SaaS sales: how to define your business model?

SaaS sales

SaaS sales

The term SaaS – Software as a service – refers to companies that sell software as a service. Unlike the traditional model, the service is hosted in the cloud ( cloud computing ), provides remote access and is always available.

The SaaS sales redefined the traditional business model of selling software. Today, SaaS companies are everywhere, even if we do not identify them as such at first glance.

Consider for example Netflix , Dropbox or Zoom to understand the size and scope of this model.

If you are thinking of implementing SaaS sales and need to understand the business model, this post is for you. Here we will see what SaaS sales are and what sales strategies you can use to promote your business.

Shall we start?

What is SaaS sales?

As we said, SaaS stands for software as a service . These are services hosted in the cloud and that you can access from devices such as computers or cell phones, without having to install anything. You only need an internet connection.

SaaS sales can be used for various activities or sectors: accounting, entertainment, streaming , communication, sales, and of course, customer service.

But what is peculiar about SaaS sales and why do they drive business growth?

According to Deloitte’s 2021 Technology, Media and Telecommunications Predictions , between 2021 and 2025 the growth of companies using SaaS solutions will exceed 30%.

For companies, some advantages of implementing SaaS are:

  • Fast deployment and secure backup: reduces deployment time and files are hosted in the cloud;
  • Security: there is less data loss due to local problems;
  • Lower costs: By reducing and optimizing the implementation time and process, you also save on skilled labor. In fact, 73% of companies believe that using SaaS helps reduce IT costs, according to a Deloitte survey .

SaaS sales as a business model 

Now that you know what SaaS sales are and what are the advantages for companies, here are some tips to create your SaaS product sales strategy.

There are 3 types of business models for SaaS sales that you can implement:

1. Enterprise 

Used to sell complex solutions to large companies. This SaaS business model requires highly specialized sales agents , who can fully understand the characteristics and operation of the SaaS product, as well as the needs of the potential customer.

2. Basic, also known as self service 

This SaaS sales model is the one that offers the lowest costs and least complexity for its implementation.

Recommended for SMEs, businesses that are venturing into the world of cloud computing, or those in transition towards a digital transformation.

If this is your case, we recommend you read: Benefits of digital transformation for SMEs.

3. Transactional 

As a SaaS business model, the transactional type is an intermediate option between the Enterprise and Basic models. This is because it offers different semi-advanced options for businesses that are halfway between medium and high complexity SaaS solutions.

Other business models for SaaS sales that you can implement depending on the product you offer are:

  • with limited access: you provide only a few free features of your SaaS product’s full feature combo;
  • One-time fee: you charge a single value for the use of the service for a limited number of users, for example 3, and you offer an upgrade for those who want to integrate more users;
  • Fee for functionality: the user chooses which functionalities of the SaaS product they want to use and you charge them a value for each one.

SaaS sales strategy: 4 tips that work

So far you have understood how SaaS works as a business model. Now, we give you some tips to implement in your SaaS sales strategy.

Depending on the type of SaaS business model you choose (companies generally offer multiple versions of their SaaS product), there are some sales methodologies you can use.

Remember to do the relevant market study , define your buyer persona and segment your audience to know exactly who your types of customers are and their characteristics .

If you don’t want to waste time trying to sell an advanced SaaS product for an SMB, for example, follow these practical tips:

Qualify your leads

Use lead scoring to analyze the degree of interest and the possibility of buying a prospect. In other words, you need to make sure your lead is close to making a purchase before approaching him with a definitive offer.

Learn more about this technique and do not miss any opportunity. Read: What is lead scoring: how to calculate it in 6 steps and what are its benefits.

Request customer feedback

Depending on what stage of the sales funnel your potential customer is in, you will contact him one or more times. Take advantage of each instance in which you receive a “no” for an answer, to request feedback. Why doesn’t the user want your Saas product at that time? Why didn’t they move from the knowledge stage to the decision stage? Was the reason price or functionality?

Even if you didn’t get the sale at the time, it doesn’t mean you can’t improve your proposal quickly.

Train your sales force

Your salespeople must know the product inside and out. Remember that many times the client does not know that they have a certain need. With the right knowledge, your salespeople can spot those information gaps and efficiently communicate the value proposition.

Take advantage of word of mouth marketing

How do you get your current clients to speak well of you and recommend you? Simply giving them a great experience. The customer experience has become one of the most important attributes for customers. In fact, 75% of customers will buy more from a business that offers good CX.