How to Kill a SaaS Product with Style
Hire expert manipulators that bloat its value, and upsell the nonexistent features.
The SaaS industry is booming. There are more than 100,000 SaaS companies in the world and the number is growing. But not all of them are successful. In fact, most of them fail.
Every SaaS company has three main sales processes.
- Prospecting customers
- Generating leads
- Closing the sale
These three simple things on paper, are evidently responsible for generating revenue. How they are not that simple. Because there are a lot of loopholes involved.
Marketing strategy has a significant role to play when acquiring your first customers. And driving that funnel to the point where you can actually forecast revenue is a long and hard battle.
Something that every company struggles with from the beginning.
As there are issues that often present themselves on the customer’s side of things. Especially when they are sold a promise that in reality never actually served their need.
It just presented an illusionary solution that fits that need. This leads them to request a return back policy, that most startups in their infancy can’t afford.
But if they don’t do that. That customer can’t inevitably damage their reputation.
The article will discuss the importance of customer acquisition and loyalty in a SaaS product. It will also provide some tips on how to kill a SaaS product with style.
Customer acquisition is one of the most important aspects of any business, but it is especially important for SaaS products. The article will discuss how to acquire customers and keep them loyal to your product.
There are two main reasons why SaaS products fail.
1) Poor Strategic Value:
A lot of startups make the mistake of focusing on acquiring customers instead of providing value to their customers. They spend too much time on marketing and not enough time on developing their product or service. This leads to a lack of customer loyalty which eventually kills their business model.
2) Customer Acquisition Strategy:
Another common mistake that startups make is spending too much money on marketing efforts that don’t convert to sales.
Customer acquisition is the process of attracting new customers to a company’s products or services. It is a key part of the marketing strategy for any business.
The most common way to acquire customers is through sales, but there are other ways as well. For example, word-of-mouth marketing and advertising can be used to attract new customers.
Poor customer acquisition practices can lead to a lack of revenue and growth for a company. This leads to some of the most common customer acquisition mistakes that startups make and that they could have avoided to grow their business.
However, It’s not the End Yet!
There are three ways you can implement to increase revenue and grow your customer base in a safe & efficient manner.
- Marketing Strategy: Marketing is the most important part of a SaaS startup. It is the only way to get new customers and keep them coming back. The marketing strategy should be based on the company’s goals and objectives. The marketing strategy should be aligned with the company’s sales strategy.
- Sales: Salespeople are not always necessary for a SaaS startup, but they can be helpful in some cases. If you do decide to hire salespeople, make sure that they are qualified and have experience in your industry. Furthermore, do not let any incoherence happen between sales & marketing teams. They need to be on the same page.
- Money: A SaaS startup needs money to grow, but it doesn’t need as much as other startups because it doesn’t need to spend money on physical assets like inventory or equipment. Set your expenses right. Do not waste money on efforts that don’t yield results.
SaaS is a game of chess
- You have competitors who will rig the pricing tiers.
- Give freemiums, send flowers, and a box of chocolates to your target market.
- Do heavy advertising with subliminal cues to evoke emotional responses.
Anything to capture their attention and build customer loyalty.
If you want to stand out, you’ve got to give a deal that absolutely gives the customer the feeling of gratification. A sense of attachment that insinuates their senses to buy your product. Whenever there’s a problem they are facing.
Your product is the one that helps them solve that problem.
And a great strategy & customer advocates will get you to that pot of gold.
Unless your product is actually sh&t. Then you’re actually dead for good. My two cents.