“Overcoming Client Objections to SaaS”

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I’ll be speaking at an accounting conference in late May on “Overcoming Client Objections to SaaS.”  Sounds like something a bunch of nerds would discuss, doesn’t it?

But overcoming objections to SaaS, or Software as a Service, is a very important concept (see this blog post on a software model in the clouds we deploy for clients – don’t forget to read the comments).  The term comes from an article back from February 2001 (if wikipedia.org is correct) and defines a huge shift in how we consume software use.  It can be defined in many different ways, but here are a few points I tend to make about this model of software use:

  1. Purchasing software. You purchase software kind of like you would a service… that is, you pay for it when you need it.  Most models make you pay for it monthly (though some models start out with free versions).
  2. Cloud based. You don’t look for the software you need anymore, order the discs online and have them mailed to you.  Using software in the clouds (that is, on the internet), is a mainstay to SaaS and actually allows the software to be delivered to you monthly (see point # 1).  No more installing anything on your computer.
  3. Changes to your business process. Implementing SaaS in your company (whether large or small) is not something you do to be cool.  The ultimate effect is efficiency, elimination of human redundancy and solidification of business processes.  When you “move to the clouds” things happen you didn’t know were going to happen.  And those things can change the face of your business forever.

I want to give you a run down of a few things I’ll be talking about at the Scaling New Heights Conference:

  • I’m going to tell them that helping clients surmount the objections to SaaS starts in your own firm.  If you ain’t living it, then don’t be preaching it.  Implementing SaaS models in your own firm will highlight your inefficient processes and cause you to make great changes to your own internal systems.
  • At first, selling SaaS models to most clients is a big job.  Certain generations tend to view most business processes from the perspective of “if it ain’t broke, don’t fix it.”  That will make your initial sales job difficult.  The resulting benefits will be the major enhancements to the client’s internal business processes.  But they won’t see those improvements until they actually implement the SaaS model of new software use.  Good luck!
  • Don’t sell the SaaS model first!  Sell the fact that you can (a) take away their manual processes, (b) take them paperless with little effort, (c) help them eliminate staff, (d) give them total software access from anywhere in the world at any time, etc.  Show them where they have failing internal processes and them give them the solution.
  • I’ll be talking about the future of SaaS models in the clouds.  The future looks bright.  As software moves into the clouds in a SaaS model, business processes become what I call “disrupted business processes.”  That is, all of the processes that typically run inside of a business are being separated from one another in very definable ways.  Software development in a SaaS model is becoming more niche-focused.  Some developers will build a cloud-based software to handle your receivables, some will handle your payables, some will handle your customer relationship management, some will handle your project management and some will handle your document management for you (because, of course, you are paperless in the clouds!).  And then all of these link together with smartly built APIs so you can see them on your phone!  Freakin’ sweet.

What do you think?  Any thoughts as to what I can talk about at the conference?  Leave in the comments above, dang it.

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  1. Art Forrest’s avatar

    As a member of the “certain generation,” I’m sold on the idea of building a paperless, “virtual” office & business. The difficulty for me is the transition of all the processes from “hard copy” (i.e., paper & filing cabinets) to software/computer based to an Internet based SaaS. My current systems & methods “work” (if it ain’t broke, why should I “fix it?”). I don’t need persuasion to make a change; I need 2 things: (1) why is it advantageous to me to change (besides making me “cool”)? What’s the payoff, financially & otherwise?, and (2) how can I make the change as seamlessly as possible, so that all my systems & methods of working will continue to work, well, seamlessly? Don’t convince me – show me.

  2. Donna Bordeaux’s avatar

    I don’t think it matters where the software lives in the “sales” cycle. Don’t forget to sell the benefits rather than the “change” pain that is required. If the client can see what will be easier for them and how they can improve their process/business, it will be less painful. There are generation gaps but I just moved a 68 year old client and his “full of paper” process over to using hosted Quickbooks on a remote server. They have no idea about software as a solution or the clouds, but they don’t have any need to. It just works!

  3. chris’s avatar

    hey budd,
    Great topic man, I am in the middle of all this as I make my move opening my own office. I have already decided there will be NO server in my new office, that just makes sense to me. See my blog for a piece I wrote to the JOA a few months ago on SaaS. You may already have all the info in it, or it may spark something NICE…….
    talk to you soon

  4. Mike Campbell’s avatar

    We have over 160 employees and no IT staff. That’s what SaaS can do for your clients. Once you factor in IT salary, redundancy costs, hardware costs, and software costs, SaaS often becomes the less expensive alternative.

    I hate the term ‘cloud’. A cloud is intangible. I think it is important to remind clients that a ‘cloud’ is just another term for hosted servers. Instead of you bearing all of the costs for a server, you share the costs with other like-minded business owners. Let another company worry about upgrades, replacements, power, bandwidth, and scaling. Show them a picture of a Google server data center ( http://youtu.be/zRwPSFpLX8I ). It’s real, it’s tangible, and it is impressive.

  5. Jason Blumer’s avatar

    @Art – you busted me. Was I talking about your generation? Hee Hee. However, I agree – showing you the benefits is better than talking about them. But how can I “show” benefits in a conference? I would love to do that.

  6. Jason Blumer’s avatar

    @Donna, good thoughts. I’ll focus on telling the accountants to sell the benefits first. But shouldn’t we warn our clients about the change that is about to take place so they don’t say, “had you told me it would be this hard, I never would have done it”?

  7. Jason Blumer’s avatar

    @Chris, just read your article on SaaS. Good stuff. You pointed out that older generations are worried about security, and I agree. Maybe Mike’s thoughts on showing them the servers would help. Thanks!

  8. chris’s avatar

    I was thinking about something last night, you may encounter the question/topic of virtualization v. SaaS. I believe there is a big difference between the two, others would argue they are the same. I think the virtualization is finally accepted by the east coast while SaaS has a some time to mature. Just a thought.

  9. sarah’s avatar

    Hi, I think if you tell people in a conference that one of the benefits they’ll see from implementing cloud computing is that they can “eliminate staff” – you’ll be heading for a fall. It is a very threatening concept and can be talked around by implication not directly, if indeed it is true at all.

  10. thriveal’s avatar

    Sarah, I couldn’t agree with you more! I’ve had some similar feedback from others – talking about “eliminating staff” is just not a good idea in today’s economic climate. Though it is a reality for our clients when we implement SaaS-based services for them, maybe its not a good idea to talk about as we sell these services.

    Thanks for reading.