How to create a customer acquisition strategy
On average, SaaS companies spend a mere 6 hours on pricing strategy. This might seem like enough time to price your new product, but in reality, pricing should be far more than a "set and forget" strategy.
If you don't optimize your pricing and review it regularly, the impact can be more detrimental than you think. It ultimately affects the rate at which you scale.
If the price is too high, you'll outprice your customers and charge more than their perceived product value. Too low, and you sell yourself short. This risks your product looking like a "cheap" or, even worse, less effective option compared to competitors.
In addition to the price point, you need to think about how you package up your product offering. This might be on a subscription basis, as a one-time purchase, or you might have different tiers with different features available at different price points.
Time to spin the wheel (or read on) and find out how to ensure the price is right.
Optimize your prices regularly
Pricing should not be left to chance, nor should you blindly follow your competitors' pricing tactics. You need to understand your target audience, market and product value to optimize your pricing for profits. These steps should help.
- Rely on hard data
- Define your company goals and boundaries
- Have clarity on your value metric
- Create pricing tiers business model
- Regularly monitor your pricing
Clear a path to the checkout page
Your pricing is right on the money, and your prospects are ready to convert into paying customers. Result. 🙌
Now all you need is the checkout and purchase flow to secure that all-important initial payment. Right?
Not quite. A lot goes into maximizing these workflows for optimum conversion and goes back to decisions about how you want to sell. Let's get into it.
- Determine your digital marketing channels
- Spread the word
- Optimize for maximum conversion
- Secure that first payment
Deliver on your promise
A prospect has converted into a paying customer, and the initial transaction has been approved. Now it's time to fulfill your end of the bargain and give them access to your product (also referred to as provision).
In a traditional retail business that sells physical goods, this is where you'd be packaging and shipping those goods out to the customer. With SaaS and digital goods, this process looks a bit different.
Let's take a look at what it involves.
- Decide how you will deliver your product. The onboarding must be seamless.
- Track whether the users are using the product effectively
- Revoking access after it's been granted in case of delinquent accounts, trial completion, etc.
Keep financial obligations above board
You must take into account sales tax and financial compliance at every point across your customer and payment journey.
First up, sales tax. For acquisition, specifically, this includes making sure you are collecting the right amount of sales tax at the checkout - this will be different depending on the type of software being sold and where your customers are based. So for this, you need access that tells you exactly where your customers are coming from to avoid getting caught out.
Other financial compliance regulations also exist worldwide - each with its nuances. For example, the rules regarding 3DSecure on one-time and recurring purchases are different in India than in many other countries. You'll need some dedicated resources to manage compliance and look forward, so you're prepared for any new regulations or changes to existing ones that come into play.