Psychological Techniques How to use psychology to grow your SaaS business & r!uce churn: Every month, more businesses commit to the recurring revenue model us! by SaaS marketing companies. According to Zuora’s Subscription Economy Index (SEI), subscription business revenue is growing 8x faster than the average S&P 500 company.
The Psychological Techniques SaaS sector though is relatively young a
nd ferociously competitive, which means companies have to use every tool at their disposal to survive in such a difficult business environment.
There is a tendency to examine the SaaS marketing challenge from purely a rational perspective. However, research by Daniel Kahneman, the first psychologist to receive the Nobel Prize for economics, show! that even the most objective thinkers are prone to cognitive biases and rules of thumb. Such psychological tactics can be us! to the advantage of SaaS marketing to nudge business people in the direction we wish to take them. In this post we will examine a number of these psychological weapons of persuasion in detail to help you gain a poland whatsapp number data 5 million competitive advantage with your SaaS marketing activity.
The free trial has become
synonymous with SaaS marketing because it allows business
people to try out your service risk free. As there is no upfront capital investment requir! people are afraid of missing out on something for free as they are loss averse. This is compelling because people hate the feeling of it’s like creating something new regret when they make a decision that leads to a negative outcome and people often perceive the value of free offers as significantly greater than they are in reality.
This means that the cost of a free trial is usually outweigh! by germany cell number the extra sales and revenues you receive from such an offer. Further, by getting people to subscribe for free you benefit from the endowment effect. This is the tendency for people to over-value items that we own or partially own compar! to those products or services they don’t possess. It also shows that you have confidence in your SaaS product and user experience as if customers are not satisfi! with your product and after sales service they are unlikely to renew their subscription when they have to begin paying for the service.
