It is a truth universally acknowledged that shoppers are accustomed to basic sales tactics and tricks. No, we’re not quoting Jane Austen. But when it comes to buying things, customers know better than to give in to the “Persuasion’ of the sellers. The latter wants customers to buy more.
The trouble bubbles when brands force the buyers to buy products they don’t want or need. When it comes to SaaS Marketing, companies are faced with more unique problems. Their profitability would suffer with low churn rates and recurring revenue.
In a report on 2006, Amazon related that cross-selling and upselling contributed to around 35% of their revenue. Product recommendations account to about of 10-30% of eCommerce site revenues according to Sucharita Mulpuru, Forrester Research analyst.
- Start With Your Goals
By having a clear vision of your goals from the very beginning, you can ensure that everything in your cross-sell strategy goes smoothly and you can measure your impact along the process. A PGDM course at RGBS will equip you with all the necessary skills required to help you with Saas Marketing.
- Know Your Customers
The needs of a person differ from that of the other. For this, it is of crucial importance to understand the target audience. Do not expect that all of your pricing plans will meet all of the buyer expectations or their demands.
The varying needs of a customer need to be kept in mind. As Kevin Karner, Head of Customer Growth at Drift, quotes, “the best attitude for SaaS Marketing add-on salespeople is they need it, we have it.”
Let’s take an example. A shopper might want the cheapest product but would want a few extra features to go with the product from time to time.
The best solution would be to break down your service to the base plan that displays only the basics of your SaaS Marketing and try to sell all the supplementary features that come with the product and introduce a dedicated plan to go with it.
The plans would involve the customer to go “Pro”, “Premium” or “Gold”. These would add to your cross-selling campaigns that would effectively grow the ARPU.
Spotify has used the premium policy to its maximum advantage. Users have the option of signing up to a free account with occasional ads.
Despite that, out of Spotify’s 159 million users, 71 million are premium accounts. This is due to the added benefits with a premium account that attracts users.
- Track Customer Behavioural Info
In SaaS marketing, it is essential to build a long-term relationship with the customer. You need to keep track of their needs and preferences. Some customers might like your products and be engaged with them, others might not.
For this reason, you should segment your customers into departments such as login frequencies, features used, resources and products bought, etc.
Always try to target and be focused on the customers who are the most engaged and dedicated than the ones who are more passive with their engagement.
A perfect example of how the strategy works is to look at a café. The culinary items kept on display, in full view of the customers, raise their selling percentage by a lot.
Jeff Stratton, the head of the U.S. division for McDonald’s said in an interview that if they moved the apple pie dispensers to the back, their sales would cut down by half.
Salesforce, a SaaS company, uses CAC (cost of acquiring customers) policy in every step. Customers who sign up for the user-base subscription pricing are opt for upgrading their accounts when they realise that they can gain more as their requirements gradually increase.
- Increase Customer’s Joy
Ever heard of the rush mountain climbers get when they reach the summit? The feeling of celebration is the same for customers. Many get a buyer’s high when they purchase the perfect product that they’d been searching for.
When a customer is about to click on purchase, subscribe or extend a subscription, suggest an extremely relevant idea or product right before the customer is about to hit “pay”.
Include suggestions related to the product of their interest. When its right before their eyes, it’s hard not to think, “Yes, that would be a better.”
Companies like Bluehost and other providers suggest an SSL certificate with other add-ons and upgrades directly included into the shopping cart. Amazon and Apple, to name a few, have turned themselves into world wide behemoths by using this simple strategy.
- Steady Communication With Support
What are we without support? The answer is – nothing. Your support department is one of the most, if not the most, informed and important division in your company. The main purpose of a support team is to solve the customer’s issues and problems.
By analyzing the patterns of complaints and issues reported by customers, you can use the information gained from communicating with support to solve the customer’s needs or wants.
A satisfied customer is inclined to buy more products or additional features. This will also increase the effectiveness in your cross-selling efforts.
Len Markidan, Groove’s Head of Marketing, suggests two basic conditions to adhere to in a support situation:
- If the customer is happy with your service – It is a golden rule never to serve a solution to an angry customer. It only makes them angrier and your brand ends up looking worse.
- If the customer’s unmet requirements can be provided by you – After solving the customer’s initial problem, were able to dig that more value could be delivered on your part? Always listen to the customer and try to use that to the best of your abilities.
- Use Email Marketing And In-App Notifications
Many SaaS products are segregated into different prices per users, per storage, per contacts, etc. The most engaged customers are most likely to reach the end of their subscriptions. That is when your notification system can become of use as a cross-selling channel.
When a customer is going to reach their limit to the plan, launch a series of in-app and email cross-selling notifications to gain the customer’s interest. This would increase your productivity in sales.
Cross-selling and Upselling, in SaaS marketing go together, so it is advisable to merge these two strategies together to achieve much better results. Upselling might not be the only strategy to work in some cases and vice versa.
Say, some product might feature additional products that are expensive and would increase sales. In those cases, cross-selling would work more effectively. In other cases, upselling techniques would work better.
Cross-selling and Upselling are limitless marketing strategies. If used effectively, they can boost growth in revenue and increase customer lifetime value.