The speed of the SaaS purchase cycle will depend a lot on the price and the overall complexity and size of the solution. The length of the shopping cycle vary dramatically if your product costs $ 100 / month, the process will be much faster than if the price is $ 20,000 / month.
Decision-making process
The more your product costs, the more decision-makers will need to be involved in the decision-making process and the weeks are months at once. Here are a few other factors that can slow down your buying process:
New markets:
If you’re selling to new markets, your sales cycle may be longer because you spend more time communicating use cases and value to potential leads. This will extend your sales cycle, but it is important to educate new markets before selling on them.
Large enterprises:
Sales to large companies, multinationals increase the number of stakeholders needed to comment and are usually accompanied by more legal and technical bureaucracy.
Complex software:
The more complex your software, the longer your sales cycle is likely to be. In this case, it is important to make sure during DEMA that you have the right people in the room so that you can enforce your belongings with less savvy colleagues.
Motivate by free trials
Free trials can also affect the sales cycles of SaaS products. Offering a 30-day free trial could significantly extend your sales cycle.
Typical SaaS sales cycle model
- 40 Days: <$ 5 K:
- 62 Days: $ 5 K- $ 10 K
- 84 Days: $ 10 K- $ 50 K:
- 116 Days: $ 50 K- $ 100 K
- 169 Days: $ 100 K +
- Overall average: 84.3 days
Free trial strategy
A free trial strategy can be a great way to allow your customers to touch your product, you also need to think about things that can go wrong with this process:
- From the beginning, the user does not quite understand the value that the product offers him, what he will gain by using it
- The user is confused and does not know how to use the product
- The product works slowly, badly, illogically
- The user is not very technically proficient and cannot set up the process himself
When providing free trial versions, beware of those who use the trial version to have access to your product for a limited time without having to pay for it. You can reduce abuse by offering short trials and asking how a potential customer plans to use the product during the trial, either in a personal communication or through questions on a form that prevents access to the product.