Using customer insight to grow in recession

Many startups are feeling the pinch in today's uncertain economic climate, but for SaaS companies, the next 12 months could present significant growth opportunities: 70% of small and medium-sized enterprises (SMEs) globally report increased investment in technology this year, according to the report on Gartner Digital Marketplaces.

But companies are changing where, how and why they invest in technology. Businesses are also making purchasing decisions faster: in 2021, 35% of SMBs took three to six months to complete software evaluation and purchase; that number jumped to 47% in 2022.

Purchasing decisions have also become more self-directed, as companies turn to multiple sources for software. This means that startups need the right insights into buyer behavior to create more growth opportunities in 2023.

To maximize growth at each stage of the buying process, you need to know how potential customers buy software:

Understand why a company starts looking for software

Productivity improvements, overcoming current technology, and concerns about security are the main reasons why SMEs are buying software during 2023.

About 54% of companies that bought software last year chose to pay more for a custom solution instead of buying a standard product.

It must be taken into account that in the awareness stage, the companies seek to solve a problem or challenge using technology. Therefore, it is essential to clearly communicate the benefits of your product and develop use cases adapted to the challenges that companies face.

The message should reflect the features potential customers are interested in and the type of purchase they want to make, whether they are expanding current capabilities, replacing existing software, or purchasing software for the first time.

Identify sources that companies trust when evaluating software

All the companies are drawing on rich, analytical sources for advice. More than a third of SMEs seek advice from industry experts, but they don't stop there. Free consultations with software analysts, sitios web or professional or trade association magazines, feedback from peers and colleagues, and product testing play an important role during the consideration phase.

Since companies depend on a combination of information sources and switch from one to another during your research, you need to establish a strong presence across both online and offline channels to maximize brand recognition and meet prospects where they are.

Buyers find customer reviews to be an unbiased source of information about software quality and features. use to support the information they have collected. In fact, 41% of SMBs say that user reviews and ratings play a critical role in making purchasing decisions.

Consequently, an effort is required to appear as a superior product on third party software review sites such as Capterra, GetApp and Software Advice by updating the profile of the brand and collecting new customer reviews.

be on the short list

On average, the companies narrow their shortlist to five SaaS providers before to make a final decision. However, as the SaaS market becomes saturated, companies are expanding their lists to include additional providers.

Must offer proof and free demos to help businesses explore their software and take the opportunity to emphasize the features most important to them. In 2023, the ease of use and security are the main characteristics that companies want in their software, followed by product features and functionality. While price has been a major pain point for SMBs in the past, concerns of safety have taken center stage lately.

When evaluating software vendors, buyers also assess their trust in their sales team, their flexibility to adapt to your purchasing processes and the ease with which your product it can be integrated with your technology environment.

About 54% of companies that purchased software in the past 12 months chose to pay more for a custom solution rather than buy an out-of-the-box product. highlight options personalization in demos and customer interactions can help strengthen your case and can even lead to higher retention rates.

Close the deal

Businesses often chicken out when they're ready to finalize their purchase. That is why it is important to understand why companies leave at the last moment.

Price tends to be the main reason companies remove software vendors from their shortlists. This is closely followed by ambiguous/contradictory information and submissions or arguments from low sale quality.

If prices are competitive, you have an opportunity to capture market share. However, you must ensure that sales and marketing materials are clear, concise and accurate, and that the sales team be attentive to the needs of buyers.

Continue support after the sale

Once a purchase is complete, installation and startup sets the tone for the rest of the customer journey.

Their goal is to make sure customers successfully adopt the software and continue to use it. To achieve that goal, you have to take advantage of the communication channels that customers use the most, such as chat, email, customer portals and communities, to maintain fluid communication.

Also, customers often like to have support services and training materials in their primary language, so be sure to offer multilingual support when needed.

By investing in the post-purchase success of your customers, you'll increase your chances of retaining them.

Retain customers

With all this change in the world of software, it makes sense for companies to regularly update the technology they use. More than two-thirds of SMBs have replaced or changed software more frequently since the start of 2021. In fact, 55% plan to extend their licenses to handle more projects or tasks, and 50% plan to upgrade for more functionality.

This shows how important it is for SaaS providers to proactively understand unmet customer needs to identify cross-sell and up-sell opportunities.

Be transparent with customers about the Roadmap of the product to give them reasons to stick around. Take advantage of discounts, extension options, add-on products, early adoption programs, and upgrades to retarget customers close to their renewal date and continue to show the value of the offer. You need to anticipate potential problems by data usage Buyer Intent Analysis to identify dissatisfied customers so you can jump in early and retain them.

Successful SaaS startups see the glass as half full and seize opportunities to take advantage of headwinds. Understanding changes in the way buyers research, evaluate, select, and purchase software is critical to accelerating growth. With this knowledge, you can adapt your strategy, better serve customers and differentiate yourself from the competition in the long term.