products.")

Over the course of the subscription, your customers are expecting you to reliably deliver a valuable service that performs as advertised, is well-supported and consistently available, and is upgraded regularly.

That’s very different from traditional on-premises software. SaaS customers are not simply buying whatever’s “in the box” on the day they purchase the license.

When they pay you every month, every quarter, or every year, they expect that you’ll to hold up your end of the agreement.

Earning trust

So how is it you can earn the trust of prospective customers?  How do you convince them that they can rely on you?

Hint:  It has nothing to do with features.

You could demo features and functions until you’re blue in the face.  If the prospect doesn’t trust you, it really won’t matter.

Here are a few ideas that I’ve seen work for my clients:


  • Share other customers’ experiences.  SaaS vendors should let prospects see what existing customers have experienced.  Besides customer success stories, prospects should be able to hear directly from other customers about your support, training, performance, reliability, and enhancements. 
  • Show a record of reliability.  Some large SaaS providers, such as salesforce.com, show a history of outages.  Prospects can see exactly how often the system has been unavailable. 
  • Show history of enhancements.  A SaaS company can show a timeline illustrating a record of regularly delivering new features and functions.  Prospects should see that the company has delivered as promised.
  • Tell your story.  Prospective customers are more likely to trust you if they know who you are.  Share your background, explain why you developed the solution, reveal something about your goals or values. 


Add “trust-building” to your marketing messages

Your marketing messages already probably include descriptions of the solution’s features and functions.  Even better, you may be showing how those features solve an urgent problem.

But these messages can’t stand alone.  Your customer acquisition process should also include elements that build trust.

Besides hearing what you’re promising, prospects need to be sure that you’ll actually deliver.

Saturday, September 9, 2017

Use Customer Data to Add Value to Your SaaS Solution

If you’re a software-as-a-service (SaaS) solution provider, you’ve got something that your customers want… but you may not even know it.

Data.

Namely, data that you can see because you’re hosting an application for lots of users.  In aggregate,
this information can be very useful.

For example, if you host an HR solution, you could see the average number of vacation days used by employees, or the average number of candidates reviewed for each open position.

If you host a marketing solution, you could see the ratio of leads to wins or the most effective source of leads.

Of if you host a customer support solution, you could see the average number of agents per support call or the split between support phones calls, emails, and chats.

You get the idea.  Every SaaS solution provider can access this aggregate information.

This information is very tough for on-premises application providers to get.  They really don’t have an easy way to see what their customers are doing.

Why do customers care?

Companies like to know how they’re doing relative to others.  Comparing their performance against benchmarks lets them know if they’re out in front on key metrics, or lagging behind.

Comparing information over time also lets companies see important trends.  They may detect changes in the market that can be useful to them.   For example, they may see that customers seeking support are relying more heavily on chat and less on the telephone.

Not just for customers

You may also find that the information you collect is useful not just to your own customers.  Publishing it on your website, in blog posts, white papers, or by-lined articles can help you gain broader visibility.

That information could be effective material to send along to prospective customers who you’re trying to convert into buyers.  They’ll get a sense that you’re a credible expert, and someone they really want to work with.

Add analysis, segment, automate, and keep it simple

If you do decide to collect and publish information derived from your customers, a few tips:
  • Make it clear that you’re only publishing aggregate data.  Obviously customers want to know that you won’t reveal their individual data.
  • Accompany the data with analysis.  Highlighting a trend or uncovering an unexpected finding makes the information much more useful.
  • Compile and report data over time.  You may identify significant trends or anomalies.
  • Segment the data.  If your customer base and data set are large enough, it’s useful to segment the data by industry, company size, or other categories.
  • Automate the process.  Try to set up a process that generates the reports automatically.  You don’t want to go through a major hassle every month or quarter pulling the data together.
  • Keep it simple.  Even a few relatively simple metrics can be immensely valuable.  No need for higher-order mathematics here.

Access to aggregate customer data is one of the unique benefits of providing a SaaS solution.  It adds value to your solution and it can help you attract and retain customers.  Use it to your advantage.  
   

Saturday, August 5, 2017

Listen to what your competitors say, not just what they do


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I assume that you pay attention to what your competitors are doing.

You might even have prepared a comprehensive grid that shows every feature and function the competitors offer in their solution vs. every feature and function you offer.   

If it’s something you show on your website, the idea is to show off: “My list is longer than their list.”  I have nothing against bragging per se.  Hey if you’ve got it, flaunt it.

But sometimes this narrow focus on features and functions – our list is longer than their list – isn’t helpful. 

Customers care about more than features 

Prospective customers are often paying more attention to other things, like:

  • Is this solution a good fit for my business?
  • Does this vendor know anything about my business and my market?
  • Do they understand the problem I’m trying to solve?
  • Can I work with this vendor and trust them to help with a critical responsibility?


Your most effective competitors are addressing these bigger concerns.  They're talking about more than their features.  

They make it crystal clear who their solution is built for and what business problems it’s meant to solve.  They convey a deep understanding of the prospect’s challenges, and they establish themselves as a trustworthy partner.

Competitors will try to stick a label on you

In fact, if they’re really good at this, a competitor will try to position you as falling short on these issues, or they’ll try to stick a label on you.  It may sound like this:

  • “XYZ (your company) builds a good solution, but it’s really not built for companies like yours."
  •  “XYZ’s product was built by people with strong technology skills, but they don’t really understand this industry.”
  •  “XYZ is too small and doesn’t have the resources to meet your needs,” or “XYZ is too large to pay attention to your needs.”

Features matter less in SaaS

How a competitor positions you matters, especially in the world of software-as-a-service (SaaS). 

For one, the label they try to stick on you will probably persist longer than any feature advantage or disadvantage.  Remember that in the SaaS model, vendors can be rolling out enhancements all the time, so holding on to a particular feature advantage for any amount of time is tough. 

But if competitors can label you “too small,” “too big,” “not knowledgeable,” or “a bad fit,” that has more staying power, and you’ll find it’s a tougher perception to shed.

Second, customers evaluating SaaS solutions are probably paying special attention to you as a vendor.  After all, they’re buying into a long-term relationship.  They need to trust that the vendor will deliver as promised over the life of the subscription.  If they don’t trust you – and if a competitor is able to sow doubts – your feature set won’t really matter.

Getting beat… before your features get a chance

I do know the adage, “Pay attention to what they do, not what they say,” and sometimes it makes sense.  But when it comes to tracking your SaaS competitors, it’s doesn’t. 

If all you’re looking at is your feature set vs. their feature set, you’re missing a lot.  Your competitors may have stuck an unfavorable label on you.  Or they’ve build a more favorable perception of themselves. 

And you’re getting bounced out of consideration before the prospect even sees your long list of features.

Saturday, July 8, 2017

Sometimes Prospects Just Aren't Ready to Buy

I get it:  For marketers, it’s all about “conversion.” 

The marketer’s job is to convert visitors into leads, convert leads into a qualified opportunities, and convert qualified opportunities into paying customers. The job is to shepherd prospective customers through the process - at high volume, cost-effectively, and quickly.

But what the marketer needs to do and the prospective customer wants to do aren’t always in sync.

Just because a prospect attended a webinar or downloaded a paper this morning, does not mean they’re ready to buy this afternoon. 

No matter how many follow-up emails you send or phone messages you leave, they’re just not ready - not ready to buy and maybe not even ready to talk.

Delays and interruptions

Sometimes these prospects are just at the beginning of their evaluation process.  They’re not sure what a SaaS solution could do for them.  They’re not sure how to evaluate a solution.  In fact, they may not even be sure that they need to replace their existing system. 

And even if they’re further along in the process, it’s also possible that these prospects have been interrupted by other priorities.  Remember, most of the time these people have day jobs (See "Your prospect has a day job.").


They run HR or Finance, or Marketing, or some other vital function in the company; they’re not assigned full-time to evaluate SaaS solutions.  When more urgent issues pop-up, they put the evaluation on hold.

Moving the process along

OK, I realize that I can’t just tell you, “Be patient.”  I’ve spent most of my career in marketing, so I know that’s not so helpful.  You need to be doing something to push more prospects through the pipeline and to do it faster.

A few tactics may help:

Be helpful; don’t just sell.  For people still near the beginning of their evaluation, they’re trying to learn more about automated solutions.  Instead of just touting your solution’s features, you can help educate them.

An offer to attend a webinar or read a white paper on “Five Keys to Effectively Deploying an [HR/Finance/Marketing/Sales] Automation Solution”  will probably be better received than another “Did you get my last email?” email.    

Establish your credibility as a trusted expert.  Before they entrust some vital function of their business to an outside vendor, prospects need to trust you.  Sharing examples of successful customers or talking about your experience in the market may overcome their reluctance to move ahead.  

Create a sense of urgency.   Prospective customers only have time to focus on a handful of priorities at any one time.  You can try to push one task - “evaluate automation solution” - toward the top of their priority list.  (See "Only urgent problems require solutions.")

Point out that every quarter, every month, every week that the prospect tries to stumble along without a new system is costing them money, losing customers, adding risk, or otherwise hurting their business.

Stay on the radar screen.  Sometimes prospects do go “radio silent.”  It doesn’t mean they’re not going to buy at some point, but for now at least, other priorities have gotten in the way.  Sending along helpful educational material is a way to stay in front of them, so when they are ready to move ahead, you’ll be top-of-mind. 

Check for gaps and bottlenecks
.  For most enterprise solutions, your prospects are navigating a multi-step evaluation process.  It’s not an impulse buy.  You should be tracking prospects’ progress through the entire process: from visitor to lead to qualified opportunity to paying customer, measuring conversions and yields from one stage to the next.  You might find that prospects are getting stuck somewhere in the pipeline.

You can and you should try to accelerate the purchase process and boost conversions.  But do keep this thought in mind:  Prospects will act when they are ready to buy, not when you are ready to sell.