Getting your first SaaS customer may be the second most important step to becoming a successful SaaS start-up. While this is undoubtably an important and often difficult process, the most important part will be getting them (or subsequent customers) to pay for the use of your SaaS platform.
To get your first customer onboard you might have to, exploit your network, attend industry events, team up with other businesses or simply spread the word via social media and online marketing. Whatever technique you use, once you get your first customer signed up, even on a free subscription, make sure you treat them like the gold they are! Use their feedback to improve your product and further your relationship with them. Turn them into brand advocates so that you can call on them for a reference or use their quotes on your website and collateral.
Next, you’re going to have to do the same thing again, and again, and again. Generally, the minimum magic number is three (referenceable customers) before you start to see real traction, especially if you’re targeting enterprise level business.
Let’s return to the first most important step of becoming a successful start-up, getting paid! This is true validation that your software is solving a problem worth paying for. You will need to understand the value your SaaS solution provides to your customers and how to price this attractively. Pricing is a dark art indeed, and one that should be reviewed with every customer add or loss at first until you are confident that you’ve struck a good balance with the customer’s needs.
There is significant evidence available that shows most start-ups undercharge initially, however, this is understandable and even preferable to the alternative of losing customers altogether, particularly at the beginning of the start-up journey. The goal at first should be new customer adds with references and case studies accompanied wherever possible. Once you’ve achieved a suitable customer volume you can start to redress this situation and make revenue the focus while putting a plan in place to increase your existing customers to more appropriate pricing levels.
There are many variables at play when you’re starting up and no one size fits all approach is guaranteed. If you’re looking for advice on your start-up journey talk to us about how we can help you start it now!