By Jason Whitehead
For years – long before the invention of SaaS, software vendors could make tons of sales by selling customers on the idea that software would solve all (well, most) of their problems. If you bought their system, all the great features and functions baked into their product would deliver great results. Vendors had polished demos that looked great and made buyers salivate. And, in many cases, the software products really did do some wonderful things.
Then along came the SaaS business model. The combination of cool functionality, a sleek demo (in a clean demo environment with pristine data), fast implementations, and cheap monthly pricing made sales really take off. It was so easy to get started quickly and to switch from your current vendor. Everything was great and rosy. And then came renewal time and churn. Uh-oh!
Suddenly, SaaS buyers realized they were no longer stuck with software that didn’t live up to the hype and the promise. Buyers regained some power and quickly learned that if they didn’t get the results they expected from their SaaS purchase, they could just as quickly and easily move on to another vendor and try their luck there. And the vendor hopping began.
So, if companies are regularly switching software vendors, it begs the question – is the software the problem, or is it the ability of buyers to get value in their own organization that is the problem?