How Competing on Price or Features Hurts SaaS Growth in 2024—and What to Do

In the SaaS industry, selling on features or price alone is a race to the bottom. With countless competitors offering similar functionality, the real differentiator is value. SaaS buyers—whether startups or enterprises—aren’t looking for software; they’re looking for solutions that deliver measurable outcomes. That’s why mastering value selling is crucial for SaaS companies aiming to win more deals, boost ACV(average contract value), and shorten sales cycles.

Let’s explore how to apply value selling in SaaS by understanding customer needs and challenges, tailoring your pitch, and driving business impact.

A. Unmet, Desired Needs: The SaaS Buyer’s Mindset

Every SaaS buyer has two types of needs: those they’re aware of and those they haven’t yet recognised.

Unmet Needs

These are the pains your buyers feel but might not fully articulate.

• Operational Inefficiencies: “Our workflows are manual and slow, but we haven’t found the right automation tool.”

• Data Silos: “We can’t get a unified view of our customer data across platforms.”

• Limited Scalability: “Our current tools break down as we grow.”

Desired Needs

These are the aspirations SaaS buyers have when seeking a solution.

• Streamlined Operations: Faster processes with fewer errors.

• Real-Time Insights: Centralised dashboards providing actionable intelligence.

• Future-proof solutions: Systems that scale seamlessly with business growth.

Pro Tip: Highlight how your SaaS product addresses these needs without overwhelming buyers with technical jargon. Focus on outcomes.

B. Aware vs. Unaware Challenges

Understanding your buyer’s obvious and hidden challenges sets the stage for value selling.

Aware Challenges

These are the problems buyers know they have.

• High Customer Churn: “We’re losing customers because our onboarding process is clunky.”

• Low Productivity: “Our teams spend too much time on repetitive tasks.”

• Poor Forecasting: “Our data is outdated, leading to missed opportunities.”

Unaware Challenges

These are pain points buyers might not recognise yet but are critical to their success.

• Underutilised Features: They’ve invested in tools but aren’t using them effectively.

• Shadow IT: Teams adopting unvetted tools without oversight, increasing security risks.

• Hidden Costs: Inefficient processes leading to unnecessary expenses.

Sales Hack: Use discovery calls to surface these hidden challenges, positioning your solution as a game-changer they didn’t even know they needed.

C. Understand the Buying Process: Know Your Stakeholders

In SaaS, multiple stakeholders are involved in the buying decision. Each has unique priorities, and your pitch must address them all.

End Users: The daily users of your SaaS product.

• Their focus: Ease of use, functionality, and how the product simplifies their work.

• Pitch Angle: “Our platform automates repetitive tasks, saving your team hours every week.”

Influencers: Departments like IT, Finance, or Operations that assess feasibility and ROI.

• Their focus: Integration, security, and cost-efficiency.

• Pitch Angle: “Our solution integrates seamlessly with your existing tools, reducing implementation time and costs.”

Decision Makers: The executives or committees who give the final approval.

• Their focus: Strategic value, ROI, and alignment with business goals.

• Pitch Angle: “Our SaaS drives revenue growth by 25% while cutting operational costs by ₹20 lakhs annually.”

Closer’s Tip: Tailor your value proposition to each stakeholder, ensuring your solution resonates across the buying process.

D. Triggering the Sale: SaaS Value Drivers

Value selling revolves around highlighting the outcomes your SaaS solution delivers. Here’s how to connect your offering to what buyers truly care about.

1. Revenue Growth: Drive Business Impact

Every SaaS buyer wants to grow revenue. Show them how your solution supports their bottom line.

• Pitch: “Our CRM boosts lead conversion by 30%, driving ₹5 crore in new revenue annually.”

Why It Works: Buyers see your SaaS as a tool that directly fuels growth, not just another expense.

2. Cost Savings: Efficiency is Key

Reducing operational costs is a major win for any SaaS buyer. Highlight the ROI of your solution.

• Pitch: “Our automation tool saves your team 15 hours per week, reducing operational costs by ₹20 lakhs annually.”

Why It Works: Buyers quickly grasp the financial impact, making the investment easier to justify.

3. Business Scaling: Enable Seamless Growth

Growth-stage companies need tools that scale without creating new headaches. Position your SaaS as the solution.

• Pitch: “Our cloud-based infrastructure handles 10x your current traffic, ensuring zero downtime as you scale.”

Why It Works: You eliminate a key growth bottleneck, making your SaaS essential for their expansion plans.

4. Customer Retention: Build Advocacy

Happy customers stay longer and refer others. Show how your SaaS drives loyalty.

• Pitch: “Our customer success platform reduces churn by 25% and increases NPS by 40 points.”

Why It Works: Buyers see your SaaS as a way to boost lifetime value and turn customers into advocates.

5. Risk Reduction: Deliver Peace of Mind

Security and compliance are non-negotiable. Highlight how your SaaS mitigates risks.

• Pitch: “Our platform ensures full GDPR compliance, reducing the risk of fines by ₹50 lakhs.”

Why It Works: Buyers prioritise solutions that protect their business from pitfalls.

6. FOMO: Create Urgency

No SaaS buyer wants to lag behind their competitors. Leverage social proof and urgency to drive action.

• Pitch: “80% of your industry peers already use our solution to gain a competitive edge. Don’t fall behind—start your free trial today!”

Why It Works: Buyers fear missing out on a proven solution their competitors are already leveraging.

5. Seal the Deal: Focus on Outcomes, Not Features

When it’s time to close, remember: Buyers aren’t interested in what your SaaS does—they care about what it delivers.

Closer’s Tip: Tailor your pitch to each stakeholder in the buying process. The CFO wants ROI, the CTO needs scalability, and the end-user craves simplicity. Speak their language.

Conclusion: The SaaS Value Selling Advantage

Mastering value selling in SaaS delivers three core benefits:

1. Improved Win Rates: When you sell outcomes, you’re not just selling a product—you’re selling a vision for success. This reduces losses to cheaper competitors or indecision.

2. Larger Deal Sizes: By bundling products into solutions, you increase ACV (average contract value) and deliver more value to the customer.

3. Shorter Deal Cycles: When prospects see your SaaS as critical to achieving their goals, they move fast to close the deal.

Ultimately, value selling is more than a technique—it’s a mindset. By focusing on the business impact of your solution, you position your SaaS not as an expense, but as an enabler of growth, efficiency, and success.

SEO Focus: Optimise for keywords like value selling SaaS, business growth solutions, and SaaS ROI. Because in SaaS, selling value isn’t just about closing deals—it’s about driving lasting business success.

I share actionable strategies for profitable growth, team alignment, and business scaling to help leaders achieve sustainable success in today’s competitive markets.

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