There isn’t much that guru Josh Melick doesn’t know about business and sales when it comes to the world of software development, and he has recently complied a brilliant blog post which is seeking to help businesses sell more. Josh believes that many SaaS providers are getting it wrong when it comes to the packages which they sell, and if they tweak one or two areas of their sales packages, they will be able to make a lot more money, and have happier customers.
Taking the key points from his blog post here is what Josh believes can be done to increase sales for these companies, both now and in the future.
Adding The Vital Third Dimension
The main point which Josh makes in his piece is the need for an important third dimension to the pricing platform, critical for B2B sales. Most companies rely solely on two dimensions when they sell their various packages, and these are focused on the amount of users who are able to use the product; the first dimension, and the amount of usage which the buyer can depend on; the second dimension. The third dimension which Josh discusses however is focused on the amount of time for which the package will last. Adding a finite date as to when the package will finish means that the upsell can begin as the package nears its end, when businesses can push customers to purchase na upgraded package next time around.
Increasing the Time Frame of The First Purchase
When it comes to selling a package businesses of course would rather that all customers would go for the premium option. If this is not the case however, an upgrade can be dangled in front of the face of the customer, with some add-ons which may inspire them. Incentivizing customers for example, with an extended time frame for an upgrade, could be a good way to secure business for longer. Instead of a 12 month plan, the upgrade could tag an additional free months on to the end of the product package.
Most software developers will have a range of software suites which they are able to offer customers, yet some will be heavier hitters than others. Another great way to upsell to the customer is to bundle in extra pieces of software which they can use, should they choose to upgrade. The better the package that is on offer, the better the software which is bundled in, a great way to encourage a bigger investment from the customer.
And finally you could even play around with the price here, and look to offer small discounts for an upgrade in the second or third year – and even beyond. The discount won’t have to be huge in order to give your customers some encouragement, but making sure that you add that discount will be critical in inspiring the customers to make the change.
Josh certainly knows what he is talking about, and these are some fab ideas which can help all businesses.