The Brainy Guide to Boosting Your SaaS Sales
How To Improve Your SaaS Sales Strategy
If the past 18 months have taught us anything, it’s that the way we access and use software has changed irreversibly. No longer do we have to shell out vast sums of our budget upfront to purchase software in the hopes that it will one day help boost our ROI. Instead, we have now seen that we license software based on our needs and requirements, and we no longer have to do the grunt work of maintaining and updating it.
Software-as-a-service (SaaS) is how we now deal with our software requirements. By leasing software through a third-party provider that manages and updates it on our behalf, we’re free to get on with what’s important – running our businesses effectively.
So, if you’re a SaaS provider, now is your time to shine! The market is still relatively new, and there are lots of opportunities to grow your business and provide a much-needed service to millions of people and companies who are seeing the benefits of SaaS services over traditional software purchasing.
In this blog, we’ll look at how you can boost your SaaS sales by reducing your churn rates, tracking and monitoring your KPIs, run effective A/B testing and winning back past customers.
The Brainy Guide to Boosting Your SaaS Sales: Quick Start Guide
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Arguably, the central focus of your SaaS sales strategy should be to reduce the churn rate of your customers.
If you’re not already aware, the churn rate refers to the number of customers who leave your business after their free trial period ends. High churn rates can be the death of any SaaS business, so here are a few tips to help reduce it:
- Do a deep dive into why your customers leave after their trial ends. This might sound obvious, but pinpointing why your customers are leaving could save you a lot of money.
- Engage with your customers regularly by providing them with educational content about why they should subscribe to your service. You can do this by providing blogs, podcasts, case studies, or any type of report that demonstrates how your service can help them.
- Determine who your most valuable customers are and put special focus on retaining them.
- Offer discounts and incentives to encourage users to sign up. This could include premium memberships, add-ons or extending the trial period if users are still unsure.
- Make sure you’re targeting the right people who have the potential to become long-term customers. Spending time and effort marketing to prospects with little need or interest in your software will ultimately damage your ROI.
- Focus on customer service and make sure that your staff are equipped to deal with any and all of your user’s needs.
Keen to learn more? You might be interested in our ultimate guide to SaaS marketing
Tracking and monitoring KPIs (key performance indicators)
Establishing KPIs and monitoring your progress is one of the best ways to ensure that you’re on track to boosting your sales because without them, you’re going to be in the dark, and you’ll have no way of knowing whether your strategy is working. With this in mind, let’s look at some of the key KPIs that you should be analysing.
- The number of conversions from free users to paid subscribers will be the number one KPI you need to pay the most attention to, as this will be the ultimate revenue driver for your business. To help gain more understanding about why your users made a conversion, it will help to engage with them and ask them why they made the purchase. Using this information, you can adjust your strategy to help increase future sales and decrease your churn rate.
- Tracking how long the average time a customer uses your service is a great way not only to monitor how much revenue you can expect to make from your customer, but it will also help you understand the value of your service. For example, if your customers have a short life cycle, you might want to look at what makes them leave prematurely – does your service not live up to expectations; is it too expensive? Answering these questions will put you on the path to increasing your sales down the line.
- Measuring your CPL (cost per lead) and CLV (customer lifetime value) are two essential KPIs that you must pay close attention to. By understanding how much it will cost you to acquire a lead and how much you can expect to make from that lead, you will have a much clearer understanding of how much of your budget you should assign to your sales and lead generation strategy.
Running A/B testing
“Data, data and more data” – This should be your mantra when it comes to your SaaS sales strategy. By running A/B testing to collect data regarding how users interact with your software, you can gain valuable insights into how to improve your CRO (conversion rate optimisation) strategy.
In particular, A/B testing can identify several key factors that will highlight what is and isn’t working in your sales strategy:
- What attracts prospects to take an interest in your service.
- What makes your users sign up in the first place for their free trial – is it your content marketing, referrals from other users, email marketing etc.
- The main reason users decide to make a conversion and purchase a subscription.
- How simple is your conversion process – are your CTA’s easy to locate, and is your copy enticing.
- Are your contracts scaring off prospects from signing up?
- Does your pricing scale reflect your services?
The last one on this list is arguably the most crucial factor and will be what determines how many paid subscriptions you receive.
Studies show that your pricing page will be the most visited page on your site, so this is where you will want to focus a lot of your attention when it comes to running A/B testing. Things to consider are:
- Page layout
- CTA placement
- Content messaging
- Number of conversions against the number of visitors
The main thing to remember when it comes to A/B testing is that it is a continual process that doesn’t simply end once you’ve made some progress. A/B testing is something that you should be doing regularly if you want to maximise your conversion rates.
Utilising win-back offers
Just because one of your customers has cancelled their subscription doesn’t mean that it’s the end of the road for you. SaaS customers leave for many reasons, including pricing, changes within their business, or the need for a different service. However, with the right win-back strategies, you can bring old users back into the fold and start reducing your churn rate.
First thing’s first, you need to understand why your customers left in the first place and once you’ve determined that, you can create a laser-focused strategy that addresses their pain points.
One of the main reasons users leave a SaaS service is that one of your competitors has made them a better offer. In which case, you need to address what your competitors are offering and try to match it. However, this does not necessarily mean you have to lower your prices; it could just mean that you have to change your offer. For example:
- Offer more services or upgrade their subscription.
- Offer a longer or shorter contract.
- Offer a free month’s worth of subscription services.
If you can’t convert your past users back immediately, it’s time to adopt a more long-term win-back strategy. And there is no better way to do this than with a laser-focused email marketing campaign that sends reminders to your old leads to keep your company in the back of their minds.
Good things to include in your emails are new offers, software updates and infographics showing how your software can help them. Regardless of the strategy you choose, it’s essential to make your emails personalised. Remember that one size doesn’t fit all, so if you’re just sending blanket emails to all your previous customers, your win-back success rate is going to be low.
Hire An Expert Agency To Start Boosting SaaS Sales
If you’re looking to boost your SaaS sales, reduce your churn rates and generate an unbeatable ROI on your next marketing campaign, The Brains might be the agency for you.
We’ve been at the forefront of SaaS marketing for some years now, and we work with a wide range of clients to help them achieve their business goals by using data-driven strategies that guarantee results. So, if this sounds like something you could benefit from, or you’re simply looking for some advice about SaaS marketing or boosting your sales, book your free complimentary consultation with one of our Brainy SaaS experts.