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The overlooked success factor for SaaS companies
CEO Briefing #5

The overlooked success factor for SaaS companies

The overlooked success factor for SaaS companies
Short answer

For SaaS companies, adoption matters more than implementation. The technical rollout is the easy part; the real challenge is getting the customer’s team to use the software daily, which means changing human behavior. One idea: run an engaging kickoff workshop for a small group of early adopters who become internal ambassadors and drive adoption across the company.

Software implementation is too often understood as a purely technical challenge. And this is exactly what too many SaaS companies get wrong.

The technical part of implementing software on your client’s side is the easy part of a software project. The true and very often overlooked challenge is getting your customer’s team to adopt and regularly use the new software.

Adaptation > Implementation

This may seem an obvious observation, yet it's a critical factor behind the underperformance of many SaaS products.

SaaS implementation should focus more on transforming users' daily routines so that they not only accept the new software but truly believe that it makes their lives better, making it a non-negotiable part of their daily routine.

Sustainable success lies in changing a team’s behavior, which means changing human behavior, enabling the software to deliver on its promise and drive tangible improvements in your client's company.

It doesn’t matter if you have the best SaaS product in the world if nobody uses it.

Humans naturally resist change, especially when overwhelmed with our day-to-day tasks. Overcoming this instinctive bias against new processes is where many software companies stumble.

Managing this change is crucial for long-term customer retention and increased lifetime value.

The key question is, how can we, as SaaS providers, help our clients overcome this adaptation challenge?

Here’s one idea – create internal “influencers/ambassadors” for your product.

Let me explain by using a real-life example:

A few years back, I conducted a workshop based on my COUP (Commandments Of Outstanding Presentations/Pitches) framework for Microsoft and LinkedIn employees in Munich. We limited this to 100 people, although there was a much higher demand than that.

And now, many years later, the core 100 people, let’s call them early adopters, who got this training are still talking about how it impacted their lives, thus creating demand within the company.

Even today, years after the training, I have people from Microsoft and LinkedIn reaching out to me saying: ”My colleague attended the COUP workshop, I would like to learn about it, too”.

The early adopters have basically become COUP ambassadors within those companies.

How can you implement this with SaaS and services?

One way could be by conducting a fun, engaging, and super valuable kickoff workshop for a small select group of employees that will be the early adopters and soon-to-be your product “influencers/ambassadors”.

By starting with a small, enthusiastic group, you can focus more on creating real change in these people’s lives. If you can make the early adopters more productive and successful with the help of your software and a kick-off workshop that equips them with skills to get more value out of the software – then in return, it will create a ripple effect of adoption and acceptance across the company.

If you can innovate and find unconventional ways to make your SaaS a fully adopted daily tool within a company, you will quickly set yourself apart from the competition, increase customer retention, and your customer lifetime value.

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Episode page with show notes on id.vc

Frequently asked questions

Why do many SaaS products underperform?

Because implementation is too often treated as a purely technical challenge. The real challenge is getting the customer’s team to adopt and regularly use the software.

Why does SaaS adoption matter for retention?

It doesn’t matter if you have the best SaaS product in the world if nobody uses it. Managing the change in user behavior is crucial for long-term customer retention and a higher customer lifetime value.

How can SaaS companies drive user adoption?

One idea is to create internal ambassadors: run a fun, engaging and valuable kickoff workshop for a small group of early adopters, make them more productive with the software, and let them create a ripple effect across the company.

Is there an example of internal ambassadors at work?

After Iskender ran a COUP presentation workshop for 100 Microsoft and LinkedIn employees in Munich, those early adopters kept talking about it for years, and colleagues still reach out to him asking for the same training.

Iskender Dirik
About the author

Iskender Dirik

CEO advisor for fundraising, exits and executive branding. Venture Partner at EQT Ventures, previously led the global Gen AI practice at Samsung NEXT and was Managing Director of Microsoft ScaleUp. Host of DEALMACHER, the podcast with the dealmakers who sat at the table when big capital moved.

EQT VenturesSamsung NEXTMicrosoft ScaleUp
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