Despite the high adoption rates of SaaS models, a few common mistakes business owners make will undermine the application’s potential.
It is definitely not a pleasant experience to have your company’s growth stalled due to these mistakes, and hence they are best avoided.
Here are nine mistakes that SaaS startup owners or users must watch out for.
Committing Pricing Errors
SaaS pricing is not exactly easy, with how the environment changes constantly and you need to hit a moving target, but there are multiple pricing errors you need to avoid:
Hiding your prices: Leads will prefer having a clear idea of what they are to pay and hence not having prices listed on your website may work in favor of a competitor providing details of the pricing on the website.
Single pricing: Have a multiple tiered pricing package as not all customers have same requirements and purchase capacities.
Too many prices: Single prices as well as too many prices are equally harmful. Provide options but don’t confuse the customer. Have two or three clearly defined packages.
Pricing based on competitors: Competitive pricing is good, but ensure your pricing is based on your customers and the value of service you provide instead of simply providing a rate slightly better than your competitor.
No Value Proposition is mentioned
Often, SaaS companies tend to undervalue the service they offer. Moreover, startup SaaS sellers believe that by simply offering a better price point, they may win over more prospects. However, charging too low for your service is simply showing lack of confidence in your service. It will never be your USP.
Moreover, realize that even if it was easy for you to build the service as a developer, it is of tremendous value to the customer. Hence, ensure a great post purchase service and promise to fix any bugs but do not undervalue your service. Not only will it be difficult to raise prices later, but if you charge too low, customers are likely to go to competitors believing your service will not be up to the mark.
Call to action is weak
Lacking a call to action button is letting go a great opportunity to make the best of your website traffic. No matter how much the customer loves your posts or product, if there is no outline about the purchase guidelines or about reaching you on the website, they may choose to buy from an alternate source. Hence ensure that you have your contact details clearly mentioned and a relevant CTA either in the middle or at the end of your blog posts.
Not having a great website for reference
Unless you have a website to act as a reference point for your leads, it may be incredibly tough for you to sell a SaaS model. You must hence have a website designed to the best of your capability ensuring you provide a great user experience.
Website aesthetics is not unimportant, but realize that your purpose is to have your traffic convert into paying customers. Take inspiration from few of the best SaaS websites you can spot.
Undermining your user’s existing expertise
The way you sell your service to your customer changes with how tech-savvy they already are.
You will want to pitch to them with a simple user interface on offer if they have little technical knowledge, however, a customer well versed with technology may right a simple interface off as not good enough for there business. You may offer premium features once the customer is familiar with how the service functions.
Buying your leads
A common mistake is buying an email list or buying leads. Buying leads come with the risk of facing too much competition as other SaaS companies with value proposals have approached most of them. For purchasing email lists, you need to realize that you may buy a list of little value, with a few email id’s being obsolete, others overworked, and another few people with those email addresses may have changed companies and may not require the service anymore. The purchase may hence turn out to be a dead investment.
Not doing enough marketing
To reach to new customers, your marketing strategy needs to be in place. Despite offering a stellar service, you may not be able to acquire enough leads if your marketing efforts do not complement your content strategy.
Your content strategy itself should focus on marketing with targeted keywords. Brainstorm on topics that gain traffic and work with SEO consultants to identify what works best.
Produce white papers, videos, ebooks, and blog posts that are shareable on social platforms and are of value to the consumer to step up your marketing game.
Failing to acknowledge competitors
Purchasing decisions are about finding multiple options available and then deciding which works best. Your leads will naturally perform a comparative check before buying from you. You must hence try and acknowledge certain competitors on your website to ease the process for the customer, and you’d have an advantage SEO wise.
Moreover, if you offer them a comparison opportunity straight up, they are more likely to place trust in your product and you will have smaller bounce rates too. Your sales process too will be smoother as with offering so much information, you’d have fewer questions to answer, allowing the deal to close well in a short period of time.
Most customers prefer to fix small problems or usability issues themselves, by using the knowledge available on your company blog. The company blog to them is almost like customer support and they may abstain from calling unless in desperation.
You might hence lose valuable customer if your blog is not updated with fresh content and offers only information that is outdated and of no value to your customers anymore. In fact, a study says that if you are looking to generate enough leads, you must try and post articles at least 16 times in a month. It will not only work well for lead generation but also organic rankings.
Avoiding these mistakes in your SaaS lead generation will help you work your game in the right direction without encountering common pitfalls. Work on your marketing, sales, and customer service processes to offer an unparalleled experience and see your SaaS business blooming.