I have had some great customer service interactions this week from the comfort of my home office at incredibly odd hours of the day.

I had mentioned in a previous post awhile back that I used to be concerned about answering email inquiries outside of office hours for the fear of being seen as “unprofessional” or “amateur”, or worse yet, to be uncovered by my customers that I work from home. 

It seems like working from home has worked well for servicing our clients.  We noticed that in our target market, many people sign up and log in outside of normal business hours.  If I can make the assumption that most of our clients are self-employed or small business owners, this would make perfect sense.  The other day, I was doing my own bookkeeping from 10 pm to 3 am on a Saturday night er…morning… and my web analytics are showing me that most of our clients actually prefer to do their bookkeeping at night or on weekends (strangely enough, no one else works at 3 am though).  I also feel that there is more authenticity in my responses because I am in my own element.  I guess there goes the idea of “work life balance” (which I think is a total myth by the way). 

One time, due to pregnancy related heart burn, I got up at 6 am to drink some soy milk.  I thought I would take this perfect opportunity to check my email and how many new sign ups I’ve got (I wake up to new sign ups on a daily basis and this makes interrupted sleep that much more fun) when I noticed an email inquiry from someone in Eastern time.  6 am my time was 9 am their time and their work day has already started.  Needless to say, the person who sent the email was pleasantly surprised and impressed at my “excellent customer service”.  Another time, a client who just signed up wanted to know how to enter multi-currency transactions in our accounting software.  It was around 7 pm at in the evening when I got a help inquiry and I was able to provide a response within 16 minutes of receiving the inquiry.  I even got a reply from this new client saying “You guys rock”.  This could not have been possible if I was working during “normal” business hours.  I have even been responding to email inquiries from Japan at 11 pm with much appreciation from the client.

One thing I am beginning to realize is that our clients do not work during normal business hours and neither should we.  If I could speak to the decision makers of large companies, I would suggest they consider allowing their workforce to work from home.  Give each support staff an iPhone / Blackberry so they would be delighted to receive emails at all hours of the day.  Responding quickly and authentically to client support inquiries seemed to be more useful than looking productive during office hours.

That’s all I have to say for now.

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Let me get the record straight, I do not consider myself and expert in marketing.  The good thing about being the owner of my own business, is that I can give myself whatever title I want. 

Now that we have the disclaimer out of the way, here are some of my thoughts and insights about marketing for SaaS applications - both as a result of working on our small business accounting software as well as observing what other people are doing.

Offline Engagement for Online Software?

The world of operating a business online is relatively new.  While it has been around since the 1990’s, it cannot compare to centuries of merchant activity offline.  Some of the questions we were considering when we first started developing Clarity Accounting was: how are we going to market an accounting software?

This was back at the end of 2007 when we sat down to have a discussion with the possible founders.  When we first started, there were 3 of us, one backed out because he couldn’t see a clear marketing model and didn’t see this project to be worthwhile to commit to (this will have to be discussed in a separate blog post about forming the core team of a startup company).  Initially we thought that the best way to market an accounting software was to go after the accountants and bookkeepers.  This seemed like a really good idea.  We thought, each accountant / accounting agency may have up to 100 clients (or more) and if we can enlicit 10 of these agencies to use Clarity Accounting, we can gain 1000 clients!  Marketing was going to be EASY! 

Until…

The grim reality sets in — Accountants Can’t Sell.

I remember meeting Wayne Zielke, owner of Ledgers Online, and having a discussion with him about the possibility of engaging accountants in the sales process when he broke the news to me.  Surely this could not be true.  Look at Intuit! They have the largest network of “Quickbooks Advisers” actively promoting their software, how can this not work?  Recently in a panel discussion, the person in charge of Quickbooks Online said, “There are 25 million users of Quickbooks, 1 million of which are accounting professionals…”, leaving door open to 24 million other users.

Using the traditional offline approach of establishing sales channels hasn’t really worked that well for us as a startup company so far.  Maybe we just haven’t been around long enough to gain the credibility necessary to secure those sales channels.  What I understand about the offline world is that it is about building relationships — leading to a longer sales cycle.  With our price point of $10 / month, it has become clear to us that this method of gaining customers would not be a good use of our time and resources.

I have seen several companies attempting to use offline strategies to distribute online software and I find that these companies simply ended up spending too much time and resources trying to build those offline relationships.  The online world is a place where people go to “skip the middle man” and clients appreciate having a direct connection with the vendors who are providing the products and services.

There is no doubt that there is a market for offline products and services.  When I go to networking events, most people have never heard of the idea of using accounting software that is hosted online.  Almost all the small business owners I have met have not even thought this was possible or available in Canada.  Software as a Service is still a relatively new phenomenon, most users are still considered to be “early adopters”.  Trying to convince them to use online software to deal with their financial matters is like trying to pull off an arm or a leg.  However, I do think there is hope as people are becoming more and more comfortable with banking and purchasing products and services online.

Online Engagement for Online Software

This is the path many software as a service companies have taken in an effort to increase subscribers and users.  Based on the success of some of the companies I have seen so far such as Salesforce and Freshbooks, many businesses are jumping on the online bandwagon.  Social media tools have the astonishing effect of pulling together people with similar interests who otherwise would have been strangers.  People who are actively engaged online are more likely to utilize products and services that are hosted online.  I do find the online world to be increasing saturated, but i don’t think it is nearly as saturated as the offline world.  Someone approached me today about the possibility of doing “print advertising” to promote our online accounting software and I thought to myself, “are they joking?”.  I replied saying, “if you can give me some compelling reasons why I should consider print advertising over spending my marketing budget on internet marketing, I’m all ears!”.

Once upon a time I thought most of these people who are actively engaged online are young people (3 to 25 years of age — that’s what I would consider young), but now I am seeing a much older crowd being interested in online applications — people in their late 30s to mid 40s.  If you feel offended by this statement, please try to understand that I am 28, therefore, people who are older than 35 are “old” and younger than 25 are “young”. 

Long story short, I still think online engagement is where online businesses should focus their attention.  This is especially true for startups on a limited marketing budget.  Offline engagement should be considered when some level of brand recognition and credibility have been established.  Even then, I still think leveraging the power of the internet provides the best bank for the marketing buck.

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What’s new?

• Simplified the “sign up” page - no more security code, no extra referral field
• Simplified the “create your first business” and “business profile” pages - no more time zone, first name, or last name are needed; there’s also some helpful notes with that page to make it easier to decide what to fill in
• Behind the scenes, the way dates are stored has changed so that the time zone is not relevant when running reports
• Selecting “remember me” during login will remember you for 30 days, up from 5 hours

As always, we’d love to hear your feedback and suggestions about the application, which is why we have feedback links on the website and in the application.

Bookmark this post:

• Learn more about Clarity Accounting
• Try a demo
• Sign up for a 30-day free trial
• Log in to Clarity Accounting