This past week was a vacation, hiking unplugged from the grid. Cliché maybe but back to basics cleared my mind and returned hours to think. My thoughts were of work I have been doing with many SaaS companies and how they struggle inside the Cloud computing box. 

The box is built of promises real and implied that SaaS customers get new features and advances in their software as part of the “service”  First let’s think of the word service, Activity not resulting in ownership, So why the box? Software that is leased and maintained, that is the definition of SaaS, not the “All you can eat buffet” that many see it as. 

Lazy product managers and marketers have allowed this box to be painted around them when they flow all new innovation rapidly into the product online without exerting their skills and trade on the business. Product managers and marketers have to insert themselves actively into the business. It is your role to build business intelligence and strategy. 

Here is a great place to start, at the beginning! Identify your customer! I use Geoffrey Moore’s’ positioning often and the first question is FOR WHO! The majority of the SaaS/Cloud computing services sell their products not to segmentation but in size!

Small, Medium, Large, Grande!

My gosh, is this a coffee shop? The clear example is online data backup! The consumer is generic and buys not by an identifier but by budget.  Why not, I may be a small company but if I can save $10/month buying the SOHO package I will. The provider has not shown sensitivity or intelligence about my particular needs.

Here is an idea, define a segment, create a specific feature, innovate then sell to that segment.

For example the same online data storage could target Engineering companies and graphic companies. There are a few simple practices these large critical file companies need to feel at home and taken care of and XYZ data becomes the leader in the industry for that segment and can charge for delivering that awareness and care.

Now go and buy the key words for Graphics file backup, show up at the top of the list, support the association, you will be surprised at how far your marketing dollars go and customer loyalty increases. We have been doing this for years but somehow forgotten when it comes to SaaS.