SaaS sales: How to create urgency to close deals NOW

by Steli Efti

litfuse

When selling SaaS products to businesses and enterprises, how can you move the sale ahead when a prospect is stalling? What can you do to accelerate the sale and close the deal sooner?

 There are essentially three ways of creating urgency in SaaS sales.

1. Limited alpha

If your product is new, or you release a major new plan, you can invite them to a limited alpha.

You could limit this to 10 seats.

Tell your prospect: 
  • "This looks like a really great fit, but I want you to know that we are going to run a limited alpha—which means that only 10 companies will get access to our product. We currently have around 40 companies interested in participating. We're now trying to identify which ones will be the best candidates for this alpha, so that we'll be able to support and turn them into massive success stories."
  • "You'll have to make a decision within ____ (the next x days/weeks) because we'll launch the alpha on ____ (state a date)."
  • "It's first-come, first-serve. So whenever one company that we believe to be a great fit decides to go ahead, they get the next limited spot."
  • "We only have four more spots left, let's make sure that we don't lose this opportunity. So let me give you all the information and support you need to be able to make a decision as quickly as possible."
By limiting access to your product you create scarcity, which creates urgency to make a decision and enhances the perceived value of your offer.

2. Upcoming price increases

As your product grows and matures, and you offer more value, you'll probably going to increase the price of your product. Many established SaaS companies do this, maybe once a year or sometimes even multiple times a year. 

Announce your price increases in advance to existing customers and prospects (click here to read more about this strategy).

It's a great incentive for them to make a quick buying decision so that they can lock in at the current (lower) pricing.

For instance, when Amazon Prime prices increased, they gave new sign-ups a chance to beat the price increase if they bought within one week.

3. Make them an offer they can't refuse

Run a special promotion, or give the prospect a special deal. There are four kinds of incentives SaaS businesses can offer:
  1. Discount
    "If you buy this week, you'll get a 10% discount, so you'll save x00 dollars every year per seat that you buy now."
  2. Special features or higher tier plans
    "If you buy in June, you're going to get the business version of our product for the basic price plan."
    It's basically also a discount—the difference is that you increase the value rather than lower the price.
  3. Buy 1, get 2
    "If you buy in June, you'll get a free seat for every seat that you purchase. So if you buy three seats, you'll actually get six seats." Buy 1, get 1 free works for SaaS businesses too :)
  4. Special services
    "If you buy this week, you're going to get our Advanced Customer Acquisition training package for free." Think about special support packages, consulting packages, training, onboarding ... whatever it is. Any kind of special service to help them succeed with your SaaS product. (For example, look at HubSpot's $2,000 "Inbound Success Training" package, which is mandatory when you buy their pro plan. Lowering the price of this package, or even giving it away for free, can be a great incentive to push a stalling prospect towards a quick purchasing decision.)