SAAS providers are challenged and to be successful there are several keys points we should talk about briefly.    The following bullets are areas where a tightly run SAAS ship can reduce churn, increase profits, and maximize success:

·         Effective Sales Cycle with Solid Order Processing

·         Automation Automation Automation; Self Provisioning

·         Quality Assurance

·         Effective Reporting and Billing

·         More Services = More Business = $$$$

Sales and Ordering

The sales cycle is extremely important, but must involve what I am terming an “Information Technology Work Process Engineer” (ITWPE – Fancy Term for a Sales Engineer)  .  When a SAAS provider is talking with  a potential client, there should be a needs assessment performed by an entrepreneurial-focused systems engineer who  can match the service packages offered with the needs of the client.  Additionally, the ITWPE  should always be on the lookout for new services to add to the arsenal of technology. 

Automation

Once the ITWPE has mapped out the engineering need, there needs to be an electronic method of establishing the order.  Remember, SAAS providers need to operate on a thin manpower to maximize profits.  The electronic gathering of the order actually gathers information the engineers use to automate setup.  After the order is received and processed.  The customer is shown how to provision the environment using the automation tools. 

Quality

The idea is to spend time up front during the sales and initial deployment to train the customer so they use provisioning tools to manage their environment.  The advantages include less helpdesk calls and ability for customers to instantly make changes or sign up for new services.   Also, during the setup you ensure Quality by making  sure the automation sets up the users correctly.

Billing and Reporting

Billing and effective reporting are critical to success.  In many cases such as Microsoft’s SPLA program, you report what software packages are used.  However, you need to bill for what packages the customer s have available.  For example, Microsoft requires that you claim usage for Exchange Mailboxes that have been accessed within 30 days.  You should not report a mailbox usage that doesn’t meet the requirement (Paying for something you don’t have too).   On the other hand, the corresponding user should be billed  for this usage because they have the service available and are subscribed to the plan.   There must be a mechanism, semi-automated, that generates a billing report and a provisioned report comparing the two worlds.  You want to make sure whatever is provisioned gets billed and your reporting is in line with regulations so you maximize bottom line.

More Services

The complete customer experience is focuses around the packages you offer and service delivery.   Always remember, the customer will usually tell you what basic services they need.  An unspoken pledge is to continually add new technology enriched services.  Typically, customers are not aware of technology other than base file storage, mail, CRM, and etc.   The goal as SAAS providers is to deliver packages with basic and enhanced offerings.  As offers intensify and client managers are educated, SAAS revenues increase.

Conclusion

SAAS providers who are successful communicate effectively through every stage of the customer experience.  The keys to victory are in a circle of operations where one step depends, critically, on another.   For example,  the sales process may drive additional services you offer or  customers may see a new product inside the self provisioning control panels they can subscribe too.  I regret making this analogy, but to be successful SAAS providers must be a Wal-Mart of Information Technology Services with a plethora of services readily available to the clients, with a Wal-Mart Greeter handy for assistance.