The average SMB uses upwards of 70 apps, digital tools, and cloud services to execute their daily operations and long-term goals. With all of those apps and products constantly evolving and competing to stay relevant, suffice to say that you can’t afford to rest on your laurels once you’ve signed up a new customer.
Is your product sticky enough to remain in your customers’ SaaS tech stack?
What’s keeping your customer from pulling your product from their SaaS tech stack? Why should they continue to use your SaaS product over your competitor’s products? Is there overlap between the capabilities of your tool and those of the other tools in your customer’s tech stack? Are you using the most relevant distribution channels to get your product in front of your ideal customers?
The above questions can be summarized into one important question, which every SaaS company should be asking themselves month after month: How can I increase my product’s stickiness?
Increase your product’s stickiness by investing in a partner ecosystem for both tech partners and service providers.
Building a partner ecosystem that connects your organization with your tech partners and accredited service providers will increase your product’s stickiness in your customers’ SaaS tech stack. The key, however, is designing your ecosystem in a way that encourages integration and co-innovation. Here’s why.
Partner ecosystems aren’t a new concept for SaaS vendors. It’s long been common practice for SaaS companies to include a list of accredited service providers on their websites, making it easier for customers to find providers who offer services on top of their product. Increasing stickiness, however, requires taking your partner ecosystem one step further to provide integrated, end-to-end solutions.
For example, HubSpot integrates with Drift. What’s more, a digital marketing agency is an accredited service provider for both HubSpot and Drift. Jump into the customer’s shoes and you’ll see how it makes sense if you’re using HubSpot to also use Drift and the partner agency. The ‘ecosystem effect’ between these three organizations creates a smooth, holistic customer experience, an all-in-one solution that truly solves for the customer, and increases the stickiness of all three partners.
Ecosystem integrations help reduce SaaS churn.
Patrick Campbell agrees: “Integrations help you embed your product in a SaaS ecosystem, which ultimately strengthens customer retention and benefits your company by increasing productivity, increasing depth and breadth of usage, and improving distribution and visibility.”
· How SaaS ecosystem integrations increase your customer’s productivity
Integrating with other apps and tools in your customers’ SaaS tech stack makes your product essential to your customer’s ability to accomplish their ‘bigger picture’ goals. Seamlessly embedding your product in your customer’s workflow makes it easier for your customer to be more productive, and solving for your customer in this way makes your product stickier.
· How SaaS ecosystem integrations increase the depth and breadth of your product usage
When other apps and tools integrate with your product, it encourages customers to use your tool to solve a wider range of problems than they otherwise would have, which exposes the depth and breadth of your product. When customers are using your product more often, for more reasons, and for longer periods of time, they’re much less likely to churn.
· How SaaS ecosystem integrations improve product distribution and visibility
Integrating with other apps and tools in your ecosystem allows your product to enjoy greater distribution and visibility through exposure to your partners’ customer base and audience. Not only does this get your product in front of ready-to-buy customers, it does so with an invaluable ‘stamp of approval’ from a provider or vendor the prospect already trusts.
Increase your product’s stickiness by bundling it with the services of accredited providers inside your own commerce-enabled marketplace.