By Kevin Ruef
The SaaS (Software-as-a-Service) industry has seen explosive growth over recent years. With so many businesses and organizations looking for ways to scale their operational capabilities, cloud-enabled software solutions are a convenient and cost-effective way to achieve it.
But private businesses aren’t the only ones benefiting from the SaaS industry. Government entities pay billions of dollars on procurement activities yearly, and software purchases are a high priority on their list.
However, as a software provider, it can be hard to know how to approach government procurement specialists. Luckily, there are some effective insider tips you can follow to significantly improve your chances of getting noticed and landing your next purchasing contract.
1. Understand Government Procurement Processes
Marketing SaaS products in B2G (Business to Government) markets differ greatly from B2B (Business to Business). While there are similar elements when it comes to marketing and outreach initiatives, lead nurturing is a unique process.
In private business sectors, there is no universal structure in place for procurement activities. Each business will have its vendor preferences and individual strategies for acquiring new products and services. The public sector, however, is much different.
Government agencies have very specific guidelines that govern how they procure software. Since they need to disclose how they acquire products and services legally, there are significantly more hoops to go through as potential vendors.
Understanding the various government procurement laws associated with your industry is important. Some of these regulations include FedRAMP, FISMA, and HIPPA – all of which can significantly impact your ability to sell in government sectors.
2. Learn to Speak the Language
To create an effective B2G sales strategy, knowing how to approach government buyers is critical. Depending on the type of SaaS solution you’re offering, it’s important to simplify your message both online and through direct interactions.
When sourcing public safety software, especially more complex offerings designed to support computer-aided dispatch (CAD) and other critical services, government buyers must clearly understand the value they’re getting from vendors. To help facilitate this, it’s important to minimize industry jargon and provide clear messaging highlighting where and how your SaaS solutions can support them.
Think about the full value proposition of your SaaS solution and how you can translate that for buyers. This involves highlighting any cost savings or efficiency improvements they’ll achieve when bringing in new products or services.
3. Build Relationships and Network Strategically
Although government purchases are highly regulated, this doesn’t mean you shouldn’t invest in expanding your network and building good relationships with procurement teams. Creating a professional working relationship with key decision-makers can be a great way to help you get more information about upcoming RFP (Requests For Proposal) and better understand the necessary criteria for submitting proposals.
One of the ways you can start expanding your network is by attending industry events or government conferences. These are great opportunities to introduce your SaaS solutions and connect with potential clients or partners. It’s also a good chance to understand the industry more and identify any potential gaps in solutions you can try to fill.
4. Prioritize Security and Compliance
Digital security has become a high priority for all government agencies. Because of this, it’s important to ensure your SaaS solutions adhere to various security and compliance standards.
Since many government organizations handle highly sensitive datasets, the solutions they procure are vetted closely to ensure they’re not creating new vulnerabilities in their infrastructure. To ensure your solutions are not being prematurely removed from consideration, study up on industry frameworks like NIST CSF 2.0 and ISO 27001 to ensure you’re at least meeting the minimum requirements for consideration.
Being able to list security certifications under your SaaS products is a key way to help close more government deals. These credentials show that your security priorities are in alignment with the organizations you’re approaching and can be a great differentiator when comparing your products against competitors.
5. Demonstrate Value Through Pilot Programs
While many government organizations have predetermined processes for selecting their vendors, many times, launching a pilot program can help to close more deals. These offer a mutually beneficial trial period for governments to test new SaaS solutions while giving vendors the opportunity to highlight all of the features of their offerings.
A pilot program is a great way to make a great first impression for your brand while helping to build trust with government buyers. They are also a great opportunity to show exactly where and how organizations can get the most value from their investments in a risk-free environment.
Before launching a pilot program, it’s important to have clear objectives in mind. Since you’ll only have a limited amount of time to prove the value of your solution, having a structured approach is important. This will help you avoid running into unnecessary setbacks in the solution that can distract from the effectiveness of your products and services.
6. Offer Flexible Pricing and Contract Options
Having a rigid pricing structure when approaching government agencies can be a mistake. Often, pricing flexibility will be one of the largest determining factors in moving forward with a vendor. Depending on the competitiveness of your business niche, you’ll want to be careful how you structure your bids.
Government agencies are often subject to regular budget shifts and lengthy procurement cycles. Because of this, it’s important to show that you’re adaptable to their changing needs and you have flexibility when establishing contract terms and custom pricing options.
When offering SaaS solutions, consider offering more than just standard subscription-based models. There could also be a good opportunity to create several pricing tiers based on usage or develop a completely new subscription model based on the exact needs of your client.
Regardless of what direction you choose to go, demonstrating your willingness to adapt to the needs of a procurement team will likely get you to the next step of the procurement stage.
Start Improving Your SaaS Sales Strategies
Marketing SaaS products to government agencies requires a strategic approach. By following the tips mentioned, you’ll be able to demonstrate higher value in your products and services while standing out from the competition.
Kevin Ruef
