How to Checkmate in SaaS with the Power of Free

Written by JohannesTurunen | Published 2024/10/23
Tech Story Tags: saas-startups | saas-marketing | help-desk-software | saas | marketing-strategies | growth-hack-marketing | growth-hack | hackernoon-top-story

TLDRLearn how to checkmate your competitors in Saas with the Power of Free. Case Study included!via the TL;DR App

Thereā€™s no such thing as a Free lunch.

But what if thereā€™s a thing called Free launch that gives youā€¦

A) better features than your major VC-funded competitors

B) unlimited usage

C) an impression that the founders must be out of their mind?

And what if they use COMPETITORS BRANDING in their MARKETINGā€¦

ā€¦and get a notice from a competitorā€™s legal team as a result?

I donā€™t know about you but to most people his might seems like an risky-bold-orangutan move to start your SaaS with.

Especially if the founders are playing with the own money and have 100% skin in the game.

But letā€™s see why itā€™s actually brilliant & likely leads to a CHECKMATE:

So there are several things going on here that I like:

  1. Founders mean real people, and theyā€™re going against VC funded big boys.
  2. FREE after FREE vs paying several hundred dollars per month
  3. The reference to competitors as incumbents (anyone with a permanent vacancy in a market is likely to get too comfortable in time)

So my limbic brain is now on overdrive with dopamine - I need to justify taking action with some logic:

This is pretty much all the logic I need.

But Iā€™m a true skeptic soā€¦

ā€¦if Iā€™m a user in one of these incumbentsā€™ platforms - how do I know that this is the real deal?

I need to check if others have successfully migrated to this platform.

PLUS I donā€™t trust any reviews on companyā€™s own testimonial sites if theyā€™re not in video format. (Commslayer, this is your CTA. Faces are good, videos are better - combined in building social proof they do MAGIC for conversion rates)

So I have to check 3rd party sites like shopify app store.

(I get reminded where Iā€™m coming from on their website btw)

I click on that ā€˜Install on Shopifyā€™ -button and hereā€™s what I find:

My conclusion is theyā€™re still in the early stages in terms of customer adoption.

So we might need a larger simple size to make a more detailed analysis.

But we can also dive into the quality of the reviews.

One of them, from ā€˜bldblzā€™ (US), reads as follows:

ā€˜ā€˜Was evaluating this vs Gorgias and the value and product offering this has is leaps and bounds better for a way better price. If you're looking for a customer support platform with all the essentials you need, look no further than Commslayer! If I could give this 100 stars I would!ā€™ā€™

100 stars is 20X than whatā€™s allowed, so this user must be pretty happy.

Letā€™s check another one, this time from Patina (DEN):

I was about to write "by far the best value for money support platform," but that seems silly when it's totally free.

So, instead, I'll just write that it's the best support platform of all the platforms we've used, and we've been through a few: both Gorgias (too expensive), Re:amaze (buggy UI), and DelightChat (also buggy UI). CommSlayer is my favorite ā€” by far.

My current favorite feature is the Superhuman-like keyboard shortcuts that allows me to go through tickets blazingly fast

Both of these are what I would call raving fans in marketing lingo.

Maybe this is the real deal?

One thing is for sure in SaaS:

People canā€™t resist the Power of Free if your offer is GOOD.

And it seems to be the case here:

Now migrations are typically PITA (pain-in-the-ass).

You donā€™t want to do one unless you absolutely have to.

But it doesnā€™t come to me as a surprise by now thatā€¦

smoothing this pain is covered on the migration page as well:

This strategy is straight out of Alex Hormoziā€™s playbook with a nice SaaS twist:

  1. Give more value to the market than anyone else, for free.
  2. Mock people who charge ridiculous amounts for products that you give away for free
  3. Delay making money as long as you can while you keep giving value and serving your core market

Prediction:

Competition intensifies (but is it competition if some alternatives are Free???)

A flood of Shopify merchants will migrate from incumbents.

This is a CHECKMATE move with the Power of Free in SaaS Helpdesk niche.

Well played!


Written by JohannesTurunen | Curious & analytical mind exploring strategy games
Published by HackerNoon on 2024/10/23