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5 Reasons Your SaaS Users Don't Convert Into Paying Customers

5 Reasons Your SaaS Users Don’t Convert Into Paying Customers

Undeniable, SaaS (Software as a Service) has been an disruptive and effective platform for some time now. We all know and love companies that use the model. Companies like Salesforce, Amazon Web Services and Microsoft Office 365.
It is one of the most potentially profitable niches around today.

But how do you get your visitors to sign up for your service. How do you stand out?
This article will help you to avoid 5 reasons why your SaaS users don’t convert into paying clients.

1. You’re targeting the wrong audience

Who is your target market? Is your SaaS service aimed at consumers or businesses?
Asking the wrong questions and you will end up with the wrong audience.
Even if your service can cater to both that won’t mean everybody will sign up for it. Trying to target everyone and you will end up targeting no one.

Not targeting the right audience and your copy is doomed because you don’t speak their language.
If your SaaS is for software engineers then your landing page text will read very differently compared to an motivational SaaS.

2. Your claims aren’t backed up with proof

Convincing your visitors to sign up for your SaaS can be tricky, especially if the monthly price is kind of steep. You can post a how-to video or create compelling content and add stunning graphics. But that won’t be enough.

When you claim that your service will boost productivity you will need to provide some proof. How does it do that? Can you present any numbers through measurable factors to state your claim? Does it import data from other systems or do you need to manually reenter the data? Does your SaaS automatically learn from you through a complex algorithm?

Provide your visitors some insights, give them a peek behind the curtain. If it is a self-learning service explain them how the system does that and how it can help them to increase their productivity.

If you’re not able to provide these kind of details because your SaaS is intended for other use like e.g. an motivational service then add testimonials or feedback you got through social media. This can help to get your users on board.

Also, you could have a “not satisified, money back” policy in place to get that undecided customer across the finish line.

3. Not offering a free version or trial version

Give your visitors the possibility to try your service for free for a limited time or provide a version with some key features disabled. This way they can determine whether they like it or not.

Get users to start actually using it immediately with onboarding content that highlight benefits. Mail them the day after signing up for your free or trial version and provide again some key features of your service.

Once the trial period has expired and they like it, or even better they realise they can’t live without it, convincing them to sign up for the paid or premium version will be a piece of cake.

4. Your service exists in an already very saturated market

One of the issues you may face is that your service is already in a oversaturated market and most people have already processes in place to do what you provide. In order to win them over, it is extremely difficult to get people to change their habits without a really compelling reason to do so.

What is your compelling reason one should switch to your solution rather than the dozens of other similar tools currently on the SaaS market? How can you get noticed? How do you convince your visitors that your service is worth the price?

Service differentiation is key here. Make your service more attractive to a particular target market. Look at your competition and learn from them. Make your service better so it distinguishes you from the competition, add more features, improve on the UX, create a brand that stand out from the crowd.

5. You don’t check Google Analytics

Shame on you if you don’t check the Google Analytics of your service. It can provide you excellent insights into visitors behaviour of your SaaS landing page. And with some tweaking, it can analyse users behaviour inside your SaaS.

Check the bounce rate of your landing page. Bounce rate is the percentage of singe page visits. It is the number of visits in which a visitor leaves your website from the landing page without browsing any further.

As a very broad rule of thumb, you’re aiming for a bounce rate of under 40%. Between 40% and 55% is acceptable, whilst 55-65% shows significant room for improvement. If your bounce rate is above 90% or below 20%, usually that indicates a tracking or code installation error.

You can also use Google Analytics to analyse users behaviour inside your SaaS.
See this article on how to setup your Google Analytics for SaaS.