When you think that the product can be used by customers, you think that the product has a strong ability and can increase the income by increasing the price. However, everything has a boundary point.
The increase in the unit price of a customer will inevitably lead to a decrease in the number of paying users. There is always a balance between the two. If the balance is not properly grasped, the conversion rate of the product will decrease, which will lead to a decrease in the company's revenue.
Whether the product is high-end or not is determined by market share and user evaluation, not the feeling of the company's internal team. Only when the product truly has the ability to compete with the industry leader, it is possible to increase the price.
If you want to sell a product at a high price, you can set the price higher. In the early stage, you can implement discounts, send account numbers, etc. to reduce the overall price, so as to ensure that users will not be disgusted when they want to increase the price later.
The product capabilities of entrepreneurial SaaS are generally not as competitive as the industry leaders, but all sales employees are under strong KPI pressure. After all, they need to realize "fast" quick cash.
Then, the operation and promotion staff will increase the user's expectations in the copywriting, tell the user that everything is possible with the product, and the sales staff will also stand in their own perspective and promise customers without bottom line, exceeding product capabilities and industry standards. ; These verbal promises are transformed into pressure on the production and research team, and everyone is forced to do the product's functions, especially in the case of a limited number of people, over-promising will directly overwhelm the team.
The things that elevate user expectations and overpromise are not only found in startup teams, but also in established SaaS teams.
The high conversion rate increase in a short period of time is undoubtedly a drink to quench thirst, which leads to more chaos within the team and worse product capabilities.
Because the entrepreneurial team does not have much capital, the company will save on labor costs. It is conceivable that it is almost impossible to recruit outstanding talents in the industry with a small amount of capital; the consequences caused by country email list ordinary employees, the production and research team did not The way to do the functional choice, all according to the needs of customers.
In the chaotic state, excellent employees can't stand the company's unsystematic work, and they start looking for jobs without seeing the future of the product, resulting in the loss of excellent talents.
In order to fill the hole, the team will lower the recruitment standards. Recruiting some employees with mediocre ability will undoubtedly reduce the team's working ability by a large margin.
If you want a horse to run, you need a horse to graze; starting a business is not something that can be done with reference to competing products, but requires people with unique insights in the industry, excellent product capabilities, and people who can work steadfastly. People are really rare. If you find such a person, you can pay more.
Because the market is more and more educated, but the success rate of SaaS startups will be lower and lower, because the competition in each industry will become more and more fierce.
If you still want to be fast and don’t solve these internal problems, it will lead to the disintegration of the team and the worsening of product capabilities.
In the next article, I will share how we solved these 5 problems - we also encountered this situation in the early stage, and after timely adjustment, we are now entering the stage of rapid development.