Comments on: How Can a SaaS ISV Drive Down Marketing & Sales Costs? http://www.saasblogs.com/2007/08/30/how-can-a-saas-isv-drive-down-marketing-sales-costs/ Understanding the Software as a Service Revolution Mon, 15 Mar 2010 21:45:39 +0000 http://wordpress.org/?v=2.5 By: Freshbooks - SaaS Through and Through | Metricz http://www.saasblogs.com/2007/08/30/how-can-a-saas-isv-drive-down-marketing-sales-costs/#comment-51970 Freshbooks - SaaS Through and Through | Metricz Mon, 07 Jul 2008 16:53:33 +0000 http://www.saasblogs.com/2007/08/30/how-can-a-saas-isv-drive-down-marketing-sales-costs/#comment-51970 [...] This is one place where Freshbooks REALLY excels, and does one of the things that many of us had talked about last week in the discussion originating over at SaaSBlogs. [...] […] This is one place where Freshbooks REALLY excels, and does one of the things that many of us had talked about last week in the discussion originating over at SaaSBlogs. […]

]]> By: SaaS Profitability & Globalization http://www.saasblogs.com/2007/08/30/how-can-a-saas-isv-drive-down-marketing-sales-costs/#comment-39315 SaaS Profitability & Globalization Thu, 03 Apr 2008 05:03:54 +0000 http://www.saasblogs.com/2007/08/30/how-can-a-saas-isv-drive-down-marketing-sales-costs/#comment-39315 [...] Unreasonable men (with interesting follow-up posts at SmoothSpan by Bob Warfield and another at SaaSBlogs by Sinclair Schuller). The high cost of customer acquisition combined with the long customer ramp [...] […] Unreasonable men (with interesting follow-up posts at SmoothSpan by Bob Warfield and another at SaaSBlogs by Sinclair Schuller). The high cost of customer acquisition combined with the long customer ramp […]

]]> By: SaaS/s and SaaS/v post… | diversity.net.nz http://www.saasblogs.com/2007/08/30/how-can-a-saas-isv-drive-down-marketing-sales-costs/#comment-26243 SaaS/s and SaaS/v post… | diversity.net.nz Fri, 07 Dec 2007 07:23:44 +0000 http://www.saasblogs.com/2007/08/30/how-can-a-saas-isv-drive-down-marketing-sales-costs/#comment-26243 [...] Over here at SaaS blogs, Sinclair has posted about what he refers to as SaaS with ROF (Regular Old Functionality) as opposed to SaaS with ROF + Value. [...] […] Over here at SaaS blogs, Sinclair has posted about what he refers to as SaaS with ROF (Regular Old Functionality) as opposed to SaaS with ROF + Value. […]

]]> By: links for 2007-12-04 « The Adventures of Geekgirl http://www.saasblogs.com/2007/08/30/how-can-a-saas-isv-drive-down-marketing-sales-costs/#comment-25827 links for 2007-12-04 « The Adventures of Geekgirl Tue, 04 Dec 2007 03:19:04 +0000 http://www.saasblogs.com/2007/08/30/how-can-a-saas-isv-drive-down-marketing-sales-costs/#comment-25827 [...] SaaS Blogs - » How Can a SaaS ISV Drive Down Marketing & Sales Costs? How Can a SaaS ISV Drive Down Marketing & Sales Costs? (tags: saas isv marketing sales costs pricing) [...] […] SaaS Blogs - » How Can a SaaS ISV Drive Down Marketing & Sales Costs? How Can a SaaS ISV Drive Down Marketing & Sales Costs? (tags: saas isv marketing sales costs pricing) […]

]]> By: Joe Shmoe http://www.saasblogs.com/2007/08/30/how-can-a-saas-isv-drive-down-marketing-sales-costs/#comment-13057 Joe Shmoe Sat, 08 Sep 2007 06:24:59 +0000 http://www.saasblogs.com/2007/08/30/how-can-a-saas-isv-drive-down-marketing-sales-costs/#comment-13057 Thank you for this very detailed information. See also [ http://www.saas-showplace.com/ ] Thank you for this very detailed information.
See also [ http://www.saas-showplace.com/ ]

]]> By: Freshbooks - SaaS Through and Through | Metricz | Drive Success http://www.saasblogs.com/2007/08/30/how-can-a-saas-isv-drive-down-marketing-sales-costs/#comment-12884 Freshbooks - SaaS Through and Through | Metricz | Drive Success Thu, 06 Sep 2007 13:32:41 +0000 http://www.saasblogs.com/2007/08/30/how-can-a-saas-isv-drive-down-marketing-sales-costs/#comment-12884 [...] This is one place where Freshbooks REALLY excels, and does one of the things that many of us had talked about last week in the discussion originating over at SaaSBlogs. [...] […] This is one place where Freshbooks REALLY excels, and does one of the things that many of us had talked about last week in the discussion originating over at SaaSBlogs. […]

]]> By: Bob Warfield http://www.saasblogs.com/2007/08/30/how-can-a-saas-isv-drive-down-marketing-sales-costs/#comment-12210 Bob Warfield Fri, 31 Aug 2007 17:53:31 +0000 http://www.saasblogs.com/2007/08/30/how-can-a-saas-isv-drive-down-marketing-sales-costs/#comment-12210 Let's look at this "free" vs "charge for" issue on the Web 2.0 aspects a little bit differently. Let's further restrict ourselves to customers and not prospects, because if we're even considering charging, we aren't talking about prospects. Now it seems to me that we can then view these Web 2.0 features as translating some of the normal customer relationship and technical support in self-service. Now we're talking about something SaaS is all about. There is the service the SaaS vendor offers, but there is also the reality that SaaS frequently enables self-service to a much higher degree than other models with better results for all. The self-services I have in mind are basically of two kinds. First, we can use Web 2.0 to enable our customers to help each other and build a valuable community. This will ultimately benefit sales and marketing as prospects become aware of it. Many products are sold on the basis of community. See my post on Web 2.0 Persuasion for more: http://smoothspan.wordpress.com/2007/08/24/the-psychology-of-saas-and-web-20-persuasion-and-selling/ Secondly, we can enable better collaboration between the SaaS vendor and their customers (and prospects). Take the examples I give comparing Tech Support escalation for SaaS versus On-premise here: http://smoothspan.wordpress.com/2007/08/31/with-saas-you-are-100-helpless-and-much-better-off/ You can follow along that discussion and start to imagine all sorts of collaborative Web 2.0-enabled features you could add to a SaaS offering to do even better. All of this will translate to higher customer satisfaction, and that is one reason why the cost to get $1 of SaaS revenue remains quite a bit lower than the cost to get $1 of conventional software revenue. Let’s look at this “free” vs “charge for” issue on the Web 2.0 aspects a little bit differently. Let’s further restrict ourselves to customers and not prospects, because if we’re even considering charging, we aren’t talking about prospects.

Now it seems to me that we can then view these Web 2.0 features as translating some of the normal customer relationship and technical support in self-service.

Now we’re talking about something SaaS is all about. There is the service the SaaS vendor offers, but there is also the reality that SaaS frequently enables self-service to a much higher degree than other models with better results for all.

The self-services I have in mind are basically of two kinds. First, we can use Web 2.0 to enable our customers to help each other and build a valuable community. This will ultimately benefit sales and marketing as prospects become aware of it. Many products are sold on the basis of community. See my post on Web 2.0 Persuasion for more:

http://smoothspan.wordpress.com/2007/08/24/the-psychology-of-saas-and-web-20-persuasion-and-selling/

Secondly, we can enable better collaboration between the SaaS vendor and their customers (and prospects). Take the examples I give comparing Tech Support escalation for SaaS versus On-premise here:

http://smoothspan.wordpress.com/2007/08/31/with-saas-you-are-100-helpless-and-much-better-off/

You can follow along that discussion and start to imagine all sorts of collaborative Web 2.0-enabled features you could add to a SaaS offering to do even better.

All of this will translate to higher customer satisfaction, and that is one reason why the cost to get $1 of SaaS revenue remains quite a bit lower than the cost to get $1 of conventional software revenue.

]]> By: Jesse Kliza http://www.saasblogs.com/2007/08/30/how-can-a-saas-isv-drive-down-marketing-sales-costs/#comment-12181 Jesse Kliza Fri, 31 Aug 2007 14:05:19 +0000 http://www.saasblogs.com/2007/08/30/how-can-a-saas-isv-drive-down-marketing-sales-costs/#comment-12181 Agreed Abe. Free trials are a whole different ball game, and an important component of most any ISVs sales process. Agreed Abe.

Free trials are a whole different ball game, and an important component of most any ISVs sales process.

]]> By: Abe Sultan http://www.saasblogs.com/2007/08/30/how-can-a-saas-isv-drive-down-marketing-sales-costs/#comment-12180 Abe Sultan Fri, 31 Aug 2007 13:47:50 +0000 http://www.saasblogs.com/2007/08/30/how-can-a-saas-isv-drive-down-marketing-sales-costs/#comment-12180 Jesse, Great point, it's important to keep in mind that not offering a free solution should not be confused with not offering a free trial. I believe that free trials are almost a must for any type of software out there and especially for SaaS software as well as an important tool in your marketing toolkit. Abe Jesse,

Great point, it’s important to keep in mind that not offering a free solution should not be confused with not offering a free trial.

I believe that free trials are almost a must for any type of software out there and especially for SaaS software as well as an important tool in your marketing toolkit.

Abe

]]> By: Jesse Kliza http://www.saasblogs.com/2007/08/30/how-can-a-saas-isv-drive-down-marketing-sales-costs/#comment-12178 Jesse Kliza Fri, 31 Aug 2007 13:33:18 +0000 http://www.saasblogs.com/2007/08/30/how-can-a-saas-isv-drive-down-marketing-sales-costs/#comment-12178 The problem I see with offering a free version is that without there being some kind of commitment (ie: payment), even if it is small, there is less incentive for the user to actually use the product. I sign up for TONS of free accounts for various solutions, many of which are probably excellent, yet I never get around to using them. As a result, I add no value to those solutions' networks at all. Especially in the case where those ISVs are providing benchmarks that include my junk data that I put in when I played with the app for 10 minutes the one time I logged in. Now that's not to say the Free model can't work. Clearly it has, and continues to work in numerous cases. However, I agree with Ben that the added value of your solution and it's network of users needs to be clear to all users and potential users from the start. If ISV's accomplish this, they should have no problem forcing potential users to make a small commitment before gaining access to their solution. The problem I see with offering a free version is that without there being some kind of commitment (ie: payment), even if it is small, there is less incentive for the user to actually use the product.

I sign up for TONS of free accounts for various solutions, many of which are probably excellent, yet I never get around to using them. As a result, I add no value to those solutions’ networks at all. Especially in the case where those ISVs are providing benchmarks that include my junk data that I put in when I played with the app for 10 minutes the one time I logged in.

Now that’s not to say the Free model can’t work. Clearly it has, and continues to work in numerous cases. However, I agree with Ben that the added value of your solution and it’s network of users needs to be clear to all users and potential users from the start. If ISV’s accomplish this, they should have no problem forcing potential users to make a small commitment before gaining access to their solution.

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