SAAS - Customer Life Cycle

Customer Lifecycle (eng. Customer Lifecycle) is a term that describes the steps a customer goes through when they learn about a company's product, make a purchase decision, pay, use and become a loyal customer. Of course, this is a general definition, and when it comes to a specific industry, a number of refinements are required. Often very significant, especially when it comes to SAAS.

SAAS (Software as a Service) is a service software provided to the end user via the Internet. The life cycle of such a client differs from the usual software client when the purchased product needs to be installed on the user's computer. The main marketing difference is that SAAS services are provided by subscription, and not on the basis of periodic payments (updating, purchasing new versions, etc.).

To begin with, I would like to show the life cycle of a client in a classic business model:
This is one of the most adequate schemes that I have encountered. Adapted from the article " The 7 Stages of Perfect Customer Lifecycle "

Here the finiteness of the process is very clearly visible. After the purchase, the customer comes to the end of his journey. For the next purchase, it must again be passed through the funnel. Yes, it will already be “warmed up”, especially since if the previous sales process went without problems. However, the more time passes between sales, the less effective these benefits.

The SAAS approach should be different in everything. The main reason is that the company will not be profitable if its services are sold one-time or only short-term subscriptions are sold. For myself, I came up with the following SAAS client
life cycle model: SAAS client
life cycle

I see the point in dividing the cycle into 2 stages. The main reason is that they require different approaches and often different people in order to work effectively with them.

1. Sales Process -
a. Attract traffic - attracting potential buyers: advertising, articles, speeches, etc.

b. Capture leads - capturing leads, i.e. collecting information about potential buyers. In the case of SAAS, this is registration, or filling out an application, in the case when a complex, multifaceted service is being sold.

c. Educate users - user training. By the end of the trial period, the user should be ready to make a purchasing decision. With proper training, the user will learn to use the full potential of the program, get used to and integrate into their business processes. In this case, the issue of purchase will only be a formality.

d. Convert sales - the sale of the service itself, the user selects a plan and transfers the money.

2. Maintenance & Support - post sales support, one of its goals is to ensure subsequent purchases of the program.

a. Continue to add value - continuous service improvements
b. Learn your customers - the goal of support is to study the needs and requirements of users.

c. Collect, Measure & Analyse data - the continuous collection and analysis of information will provide the basis for deciding on further improvements to the service.

d. Build new features - creation and implementation of new service features
At this stage, improvements should be brought to the forefront and serve to attract new customers.