Picture this: you've built a remarkable SaaS product that practically sells itself. And like all good investments it's priced to justify its calibre. However, look at it from a potential buyer's perspective and it can look like a significant expenditure on the company balance sheet. This is why many buyers opt for the monthly payment option to spread out the cost of your product.
In the current landscape of SaaS, you, the seller would rather sell annual packages to streamline business growth with easy cash flow, but your buyers tend to favor monthly payments to avoid rapid cash burn. If most of your paying customers pay monthly, there is a higher probability of churn in case they cancel the subscription. More importantly, small bundles of payments recovered month-on-month are peanuts in sight of the exponential growth plans you have for your business.
So, at SaaSPay, we came up with a better way of doing things. We designed ‘payment flexibility for SaaS.’ That means you can partner with SaaSPay to let your buyers BNPL the SaaS products you are selling.
How SaaSPay works?
We have come up with a payment solution using which you can encourage your buyers to buy the annual subscription package without any upfront payments, while we pay you the full subscription amount on their behalf on Day 1. This unlocks greater revenue potential for your business by maximizing the AOV, lowering churn, and converting price-sensitive leads.
1. Join SaaSPay as a seller.
2. Start pitching SaaSpay to your price-sensitive leads during negotiations or to monthly paying customers just before their renewal.
3. Send the buyer an invoice link from the SaaSPay seller dashboard once they agree to buy via SaaSPay.
4. Once the buyer unlocks their credit line and clears the invoice, get paid the annual contract value on Day 1 and also pocket SaaSPay AE/SDR incentives depending on the invoice amount.
SaaSPay Use Cases
1. Monthly Paying Customers >> Annual Subscribers. Maximize Your AOV.
One of the biggest benefits of using SaaSPay is the ability to convert monthly deals to annual packages. We have designed the kind of payment flexibility that removes the financial barrier that often deters potential customers from committing to the annual packages.
This increases your average order value (AOV) and still provides customers with greater flexibility and convenience. More annual subscribers equal a higher retention rate by default, leading to a better Customer Lifetime Value (CLTV).
Here's how it works: Instead of burdening buyers with a large upfront payment for an annual subscription, SaaSPay pays you, the seller, full payment on Day 1, on their behalf.
This means you can nearly 12x your MRR, instantly with SaaSPay. At the same time, your buyers enjoy the premium benefits of your product without spreading their budget thin.
2. Generate leads with SaaSPay's Payment Flexibility
SaaSPay's payment flexibility also helps you generate leads. By offering flexible payment options, you're catering to a wider pool of prospects, who would otherwise disqualify as a lead. This opens you up to a new market segment and can generate more leads and sales.
For example, a customer is interested in your product but shies away due to budgetary constraints. By offering payment flexibility with SaaSPay, you can convert this lead into a well-paying annual subscriber More qualified leads equal more conversions and better revenue, no-brainer.
3. Get paid on day 1. No month-on-month payment chasing
One of the biggest pain points for SaaS sellers is chasing monthly payments. With SaaSPay, you don't have to worry about this. SaaSPay pays you upfront, allowing you to focus on growing your business rather than chasing payments
For example, let's say a customer signs up for an annual package through SaaSPay. You'll receive the full payment upfront, allowing you to reinvest the funds into your business growth. Better cash flow for your business, payment flexibility for your buyers it's a match made in heaven.
4. Higher Customer Lifetime Value by selling more annual subscriptions.
As mentioned earlier, customers who opt for annual packages tend to have a higher retention rate, leading to a better CLTV. By offering annual packages through SaaSPay, you're able to increase your CLTV and ultimately, your revenue.
The Ultimate Sales Accelerator
SaaSPay is the ultimate sales accelerator for SDRs, AEs, and CSM agents. Reps can easily convert interest into actual deals and monthly subscriptions into annual subscriptions. With a flexible payback period, SaaS sellers can turn the tide in their favor. Customers pay back in tranches, eliminating upfront payments and you enjoy total subscription cost upfront on Day 1 without compromising profit margins. This approach amplifies customer satisfaction, fostering loyalty and market leadership. A win-win solution for sellers and buyers alike.
SaaSPay for Product-led Companies
Now, you can also seamlessly integrate flexible payments into your checkout process. With SaaSPay, you eliminate payment defaults and gain the flexibility to accommodate your buyers' preferences, right away! When a buyer reaches the checkout page to review their payment summary, they are presented with two options for their annual contract. If they choose to pay the contract upfront, the current flow continues as usual. However, if they prefer to pay on a monthly basis, SaaSPay comes into play.
In conclusion, using SaaSPay can benefit your SaaS business in numerous ways. By offering flexible financing options, you're able to increase your AOV, generate more leads, eliminate the headache of monthly payment chasing, and ultimately, increase your revenue.