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 Now with all types of Software-as-a-Service alternatives in the market today, one tip that separates the winners from everyone else is the ability to create a product that is truly viral.  Granted several of these companies listed above offer consumer-oriented offerings, not traditional enterprise or corporate software there are examples like Yammer, were large organizations have very quickly adopted their products because the internal usage spreads like wildfire.  I profiled Yammer and they are definitely an organization that has built its sales and marketing model on being viral.

Here are some tips when thinking about incorporating viral adoption into your product and business strategy:

  • Offer a free version of your software. For most SMB SaaS firms this is now table stakes to play in the game, but for firms like 37Signals, Freshbooks and Yammer have leveraged their free versions as a way to generate qualified paying customers.  Keep in mind this is not pursing a Freemium strategy (ask like a SmartRecruiters, Dropbox or Mint.com), it is just a way of generating a lot of new users, which then can be converted into paying customers.
  • Clear pricing for your product.  By offering a high degree of transparency around pricing, software companies can take the pricing conversation off the table and allow their customers to make their own decisions before they ever contact you.  Here is an example of how 37Signals’ Basecamp product pricing looks on their website… it’s really easy.  This type of tiered pricing allows the customer to self-select the amount of software and service they need to get their job done, and it also enables the customer to start small and add more capability over time.

  • Trials.  If you have a tiered pricing structure but don’t offer a free version of your software, then it is highly recommended to to have a free trial version (up to 30 days free).  This allows your prospects to experience your product first hand and explore its features and functionality.  If the product is relatively straightforward then you can let the prospects just play in their own sandbox.  On the other hand if you product is complex or requires some context-setting, then it would be a good idea to offer proctored assistance through assistance over the phone, webinars or even short videos to help them with individual features.  Intuit has really embraced the SaaS business model and offer many trails including this one for their Intuit Websites product.
  • Intuitive interface. Really think through your interface and make it as easy to use as possible.  Most software users would prefer to do things themselves and your products interface is the key allowing them to do that.  Companies like Intuit do a lot of testing around how their products behave in real-life situations and they observe their customers actually using their products.  This helps with screen layout, workflows and even user roles for certain types of applications.
  • Keep training to a minimum.  If you offer an intuitive product, then there is less of requirement for training but most applications require some type of overview or setup.  For anyone who uses an iPhone, iPad or MacBook Pro, Apple provides all types of training videos that are quite informative and help to get you started using their products.  Also providing a solid knowledgebase of information as well as a vibrant user community also helps to get customers up and running successfully with your product. Check out what Constant Contact’s Learning Center.
  • Small consumable chunks.  We can learn a lot from many of the learning consumer Internet firms like Facebook, LinkedIn and even Zynga.  Especially gaming firms like Zynga (Farmville) have taught us to start small and then expose more functionality over time.  This allows for easier consumption of capabilities and viral adoption of solutions.
  • Rapid Time to Value.  Even more complex systems need to be able to be ’stood up’ quickly.  We often recommend creating a generic version of the software that can be provisioned very rapidly and made available to the customer.  For an SMB type of product I would recommend <1 days to get a basic version and for complex enterprise applications, you should try to deploy a generic version <5 days.  Even though this version of the software will have its functionality and UI configured, data added, workflows tailored, it is important to give the customer something they can start using as close to immediately as possible.  This is also a good idea from a revenue perspective as well because you can start to charge once your customers start using your systems.
    Just to recap, getting a product to go viral requires a lot of thought around how your customers are going to use your product, keeping everything simple and focusing on making sure customers are successful when they use your product.
Considering how have been wildly successful some of these companies have been in the consumer space – Facebook has 500M users, Zynga has over 200M monthly users and in the business application space firms like Yammer have over 1M users, 37signals has over 3M BaseCamp users, Freshbooks has over 2M users and Intuit has over 1M SaaS-based users of its products, and important lessons can be learned from how these companies are building their SaaS products for viral adoption.
 
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