Running a Lifetime Deal for Established and Matured SaaS Products: Yes or No?
Running a SaaS Lifetime Deal is a great strategy to get early adopters for your SaaS product.
All you need is a Minimum Viable Product.
However, the scope of a LIfeitme Deal extends beyond just validating your MVP. With that context, many SaaS Founders may be missing out on this incredible marketing channel.
It is also one of the questions that many SaaS Founders come up with more often than we expect.
Is a SaaS Lifetime Deal Only for Early-Stage Products?
The short answer is, No. Established products can run a Lifetime Deal campaign. Regardless of your product stage, you should consider running a Lifetime Deal campaign.
There is an ongoing widespread belief that a Lifetime Deal is a good fit only for early-stage products. It is a misconception to think that you should run a Lifetime Deal only if you’re in the Beta stage, and once you’re out of the Beta stage it is not for you.
But, it is not the case in reality. And you may be severely limiting the potential of your SaaS product by limiting your choices based on external opinions.
To reiterate, running a Lifetime Deal can be beneficial for your business and your product regardless of your product stage.
Is Running a Lifetime Deal for an Established Product Practical?
The reason is that, at SaaS Mantra, we have worked with several SaaS Product that has been in the market for only a couple of months, and also product that has been in the market for more than seven, to eight years.
We have worked with both extremes. That is SaaS products from both the extremes of the development stages.
So the way we see it is, as long as you have a very clear idea of how and why you are running a Lifetime Deal, you should be going for it.
In running a Lifetime Deal, one of the key factors is to identify the core value proposition that your Lifetime Deal offers. It often starts with the purpose of your Lifetime Deal campaign.
Why Should Matured Saas Products Consider a Lifetime Deal?
You may consider running a Lifetime Deal based on how your business growth requirements align with the scope of a Lifetime Deal campaign.
It’ll help you tailor your Lifetime Deal campaign to your business needs and position your brand for a maximum ROI.
Here are a few examples of when an established SaaS product may consider running a SaaS Lifetime Deal Campaign.
1. To Get More User Feedback
Running a lifetime deal is a great way to get more user feedback on your new product features and modules.
When you offer a lifetime deal, you attract more customers who are willing to try your product and any new product features that you’re rolling out. And coming across minor bugs, if any, is not going to be a dealbreaker for them.
It is ideal for a SaaS product that already has a sustainable ARR and wants to use Lifetime Deals to get feedback about the new features from a fresh set of users.
These customers can provide you with valuable feedback that you can use to improve your product and make it more appealing to your target audience.
2. Penetrate New Markets
Running a lifetime deal can make the process easier and more cost-effective.
Expanding a business to new markets in a different geographical location can be a daunting task; even for a validated and established product.
You can use a lifetime deal to target potential customers in a new market who are using similar products or services.
For example, your product may have a wonderful set of customers from a few parts of Europe. But then, you want to penetrate into the US market, an Asian market, or the Australian and Middle East market.
So if you want to explore new markets, a Lifetime Deal could be one interesting option.
By offering a lifetime deal, a business can also establish itself as a more affordable and accessible option in new markets. Customers are always looking for great deals, and a lifetime deal can be a way to attract them to your product. In addition to attracting new customers, a lifetime deal can also create buzz around your product, which can lead to even more growth in your target market.
Another benefit of using a lifetime deal to penetrate new markets is that it can help businesses gather valuable feedback from customers in new regions. This feedback can be used to improve the product and create a better user experience for customers in different markets.
For example, a business may find that its product works better in a certain region or that there is a specific feature that customers in a certain market would like to see added to your product.
Running a lifetime deal can be a smart strategy for businesses looking to penetrate new markets.
Does Offering a SaaS Lifetime Deal Devalue Your Product?
No, offering a lifetime deal does not devalue your product.
In fact, it can be an effective way to boost the perceived value of your product.
Customers are always looking for great deals, and a lifetime deal can provide them with an opportunity to get access to your product at a discounted price. This helps make your product more accessible and affordable to potential customers, increasing its appeal.
By offering a lifetime deal you can also create excitement around your brand. It can lead to increased user engagement and loyalty.
When customers feel like they are getting a good deal on something they love, they are more likely to stay loyal customers in the long run.
SaaS Lifetime Deal for Demand Generation
A lifetime deal is a great marketing strategy for generating high demand for your product.
It is a common misconception that running a lifetime deal devalues a product or service.
While the one-time price may seem lower than the regular price, it is important to note that a lifetime deal is not designed to devalue the product or service. Instead, it is a strategic marketing move that can help generate high demand by creating a sense of urgency among your potential customers.
If you can capture the momentum of your Lifetime Deal, it is sure to give you traction on sustaining the demand even after closing the deal.
The pricing of your Lifetime Deal is also a vital factor you can capitalize on, to generate high demand and sustain it for a long period.
The Competitive Edge in SaaS Lifetime Deals
When you try to establish a user base in a new market, you might want to attract customers who could already be using your competitor’s product.
So the easiest way for them to switch to your product is by showcasing your pricing. I mean, pricing comes first. But it doesn’t mean that pricing should be your USP, but pricing comes first.
It simply gives you a competitive edge over your competitors which you can capitalize on and get an in on your potential customers.
For example, if someone is already paying $50 per month for your competitor’s product, and then you are gonna be offering, the same product, with a good set of features for $59, once or $49 one-time payment,
Your user will be happy to switch to your product, right?
That’s what happens, but that doesn’t mean that your product will be, looked under just because you are offering like at a cheaper price.
So, it is not about getting cheaper, it is about getting affordable to acquire new markets.
Even for established SaaS products with good userbase, Lifetime deals are an effective way to penetrate new markets and boost their product’s perceived value.
It can be a great strategy for demand generation and offer a competitive edge.
When considering a lifetime deal, it is important to ensure that the product is priced competitively and that the value of the product remains high. It is also important to consider the market size and scope of the potential customer base when setting the pricing.