5 tips: Persuade customers that switching to SaaS is worth the investment and the hassle

Transcription

1 e-guide Series: Technology 5 tips: Persuade customers that switching to SaaS is worth the investment and the hassle

2 e-guide 5 TIPS: PERSUADE CUSTOMERS TO SWITCH TO CLOUD SOFTWARE 2 SaaS companies face many hurdles when making a sale. You re combating the inertia associated with a legacy system, which was often developed bespoke to the customer. You re competing against other software providers, in many cases the likes of SAP or Oracle, that don t offer the same benefits or functionality but do offer the security of a big name. So how do you convince customers to switch to the cloud, and to choose your software? Here are five tips.

3 e-guide 5 TIPS: PERSUADE CUSTOMERS TO SWITCH TO CLOUD SOFTWARE 3 1 Think about how your capabilities can be appliead to different sectors 2 Convince the customer to work with you, not just buy your product You can (and should) promote all the rational benefits your software offers, but a software deployment is actually a very emotional decision even if the customer doesn t admit it. Switching to a new system especially SaaS involves a great deal of fear. These vary from stakeholder to stakeholder, but commonly revolve around: Data transfer Data security Reliability Ease of use and time it takes to adapt You need to overcome these fears on a rational and an emotional level. On the rational level, think about how you can offer proof of concept. This includes case studies, demos and trial periods. On the emotional level, inspire trust. Ask existing customers if they ll act as references, and then give the prospect the details so they can contact them directly. Customers don t just entrust you with their data, they entrust you with a large portion of their business operations. Demonstrate you re worthy of that trust. Being a smaller company means you offer the customer a key advantage: your flexibility. The customer isn t going to get bogged down in red tape during the deployment process or be consigned to a bureaucratic aftercare arrangement. More so than the SAPs and Oracles of this world, you aren t trying to pigeon-hole customers into a rigid existing solution. You have the agility to adapt to their requirements. As a result, working with you becomes more than deploying software. It becomes a true partnership focused on helping customers achieve their business goals. 3 Show them why it s worth investing in training Any reseller can market a piece of software. You, as the software provider, add value with your training. Make sure you emphasise that training is as important as the software purchase itself, and put this in the context of return on investment. Yes, the training takes time, but it s worth it because employees get so much more out of the system. You re the best choice because you re committed to making sure every employee knows how to use the software to become more productive.

4 e-guide 5 TIPS: PERSUADE CUSTOMERS TO SWITCH TO CLOUD SOFTWARE 4 4 Put cost in context, and emphasise return on investment Cost is a tricky issue. On the one hand, you don t want to turn your product into a commodity, where it feels like the customer s decision is coming down to price. On the other hand, cost is obviously an important factor for the customer. First of all, sell the customer on the cost benefits of upgrading to SaaS. There are two main advantages to emphasise in this regard: SaaS makes it easy to budget IT expenditure and eases pressure on cash flow because there is a regular monthly licence and subscription fee. It s completely transparent and predictable, with no unexpected upgrade costs. There s an opportunity cost associated with sticking with a legacy system. This comes from lower productivity and an inability to identify new efficiencies and synergies. Secondly, focus the customer on return on investment rather than cost. If you re more expensive than other options out there, emphasise how your added value makes for a quicker ROI. Most companies will pay a bit more if you can show they get more financial benefit from the spend. 5 Make friends with the end user When selling their products, most software companies focus on the stakeholders directly involved in the decision-making process: the director who holds the purse strings, the procurement person who handles the tender and the IT person responsible for the deployment. These people are undoubtedly important for closing the deal. But lots of companies fail to make the sale because they haven t devoted enough time to the end user. The end users may not have a seat at the top table, but they will certainly make their opinions known within the company. And if they don t want to use the product, or are resentful about having to adapt to the change, they will make the deployment a failure. You therefore need to get a true understanding of what the end user does on a daily basis. Listen to them to find out what they need out of the software, what frustrates them about the current system and what they like about what they re using. If the end users like you and feel understood then they will be powerful advocates, pushing the director, the procurement person and the IT person to choose you.

5 e-guide 5 TIPS: PERSUADE CUSTOMERS TO SWITCH TO CLOUD SOFTWARE 5 Challenge us in 30 minutes We offer a no-obligation meeting to discuss your marketing. If you re not impressed after 30 minutes, we ll even pay for your time. Contact Paul Houston, Cognition s Commercial Director, on or paul.h@cognitionagency.co.uk About Cognition 30 MINUTE CHALLENGE We believe marketing is about science and plain speaking, not guesswork or jargon. We challenge the established habits of our industry, delivering practical marketing that makes a difference. Our typical client is brilliant at manufacturing its product but lacks focus and effectiveness when it comes telling people about it. As a result it s missing opportunities to win more customers. We get under the skin of your business, uncovering the evidence we need to develop an informed marketing strategy. We then coordinate and deliver the tactics, constantly measuring, reviewing and refining to achieve the best results. We therefore deliver creative, professional and measurable marketing that drives revenue and growth.