What are some common negotiation tactics used in SaaS sales?

3 Bundle and unbundle

A third tactic to use in a SaaS negotiation is to bundle and unbundle. This means combining or separating different features, services, or products into different packages or tiers. Bundling and unbundling can help you tailor your offer to the customer's needs and preferences, and increase or decrease the perceived value and cost of your solution. For example, you can bundle complementary features that enhance the customer's experience and satisfaction, or unbundle optional features that the customer does not need or want. However, bundling and unbundling requires clarity and simplicity. You need to explain the benefits and trade-offs of each option, and avoid confusing or overwhelming the customer with too many choices or details.

4 Use social proof

A fourth tactic to use in a SaaS negotiation is to use social proof. This means leveraging the opinions, actions, or testimonials of other customers, experts, or influencers to persuade the customer to trust and buy your solution. Social proof can help you build rapport and credibility with the customer, and overcome their doubts and objections. For example, you can share case studies, reviews, or referrals that show how your solution has helped other customers solve similar problems, achieve better results, or save money or time. However, using social proof requires relevance and specificity. You need to select and present the evidence that is most relevant and specific to the customer's situation, goals, and challenges, and avoid generic or vague claims.

5 Negotiate value, not price

A fifth tactic to use in a SaaS negotiation is to negotiate value, not price. This means focusing on the benefits and outcomes of your solution, rather than the features and costs. Negotiating value can help you justify your price, differentiate your solution from the competition, and increase the customer's willingness to pay. For example, you can quantify and demonstrate the value of your solution in terms of return on investment, productivity, efficiency, quality, or customer satisfaction. However, negotiating value requires understanding and alignment. You need to understand the customer's pain points, goals, and expectations, and align your value proposition with their priorities and criteria.

6 Seek win-win outcomes

A sixth tactic to use in a SaaS negotiation is to seek win-win outcomes. This means finding solutions that satisfy both parties' interests and needs, rather than compromising or conceding on important issues. Seeking win-win outcomes can help you build long-term relationships with the customer, and foster trust and loyalty. For example, you can collaborate and co-create solutions with the customer, explore creative options and alternatives, or offer incentives or guarantees that reduce the customer's risk or uncertainty. However, seeking win-win outcomes requires communication and empathy. You need to listen and ask questions, acknowledge and address the customer's concerns and emotions, and express your own interests and expectations.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?