By Alexandru Stan, serial entrepreneur and CEO of Tekpon, a one-stop platform for all software needs.
In the last few years, the SaaS industry has changed a lot, but the essential aspect is that it has grown fantastically. But with the growth, more challenges came for these companies. Being the CEO of a software marketplace online, I have a seat in the front row of the SaaS industry and more knowledge of the difficulties that SaaS businesses encounter in building trust with their customers or generating more sales. Because I started the business with the desire to help others, I’m always looking for new ways for SaaS companies to generate more clients and revenue and make their products more visible.
SaaS companies face so much competition in the industry, and sometimes it can be challenging to put your product in front of the right people—and more challenging to convince them to choose you over other options in the market. That’s why an online marketplace built for software companies, where they can list their products, can bring these companies more visibility and even potential customers. But let me explain how a marketplace works and why it is not just a simple online “supermarket” where you put your products on a shelf and wait for people to buy them.
Aside from increasing the visibility of your product, listing a software tool has many advantages, including access to valuable customer data, reduced marketing costs and improved customer experience. I’ll also explain how marketplaces can help SaaS companies build customer trust and credibility, resulting in higher revenue and business growth.
Visibility
SaaS companies can increase their visibility to a new audience of potential customers by listing a product on an online marketplace. A marketplace for software is more than a listing; it is a centralized platform for customers to discover and compare different software products, and even write reviews, ultimately choosing the right one for them. But a marketplace is not only for customers; it’s a common ground where SaaS businesses can reach their target audience.
I’ve also mentioned that people can leave reviews of the products that they have been using. Nowadays, a review can influence a customer’s decision, especially in the SaaS industry. The more honest reviews for your products, the more trust the customers will have, and the more possibilities to you’ll have to generate sales and gain new customers.
Reducing The Marketing Cost
Marketing can be costly for SaaS companies, especially those just starting out or trying to prove themselves in a competitive market. A marketplace for your software product can be a good marketing strategy. Why? Because marketplaces invest a lot in promoting their platform and attracting customers. They do so via various channels, such as optimizing their websites for search engines, pay-per-click advertising, email marketing and social media, which can benefit SaaS companies that sell through them.
Better Customer Experience
Customers demand a smooth and straightforward shopping experience with transparent pricing, flexible payment options and customer assistance. SaaS companies can use the developed infrastructure and user-friendly interface of an online marketplace to list their software tools. With streamlined payment options, detailed product descriptions, customer reviews, ratings and customer service, marketplaces are designed to offer clients a seamless buying experience.
Customer Data
I know it is a delicate subject, but I do not believe software marketplaces are selling sensitive data. What they do instead is generate customer behavior and preferences data through search terms, click-through rates and purchase history. This information is valuable to SaaS companies because it indicates customer needs and interests, which can then be used to inform product development and marketing strategies.
SaaS companies can access this valuable data by listing their software products online. This data can then be used to improve their products and better target their marketing efforts. Furthermore, customer information may help SaaS companies improve the overall customer experience.
Software Marketplace Best Practices
To maximize the potential, leaders must consider five essential elements before listing their software on an online marketplace. Here are the top five things to remember:
1. Know your target audience. Understanding your target audience and their demands is essential before listing your software on an online marketplace.
2. Optimize your product listing. Take the time to create a product listing showcasing your software’s unique features and benefits.
3. Offer a free trial or demo. Many marketplaces online allow you to provide a free trial or demo of your software, which can assist potential customers in understanding how your product works and whether it satisfies their needs.
4. Build trust and credibility. Because online markets are based on trust, it is critical to establish credibility with potential customers. This can be accomplished by giving complete details on your software.
5. Monitor your performance. Once your software goes live on an online marketplace, monitoring its performance and making changes as needed is essential.
Listing your software on an online marketplace can be an effective strategy for generating more revenue and gaining consumer trust, but it’s critical to be aware of the potential challenges. Thus, here are some challenges leaders should take into account when listing their products:
• Competition: It can be challenging to stand out and attract potential customers to your product. Consider what makes your product unique and capitalize on it.
• Revenue Sharing: Be aware that many online marketplaces charge a commission or take a percentage of sales revenue in exchange for hosting your software on their platform.
• Marketplace Policies: Each online marketplace has its own policies and procedures that you must follow.
• Data Ownership: When listing your software on an online marketplace, be sure to understand who owns the customer data generated by your product.
An online marketplace can be a great alternative to show your software products to the world. A simple but innovative platform can offer many benefits for SaaS companies, from increased visibility and trust to improved customer experience and access to valuable customer data. Even with all these benefits, more benefits are coming for the SaaS companies—helping them generate more sales, gain new customers and build a stronger brand in the industry and in front of their customers.
