Three Common Objections When Selling SaaS

By Josh Davis

As a service provider, during the beginning stages of discussion with a prospective client, especially those who are currently using an on-premise solution, you may find hesitation to make the switch, which is natural. It is imperative as a provider of workforce management solutions to answer all of their concerns and remove any uncertainty from their mind. There are three common objections when selling SaaS which revolve around security, reliability, and cost. It is essential to know how to respond to these objections in order to make the sale.

“I’m not interested in SaaS because on-premise software is more secure.”

This is a common concern for organizations that have not made the switch to SaaS. When addressing this objection it is important to communicate that there is a difference between feeling safe and actually having their data secure. A few talking points you may find helpful when discussing this is that just because an application is running on your computer does not necessarily mean that the data is secure. For example, if a computer is taken over by a virus there is a chance that data can be lost or stolen. Another great talking point for this concern, is conveying that this is a misconception, and having software delivered through the web can actually be more secure due to the use of a data center. A few data centers out there are built to the Department of Defense (DoD) standards for Sensitive Compartmented Information Facility (SCIF) along with the completion of audits such as SOC 1 and SOC 2. If you have a data center like that, it’s much easier to ease the concern of security.

“That’s all good and well, but what if my Internet goes down?”

There is no absolute way to avoid Internet downtime in your area, but there are a few things to convey when discussing this worry. If there were to be a power outage, chances are, other companies within your area along with yours will not be able to conduct “business as usual.” A bright side to SaaS is the ability to access the software anytime and anywhere. When the internet goes down in one location, you are able to work from another location and access your software with little to no disruption. When working remotely keep in mind that some software providers have access rights in place which means IP addresses must be pre-approved before accessing the software. Another thing to keep in mind is natural disasters which can cause a major disruption within your company and area. When using on-premise software, information can be instantly gone when a natural disaster hits an office, but when using SaaS, data centers have backup facilities and advanced data backup processes which allow for minimal, if any, data loss.

“I heard that SaaS costs more in the long run.”

Even though there is typically a recurring monthly fee for SaaS software, the prospect would be saving company resources elsewhere. Key points to mention in this discussion are that there are usually no high upfront costs, and no IT resources required for installation and maintenance. Additionally, standard updates are free with many SaaS applications which allow the entire client base to benefit from the enhancements and provide users with the most up-to-date version of the software. Lastly, research has been conducted to demonstrate a total lower cost of ownership when switching over to SaaS from an on-premise solution. To read more about SaaS and the lower cost of ownership, click here.

It’s important to paint the bigger picture when speaking with a prospective client about the benefits of SaaS. We all know that there are a few misconceptions about SaaS software but it is your responsibility as the service provider to clarify these concerns. As the usage of on-premise software fades, SaaS software is becoming the future of workforce management technology.

If you know of other objections to SaaS software and/or an effective response to prospective clients regarding the benefits of SaaS, please feel free to leave a comment.

Please note that features or functionality discussed may not be available with all providers and all products. It is important to confirm with your provider the above details prior to setting any expectancy with potential or existing clients.

About Josh Davis:
Josh is the Marketing Programs Manager at SaaShr responsible for creatively positioning the SaaShr brand in the market through the development of both traditional and digital marketing endeavors.

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