How to Build a SaaS Sales Funnel? 9 Essentials

According to Walker's report, customer experience has become a core brand differentiator, leaving behind the role of price and product. To ensure buyers are satisfied with the purchasing process, businesses must deliver a smooth decision-making journey. And developing a thoughtful SaaS sales funnel is the proven way to do that. It will also help save time and marketing budget, add value to your brand and increase revenue.

Arounda specialists have been creating and implementing quality business solutions based on each client's resources and needs for over five years. We deliver personalized services in business analysis, product strategy, and web development, and we know how to turn leads into loyal buyers. 

Today we’ll discuss how to build a successful sales funnel. You will learn the list of the SaaS sales process steps and stages to create your own one from scratch. We will also dwell on the differences between the B2C and B2B SaaS funnel, so read on.

Table of Contents

• What is a SaaS Sales Funnel?

• SaaS Sales Funnel Stages

• Steps to Build Your SaaS Sales Funnel

What is a SaaS Sales Funnel?

The SaaS sales definition is selling cloud software as a service. The buyers get access to a SaaS product through a subscription model, and the vendor handles the software's development, support, and updates.

A SaaS funnel is a way to present the sequence of steps a buyer goes through before purchasing to optimize the selling process. In other words, it's a tool that helps you visualize the buyer journey from getting to know your company to purchasing the software. The funnel allows you to work through the critical touchpoints with the lead.

It's worth noting that the purchase funnel and marketing funnel SaaS are different concepts. SaaS marketing funnel is associated with building brand awareness. Once a lead learns about your company and services, they enter the sales funnel.

B2B vs B2C Funnel

SaaS funnels are a critical point in creating an effective marketing strategy. They help companies scale effectively and reduce bounce rates. Marketers distinguish between B2C and B2B SaaS sales funnel depending on the client. Both pipelines serve to transform a lead (potential consumers) into a paying one. 

However, they differ in complexity. Whereas in B2C sales, a customer makes a purchase decision individually, a B2B transaction may involve 6-10 decision-makers. It includes:

• Negotiating with different vendors

• Agreeing on terms and pricing

• Getting approval of procurement or compliance departments

• Contract terms finalization

• Signing the contract

In addition, businesses conduct more complex ROI analyses. In this case, thoughtful funnels help the lead rationally explain the benefits of your software and assess the fit between the product and the company. 

SaaS Sales Funnel Stages

Statistics show that 74% of buyers make a purchase based on their customer experience alone. If you want to improve the CX, you need to get a suitable selling funnel. So, let's take a closer look at the SaaS sales cycle stages.

1. Awareness

It is the first stage during which a potential buyer is confronted and starts looking for relevant information. At this point, users usually do not have an explicit request, so they are not looking for a specific solution.

How can a consumer find out about you? It can be inquiries in organic search, blog articles, advertising, or media mentions. To attract an audience at this stage, your brand must be recognizable. To do this, work out your PR, marketing, and SEO strategy.

The core of the stage: 

• Educate

• Generate interest

• Build trust

2. Engagement

The second SaaS sales funnel stage is when the company makes contact with the visitor. It can be a subscription to a newsletter or signing up to access free content (trials). The engagement process increases trust in your brand and is the longest. Read how SaaS businesses can increase user engagement here.

The core of the stage: 

• Become an authoritative resource

• Build credibility

• Show how the product will solve the problem

3. Immersion

Now that you've established a connection with the lead, it's worth warming them up to buy. Talk about the benefits of your product, and show success stories and testimonials from real clients. Case studies can also help. Finally, tell them about the benefits of a paid subscription compared to the free version.

The core of the stage:

• Show the value of the product

• Provide information support

• Prepare the customer for conversion

4. Conversion

At this stage, a lead becomes a client. Make sure you pay attention not only to client acquisition but also to retention. You can establish a predictable cash flow with recurring payments. However, you need your clients to be loyal. Ask them for feedback. Surveys, beta tests, customized offers, and mailings of valuable materials work serve to boost loyalty.

The core of the stage:

• Sell 

• Retain the customer

• Create the conditions to keep the user coming back

5. Customer Advocacy

The last but not least step is to get recommendations from buyers. Ask them to leave a review about your software. Positive reviews and mentions are powerful ways to promote. Pay attention to it to invest in your brand and the success of your SaaS product. 

The core of the stage:

• Getting feedback

• Dealing with testimonials

• Client support

Steps to Build Your SaaS Sales Funnel

You must already be wondering how to build a sales funnel. Well, that process involves nine steps: 

Map the Customer Journey

Describing a consumer's journey is key to an effective sales funnel SaaS. The decision-making maps consist of the steps described earlier but may vary slightly depending on the industry and product. We suggest developing clear instructions for each of them. So that you can better track the funnel's effectiveness and optimize the steps when needed.

Remember that your SaaS service may have multiple target audiences. Develop roadmaps for each segment. A personalized approach will help you better understand the needs and pains of different audiences to form targeted, unique offers.

Marketing Strategy

Marketing is necessary to increase the company's visibility. The more potential users know about your Software-as-a-service brand, the more likely you will get successful deals. So what components does a marketing strategy contain? 

• Competitor analysis

• Brand positioning

• Product positioning

• Price formation

• Choice of promotion channels

Sales Optimization

To optimize the selling process, experts use performance evaluation tools. They examine the quality of leads, that is, the likelihood of making a purchase. It also includes tracking interactions with the audience. After the analysis, the sales department develops a convincing final offer.

We recommend developing scripts for communicating with each audience segment to optimize conversions. Also, think through the algorithm of interaction with customers at different stages. Write down the rules for potential and existing consumers and develop principles for crisis communication. 

Implementation Process Optimization

To be sustainable, a business must attract new leads and make a loyal customer base. Therefore, your funnel must also focus on retention. You must convince the customers to use your service regularly. How can you improve your implementation process?

• Create an easy signup option

• Appoint an account manager

• Work on improving the customer experience

Facilitate Implementation 

This step focuses on repeat purchases, so the user becomes your regular subscriber. You must convince the client of the value of your product and its competitive advantages. Send regular digests and tips on how to use new features. Show how your software helps simplify routine tasks and so on. 

Powerful Support System

When operating your product, the user will inevitably have questions or difficulties. And how successfully your company will solve such situations will depend on the desire of the buyer to stay with you. We advise to:

• Collect frequently asked questions and post answers to them

• Develop a response algorithm for client service

• Provide comprehensive help to save time. It can be self-tutorials, guides, etc.

• Include automated helpers

• Provide the opportunity to consult with a live expert

Ensure the Renewal Process

Create a way to easily renew your software subscription with standardized procedures like:

• Upcoming payment notification

• Automatic billing and debits

• Cross-selling capabilities

Track Your Performance 

Once you've built your funnel, continue to track its effectiveness at each stage. It will help you see brand weaknesses and understand what improvements are needed. What metrics are worth tracking?

• Organic and ad traffic

• Sales ratio

• Customer retention and churn rates

• Client service metrics

• Cost of acquisition, lifetime value

• Number of purchases and average transaction amount

Systematize the information you get in the form of reports. Evaluate the effectiveness of the funnel regularly and distribute the reports to employees. They will allow your team to make timely updates.

Optimize your funnel

When evaluating your sales pipeline's effectiveness, handle the pain points you've identified. It will help your brand attract and retain users over the long term. By doing so, you'll provide a foundation for scaling your business.

Creating a purchase funnel provides a fruitful foundation for a Software-as-a-service brand to thrive. However, it can be a challenge for companies due to the high market saturation. Proper funnel planning, analysis, and optimization can help you avoid overspending your budget and stand out from the competition.

If you need to create a high-performance SaaS funnel, tell the experts at Arounda about your idea. With years of experience and wise expertise, we succeed in connecting companies with business goals. Our experts will conduct a detailed consultation and offer the best solutions for sustainability.