People buy for the 'Real' reason and the 'Right' reason.
Introduction:
In the world of B2B SaaS, the decision-making process behind purchasing a product or service is a fascinating interplay of logic and emotion. While businesses seem to rely heavily on rational justifications, the underlying emotional factors play a crucial role, potentially the most crucial. Understanding this dual nature can help SaaS providers tailor their Go To Market (GTM) strategies to be more relevant and increase customer acquisition and retention. In this article, we will delve into the right reasons (logical and justifiable) and real reasons (emotional) that drive someone to buy a B2B SaaS product or service.
Part 1: The Right Reasons - Logical and Justifiable - Can be modelled in a spreadsheet.
Enhanced Efficiency and Productivity:
B2B SaaS solutions often promise to streamline operations, automate tasks, and boost overall productivity. Businesses seek these products to optimize their workflow, reduce manual efforts, and ultimately achieve cost savings.
Tip: Tailor your messaging to the person and persona. Different people will embrace efficiency differently based on their frame of reference. You definitely don't want the 'I will lose my job so there is no way I will support your offering' response.
Scalability and Flexibility:
One of the significant advantages of B2B SaaS is its ability to scale according to business needs. Organizations are inclined to invest in solutions that can grow with them, avoiding the hassle of frequent migrations or system overhauls.
Tip: Starting with a smaller configuration or bundle lowers the risk for the buyer and allows a way to measure success prior to committing to the entire solution.
Data-Driven Insights:
B2B SaaS often provides valuable analytics and reporting features that allow businesses to make data-driven decisions. In today's data-centric world, companies prioritize solutions that offer real-time insights to understand their customers better, improve strategies, and optimize performance.
Tip: Tie your ability to deliver enhanced insights back to improved decision making. They tie improved decision making to business outcomes.
In all of the above the decision can be justified with numbers and an ROI calculated.
Part 2: The Real Reasons - Emotional Triggers - Cannot be modelled in a spreadsheet.
Fear of Missing Out (FOMO):
Emotions like fear and anxiety can strongly influence B2B SaaS purchases. Business leaders fear that not adopting the latest technology might lead to falling behind competitors or missing out on valuable opportunities.
Tip: Share stories of how other relatable companies have increased their competitive advantage with your offering.
Ego, Reputation and Career Advancement:
For some decision-makers, selecting a high-profile SaaS provider is an ego-driven choice. Associating with reputable brands, or instigating an innovative solution enhances the company and buyer's reputation, leading to career advancement opportunities.
Tip: Focus on enhancing your buyer's reputation within the business.
Work Life Balance:
Decision-makers can be frustrated by the time it takes to complete routine tasks. Long hours and time away from people and activities they love can be a driver for implementing a better way of working. Help them see the vision of how they can get home to their family sooner.
Tip: Ask questions like 'can you see yourself using this'? Once they visualise themselves using your offering, they can also see themselves having better work life balance.
Part 3: Striking the Balance - Considerations for SaaS Providers
Building Emotional Connections:
Understanding the emotional triggers that drive B2B purchases allows SaaS providers to build strong emotional connections with their prospects. Personalized marketing campaigns, tailored content, and relevant social validation will enhance emotional appeal and result in high customer acquisition.
Relevant and Transparent Communication:
To appeal to the logical side, SaaS providers must communicate the practical benefits of their products through data-backed evidence, product demonstrations, and clear ROI calculations. Templates and calculators to assist your buyer build a rapid, professional and believable ROI will ensure your offering is presented to other stakeholders in the best possible light.
Conclusion:
The decision-making process in B2B SaaS purchases is a dynamic interplay of rational justifications and emotional triggers. Catering to only one of the reasons will lead to frustration from long sales cycles and low conversion rates.
While the right reasons provide logical justifications for investing in a product or service, the real reasons tap into the emotional core of human behaviour. By understanding and catering to both aspects, SaaS providers can effectively position themselves in the market, build trust, and win more market share.
Appeal to Both: Double your chances, balance the right and real reasons in your GTM strategy, and win unreasonable market share!
If you are ready to accelerate your customer acquisition, Contact Us.
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