Insight: SaaS (48) 20 seconds: out or not
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We discussed company boundaries and the future of SaaS in China in the last article. We’ll explore a phenomenon today that could challenge the SaaS industry’s consensus. How long does it typically take a customer to decide whether to purchase a SaaS?
Ehrenberg-Bass Institute of Marketing Science published a report “Shopping Takes Only Seconds…In-Store and Online”.
The Ehrenberg-Bass study confirms this:
The average consumer spends 13 seconds purchasing a brand in-store. This is based on multiple studies of consumer product purchase behavior.
Online is not much better, with the average consumer spending 19 seconds to purchase, and the majority spending less than 10 seconds.
In 20 seconds, customers can make a decision.
You might think that this survey is more relevant to the purchase of consumer items in general than to the purchase of SaaS products.
I partially concur with this viewpoint. There is a small difference between purchasing a SaaS product and a consumer good.
We usually claim that while buying consumer goods is irrational, purchasing SaaS is rational. Such perspective is untrue. “SaaS customers make reasonable purchasing decisions.” This portion is true, but many customers are also highly rational when making purchases, therefore buying consumer goods is not always impulsive consumption.
When making decisions, various persons typically have different perceptions and rationales. People’s habits and attributes, not what they purchase, are what decide if their purchasing behavior is sensible.
Additionally, the price at which a commodity is purchased does not indicate whether or not a consumer is rational or irrational. Some luxury items, like vehicles, cost a lot of money, and many individuals purchase them impulsively. But the majority of SaaS purchases are logical. Because the person making the purchase is doing it on the company’s behalf, there needs to be a valid justification. He needs to persuade his superiors and coworkers, and any purchases must be made after careful consideration.
SaaS purchasing decisions are typically lengthy because sensible decisions, as we all know, take longer than impulsive, irrational decisions (ranging from days to months). It may seem utterly absurd that “the customer may make a decision in 20 seconds,” but is this truly the case?
Choosing a SaaS solution can be a lengthy process. It takes longer for customers to conclude a sale, but it doesn’t take as long for a client to back out of a purchase, which is an underlying fact here.
Check your website access data to see why so many visitors depart so rapidly if you don’t trust me. How may this phenomenon be explained?
The most frequent misconception is that SaaS clients are quite rational when making a purchase decision but may not be as rational when giving up.
Therefore, the customer has 20 seconds to decide whether to cancel the deal. SaaS entrepreneurs need to understand this.
Don’t reassure yourself that the customer will close after some time if they haven’t made a contract. Perhaps the buyer has already abandoned your product after the first 20 seconds. Anyone full of sales experience understands that often, whether you can complete a deal depends on your first interaction with the consumer.
Additionally as an independent person, the SaaS consumer has every right to be unaware of your offering. He may have irrational reasons for quitting, such as that your landing page is too ugly, the product description you wrote is difficult to read quickly, or they simply don’t like your style.
Whether your product may be considered in the context of customers’ reasonable comparison will be decided in less than 20 seconds.
We want to gain as much client favor in only 20 seconds as we can.
- Use language with customer-level equivalence:
The product’s advertising copy should be appropriate for the customer’s degree of expertise. If your product is a publicly accessible SaaS, you must explain it in simple terms. If the product is a professional tool for To Developer, then professional terminology must be used to describe it.
2. Avoid making errors:
There shouldn’t be any conflicts about, for instance, race, gender, culture, religion, etc.
3. Design your website:
Simply design it so that the majority of people can accept it; you don’t need a particularly sophisticated design concept.
You must keep in mind that 20 seconds can determine whether you are out or not, therefore you must confirm that you are still in the game.
Please send me an email (jasperhanlingyi@gmail.com) if you have any questions or suggestions.
The next article ‘Insight: SaaS (49) Is SaaS still a viable business model today?’ is published. Simply send me some claps and feedback if you enjoyed my article.
