Why Sales Funnels Are Critical for SaaS Businesses
SaaS business models are powerful. They give you the ability to earn regular revenue while delivering a quality product to your customers.
But when your bread and butter comes from software subscriptions, it can be chaotic to manage on the sales side of things.
If you want to bring in more revenue as you grow, you need a model that helps you repeat your success time and time again. The problem is that many SaaS companies don’t go in with a defined customer sales strategy. This results in lost sales, diminished brand authority, and internal friction.
Eliminate the chaos and put your sales on autopilot. Create and optimize a SaaS sales funnel that works for your brand. It’s as simple as letting the software guide your team to success so you get business that’s automatic and repeatable.
What is a Funnel?
A sales funnel is like a map. It shows every step in a customer’s journey from learning about your brand, becoming a subscriber, and making repeat purchases.
At a high level, the SaaS sales funnel comes full circle in five steps:
- Your customer becomes aware of the product through your marketing initiatives.
- The customer asks for a product demo.
- They sign up for a free trial.
- After enjoying the free trial, they decide to become a subscriber.
- The customer is delighted by the experience and continues to stay on with your brand.
See how you can determine the best sales funnel process for your brand.
The thing about sales funnels is that they differ by industry and brand. As a SaaS brand, you’ll probably have a lengthy or complex sales cycle. This means it may take up to three months to convert a lead into a subscriber.
Because of the complex SaaS sales process, it’s harder to keep tabs on the customer journey. You have to juggle customer needs, communication, next steps, and more. It’s really easy for items to fall through the cracks. Without a structure or funnel in place for sales, you risk making a serious customer service faux pas.
Funnel benefits for SaaS companies
A sales funnel sounds complex at first, which is why many SaaS brands don’t use them. But this is a mistake. You’re putting your brand at risk without a defined sales funnel.
Stop wishing you knew how to get more subscriptions. Implement a smart, automatic funnel with providers like Funnelfly to enjoy all of these benefits for your brand.
1. Scale smart
Scaling is a concern for every company, but especially for growing SaaS brands. While it’s important to scale in terms of hiring, over-hiring can be a devastating mistake for your brand.
Instead of hiring more and more employees to manage your sales process, implement a clear sales funnel. When paired with a solution like Funnelfly, the funnel works automatically, making your sales team less harried and more effective.
Put simply, a sales funnel makes your sales team more efficient, which means there’s less need to bring on more full-time resources.
2. Improve accuracy
Data is the foundation of good sales. But if you’re using a manual system that relies on human input, there’s a big margin for error.
Worse yet, it’s easy for humans to get turned around or confused during the sales process. This leads to misunderstandings that frustrate customers and cause them to take their business elsewhere.
With a sales funnel, you can drastically improve the accuracy of your sales team’s information. Funnelfly automatically logs important information like emails, call notes, and more so your team always has the right information to close the deal.
3. Nurture leads
Almost 80% of all leads your marketing team brings in don’t turn into subscribers. The reason isn’t due to your marketing team or product: it’s because sales doesn’t follow up with these leads.
Sales funnels help you create a process to nurture leads, or pull them through the funnel to a purchase. Sales funnel solutions like Funnelfly do this for you automatically.
Funnelfly takes your marketing leads and transfers them to sales, where your team goes through a set process to nurture each lead in a personalized way. As a result, you get better close rates and more revenue.
4. Streamline onboarding
While some SaaS services have a simple onboarding process, others require more steps. It’s not always as easy as activating a customer dashboard.
Do you have a written process for onboarding new customers? Does your sales team follow this process for every single onboarding?
Without an automated sales funnel, that’s unlikely. Sales funnels give your team next steps that streamline and simplify the onboarding process. This helps your team delight customers and make a good impression, which is key to retaining subscribers for the long haul.
Use Funnelfly to remove friction in your onboarding process. The system’s data will help you uncover critical data about why people subscribe (or unsubscribe) or why your product is better than the competition.
Plus, a convenient and fast onboarding process will actually increase the perceived value of your service to customers.
5.Measure what matters
If 5,000 people opened your email blast, you might think that’s great! However, views are a vanity metric; they make you feel good at the time, but they don’t mean much as far as earnings.
A sales funnel helps you look past vanity metrics and look at the data that actually matters. Without a defined sales funnel, it’s hard to know how many leads you have, how many leads converted to subscribers, and the average lifetime value of your subscribers. As a SaaS business, you need this data to make informed decisions.
Sales funnels help you measure what matters. This not only helps your cash flow but also keeps your customers around longer, since you can use the data to improve the customer experience.
Funnelfly gives SaaS businesses automated data and analytics so you can focus on the KPIs that actually help you get more subscribers.
6. Retain customers
Retention is important for every business, but it’s the lifeblood of SaaS. Your entire business model relies on subscriptions and renewals. Customer retention should be your number-one priority.
It’s six times more expensive to market to a new customer instead of existing customers. Plus, existing customers already know you and your product benefits. Cross-selling or up-selling is significantly easier with this audience.
Even if you have a limited marketing budget, a proper sales funnel gives your team the tools and process to keep customers around.
Whether through a loyalty program or referrals, the sales funnel helps you stop feeling anxious about getting renewals. By reducing friction in the customer experience, funnels help you build more customer loyalty and regular revenue.
For example, Funnelfly can remind your sales team to follow up with subscribers on training or questions to ensure they’re using your product. It can even ask subscribers to provide a review or testimonial to help you score more new customers.
The Bottom Line
SaaS models are the future of tech. But that means your sales process can’t be stuck in the Stone Age. Embrace automatic sales funnels that support your sales goals. Partner with Funnelfly to get more SaaS subscriptions with less fuss.