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7 laws of Sales and Physics Every SaaS Business Should Know

In this article we will give you the important links between Sales and Physics that every SaaS business should know.

From day one in schools, we are taught that everything is governed by some principles and laws. Be it our bodies or energy or mass or hydrocarbons, basically anything and everything. Although you might think success does not have a definite pattern but it does revolve around these principles only. And who decided these principles in the first place? It is the people who have experienced the market over the years and tested everything.

Related: How to Perform a Competitive Analysis and Establish Your Presence

Software as a Service or SaaS businesses can learn a thing or two from these sales laws that are similar to what we studied back in Physics in school, at least to some extent. Everything revolves around people: the people who buy your product, the people who know about your product or the people that are your competitors. These laws can really help you make it with SaaS product and deal with all kind of people on the way:

#1: In order to be seen, you have to be visible

This is pretty self-explanatory. If the customer does not see it, how will they get it? The conversions you are trying to achieve should be very noticeable. Internet is all about fast delivery now and people almost instantaneously make up their mind whether they want to click something or not. If they do not find what they are looking for, they will quickly move away and go to a competitor website.

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Being visible may seem very simple but it is actually a tricky one. You have to be visible but not in a pushy in-your-face kind of way. A good example would be a Call to Action on the header or footer of your home page. This way people see what you really want them to see. This takes them directly to the bottom of the sales funnel, should they click, and therefore remove a lot of steps in between. Customer gets convenience and you get conversions.

There are many other ways you can do that besides the above example. Put your thinking cap on and think in terms of your business goals what could be the best way to show a CTA for your SaaS? Somethings you can consider are pop ups, floating buttons, lead magnets on a side bar, and the best one, content. You can use whatever you deem most appropriate and bring the deal or offers to the front so that things get into motions and conversions start.

#2: Change works only if it is deemed necessary

What may look like a significant change to you may not be the same for your customer? This is where things get complicated. We are talking about all sorts of changes from copy to design. Your customer decides what change really matters and what does not. Even with big structural changes, like reducing the number of steps in the sales funnel, the effect really comes down to the customer.

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What this law really says is that you have to keep yourself in customer’s shoes and then make the changes. For instance, if customers like videos over text, introducing a short video on your landing page can significantly improve the click through rate and subsequently the conversion rate. Similarly, offering a free service may be seen as a big and positive change especially from the standpoint of customer. MailChimp did that when they acquired a decent number of users and saw great increase in their revenues.

Not all changes are going to work because perhaps the customer does not like or feel the need for it. So in order to shake up things a little, change is important and even more important is for it to be relevant to the customer. In SaaS businesses, there may be points when you sales are low and the only option left is to go big or go home. Now such a change needs attention to detail because you do not want things to go further bad. Use A/B testing to test even big changes and you will know which change is really going to matter.

#3: The number of subscriptions you get is directly proportional to the number of times you ask for it

If you are trying to get your visitors to sign up or subscribe to something then you repeatedly have to ask them. Everyone knows how hard it can be to get a visitor to sign up or provide email addresses. However, experts have noted that the more you ask them the more likely they are to give it to you.

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Normally, you would think that doing this is unwise and pushy and the visitor will likely be repelled by this constant badgering but businesses have noted it works quite the opposite. The Lead Pages tried this and quickly wound up with an email list with over 200,000 email addresses. The research has proven this too that people eventually subscribe or sign up if they receive repeated pop ups asking for it.

A little on the nose, but it works and if you really want proof then look at Amazon’s Prime account. Visit any page with any product and you will find Prime account offers everywhere. And people really do get influenced by it as this service is a big hit at Amazon. The numbers do not lie and they have over 54 million customers registered for Prime accounts.

Of course, this is the online world and nothing is as simple as it seems. Yes putting up many CTAs on one page is proven to work but you have to do it in a smart way. Your page is quite wide; there must be many points where you could insert them without being too aggressive. The aim is wherever the customer hovers or clicks or even looks at, they should be able to see the CTA.

#4: Clarity is reality

In the online world, the cleverest thing you can do is be clear. Why? Internet is brimming with scams, frauds and confusions that downright frustrate people. The result is that the visitors are now ever more cautious and if they find the message or service even a tad bit ambiguous, they will likely go away. Transparency is the new reality for online businesses. What you can offer is what you tell the visitors, nothing more and nothing less.

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If the visitor fails to understand what you are selling, there is no way they will advance. Therefore, you have to be clear about the product or service through your website’s copy, banners and even images. Take the example of Movexa that sells supplements for joint pain. When they used the word supplement, their sales improved significantly. Why? The visitor quickly knew what he was getting into.

There is so much competition for every kind of product or business online and SaaS is no exception. If the customer does not understand what you are pitching they will quickly go somewhere else. In order

to really know the difference, try A/B testing here. Use a design that clearly states the service or product and another that does not. You will see that the difference is remarkable and conversions will most likely advent from the former.

#5: Proof increases likelihood of success

You know how they say the proof is in the pudding? Sales work in a similar fashion and people respond to the proof you give them in regard to a sale. Proof can be provided in multiple ways:

  • Reviews
  • No. of Sales
  • Testimonials
  • Certifications
  • Ratings
  • Reputable or Power Links

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These help make your business legit and trustable for the incoming customer. The truth is people like to follow or at least know what others are doing. They are more likely to buy a book or shirt their friend or favorite celebrity bought. Similarly, if you provide a proof about the software service you are providing it can expedite the rate at which they make the decision.

Let’s take the example of Amazon again. The products that have more reviews and higher stars rating get even more sales than those without or with little reviews. If you have a lot of customers, you can show the number with the service. If some big company bought your product, you can mention their name.

The law about being visible applies to these proofs as well. In order to influence the customer, these have to be visible. If you put them in some deep corner of the website that rarely sees any clicks, then it is of no use. Utilize these proofs in your Call to actions as well. People respond to testimonials even if they do not know the person behind it. Make sure you also clearly include any security or any other certifications on your website.

#6: The lesser the friction, the higher the conversions

Just take a moment and again keep yourself in the customer’s shoes, and try to determine his or her goals. You will realize that you are quite distant from it. The problem with businesses in the online world is that they focus so much on the product or service, that the poor customer and his/her needs get ignored. In order to truly bridge the gap between the customer and the service or product, you have to assess what they are trying to achieve with it. Once you know that everything will fall right in and fit like a glove i.e. no more friction.

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Expedia.com had a field ‘company’ in their payment form which confused the customers as to whether it was the bank or the company they worked for. The result was that the payments often

failed and people did not proceed. Here the goal of the customer was to book a flight or hotel room and they simply wanted to pay for that. Adding an irrelevant and confusing field created friction and undermined the actual goal of the customer. When Expedia.com finally removed this field, their sales sky rocketed and they made millions in profit. This just reinforces the law about change too that such a small change caused such a big difference.

To correctly identify where the friction is occurring, you have to closely monitor the customer behavior on your website. Where do they leave off? Where do they spend a lot of time? Usually these are the points that need improvement and alignment with the customer’s basic goals which generally are clarity, flexibility and speed.

#7: Alignment provides the necessary balance

This can be considered as an extension of the above law because it again deals with aligning yourself with the customer. If you do not align, then you create friction. What we really mean by aligning is that you should know where the customer is coming from and what they really want and then present them with information most relevant in that context.

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When you know where your clicks are originating from, you can present only necessary information. If you displayed ad links then perhaps more information is required to clarify the customers. If the customer is originating from a blog post about your service then minimalistic approach would be best because the customer now already knows about you.

This simply helps remove unnecessary exposure and redundancy. You can look at websites of famous brands; they do not introduce themselves on the websites. Why? The customer already knows about them or is originating from a source where they at least learned a bit before proceeding.

Conclusion

As a SaaS business, you are relying a lot on your website to generate sales. If you follow the laws listed in this article, the conversion rate for your website will likely increase. These are pretty straight forward and deal with cutting to the chase and doing things in a customer centric way. It is very easy to misinterpret and go astray with your sales efforts so you must adhere to rules that have proven results. Experts with years of experience know how crucial it is to be relevant and clear about your service.

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