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SaaS, or software as a service, is a business model that has become increasingly popular in recent years. In this model, companies provide access to software applications to clients on a subscription basis, allowing clients to use the software without having to install it on their own devices.
SaaS providers tend to run their digital services online-only. Even though this is very cost efficient, it’s becoming important to re-evaluate this strategy and consider moving closer to clients and markets.
As a VR SaaS company, EXP360 understands the importance of proximity for the success of our products and services. With offices in multiple countries throughout Europe and Australia, and running a global network of reselling partners, we have carefully considered the benefits of proximity in terms of communication, collaboration, trust-building, and support.
In this post, we explore why proximity matters for SaaS companies like EXP360, and how it can help to ensure the success of products and services.
Why proximity to clients still matters, even to SaaS companies
Efficient communication and collaboration
One of the key benefits of proximity to clients for SaaS companies is communication and collaboration. If a SaaS company is located close to its clients and partners, it is much easier for them to meet in person, discuss their needs, and work together to find solutions to their challenges. Additional services like in-house maintenance, customisations, or upselling possibilities are easier arranged.
Vice versa, a close proximity can help clients to better understand the features and capabilities of the SaaS offering, and can provide Saas providers with feedback.
In contrast, if a SaaS provider runs its services online only, it may be more difficult to schedule meetings and collaborate effectively, which can hinder the success of its products.
Building trust and strengthening relationships
Besides facilitating better communication and collaboration, proximity to the markets and clients can also help to build trust and strengthen relationships. When clients and partners can easily meet with a company in person, it can help to build a sense of familiarity that can be difficult to establish over long distances.
Face-to-face interactions can help to build trust and establish a rapport between the different parties, which can be critical for building long-term relationships.
Providing support and assistance
Proximity can also be important for a SAAS company when it comes to providing support and assistance to its clients and partners. When a company is located close to its clients and partners, it can more easily respond to their needs and provide timely support and assistance. This can be critical for ensuring the success of a SAAS company’s products and services.
A close proximity, for example if business partners share the same timezone, can help clients to better understand the features and capabilities of the company’s products, and can provide them with the assistance they need to use the products effectively.
The Importance of Cultural Affinity
Cultural affinity, or the shared cultural norms and values between a company and its clients and partners, can be important for the success of SaaS companies like EXP360. For global companies, it’s important for the success to be able to share, understand, and incorporate the cultural norms of clients.
By sharing similar cultural backgrounds, SaaS providers can better understand needs and preferences. Support and assistance is tailored to specific requirements, and embarrassing mistakes in 1:1 human interaction can be avoided. Besides, if a service provider and its clients speak the same language, communication runs much easier.
Cultural affinity can also help to foster a sense of partnership and collaboration between EXP360, its partners as well as its clients. By sharing similar cultural backgrounds, EXP360 and its clients and partners can more easily work together to develop tailored solutions. This can help to build stronger, more collaborative relationships that are essential for the success of a SaaS products.
Build a partner network to extend your markets and gain expertise
Establishing a global network of reselling partners can be beneficial for SaaS companies in several ways.
First, it can help to expand the reach of a SaaS company’s products and services to new markets, regions, and clients.
Second, a global network of reselling partners can also help to increase the expertise and knowledge of a SaaS company’s products and services. By partnering with resellers specialise in specific fields, a SaaS company can gain access to a wealth of knowledge and expertise that can help to improve its products and services. This can be crucial for a SaaS company that is looking to expand into new industries or markets.
Third, a global network of reselling partners can also help to build trust and credibility for a SaaS company. By partnering with resellers who are well-respected and trusted in their respective fields, a SaaS company can gain credibility and trust among its clients and partners.
How to build proximity to clients and markets?
There are several ways that SAAS companies can build proximity to their clients. Here are a few potential strategies:
Establish physical offices in the same region as clients
Opening new offices in new regions can be challenging. Legal challenges need to be overcome, staff needs to be hired, and real estate is important, too. Considering acquiring (M&A) an existing entity is a shortcut to establish a physical presence in new regions.
Build a global network of reselling partners
By partnering with resellers located in the same region as its clients, a SaaS company can more easily gain access to new markets and customers. This can be achieved with an attractive partner program.
Invest in remote communication and collaboration tools
Even if a SaaS company is not located in the same region as its clients, it can still build virtual proximity through the use of remote communication and collaboration tools. By investing in tools like video conferencing and virtual event software, a SaaS company can better communicate and collaborate with its clients.
Overall, there are several ways that SAAS companies can build proximity to their clients. By establishing physical offices, building a global network of reselling partners, and investing in remote communication and collaboration tools, a SAAS company can more easily understand its clients' needs and provide effective support and assistance.
SaaS companies tend to run their services online and remotely. Considering the role of proximity is critical in times where personal interaction beats any video conferencing.
By being close to its clients, a SaaS company can better understand their needs and provide effective support and assistance.
Additionally, establishing a global network of reselling partners specialising in different fields as the client can further support a SaaS company in its proximity to its clients.
Overall, considering proximity is an important factor for the success of SaaS companies, and should be considered carefully by companies in this industry.