Two Ways To Sell Software Low-touch sales Demand driven Convert customers at scale: web, email, etc End-user is buyer Lower price points High-touch sales Supply driven Convert customers one at a time End-user probably is not buyer Higher price points (up to $GADZOOKS)
The Curious Case of Modern SaaS Monthly billing is a core innovation. $X,000 LTVs can be acquired at low-touch Hybrid models are possible $200/month for small businesses … but you need an SLA? Talk to sales team.
A Brief Primer On SaaS Pricing Price based on value, not on cost. Anchors matter! Do NOT anchor on Twilio cost! Segment to capture customer value. The 4 plan pricing page Evolutionary maxima for low-touch SaaS. Not necessarily optimal for high-touch sales. Interesting ways to play with it. Always remember: it is not their money.
Single Most Actionable Tip atTwilioConOfferAnnualBilling
The Six Figure Email Offer discount (“1 monthfree”) if they switch toannual billing. Offer it to “loyalcustomers” over email One click + confirmationto switch. Conversion rate from10% to 25%+ Immediate revenue of$200 per email sent
Low-touch Stuff That Works SEO / AdWords / marketing site / etc Olark / chat widgets / etc Fully-functional free trials Funnel optimization Product tours Email. Email. Email.
Let’s Talk Product Tours 40 ~ 60% of 1st time users won’t ever comeback First experience of app has to rock Customization screens do not rock Empty dashboards do not rock Productivity apps (w/o team) do not rock
Three Goals Of A Tour 1) Demonstrate one awesome improvementto the user, immediately. 2) Establish a reason why the user shouldcome back. 3) Ask users to invite anyone appropriate intothe app.
Appointment Reminder ProductTour Problem: Customers require 4 ~ 6 weeks toperceive value from product … and the product has a 30 day trial … and 60% of users abandon on Day 1 Solution: Demonstrate value on Day 1
Tour Script Customer first listens to reminder on theirphone. Then, they learn how to scheduleappointments. Then, they learn how to manipulateappointments. Then, they learn what they should do next. This would be a great point to sell sell sell. Or to ask them to invite their co-workers into theapp.
Low Conversion To Trial? Sell ViaEmail Conversion from visitor to paying signup: ~1% Conversions to free email submission can be20 ~ 40%, particularly if you offer a decentincentive Send people a drip campaign “One month free course, delivered overemail, about $TOPIC” 6 ~ 8 emails Educate. Persuade. Then, and only then, sell. Absolutely prints money.
Sample Landing Page For EmailSubmit Offers immediateincentive for signup Asks for permissionto contact, with thecourse offering Describes whatthey’ll get if theyopt-in http://speed.wpengine.com
More Advanced Uses Of Email Client starts using software? Send “personalized welcome” from the CEO. Client looks like they’ll cancel? Send a rescue email. (“Write back and I’ll extendtrial.”) Client doesn’t use a particular feature? Send a getting started guide. Client getting to decision point? Send them an ROI calculation!
Core High-Touch Sales Insights You are not being bought by the person usingthe software. Customers can “request” high-touch sales withquestions or behavior in trial. Expectations are very different.
Who Is The Decisionmaker? Business owner? Typical for SMB Head of IT? Head of Ops? Project lead lower in the organization?
Dealing With Purchasing Cycle Purchasing may have adversarial relationshipwith users. Purchasing is scored on discounts. Purchasing hates rejecting work, wants you toreject them. Lead -> Call -> Meeting -> Proposal -> FormalQuote -> Deliver -> Invoice -> Heat Death ofUniverse -> Check Arrives
Purchasing Has A Checklist Lacking certain things will auto-kill deals. SLA Support/maintenance contract Industry-specific compliance (HIPAA, etc) “Sign our standard vendor contract” You need to have and mention that you havethese things. Charge through the nose for these things.
Enterprises Have Money. TakeIt! SLA Maintenance / support Custom integration work … and maintenance! Training Delivered in person Delivered scalably (videos, etc)
Key Sales Anchors “The fully-loaded cost of one employee” Wasted time with hard costs associated with it Truck rolls High-value employees Low-value employees who are monitoredeffectively Lost business / missing revenues / etc Missed appointments Missed opportunities for sales Case studies make this much more credible
Have A Question You Can’tAnswer?RoleplayingExercise
Dealing With Pricing Objections Never compromise on unit prices. Purchasing needs a discount. Give them one: Bundled extra, “normally” charged $X, for $Yinstead Nominal discount for pre-payment orcommitment.
Unfortunate Necessities Corporate shield Insurance Lawyer (ideally, on standby)
More Goodies! LifecycleEmails.com : 5 hour videocourse, with annotated examples, of how touse email to sell SaaS better. kalzumeus.com/blog : ~6 years of posts training.kalzumeus.com : Free video onimproving first run experience of app firstname.lastname@example.org or @patio11 I love talking about this.