Are you forgetting the “service” part of SaaS?

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Ok, let me remind us all of the blatantly obvious: “SaaS” stands for “software-as-service.”   Yup, “service” is right there in the name.

But looking at the way most SaaS solutions are marketed, too often it’s all about the “software”, and

not much about the “service.”

On website, in videos, during customer presentations, and in every other piece of marketing communication, it’s all about the software.  “Look at this feature, look at that feature, look at another feature.”

All this hyping of features reminds me of how we used to market traditional licensed application packages.  That made sense when we were essentially selling a disc full of software.

The buyer expects service with their software

But that’s not what SaaS is, and it’s not what the SaaS buyer expects.

They’re paying a regular subscription fee for access to the software features… and a whole lot more.

They’re expecting help with implementation.  They need to get up & running with the solution.  (See “Your SaaS buyers could be afraid to buy.”)

They’re looking for help with training.  That might include training for administrators and for others in the organization that will be using the solution.

And they’re looking for support.  When they get stuck and run into a problem, they expect that someone from the vendor will help.

Beyond that, a SaaS vendor should actually be providing expert guidance on how customers can get the most from the solution.  They can share tips, best practices, benchmarks, and other help.

So, if this is what SaaS buyers are expecting, this is what SaaS marketing should be promoting.  Talk about your expert guidance and your implementation, training, support services.

Follow the software-as-a-service label: Market your services, not just your features.

New customers can teach you a lot… if you just ask

If you’re marketing and selling a software-as-a-service (SaaS) solution, feel free to ring a bell or do

whatever it is you do when you win a new deal.

But don’t stop there. 

Those new customers are worth more than just subscription revenue.  They can tell you a lot to help your marketing. 

Think about it.  They’ve just emerged from the evaluation and purchase process, they’ve seen your marketing efforts up close. 

They’re in a good spot to share some useful insights, such as:

• What did they use before they bought your new solution?
• Why did they change?  What was wrong with the old system?
• Where did they find out about your solution?
• What other solutions did they look at and why did they choose yours?

That’s vital information that can help you market and win even more new customers.

How do you get this information?

But you do need to ask them.  How?

You could conduct a customer survey via a questionnaire. There are lots of methodologies and software or consultants to help here.

Or you could ask your Sales people.  After all, they’ve been intimately involved in the process with the prospect. 

Beware though that Sales may carry a bias.  When asked why a customer bought, you may hear a salesperson explain “it was because of the wonderful relationship established by the salesperson.”

Another approach is to simply talk to small sample of new customers.  Even short conversations with a handful of customers can be useful. 

These can be especially revealing if they’re conducted as conversations, not surveys.  Tee up a few questions (like the ones suggested earlier) and follow wherever the customer takes you. 

Though the handful of interviews from an individual month represent only a small sample size, over the course of a year these should yield valid information.  You’ll gather insights that can help craft effective marketing messages and structure marketing programs that really reach prospects.

Worried about bothering new customers?  In my experience, most customers are happy to talk for a few minutes and share their thoughts.  In fact, they’re often delighted to know that their new vendor actually cares what they think.

I’ve seen these interviews done well by people within the company, though it’s best to have Marketing people call, not Sales.  Using an outside person can also be effective.  (Contact me if you need help.)

When you win a new customer, go ahead and celebrate.  But don’t miss out on the useful information you can gather from them.

Your SaaS prospects could be afraid to buy

If you’re selling or marketing a software-as-a-service (SaaS) solution, you’ve probably seen

something like this before:

You’re talking with a prospective customer that’s struggling with a broken, outdated system, something they’ve been using for a long time to handle some vital task.  The prospect knows it’s a poor system and they know it’s hurting their organization.

And you’ve shown them your wonderful SaaS solution, they can see how it would be a huge improvement, and… they still don’t buy.

You’d once listed these prospects as “highly qualified” or “ready to buy,” but then they go dormant.  No response to calls, no answers to emails… just radio silence.

What happened?

Fear that something will go wrong getting from the old to the new

It could just be fear.  Your once-hot prospect got cold feet. 

Up until the moment of truth - a decision to OK the purchase - everything had gone exactly as scripted.

Your prospect recognized the flaws in their existing system and they clearly saw the benefits and advantages of your superior alternative.

But then things hit a roadblock.  The prospect is worried about getting from here to there. 

Moving from their existing system to your new system is fraught with peril.  Lots can go wrong with the transition.

• Inputting data can be difficult and time-consuming.
• Data can get lost in the transition.
• Users can get confused.
• Administrators can get confused.
• Standard reports might not get prepared.
• Normal workflows might be interrupted.
• There may be a gap when neither system is available.

None of this would be good news for your customer. 

Remember that they, like most SaaS buyers, is someone with a full-time job with other responsibilities and a reputation to protect. (See “Your prospect has a day job.”) 

The HR manager doesn’t want to hear from employees that they can’t request vacation days or complete a performance review.

The Finance manager doesn’t want to hear complaints that expense reports can’t be submitted or vendors can’t get paid.

The Sales exec doesn’t want to hear that account reps can’t see their pipeline or track progress on their opportunities.

The warehouse manager doesn’t want to find out that it’s impossible to accurately track inventory.

These folks don’t have the time, the patience, or the thick skin to deal with the complaints and push-back if the move to a new system goes wrong.

Getting prospects past the fear

No matter how poor their existing system, and no matter how wonderful the promise of your new system, if the customer can’t see themselves getting from the old to the new flawlessly, they might not take the risk. They’ll stick with what they’ve got and what they know, warts and all.

Getting them over that fear doesn’t mean showing them yet more features and functions in your system.  It doesn’t mean pointing out again the costs of their existing system or showing them the extraordinary ROI on your system.  And it has nothing to do with offering a lower price.

Instead, it’s about showing prospective customers that your experts will guide them through a proven, well-structured implementation.  They need to be convinced them that they can rely on you to help them navigate the transition to your new system.

Until prospects trust that you can help them get from where they are now to where they want to be – without things breaking along the way – they’ll hold off on making a decision.  They won’t buy.

Are your partnerships useless?

Partnerships can be a good thing for software-as-a-service (SaaS) companies. 

They can deliver more value to customers, without requiring lots more work from your internal development team.

For marketers, a partner could provide credibility, broaden exposure, find leads, and even win deals.

That’s if they’re done well.

Too often though, partnerships don’t deliver as promised.  The only thing the company gets from it is a press announcement and a logo for the website.  No visibility, no leads, no customers.

This is especially true when it’s a smaller company partnering with a larger company.  Think partnerships with IBM, salesforce.com, or Oracle.

Sure, these large companies run well-managed partner programs that offer a full menu of joint marketing opportunities.  These programs have attracted thousands of partners. 

And that’s the problem for small companies.  Among the thousands of partners, it’s very tough to get attention. 

When you’re just one small vendor among thousands, their marketing folks can’t afford to spend much time with you.  And their sales folks may not pay much attention either.

Partnerships require work

I don’t mean to say that all partnerships are useless and not worth pursuing.  Done well, in fact, they can be very useful.

To work well, your smaller company needs to actively market itself to the larger partner.  A signed agreement won’t work all by itself. 

Marketing to the partner has a few key objectives:

• Make it crystal clear to the partner who your product is for.  When they’re pursuing an opportunity, it should be easy for them to recognize when they should bring your solution into the discussion. 

• The partner’s sales and marketing people should easily grasp what problem your product solves.  Don’t force them to struggle through all your technology, features and functions.  (See “Before you talk about the solution, point out the problem.”)

• Distinguish your product from alternatives.  It should be obvious why they should pitch yours and not someone else’s.

• Be available as an expert to support the sale.  The partner should be able to rely on you to provide specialized expertise, understand the prospect’s business, and speak their language.

• Make it easy to sell your product.  The partner wants to know that your solution can help them sell more of their own product.  Don’t get in the way of that goal.

Think about it.  If one of the partner’s sales executives is working with a prospect, their number one goal is to win the account.  If they need to reach into the portfolio of thousands of partners’ solutions to help them win, you want to be sure they reach for your solution, not somebody else’s.

They should have full confidence that by bringing you into the opportunity, they’ll have a much better chance of winning the business. 

Don’t rely on “paper partnerships”

I don’t mean to rain on anyone’s parade here.  Partnerships do have the potential to be helpful to smaller companies. 

But recognize that a signed partnership agreement doesn’t work all by itself.  The signatures and the press announcement are really just the start of the process. 

To be effective, companies need to actively market themselves to the partner.  Along with other prospects, the partners are another important target audience that needs care and attention.