Welcome back to a new episode of our “Give me 5!” video series.
In this video, Philipp Reichardt, Vice President of Sales for North America at 2Checkout, is going to focus on how to successfully transition your business to SaaS & Subscriptions.
Already about half of online purchases are subscription-based and by 2020, more than 80% of software will be about subscriptions. Therefore, the shift to a subscription-based business is inevitable.
This video provides strategic tips for making the shift to subscriptions and SaaS, so let’s get started!
Is it legacy perpetual with subscriptions or just subscriptions, legacy with SaaS or pure SaaS. Also, define how your customers will transition. Will you introduce your new subscription-based products to existing customers, new ones, or an in-between solution?
In other words, think of the monetization option(s) for your subscription or SaaS product, and make sure they work for your customers. Here are few of the major ones:
Closely related to this is pricing – Don’t price your SaaS product too high or too low. Differentiate it from your legacy perpetual license product and make sure to deliver innovation, flexibility, and service.
Sort through the alphabet soup and understand the metrics you need to track for SaaS & subscription success.
We’re talking about metrics such as:
You need to also track them with the right reporting and analytics tools in order to optimize your business.
Find a recurring payment and revenue recovery platform that can stop subscription payment problems before they start, with tools like:
One tip would be to ask your payment or eCommerce provider for a list of payment methods supporting recurring charges. Make sure they are appropriate for the new models you are about to adopt.
Customer support can make the difference between success and failure. For subscription-based sales, support will be accelerated – you’ll be in closer contact with your clients – even if in some cases through automated triggers and notifications – and you’ll constantly need to reinforce your value. Here’s what you’ll need for SaaS support:
No matter the end game, the start of your transition must begin with open and clear communication with your existing customers.
You can watch the previous episode of our “Give me 5!” series on growth hacking here.