Spent some time at IKEA this morning buying bowls we didn't need, and found a couple of IKEA practices to be amazing sales strategies that I believe evolved broadband providers (and any SaaS provider) can and should think about applying to how they transact SaaS sales. 

Specifically, after winding our way through an eternity of oddly shaped and designed lamps and desks, we finally checked out.  The 'give us your money' time of the day.  Typically this is an unpleasant experience, except IKEA has figured out how to make you EXCITED to get through it.  Specifically, just on the other side of the check-out are these MASSIVE signs advertising 50 cent hot dogs.  HOLY SH*T I said.  I LOVE hot dogs.  50 cents is a frickin steal.  I'll get 2.  One for me and one for (theoretically) my son Calvin (aka - a second one for me).  Tax is included, so it's an even buck making the transaction seamless.  So instead of leaving the store with buyer's remorse about spending money on chair cushions my new daughter Harper is just going to puke on anyway, I left the store feeling like I had gotten an absolute steal.  And I'm not the only one.  I saw dozens of grown men with the $1 ice cream cones (their kids had them too).

But cheap hot dogs and ice cream cones is not the end of the brilliance.  One might say….sure….it's easy to effectively give away hot dogs and make people love you.  And it is.  You give me a hot dog and I will profess undying love.  But I guarantee that IKEA is not losing money on this scheme.  And here's why.  The sodas are $1.  But I was so focused on my hot dog I didn't care.  For those of you who have read SuperSize Me, a fountain soda like that likely costs them no more than 5-10 cents (including cup and straw).  So 90 cents of profit on the soda to offset the loss-leader hot dog.

 

So how could SaaS vendors apply some sales lessons from IKEA to their products?  Some random brainstorms….I am sure there are many, many more:

 

1.  30-Day Storage Incentive - Storage is a big part of SaaS products, and is getting cheaper and cheaper (like soda).  Could a vendor give me free (or maybe just discounted) storage for signing up within 10 days (versus a traditional 30-day SaaS trial).

2.  Storage for 'cheap' - There are other things of value to SaaS vendors besides money.  For example, a well-qualified lead/referral is probably worth $10 and much more if the customer converts.  So what about inserting, on check-out, a MASSIVE sign that says 'Thanks for signing up.  If you would just be so kind as to tell 5 friends about XXX product and why you're using it (remember - these customers just bought so they are as thrilled with the product as they might ever be), then we'll give you X storage for free.  Or 1/2 month delayed billing.  Or 30 days free.  Or XX more for your service level.

3.  Secondary Product Cross Sell - Because we love you for signing up for Product 1, use this Promo Code and get Product 2 for half off.  Since a major part of our cost (the meat of the hot dog) is in finding customers, getting an easy cross-sell win makes the total cost of the hot dog work for us.

4.  Something Else (an ice cream cone) - Thanks for signing up.  If you just refer 5 friends then we'll send you a gift certificate to an ice cream parlor.  We'll appeal to your stomach.

 

And on and on.  The point being how do SaaS providers transition the 'checkout process' (upgrading) to a 'boy I just got a deal' experience that will drive referrals and thrilled customers.