Information Technology

Time To Add Some SWAG To Your SaaS

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<p>The next time you renew your Netflix subscription from the cozy confines of your living room remember the convenience factor that makes SaaS models customer friendly. This feature in combination with others makes the SaaS model a preferred option over the large chunky, expensive option--enterprise Software.</p><p>Welcome to the subscription economy a term coined by Zuora. At the heart of this model is the shift of customer behaviour from an &ldquo;era of ownership&rdquo; to the emerging &ldquo;experience era&rdquo;. Stated another way most digital natives prefer temporary versus permanent ownership of the product.</p><p>Stop and think for a moment, why do leading SaaS brands across categories seem to be tasting unprecedented success? &nbsp;</p><p>Here are some differentiating facts:</p><ol><li><strong>Model: </strong>Unlike in the enterprise software business where the vendors and clients are locked post the sales irrespective of outcomes the subscription economy allows their customers the flexibility to either pay as they go, or pay per subscription monthly or via a long-term contract. The point is it offers clients much needed flexibility. Marketers, need to bear in mind that the power has now clearly shifted from the brand over to the client/customers. Successful subscription economy firms lay more emphasis on the customer.</li></ol><p>&nbsp;</p><ol start="2"><li><strong>SaaS is not enterprise software </strong>that survive from one &ldquo;big sale&rdquo; to the next, whereas SaaS require a financial structure based on recurring revenues. Marketers of successful SaaS companies focus on the subscription experience. Remember in the subscription gig, client/customer have the liberty to churn when they want!</li></ol><p>&nbsp;</p><ol start="3"><li><strong>Hunting</strong>: The SaaS model is built for hunters. In the SaaS model nurturing and developing your relationship with customers is paramount to ensure continuity in the recurring revenues. Remember they can churn at any point.</li></ol><p>&nbsp;</p><ol start="4"><li><strong>Metrics: </strong>The SaaS business is all about metrics. You will need a system in place for closely monitoring key financial metrics, including future income indicators (e.g., lead flow, renewal rates, and attrition).</li></ol><p>&nbsp;</p><ol start="5"><li><strong>Web experience</strong>: Remember the web is the shop front for your SaaS business. The experience garnered here will determine closure, word-of-mouth etc. So, SaaS firms are advised to spend time to build and deliver an outstanding web experience. Get your best UI//UX folks ready.</li></ol><p>&nbsp;</p><ol start="6"><li><strong>Brand</strong>: Marketing was all about the customer. The subscription economy has reignited the intimacy between SaaS companies and their customers. Marketers better gear up to manage a direct, complex, responsive, multi-channel relationship with its customers. Brand strength will in many ways influence visits, subscriptions, and other factors. SaaS firms can overlook this factor at their own peril.</li></ol><p>&nbsp;</p><p>&nbsp;</p>
KR Expert - Bijoe George