I just got back from the Tier 1 SaaS Evolution Summit, where I saw a presentation by Mike Mankowski of Tier 1. He had one statistic that floored me; that only 13% of Software as a Service companies had click-to-buy functionality on their site. Delivering as many SaaS apps as we do, I knew a number of them didn’t allow users to subscribe directly from their site, but I had no idea it was 87%!
While Mike was quick to point out that research was preliminary, I think it’s amazing indication that many SaaS companies are not truly understanding what it means to be On-Demand. It’s not enough to offer your software on the web and charge a subscription, you need to make it simple to adopt and get started. Not having a “click-to-buy” feature tells your users that they are going to need your help to get going and make their software work. That sounds a lot like bad old Enterprise Software.
Besides “Click-To-Buy” offers great advantages for the SaaS company. Not only does it greatly reduce your customer acquisition cost, it forces your team to simplify your message and clarify your primary value to a user. You may not be able to sell a complete and complex suite of tools over the net, but if you have “Click-To-Buy” you can get to a point where people can get going. Once they are using your software, then you go in for the complex sale.
From here out, I’m going to ask every SaaS company I meet if they have “Click-To-Buy,” and if not how soon they will have it. You can't be Business Web if you don't allow people to do business with you on the web.
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Great post, this stat blows me away. It just goes to show that delivering on-demand software is something that is in a company's DNA or isn't, and can't easily be added on.
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